Franchise sector’s agenda for new Labor Govt - FCA’s ‘checklist’ for Emerson announced
“There are many challenges ahead for the new Labor Government and addressing the needs of the franchising and small business sector is an important one. We already have a good working relationship with Mr Emerson as Shadow Minister and are keen to continue building on that relationship.
“During the campaign, there were promises made and the FCA will be keeping tabs on their progress. In the short term, we want to make the FCA’s agenda clear regarding several key issues,” O’Brien said.
Franchising Code of Conduct amendments
The Minister has informally flagged further minor amendments to the Franchising Code of Conduct, including an oblique reference in relation to the issue of “good faith”. Proposals to legislate for a good faith obligation have been previously rejected as inappropriate, so any amendment in this area would be a major policy change. While the FCA supports amendments to reflect any uncertainty created by Code drafting, existing substantive amendments should be given time to be absorbed by the sector, as after extensive consultation the Matthews Inquiry has only just been completed with recommendations being legislated on 1 March 2008.
Clear consultation regarding the SA and WA Governments franchising inquiries
The FCA believes the Rudd Labor Government has a unique opportunity holding power Federally and throughout State and Territory Governments to create a national level playing field for business, remove unnecessary over-regulation and simplify the way national organisations do business across borders. The recently announced WA and SA State inquiries into franchising are a classic example of duplication of effort and cost. Franchising is already heavily regulated at a Federal level and is conducted as a business system nationally. There would be no issues experienced in WA or SA different from the rest of Australia. The FCA can see no reason to justify the establishment of these inquiries, particularly when there is a Minister for Red Tape and a push to reduce and harmonise legislation on State and Federal levels.
Roll back of WorkChoices – need clear timeframes
Many retail and food franchise outlets rely on trading over extended hours in local neighbourhoods to provide great service how and when the customer wants it. They require flexibility in their employment agreements to provide this service and to remain competitive in their working conditions. Rudd has promised to keep the Australia workforce fair and flexible - the FCA would ask that any changes to the WorkChoices legislation be ‘pro-growth’ and ask to be consulted if there is a roll-back of the unfair dismissal laws.
Call for subsidy on broadband access for small business
The FCA asks Mr Emerson to work with Stephen Conroy and his portfolio of Broadband, Communications and the Digital Economy to look at subsidising broadband to small business. Without the cost barriers associated with broadband take-up, small business would also be able to access a greater range of government information and services without fear of the line dropping out, tying up existing phone lines or losing patience with the lag in accessing websites and downloading multimedia. As tax collectors for the Government, the burden is already heavy on small business and greater access to costeffective broadband would be one step in the right direction to help reduce ‘red tape’.
Franchising in Australia represents a dynamic and entrepreneurial small business sector with franchisees employing some 600,000 Australians within over 72, 000 workplaces. The FCA represents this part of the economy.
19.12.2007
FCA Member
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