SMALL BUSINESS — TRADING
358. Hon LYNN MacLAREN to the Minister for Small Business:
(1) What has
been the impact of the global financial crisis on small businesses in Western
Australia in terms of closures and profits?
(2) How is
Sunday trading projected to impact on small businesses with particular
reference to increased competition from large businesses?
(3) Will the
minister please provide details of —
(a) the number
and type of inquiries directed to the Small Business Commissioner since his
appointment in December 2011; and
(b) disputes
mediated by the Small Business Commissioner with details of the outcome of each
mediation?
(4) In
relation to unrestricted trading hours in special precincts, is there evidence
in the track record of the Small Business Commissioner to date that his office
will be effective in protecting small businesses that do not wish to open on
Sundays?
The PRESIDENT: That is a very detailed question.
Hon
SIMON O'BRIEN replied:
It is all right, Mr President; I have a very detailed answer!
I thank the honourable member for notice of the question.
(1) It is
difficult to answer this question with certainty. There is no doubt that,
anecdotally, some small businesses in Western Australia have been negatively
impacted by the global financial crisis in terms of business closures and
profits, but other small businesses have grown or moved into new markets. It is
also misleading to rely on and draw conclusions
from reports and statistics about business closures, such as the
Australian Bureau of Statistics data on counts of Australian businesses,
including entries and exits. When the Australian Bureau of Statistics refers to
business exits, this does not necessarily mean business failures; there may be
a number of other reasons why a business event has occurred, including events
relating to selling a business, for example, due to an owner or operator
retiring, changes to the structure of a business due, for example, to a merger
or takeover activities et cetera. Such events may result in one or more
business exit events occurring and, in some cases, no net loss of businesses.
(2) The
Liberal–National government has introduced legislation to allow Sunday
trading for all shops in the Perth metropolitan area. This will correct present
market distortions between those general retail shops located near to but
outside special trading precincts and those within precinct boundaries and
produce a fairer and more equitable market place for both traders and
consumers. I look forward to the legislation passing through this house and
giving the people of Western Australia the choice they deserve.
(3) The
Western Australian Small Business Commissioner commenced on 17 January and the
alternative dispute resolution service, which is overseen by the Small Business
Commissioner, commenced on 26 March. The ADR service is a phased approach with
the initial phase involving the provision of information and advice to enable
the parties to resolve the dispute themselves. If required, an inquiry is
escalated to a case manager within the Office of the Small Business
Commissioner, who will investigate the issues and use a variety of methods,
including guided resolution and formal mediation to assist with the resolution
of the dispute. Between 26 March and 8 June more than 700 dispute-related
inquiries have been received by the Small Business Commissioner.
I refer the member to an answer I
provided yesterday to a question on a similar matter asked by Hon Kate Doust.
The types of disputes presented include non-payment for services or goods,
market rent review, alleged misrepresentation, overpayment of outgoings,
repairs and maintenance, alleged faulty disclosure statements, local government
planning. Fifty-one inquiries have been escalated to a case manager with the
following results: 14 resolved, seven in an advanced stage nearing resolution,
16 in an early stage or ongoing, 14 closed for a variety of reasons.
(4) Protections
are already in place under the Commercial Tenancy (Retail Shops) Agreements Act
1985 and the Retail Trading Hours Act 1987 to prohibit landlords from forcing
retail shop tenants to open at specified times.