OFFICE OF THE PRIME MINISTER
CANBERRA
The Prime Minister has sent the following letter, dated 7 July 1995, to Mr Christopher
Edwards, Chairman of the National Small Business Forum.
Over recent months issues affecting small business have become a particular
focus for community and media attention.
Sma business operates within an especially competitive and dynamic
environment and from time to time decisions of various Governments can have a
significant impact on operations. Interest rates and inflationary pressures are
probably the most important macroeconomic matters for small business and in
that area I am proud of my Governent's achievements. But, at any point, there
will always be a range of more specific concerns facing small business and,
accordingly, Senator Schacht, the Minister for Small Business, keeps me well
informed on the issues raised at the Small Business Forum.
One of those issues recently has been the legislation relating to unfair dismissals.
I was pleased that the Government was able to announce the proposed changes
to the unfair dismissals provisions of the Industrial Relations Act in the lead-up
to the Forum held in June. I have been told that the proposals were well
received by the members of the Forum and I am glad that we have been able to'
respond to the concerns of the sector.
A cooperative approach has been pursued by the Minister for Industrial
Relations, Laurie Brereton, in consultation with his State counterparts, the
ACTU and members of various employer groups. This demonstrates that the
Government is committed to ensuring that not only do we have a system which
provides workers with fair protection, but also an environment which is
conducive to pnivate sector activity and employment growth. We are confident
that the new unfair dismissal arrangements will mean that the system is
reasonable and balanced for both employees and employers.
It was also with the interests of small business in mind that the Government
introduced the Corporate Law Simplification Bill. Its essential motivation is to
reduce both the paperwork burden for small companies and the cost of
compliance with Government regulation.
I was disappointed, therefore, that the Senate failed to pass the Corporate Law
Simplification Bill during the final week of the Budget session. The Government
is commnitted to providing easier and cheaper access to the legal system for small
business, and the provisions contained within the Bill would have done just that. 205
It is difficult to understand why the Opposition prevented the passing of the
legislation, especially when it knew that failure to pass the Bill in time for
commencement at the start of the 1995/ 96 financial year would delay
implementation of the legislation for a significant time. If I was in small business
I would be wondering why Mr Howard and the Coalition have chosen to deny
small business access to a simpler and cheaper legal system until at least I July
1996. This action punishes around 850,000 small businesses in Australia and
contradicts starkly the Opposition's claims to be red-tape cutters and to have a
special concern for your sector.
I welcome the role the Small Business Forum's continues to play in raising
matters of concern and exploring avenues to address them. Your discussions
with Senator Schacht form a valuable input into the Government's current
consideration of our response to the Gardini Review of the Franchising Code of
Practice as well as options for addressing small business concerns with
' unconscionable conduct' as it relates to the Trade Practices Act.
I understand that the Small Business Forum now has an agreed position
concerning the effectiveness of the ' unconscionable conduct' provisions of the
Act, and has called upon the Government to consider strengthening the
provisions. Given that this has been a particularly difficult issue for the Forum to
deal with, this should be seen as an important achievement.
The Government will seek to ensure that a cooperative and responsive approach
is adopted in addressing both the Franchising Code of Practice and the issue of
unconscionable conduct. We seek solutions which will enhance the business
environment for small and medium enterprises. That is, after all, our common
objective. ENDS
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