3 minute read

CEO welcome

2019 is shaping up to be a very interesting and somewhat daunting year for people in the small business community and consumers alike.

Interest rates are low and could further decline, employment levels are the highest they have been for quite some time, the housing market has declined significantly, banks have tightened up their lending, the share market is strong, and the Australian dollar languishes at around 70 US cents per Australian dollar.

Couple these factors with an inconsistent political system, a union movement that continues to demonise employers and advocate for the most expensive and inflexible industrial relations regime in the world and the massive amount of inappropriate large scale shopping developments that have been allowed to go ahead over the years and what we have is an independent supermarket, liquor and hardware sector that has been “sucked dry” of any incentive or desire to invest, innovate and grow their businesses to employ more people and play an important economic and social role in the communities in which they trade.

In our industry sector particularly, we have witnessed firsthand the complete lack of disregard by local and state governments for the welfare of family enterprises and private businesses.

Together we need to change the local and state government culture and values set toward fostering a strong family enterprise and private business sector in this country.

All our local, state and federal government people have great delight in telling Australians that small business is the engine room of the economy, they are the drivers of employment, innovation and investment. Really? I hear a lot of talk, but I don’t see any walk – local and state governments have a culture of acknowledging the efforts and contributions of family enterprise and private businesses, but not for a second considering them when major decisions are being made as put forward to them by big business.

I believe we, as constituents and voters, need to somehow make our local, state and federal governments and regulators more accountable and let them know that any new laws, new regulations, new building or commercial centre development decisions must be made with having a clear understanding of the effects of their decision on the livelihoods of local small business owners and operators.

Big businesses and developers are very proactive putting their ideas forward. Just take a look around at every major and regional city in Australia. They have heaps of resources, persuasive powers and presence. Developers have been allowed to successfully “crowd out” many small businesses, leaving their shopping precincts as ghost towns with multiple shop vacancies.

Small businesses don’t make too many large-scale development proposals, they pretty much stick to themselves and do the best they can. When big business proposals are presented to local and state governments, be it planning and development proposals, law changes etc. all the local and state government representatives see is what big business has presented to them and are often made to feel excited. Decisions are made with no thought of the negative economic or social consequences to small businesses and their families. The future of high street shopping, local shopping strips and neighborhood shopping centres is bleak if local and state governments do not adopt a culture and strong values set toward considering the impacts of their decisions upon family enterprise and private businesses. If they don’t adopt this culture immediately and all the strip shops are gone, one day, someone will ask “what happened”?

If we genuinely aspire to a diverse economy including small, medium and large businesses then a question must always be asked before any decision is ever made, “How will this proposal impact the family enterprises and private businesses that make up the small business sector?”.

On another very important note, we recognise the terrible hardships being experienced by members in North Queensland as a consequence of the floods and those impacted by fires and wish to assure members that MGA is at the ready to provide any support concerning staff and employees at this difficult time.

Until next edition – keep fighting the good fight and good trading!

Jos de Bruin CEO MGA Independent Retailers

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