BUSINESS TO OPPOSE PARENTAL LEAVE LEVY
Monday 8 March 2010

Statement by Mr Peter Anderson, Chief Executive

Today’s proposal by the Leader of the Opposition to impose a new levy on larger businesses to fund a paid parental leave scheme is an unfair impost which will not be well received by Australian employers.

Taxing businesses to fund social policy is double counting given that employers already contribute substantially to Commonwealth revenues.

Doing so for paid parental leave purposes is contrary to independent analysis released by the Productivity Commission which found that schemes such as these should be funded through general revenue given that the primary beneficiaries are the employees concerned rather than their employers.

Business will seek further information from the Opposition but will not support a tax on business of this type, nor a bidding war between Government and Opposition at the expense of the business bottom line.

For further information:
Peter Anderson Chief Executive 0417 264 862
Brett Hogan Director of Communications 0407 273 884

NEW VISIBILITY FOR AUSTRALIAN PRODUCTS
Friday 5 March 2010

Statement by Mr Peter Anderson, Chief Executive

The Australian Chamber of Commerce and Industry (ACCI) welcomes the launch of Australian Made Media (AMM) today.

AMM is an initiative of the Australian Made, Australian Grown Campaign which promotes goods produced by Australian industry and agriculture. AMM is a new communication platform which will see new advertising campaigns to generate new visibility and awareness of locally made products carrying the campaign’s distinctive green and gold logo.

Research shows that consumers have a strong affinity with locally made products but sometimes struggle to locate these products on supermarket shelves. AMM will help overcome this information gap and support the businesses and jobs of Australians.

AMM advertisements will feature workers involved in the production of local products and will emphasise the emotional reasons for consumers to support Australian businesses and jobs.

ACCI is a founding member of the Australian Made, Australian Grown Campaign and commends the AMM initiative to industry and consumers.

For further information:

Peter Anderson Chief Executive 02 6273 2311 / 0417 264 862

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

MORE INVESTMENT IN SKILLS NEEDED
Friday 5 March 2010

Statement by Mary Hicks, Director of Employment, Education and Training

The Australian Chamber of Commerce and Industry (ACCI), Australia’s largest and most representative business organisation, has called on the Australian Government, education providers, and the business community to focus on long term investment in skills, as Australia emerges from the current global economic downturn.

ACCI’s Employment, Education and Training Policy Director Mary Hicks made the call at the launch of the Skills Australia report Workforce Futures.

“Australia’s future productivity will depend on a reliable supply of skilled workers. In particular, co-ordinated measures will need to be taken to increase the numbers of apprentices and to encourage their completion. ACCI research indicates that employers can make a big difference by taking a systematic approach to the retention of apprentices” Ms Hicks said.

A systematic approach should focus on:

attracting the right person;
recruiting and inducting good apprentices;
making work and training meaningful;
providing personal and professional support;
providing effective training; and
making full use of information and support services.
ACCI congratulates employers and the Australian Government on achieving the goal of 21,000 apprenticeship enrolments during this last summer period. It is a demonstration of the value of incentives to employers and has helped to limit possible youth unemployment as the economy recovers.

“As Australia emerges from the global economic downturn, skills shortages will become more acute.”

This is already evident in Western Australia and some sectors and regions. In particular, resources projects will require an ongoing supply of work-ready employees with relevant technical skills.

The success of the Australian Government’s Apprentice Kickstart program shows what can be achieved when business and government work co-operatively to boost skills.

For further information:

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

Mary Hicks Director, Employment Education and Training 02 6273 2311 / 0417 488 566

BCA President Graham Bradley welcomed the Prime Minister’s leadership in embarking on this important area of national reform, and for acknowledging that health funding must deliver better health outcomes and greater accountability, not just savings.

“Improving hospital effectiveness is a major piece of the health reform puzzle. It must now form the basis for a broader reform agenda that supports better governance of the entire health sector. Health must be seen as a critical area for microeconomic reform alongside other areas such as regulation and infrastructure,” Mr Bradley said.

Read the full statement at:

http://www.bca.com.au/Content/101658.aspx

For further information, visit our website at www.bca.com.au.

Statement by Mr Peter Anderson, Chief Executive

Today's announcement of a new national health and hospital funding framework signals a significant reform to Commonwealth / State financial relationships in an area of service delivery that warrants national co-ordination given the significant call on Commonwealth funds and future GST revenues.

“Whether health services are delivered by the Commonwealth, States or regions, it is in the interest of taxpayers for those being funded and delivering these services to have their funding tied to efficiency in service delivery.”

The business community contributes significantly to Commonwealth revenues that fund health and other community services. The establishment of the National Health and Hospital Network, while a difficult political task, holds the prospect of bringing structure and greater accountability to the call on taxpayer funds.

Raising business or personal taxes at a State or Commonwealth level to fund health services would be damaging to the economy. Rather we should look to fund our current and future health needs through revenues from a growing economy, through incentives for private coverage and through efficiencies in service delivery and reduced duplication in the public and private systems.

