Franchise Council of Australia welcomes comments from Small Business Minister

Speaking at the Franchise Council of Australia ’s recent National Franchise Convention, Small Business Minister Nick Sherry has said that the franchising sector should be spared further regulatory intervention until at least 2013.

Using the franchise advisory board’s annual convention as the venue for his maiden presentation as Small Business Minister, Mr Sherry reiterated the guarantee made by former Small Business Minister Dr Craig Emerson.

Dr Emerson promised the sector three to five years of regulatory stability after delivering changes to the Franchise Code of Conduct in July, and Mr Sherry has confirmed that the Government does not intend to review the Code again before 2013.

While answering questions from the floor, Mr Sherry also spoke up against proposed state-based franchising laws in South Australia and Western Australia.

Mr Sherry said that adopting state-based laws, in a country of nationwide regulation, compounds complexity, is inefficient and is just bad governance.

National regulation is a simpler approach, he stated, noting that this had been the agreed approach of the states under the previous Government, and that the Gillard Government had no intention of changing tack.

The national franchise advisory body has welcomed his comments. FCA Executive Director Steve Wright says that they are a positive reiteration of confidence in the vibrant franchising sector.

“Franchising is a $130 billion sector earning export income of about $300 million. The moves planned in South Australia would only drag that number down and undermine investment in a $9 billion sector of great importance to the State’s economic future, so it is good to know that the Federal Government recognises that and will do what it can to stop the SA Government making an easily avoidable mistake,” he says.