News Articles

Retailers optimistic of Rudd Govt leadership in cash crisis

Peak retail industry body the Australian Retailers Association (ARA) today attended the Small Business Summit (Brisbane) and left optimistic the Rudd Government is providing the leadership needed to respond to the global financial crisis.

ARA Executive Director Richard Evans said the initiatives the Prime Minister announced today are another positive step towards supporting retailers and small business.

"However, there are other initiatives the Government could consider, including the deferring of costly legislation that will impact retailers heavily over the coming months and into the expected tough time of early 2009," Evans said.

"Legislation mooted for the next twelve months directly having an impact on hard-hit retailers include the potential for plastic bags levies and bans, the Emissions Trading Scheme, the Award Modernisation process, Parental Leave, Unit Pricing and tobacco controls. These changes to legislation will add compliance and increasing costs for smaller retailers which could be the difference between profit, breaking even or closing.

"For instance the Draft Award Modernisation will increase the wage bill in all states for all retailers. A small retailer with two full time and two casual employees will have a 14 percent wage bill increase on average across Australia - this is from a high of 21.6% in NSW to a low of 11.3% in the Northern Territory," Evans said.

"Right now is the time retailers need direct help. The Government has initiated the $10.4 billion Economic Security Strategy to provide an important injection of cash to flow through the economy. But it is also time to consider to defer (not stop) legislation that will directly impact small retailers until we are through the most uncertain period of trade during the next six months.

"The Prime Minister is showing macro leadership and now he needs to show micro leadership by deferring any additional compliance and other costs for retailers.

"We support the notion that government should continue to govern but it is now vital for them to consider the impact their decisions will have on retailers and the broader small business market. Hopefully, Christmas predictions will be clearer in the next couple of weeks," Evans said.

For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

Options:

View Archives