For further information:

Peter Anderson Chief Executive 02 6273 2311 / 0417 264 862

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

CAUTIOUS WELCOME FOR NATIONAL ACCOUNTS DATA
Wednesday 3 March 2010

Statement by Mr Peter Anderson, Chief Executive

The December 2009 national accounts released today confirm ACCI business surveys which are tracking an emerging recovery and stronger business sentiment over the quarter.

While industry is pleased with the return to growth during 2009, a closer analysis of today's data presents a reality check.

Much of the growth in the December quarter is directly attributable to public and private investment, which was heavily supported by government stimulus (the schools building program, first home owners grant and the investment allowance). That stimulus is progressively being expended, and in the case of the home owners grant and investment allowance has already ceased. In addition, monetary policy stimulus is being withdrawn, with recent interest rate increases leaving the cash rate just shy of the neutral range.

“Growth in the December quarter was fueled by government stimulus and even then growth is uneven across the economy. With government stimulus working its way out of the economy and with four interest rate rises in six months, our expectations for the March 2010 quarter need to be tempered. There is no basis to assume that the December 2009 quarter growth carried over into the 2010 as a matter of course.”

“A clearer picture of the true health of the economy will emerge during 2010 as government stimulus recedes.”

For further information:

Peter Anderson Chief Executive 02 6273 2311 / 0417 264 862

Greg Evans Director, Economics & Industry Policy 02 6273 2311 / 0407 204 559

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

RATE DECISON A HEADACHE BUT UNDERSCORES STRENGTHENING ECONOMY
Tuesday 2 March 2010

Statement by Mr Peter Anderson, Chief Executive

Today's decision by the Reserve Bank to increase the cash rates by 0.25% to 4.0% reflects improving conditions in the economy but will be an unwelcome headache for business owners in sectors slow to recover from the economic downturn.

The Bank's desire to head off inflation and avoid potentially steeper future rate rises will only be achieved without cost to jobs if governments and regulators take pressure off other business costs such as energy and labour.

ACCI cautions that key aspects of the recovery are still uneven, with parts of manufacturing and the services sector facing difficult trading conditions. For many in commercial property, tourism and hospitality, particularly in regional centres, the outlook remains subdued. This rate hike will add to the pressures they are facing.

It is also apparent business credit remains weak and while there has been some improvement in business investment this will need to be sustained following the withdrawal of the investment allowance.

The frequency of future rate adjustments may need to be slowed should growth not improve as forecast.

For further information:

Peter Anderson Chief Executive 02 6273 2311 / 0417 264 862

Greg Evans Director, Economics & Industry Policy 02 6273 2311 / 0407 204 559

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

INTEREST RATE INCREASE IS A SIGN OF RECOVERING ECONOMY SAYS BUSINESS
Tuesday 2 March 2010

NSW’s largest business organisation, NSW Business Chamber, said the decision of the Reserve Bank to raise interest rates today was expected and is further confirmation that the Australian economy is emerging from the GFC relatively unscathed.

“Let’s not shed crocodile tears over the fact that the Australian economy is recovering from the GFC which means, as a consequence, that interest rates are returning to more neutral levels,” said Stephen Cartwright, CEO of NSW Business Chamber.

“No one likes rate increases, particularly when not every part of the economy has fully recovered from the GFC, but the case before the Reserve Bank to return rates to more neutral settings is appropriate given the strong performance of the Australian economy. It should, however, be noted that NSW, which does not have the benefit of a large resource sector, has an above average exposure to interest rate increases due to property prices.

“It is appropriate and right for the RBA to move interest rates to a setting that allows the Bank to respond quickly to any subsequent external shock. Whilst we are all enjoying below average rates, we know these rates can’t last in an economy which is experiencing recovery.”

The arguments for a rate increase were strong: ? The national unemployment rate decreased 0.2 pts to 5.3% in January.

Employment in January increased 0.5% or 52,700, with full-time employment increasing 15,900 and part-time employment increasing 36,900. Total new capital expenditure rose 5.5% in the December quarter. A result largely driven by expenditure on equipment, plant and machinery, which rose 12.4% in the quarter. New home sales increased by 9.5% during January. “We are also seeing significant increases in property values, record levels of business confidence and significant increases in equity prices”, Mr Cartwright said.

“Whilst some businesses are still under pressure, it is fair to say that overall the Australian economy is bouncing back.

“Business recognises that the Reserve Bank, for the sake of prudence, needs to increase official rates to ensure that it can respond quickly to any potential further external shocks.”

For more information contact Paul Ritchie on 0416 9077 976

BUSINESS WELCOMES $1 BILLION SALES OF NSW LOTTERIESI
2 March 2010

NSW’s largest business organisation, NSW Business Chamber, has welcomed the $1 billion sale of NSW Lotteries as a good result for the taxpayers of NSW.

“NSW Business Chamber has been a strong supporter of the privatisation process and this is ultimately a good result for NSW with the revenue raised now being invested back into essential services,” said Stephen Cartwright, CEO of NSW Business Chamber.

