Support from Federal Minister for education and dispute resolution approach welcomed by Franchise Council of Australia

The Franchise Council of Australia has welcomed recent comments by the Minister for Small Business, Senator Nick Sherry that reaffirm his commitment to assurances he gave to the franchising community in October 2010.

Addressing his first national Small Business Forum since being appointed Minister at the last Federal election, Senator Sherry has once again stated his support for a moratorium on changes to the Franchising Code of Conduct until at least 2013.

He also again rejected calls from some State backbench MPs for the introduction of State-based franchising laws.

In response to the issues raised by the recent State-based initiatives in WA and SA, Senator Sherry nominated enhanced dispute resolution as an area the Government was willing to explore.

Senator Sherry also acknowledged that education was a key element to reducing disputes and supporting their quick and effective resolution.

This enhanced education and dispute resolution approach is in agreement with submissions made by the FCA in recent months to Governments in Canberra, Brisbane, Perth and Adelaide, and is an extension of the FCA submissions provided to the Franchising Inquiries in WA, SA and Federally in 2008 and 2009.

FCA Executive Director Steve Wright said that the Federal Government is right in sticking to its guns and rejecting calls for any immediate changes to franchising legislation.

“Senator Sherry has today repeated the message, that after extensive examination of the issues by Government and trade practices legal and academic experts, the Government is convinced that State-based intervention is unnecessary and likely to create instability and added costs in franchising,” he said.

The FCA welcomed the opportunity to proved feedback to the foreshadowed policy paper.