“There has been no compelling case for the NSW Government to be in this business. Selling NSW Lotteries will allow the Government to focus its attention on being the regulator of the industry and focus its attention on core Government responsibilities like education, transport and law and order.

“Treasurer Roozendaal is to be congratulated on achieving this sale that has provided a strong return for NSW taxpayers. The NSW Opposition should also be applauded for its role for advocating a balanced sale process that protected community interests.”

Mr Cartwright said that the sale of NSW Lotteries has shown that the Government can privatise an asset and still preserve the community interest.

“NSW taxpayers will continue to benefit from the sale of NSW Lotteries with the Government still collecting $330 million in duties from the sale of lotteries products.

“The sale of NSW Lotteries is an example of a good model of privatisation, one that should be replicated in future privatisations of Government assets.”

Media Contact: Chris Taylor 0419 692 236

NEW DISABILITY EMPLOYMENT INITIATIVES WILL BOOST PARTICIPATION Monday 1 March 2010

Statement by Mr Peter Anderson, Chief Executive

The Australian Chamber of Commerce and Industry (ACCI), Australia’s largest and most representative business organisation, has welcomed the launch this morning of the Australian Government’s new Disability Employment Services and Disability Support Pension Employment Incentive initiatives.

“Innovative approaches such as these will provide the basis for increasing the employment of people with a disability. This will boost workforce participation and add to productivity – an important goal for Australian business,” ACCI Chief Executive Peter Anderson said.

“People with a disability make loyal employees who work productively and should be strongly considered by employers looking to build their workforce and combat future skill shortages. Assistance for employers is available and it’s a lot easier than many may think.”

“These government programs need to be effectively promoted to employers to ensure their success.

ACCI and the Victorian Employers’ Chamber of Commerce and Industry (VECCI) have been working with National Disability Services to develop innovative approaches to better utilising joint networks as a means of highlighting the benefits of employing people with a disability.

ACCI will be promoting both initiatives amongst its employer network of 350,000 employers.
For further information:

Mary Hicks Director, Employment, Education and Training 02 6273 2311 / 0417 488 566

BUSINESS SUPPORTS NEW NATIONAL CURRICULUM
Monday 1 March 2010

Statement by Mr Peter Anderson, Chief Executive

The Australian Chamber of Commerce and Industry (ACCI), Australia’s largest and most representative business organisation, supports the roll-out of the proposed national curriculum for English, maths, science and history for students from kindergarten to year 10.

“The business community welcomes a national approach to educational basics. It provides better mobility for the large number of Australians who move between States and Territories each year. It also provides a real opportunity to lift standards and improve on Australia’s already good reputation in the education sphere,” ACCI’s Chief Executive Peter Anderson said.

“A well structured national curriculum provides a platform for improving educational standards and young people’s employability.”

“A national curriculum will also help employers better understand a student’s educational outcomes. Improving Australia’s literacy and numeracy rates will provide the building blocks for the acquisition of workplace skills.”

ACCI’s 2007 Education Policy Blueprint Skills for a Nation advocates the implementation of a national curriculum. There needs to be an acknowledgement by all governments that increasing public confidence in school education will occur through explicit and defensible standards that guide improvement in students’ levels of educational achievement and through which the effectiveness, efficiency and equity of schooling can be measured.

ACCI and business organisations will provide further feedback to government on today’s announcement in coming weeks
For further information:

Mary Hicks Director, Employment, Education and Training 02 6273 2311 / 0417 488 566

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

ACCI welcomes today’s decision by a Full Bench of the Fair Work tribunal to overturn an earlier decision that required compulsory arbitration be a part of any workplace agreement approved by the tribunal.

Australia’s workplace laws must as far as possible allow and enable the development of working arrangements that reflect the different needs and requirements of the employers and employees in each workplace. This is the best means to enable those businesses to generate growth and productivity improvement.

It is a relief to industry that the Full Bench has stopped the tribunal from broadening its compulsory arbitration powers beyond those given by the Parliament.

ACCI intervened in the appeal given the significant distortion self – imposed arbitration would have had on the fair work system, and the doubt it would have cast on many existing agreements.

In the present matter the agreement, and the dispute resolution procedure in that agreement, were freely entered into and agreed upon as being appropriate for that workplace by the parties and their representatives. The Full Bench has been right to not interfere further.

In the light of this decision the Government’s model dispute resolution clause in the Fair Work Act, which contains mandatory arbitration, should now be reviewed to ensure that it also correctly reflects Parliament’s intention and the law.

For further information:

Peter Anderson Chief Executive 02 6273 2311 / 0417 264 862

David Gregory Director of Workplace Policy 03 9668 9950 / 0417 052 390

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

Australia needs to stem the flow of apprentices not completing their apprenticeships if we are to meet future skills needs, according to research currently being conducted by the Australian Chamber of Commerce and Industry (ACCI).

A summary of ACCI’s research and findings on apprenticeships is contained in the February edition of the ACCI Review, released today and available on the ACCI website at www.acci.asn.au.

Australian industry needs a skilled, flexible and motivated workforce that further contributes to productivity gains and drives economic growth.

There is a great risk to Australia’s future productivity during a cyclical rebound if new apprentices are not recruited and existing apprentices do not complete their trades training.

Governments and businesses must work in partnership to develop strategies that will ultimately lead to sustainable increases in apprenticeship commencements and completions.

Over the course of the last 18 months, ACCI has initiated three research projects on retaining existing apprentices, placing disengaged apprentices back into the workforce, and making apprenticeships more appealing to mature-aged Australians.

The research covers issues such as apprenticeship recruitment, employer attitudes, apprentice management, the provision of meaningful work, and making full use of information and support services.

Apprenticeship non-completions and the need to attract more mature-aged Australians to the workplace have concerned employers for many years. Rates of attrition in some trades are in excess of 50%, exacerbating skills shortages and restricting business growth.

For further information:

Peter Anderson Chief Executive 02 6273 2311 / 0417 264 862

Mary Hicks Director, Employment, Education and Training 02 6273 2311 / 0417 052 390

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

NSW’s largest business organisation, NSW Business Chamber, has welcomed the announcement of an inquiry into the Federal Government’s Superannuation Clearing House Bill as an opportunity to correct issues identified by the business community.

“Business is supportive of the Government’s plan to provide a clearing house facility that businesses can use to pay their superannuation obligations to their employees,” said Stephen Cartwright, CEO of NSW Business Chamber.

“Business does have some concerns about how the clearing house will operate in practice. We want to ensure that it is a facility that will provide value to businesses and is not an additional burden.”

Mr Cartwright said the NSW Business Chamber had identified four key issues with the current bill that should be the subject of the inquiry. They include:

1) Why has Medicare been chosen as the approved clearing house when the initial proposal for a free small business clearing house facility suggested it would be operated by the private sector? The Government has not released an explanation for this decision.

2) The bill provides the “approved” clearing house (Medicare) with an unfair advantage in that contributions are deemed to be made to the relevant superannuation fund on the date they are received by the clearing house regardless of when they are forwarded to the nominated fund. Payments from existing clearing houses, which are not approved, are dated when the clearing house pays the super fund, not when the employer pays the clearing house.

3) Under the bill, an “approved” clearing house cannot accept a payment if the employer is not a small employer (less than 20 employees). Many employers have fluctuating workforces; if their workforce increases from 19 to 20 they are not eligible to use the “approved” clearing house.

4) Not all superannuation contributions which employers have to make are covered by the bill. For example, the deeming of a contribution made to a fund does not apply to contributions arising under other obligations such as agreements and/or fund trust deeds. Many employers pay superannuation contributions monthly (not quarterly as required by the guarantee) but where monthly contributions are enforceable the deeming provisions do not apply.

“These are uncompetitive outcomes that will not encourage employers to use superannuation clearing houses.

“Businesses want to be able to use an efficient and competitive clearing house system to discharge their superannuation responsibilities. These are the issues that need to be resolved to create a fair system that is not a burden on businesses.”

Media Contact: Chris Taylor 0419 692 236

The report, the National Partnership Agreement to Deliver a Seamless National Economy Report on Performance 2008-09, provides an admirably honest assessment of where microeconomic reform can be improved.

In the media statement released today Mr Bradley says: “The report highlights promising progress in most of the 27 regulatory “hotspots”, which is welcome given the priority the BCA has placed on these reforms for some time. But we must keep up momentum in the competition agenda if Australia is to meet the federal government’s two per cent target on annual productivity growth.”

Read the statement at:

http://www.bca.com.au/Content/101656.aspx

Reserve Bank concerns about inflexible industrial relations regulation and excessive wage claims hindering economic activity add weight to calls over the past week by the mining and retail industries for changes to the ‘fair work’ system, according to Australia’s peak business organisation the Australian Chamber of Commerce and Industry.

Last Friday, in giving evidence to the House of Representatives Economics Committee, the Governor of the Reserve Bank Glenn Stevens said:

“Flexibility is very important...For us to get the most value as a nation out of the opportunities that the growth of Asia into the future presents, we want to retain that flexibility...It is hard for me to judge how serious the problems are because I am not in those firms. I can only record that a lot of business people are expressing concern at the moment.”

“It is not usual for the Reserve Bank to so frankly and publicly echo concerns of industry. In doing so, the Governor has underscored the importance of policy makers taking heed of calls by significant employing and investing industries to overcome problems that have emerged in the first eight months of the ‘fair work’ system” ACCI Chief Executive Peter Anderson said.

Just overnight the Australian Mines and Metals Association, on the back of a maritime shipping strike that did not link wage rises to productivity and a strike over lodgings, has called on the Government and the Opposition to develop proposals to constrain excessive union behaviour and to overcome limits on direct dealings between employers and employees within a strong safety net of minimum standards.

And yesterday ACCI announced that the National Retail Association, supported by the Australian Retailers Association, has taken action in Fair Work Australia to overcome the problem of young people being denied after-school work because of inflexible minimum engagement rules in the new fair work awards.

“A common thread in the concerns of industry and the Reserve Bank is the likelihood that the Government's laws have gone too far in re-regulating the economy with one-size-fits-all rules and union power that does not link wage demands to productivity.”

“The early signals that the fair work system sends are important to business confidence, jobs and union behaviour. If the Governor of the Reserve Bank sees sensible flexibility being eroded and growth in Asia hampered then Australian policy makers have a duty to respond.”

For further information:

Peter Anderson Chief Executive 02 6273 2311 / 0417 264 862

David Gregory Director of Workplace Policy 03 9668 9950 / 0417 052 390

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

2010 NSW COALITION INFRASTRUCTURE POLICY
Thursday 18 February 2010

NSW’S largest business organisation, NSW Business Chamber, has welcomed the commitment of the NSW Coalition to establish Infrastructure NSW as a means of identifying, prioritising and delivery of infrastructure for NSW.
“The creation of such a body, accountable to the Premier, is an important step in re-establishing trust in the selection process for the infrastructure process in NSW,” said Stephen Cartwright, CEO of NSW Business Chamber.
“We are supportive of the model being proposed which is in keeping with the policy ideas identified during the NSW Business Chamber’s NSW – Reclaiming 1st process.
“We do believe that NSW can deliver infrastructure better and the model proposed by the Opposition would directly improve governance and transparency in this area”.
“The prioritisation and sequencing of infrastructure, as proposed by the Opposition, also ensures a pipeline of projects providing greater capacity for government to control costs and greater certainty of work in the sector.
Mr Cartwright said he was surprised the Coalition chose not to make mention of increased involvement by the private sector in infrastructure.
“Clearly the key to delivering on the infrastructure priorities facing NSW is through taking a more active approach to establishing partnerships with the private sector. “I did find it curious that the Opposition chose to ignore the potential and possibilities of greater private sector involvement as a way of accelerating infrastructure construction in NSW. This could be an oversight, but it does seem to be at odds with other utterances by the Opposition.
“Indeed I would argue that one of the challenges for an organisation like Infrastructure NSW is to better manage the relationship with the private sector and to develop a clearer philosophy in relation to the management of risk and the maximisation of the different aspects of public value.
Mr Cartwright said NSW Business Chamber would be releasing its “10 Big Ideas to Grow NSW” on March 10.
“Clearly better managing infrastructure priorities and seeking greater private sector involvement in the provision of infrastructure is a fundamental priority for NSW. I applaud the Opposition’s announcement to establish Infrastructure NSW, however I believe for Infrastructure NSW to be truly effective it must have, at its core, a willingness to engage with the private sector to accelerate infrastructure delivery”. For more information contact Paul Ritchie on 0416 077 976

Small Businesses Experience Improved Trading Conditions and Outlook

The February ACCI Small Business Survey shows an improvement in Small Business Conditions over the December quarter, with this index rising 5.5 points to 54.0 – the highest level since the December quarter of 2007 and around three points above its five year average of 50.7. Small businesses expect their business conditions to improve further over the March quarter, with the expectations index at the highest level since the survey began in December 1996.

The Survey also found that:

· small business expects Australia’s economic growth to rebound strongly over the next twelve months, with the Expected Economic Performance index lifting from 53.5 to 63.9 over the December quarter;

· while the actual indexes for the December quarter remain contractionary, small business expects Selling Prices, Profit Growth and Employment to increase over the next three months;

· the decline in Overtime Utilisation is expected to moderate over the March quarter; and

· small business expects business investment to continue to be weak over the next three months, with Investment in Plant and Equipment expected to fall back into negative territory after an expansion in the December quarter.

Following three successive interest rate hikes during the December quarter coupled with some major lenders increasing their lending rates by more than the official rate rise, Charges by Lending Institutions has risen from the eighth to the second largest constraint on small business investment.

Mr Greg Evans, Director of Economics & Industry Policy, Australian Chamber of Commerce and Industry, commented:

“While small business experienced some welcome improvements in business confidence and trading conditions over the December quarter, we are concerned that actual conditions continued to fall short of prior predictions. In comparison with larger businesses, actual trading conditions for small businesses remain more challenging. Small business selling prices remained contractionary, which continued to put downward pressure on business profitability and the level of retained earnings.

“The Reserve Bank decision to pause further interest rate hikes in February is a welcomed reprieve for small business which is becoming highly sensitive to cost pressures. Investment by small businesses continues to be subdued with the sector reporting insufficient retained earnings have constrained their ability to invest which has been exacerbated by difficulties in obtaining external funding. This in particular poses some threat to the strength of recovery, economic growth and job opportunities.”

The survey assessed business conditions and business confidence amongst 1,040 small businesses around the country over the October, November and December period. A full copy of the Survey is available on the ACCI website at http://www.acci.asn.au/SurveySBS.htm

For further information:

Greg Evans Director of Economics & Industry Policy 02 6273 2311 / 0407 204 559

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

This seminar will highlight business opportunities in China after the global financial crisis, including the following key topics:

- Import opportunities
- Opportunities to outsource manufacturing
- Export opportunities
- Business acquisition opportunities
- Industry sectors/markets which present greatest market potential for Australian businesses
- Key issues and success factors to do business with China (ABF China Study findings)

This event will provide you with invaluable insights into breaking into the Chinese market place from the perspective of Australian businesses that have succeeded.

Please click on the location hyperlinks for further details and to register online.

Sydney CBD
Date:
Tuesday, 2 March 2010
Time:
9:00am - 12:00pm

North Parramatta
Date:
Wednesday, 3 March 2010
Time:
9:00am - 12:00pm

Cost to attend:
NSWBC members: Free
Non-members: $55

Register:
Download PDF
Call 13 26 96

RECOVERY ROAD MAP REQUIRES BALANCE, COMMITMENT AND LEADERSHIP
14th February 2010

The 2010 Federal Budget must set Australia's economy on course to continue its run of economic growth over the coming decade, BCA President Graham Bradley says.

“Australia’s economy has performed better than most throughout the global downturn. We now need a road map to move Australia into an era of strong productivity and high-quality investment,” Mr Bradley said.

Launching Balancing Act, the BCA 2010–11 Budget Submission, Mr Bradley said: “After a period of considerable and warranted policy stimulus, the federal government faces a difficult balancing act between returning the nation’s finances to surplus and investing in future growth.”

Read the news release and download the submission here:

http://www.bca.com.au/Content/101652.aspx

For further information, visit our website at www.bca.com.au.

Australia is on the threshold of a new era of growth. With the right policy settings and reform, we can secure prosperity for the next decade and beyond.

The speech outlines priorities in three key areas. Read or download the speech at: http://www.bca.com.au/Content/101651.aspx

For further information, visit our website at www.bca.com.au.

The Henry Tax Review and the government response provide the best opportunity in over a decade to deliver substantive tax reform including lower taxes for smaller and medium sized enterprises across Australia.

Small business is essential to delivering sustainable economic recovery and job creation and the sector needs a tax system that provides the incentive for private business investment, encourages workforce participation and rewards risk taking and entrepreneurship.

Priorities need to include:
reducing personal income tax rates and the number of thresholds, eliminating bracket creep and a commitment to gradually align the top marginal rate with the company tax rate;
providing further capital gains tax (CGT) relief measures to ensure small business operators have the incentive to invest and risk their capital. Australia needs to move to a simpler stepped-rate system with reduced and eventually nil CGT applying on the sale of longer held assets;
working towards the eventual abolition of payroll tax which is a tax on the jobs of all Australians. Payroll tax represents a major obstacle to the growth of small businesses, and creates a significant disincentive to increase employment;
abolishing many of the state-based transaction taxes which are both inefficient and place cost imposts across business;
implementing a depreciation regime, especially as it relates to larger capital items, which fosters investment and the upgrading of less efficient technology; and
reducing the complexity in the taxation system, although this should not be viewed as a substitute for genuine and substantive reform initiatives.

The most pressing requirement for tax reform is to remain internationally competitive, however the tax regime applying to the SME sector is slipping behind the pack. It is also doubtful the global economic slowdown provides a buffer to enable Australia to relax the reform process.

ACCI is cognisant of the nation’s current fiscal circumstances. Accordingly, achieving the nation’s tax reform goals and maintaining our competitiveness may require spending cuts targeting inefficiencies and government waste. ACCI has been supportive of the Henry Review process and considers that it should be accompanied by a ‘root and branch’ review of expenditure with a focus on the overall size of government.

For further information:

Greg Evans Director, Industry Policy and Economics 02 6273 2311 / 0407 204 559

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

NEW SKILLED MIGRATION RULES MUST ENSURE DEMAND FOR LABOUR IS MET
Monday 8 February 2010
Statement by Mary Hicks, Director of Employment, Education and Training

The Australian Chamber of Commerce and Industry (ACCI), Australia's largest and most representative employer organisation, urges that foreshadowed changes to the skills occupation lists continue to ensure that employer demand for overseas labour is truly being met.

The future success of Skills Australia’s new “aspirational skills targets” for the General Skilled Migration Independent Scheme will depend on how well they integrate with the complementary employer sponsored scheme, State and Territory schemes and the 457 visa programs.

Skills Australia will need to work closely with the broader employer community to ensure any future skills list that is developed is robust and has business and industry input.

There will be a delicate balance between trying to develop aspirational targets for Australia's skilled workforce and achieving flexibility in importing skilled labour. The employer sponsored scheme applies to longer term applicants and the 457 visa scheme has recently had many additional restrictions placed on it, restricting the flexibility of employers to import labour. There is a danger that the short term needs of employers to gain access to skilled workers will be hampered or stopped altogether.

State and Territory governments will be establishing their own migration lists, creating even further potential for confusion, overlap and duplication. It will be essential that State and Territory governments also work closely with business and industry groups to ensure the needs of employers are being met.

As the economy returns to better growth, the measures announced today will be tested. The inability of employers to successfully recruit labour could mean that less work can be entered into and in some cases turned away.

ACCI urges the government to work closely with the employer community to ensure there is sufficient flexibility in the labour market to support our economic recovery.

For further information:

Mary Hicks Director, Employment, Education and Training 02 6273 2311 / 0417 052 390

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

Retail trade figures for December show spending in the crucial Christmas trading period slumped badly. Retail turnover contracted -0.7 per cent in the month and compared to the same period last year was only 2.1 per cent higher.

The full impact of the cash stimulus payments have run their course and retail data is now giving us a clearer read on the underlying strength of consumer demand. The picture suggests the recovery remains tentative with some time to go before more robust conditions return.

Retail trade has been very patchy since mid-2009. The December figures show no growth in aggregate spending in the seven months since May. Hopes that a lift in sales in November may be the first evidence of a sustained upswing in demand have been tempered. Anecdotal evidence from retailers suggests that sales were also lacklustre in January.

All this serves to highlight the prudence of the Reserve Bank in leaving rates on hold at its February Board meeting. There is a strong case for continuing to assess both the impact of the three rate hikes delivered before Christmas and the broader strength of the household sector before tightening policy further.

Difficult trading conditions in the retail industry also underpin the need for caution with respect to the pending minimum wage review. The retail sector is the nation’s largest employer and heavily award dependent. In addition to the loss of jobs, underemployment in the industry is at 15.2 per cent and would be exacerbated by an unsustainable increase in award rates.

For further information:

Greg Evans Director, Industry Policy and Economics 02 6273 2311 / 0407 204 559

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

Today's decisions by the High Court in the case of Kirk v IRC of NSW and WorkCover are welcomed by industry and hopefully pave the way for fairer and more workable health and safety laws in New South Wales workplaces and across the country.

In this landmark decision, the Court has invalidated key parts of the NSW OHS system which have for a number of years made employers guilty of OHS breaches unless they prove their innocence, and then set legal tests that make the proof of innocence almost impossible.

The High Court has sensibly ruled that any legislated OHS offence must not only identify the risk the employer must address, but also what measure the employer could have taken to address that risk, so that the employer can then seek to argue whether it was reasonably practicable to take such measure.

“Oppressive OHS laws like this have sapped the confidence of employers in the legal system, and removed incentives for OHS compliance. Today's decision should go a long way to restoring that confidence so long as it is respected by the NSW Government, its parliament and the trade union movement.”

“The decision also removes one obstacle to the implementation of a national OHS framework, as NSW unions and the ACTU had argued that this type of NSW law should be reflected in a national scheme. The High Court decision kills that idea stone dead and reflects the wisdom of the Federal Government, Safe Work Australia and the panel recommending national laws in having rejected such a proposal during 2009.”

For further information:

Peter Anderson Chief Executive 02 6273 2311 / 0417 264 862

David Gregory Director of Workplace Policy 03 9668 9950 / 0417 052 390

Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

The business community should welcome but seek further information on today's climate change statement by the Federal Opposition, which proposes an alternative to the cap-and-trade system in order to reduce Australia’s greenhouse gas emissions by 5% below 2000 levels by 2020.

“It is in the public interest for there to be a strong contest of policy ideas about climate change responses before we impose major or unilateral adjustment costs on our economy, and the Coalition statement contributes to that. ACCI has consistently pointed to the fact that internationally there are a range of proposals which have been put forward to deal with this environmental and economic challenge.”

Business welcomes a debate on these and other ideas proceeding in Australia in the interests of finding the most effective and economically sustainable approach.

Since the Copenhagen conference in December 2009 the global dynamic has shifted and it is clear the likelihood of international agreement with clear and binding targets will not be achievable at least in the medium term.

“Given the uncertainty now existing after Copenhagen over what other nations will do, a domestic policy approach that provides more carrot than stick tends to reflect the temper of the times. More information is needed on the adequacy of the Coalition’s proposed fund, and manner in which it will be funded by the budget.”

In the period ahead ACCI will be examining the Coalition proposal and measuring it against alternatives such as a cap and trade mechanism or carbon taxes. Critical in this assessment will be the probable impact on the cost of doing business, our trade competitiveness and employment.

For further information:
Peter Anderson Chief Executive 02 6273 2311 / 0417 264 862
Greg Evans Director, Industry Policy and Economics 02 6273 2311 / 0407 204 559Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

NO RATE INCREASE: THE RIGHT DECISION BY THE RESERVE BANK
Tuesday 2 February 2010
Statement by Mr Peter Anderson, Chief Executive

Today's decision by the Reserve Bank to not further increase interest rates is the right decision for an economy with sluggish private sector investment and a business community still finding capital hard to access.

“It is a welcome reprieve that allows business borrowers to take a breather from cost increases. The decision accurately reflects the underlying cost pressures on the business community and the uneven nature of our economic recovery. Reading between the lines though, it may only be a temporary reprieve.”

“The caution shown by the Reserve Bank reminds us of the lingering effects of the global financial crisis, despite a recovering economy.”

The Reserve Bank has also sent a timely message to the retail banks to adopt a more accommodating position to business seeking finance to aid the economic recovery.

“Quite pointedly, the Reserve has stated that retail banks have already raised interest rates more than the cash rate, and that credit conditions remain difficult for many small businesses. This is consistent with ACCI business surveys, including today's Commonwealth Bank / ACCI Business Expectations Survey. Unless the flow of affordable credit to business increases we will not see a recovery take firm hold.”

“The underpinning message of this decision to other policy makers is that the business community remains under pressure, and labour costs, government charges and the cost of regulation also need to be tempered to the times.”

For further information:
Peter Anderson Chief Executive 02 6273 2311 / 0417 264 862
Greg Evans Director, Industry Policy and Economics 02 6273 2311 / 0407 204 559
Brett Hogan Director of Communications 03 9668 9950 / 0407 273 884

COMMONWEALTH BANK - ACCI  BUSINESS EXPECTATIONS SURVEY
Tuesday 2 February 2010
Business Conditions and Outlook Post an Improved Result

The February 2010 Commonwealth Bank - ACC! Business Expectations Survey has found that all business actual and expectations indicators improved over the December quarter. Nevertheless, the survey continues to find that actual conditions remained below the previous quarter's expectations.

The actual indexes of Selling Prices, Profits and Investment in Building and Structures remained negative in the December quarter, albeit expectations indexes for these three indicators are positive. While many of the expectations indicators are in expansionary territory, the index of Overtime Utilisation is expected to remain contractionary .

Mr. Greg Evans, Director of Economics and Industry Policy, Australian Chamber of Commerce and Industry, commented:

Business conditions and outlook have improved over the December quarter. However, selling prices remain negative and this continues to put downward pressure on business profitability, which hampers to some extent the ability of business to invest and employ.

Overall this is a more positive survey result, supporting the view of a return to near trend growth in the economy during the second half of 2010. Despite this, some caution is still warranted given uncertainty about the underlying strength of the economy as public stimulus recedes and the continued difficulties many businesses face with soft trading conditions and problems associated in accessing credit.

Mr Robert De Luca, Executive General Manager, Corporate Financial Services Commonwealth Bank, commented:

As we enter into a new year, it's encouraging to see that confidence is being restored to our national economy following the downturn we've experienced over the past 18 months due to the global financial crisis. According to the survey, confidence in the economy continues to grow and is now at its highest level since the survey began over 15 years ago. This is a major turnaround from where things stood only 12 months ago when businesses were extremely pessimistic about our economic outlook.

The results also show that general business conditions have turned a comer with the index moving from negative territory in the September quarter, to a positive state over the past three months. Despite the upbeat outlook, business owners need to remain cautious, with indexes of profits, selling prices, overtime utilisation and investment in buildings and structures all remaining in negative territory, despite some improvement from the previous quarter. Combine this data with an environment of rising interest rates and a strong Aussie dollar, and business owners need be mindful we're not out of the woods just yet, and ensure they continue to review their risk management strategies.

The survey assessed business conditions and business confidence amongst 1,895 businesses around the country over the October, November and December period A full copy of the Survey is available on the ACCI website at http://www.acci.asn.au/SurveyBES.htm

The highly anticipated redevelopment of Chatswood Mall is set to commence on Monday 15 February 2010. The upgrades will see Chatswood Mall rejuvenated into a modern and vibrant café and retail promenade offering more dining space, outdoor seating and areas for events and entertainment.

The construction works will be undertaken in stages to maintain public thoroughfare and access to the shops and services located in Chatswood Mall throughout the 10 month construction period.

The final design, which was developed following extensive community consultation, will significantly improve pedestrian circulation and increase the versatility of the space through the creation of a central avenue which will accommodate footway dining, market stalls and public seating.

The new and exciting Chatswood Mall design will feature a central spine formed by a row of deciduous Chinese Elms which will form a natural canopy above seated areas providing shade in the warmer months and allowing winter sun through.

Classic high quality materials such as granite paving and hardwood will be combined with detailed pavers and public art providing a cohesive and interactive design that will both inspire and ensure the mall’s longevity.

“The Chatswood Mall is the backbone of the Chatswood CBD supporting more than 30 000 daily users,” said Willoughby Mayor Pat Reilly. “The much needed redevelopment works will ensure Chatswood Mall will retain a clean and contemporary appearance and will transform Chatswood’s principal gateway into a vibrant and flexible public space by day and night,” he said.

Visit www.willoughby.nsw.gov.au or phone 9777 1000 for more information.