Independent Retailer - Issue 2 - May 2020

Issue

02 MAY 2020

Our industry on the frontline as key essential service YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

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Contents OUR MISSION

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The mission of MGA Independent Retailers is to deliver the best possible industry specific business support services to independent grocery, liquor, timber & hardware and associate store members.

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MGA NATIONAL SUPPORT OFFICE Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 admin@mga.asn.au • www.mga.asn.au Freecall: 1800 888 479

RETAILER DIRECTORS Debbie Smith (President): Queensland Grant Hinchcliffe (Vice President): Tasmania Graeme Gough: New South Wales Michael Daly: Victoria Ross Anile: Western Australia Carmel Goldsmith: New South Wales Chris dos Santos: South Australia Lincoln Wymer: Victoria Jeff Harper: Victoria

CEO welcome

6 The need for reform of the enterprise agreement making system in Australia MGA seeks zero wage growth in 2020

8 ACCC authorises supermarket coordination measures to ensure supply 10 ACCC says - Supermarkets are not price gouging shoppers during the pandemic 11 $130B JobKeeper Program - an historic day!

12 South Australia’s Foodland launches ‘Act of Kindness’ cards to help SA community stay connected 13 Changes to the instant asset write-off scheme for SMEs 14 MGA delegation visits Parliament House Canberra 15 MGA, together with other Associations, forms “Fair Merchant Fees Alliance.”

16 Keeping business costs low is key to a healthy Australian economy 18 Ritchie’s 150th milestone celebration 20 MGAQ Committee addresses key industry issues 22 Teamwork and Cross-Training 24 Dealing with customer conflict and aggression 26 IHG EXPO – Gold Coast Queensland 27 Timber industry advocates call for building and construction stimulus package

MGA CHIEF EXECUTIVE OFFICER

28 NSW Government announces liquor licence relief

Jos de Bruin 03 9824 4111 E: jos.debruin@mga.asn.au

30 Meeting with Small Business Minister, Paul Papalia

CORPORATE PARTNERSHIP & MEDIA SALES

33 Container Deposit Scheme deferred due to COVID-19

Mark Paladino 0417 264 331 E: mark.paladino@mga.asn.au

29 Dan Murphy continues push to set up NT store 30 Meeting with Minister for Planning, Rita Saffioti 31 ALM continues to champion for successful independents 34 PFD Foodservices delivers more than just food to the industry 35 Introducing MGA’s new Corporate Partner – Tassal

DESIGN & PRODUCTION Cindi Damian E: cindi@mga.asn.au

FOLLOW US ONLINE www.facebook.com/ MGAIndependentRetailers www.linkedin.com/company/ mga-independent-retailers www.twitter.com/ MasterGrocers

Front Cover: Social distancing measures in store. A Ritchies IGA Carrum Downs customer checks out at a sneeze guard cashier.

Various coronavirus store signage displayed at IGA Kurrumburra and Michaels IGA Keysborough.

MGA Corporate Partners DIAMOND

PLATINUM

GOLD

SILVER

BRONZE

ASSOCIATE

WAREHOUSE AND BRAND PARTNERS tasmanian independent retailers

CEO REPORT

CEO Welcome Never has our industry sector been confronted with the enormity of challenges that the Covid-19 pandemic crisis has presented our members since February of this year!

Who could ever have imagined that Australia would experience a pandemic causing the shutting down of most industries, businesses, schools, the hospitality industry and leisure activities of this scale, restricting citizens to stay at home to isolate themselves from the risk of contracting Covid-19?

Whilst we have seen many tragic economic circumstances as a consequence of business closures and subsequent loss of jobs in our communities, the supermarket, liquor and timber and hardware sectors are able to remain open for business to supply essential foods, groceries and household goods.

Federal and State Government leaders came together in a bipartisan way to form the National Cabinet, along with Australia’s best medicos, to provide decisive leadership to safeguard the Australian community and to put in place population movement restrictions to stop the spread of the Coronavirus.

MGA has been an active member of many weekly state and federal government task forces and forums making sure members businesses are well-positioned to cope with this crisis and to work hard on initiatives that will bring the thousands of businesses in shut-down, back to life to provide employment to get our economy going again.

Early on there were some poorly put announcements by political leaders and the media which caused consumer “panic buying” of a scale never encountered by our members before. Customers who were spooked into thinking there would be a total lockdown, foolishly purchased far more essential foods, goods and household items than they could need. These goods included baking goods, flour, rice, pasta, frozen foods, paper goods (toilet paper) cleaning goods and sanitisers. The food and grocery supply chain was subsequently “smashed” leaving supermarket shelves empty.

At the same time, Covid-19 safety measures had to be put in place in all stores and businesses to help protect staff and customers alike from the risk of contracting Covid-19. Social distancing measures were put in place and often challenging to maintain.

The Federal and State Governments have worked very quickly to provide small businesses with much-needed cash relief packages to keep businesses afloat and to keep staff employed. Programs were implemented such as the JobKeeper program, the cash flow enhancer program, payroll tax relief and the commercial and retail rental relief schemes.

We congratulate all our members for their incredible patience and understanding during these difficult and very challenging times.

MGA, in these times of isolation, has also been working on many other state and federal initiatives and matters of concern; including exorbitant Merchant Service Fees, Illicit Tobacco enforcement, fair competition (Chains vs Indies), Payroll tax reductions, rental and leasing issues, the annual wage Review – 0% increase, the review of the BOOT test – IR reform and waste management solutions.

The next edition of this magazine will be dedicated to our industry sector and how MGA members, industry stakeholders and industry friends have coped with these unprecedented Coronavirus times.

There will be many personal stories of what MGA members have done to assist and support their communities. Including a full review of all the issues and matters, retailers have faced in these difficult and unprecedented times.

Please remember to visit MGA’s website for all information of any nature you may be pursuing regarding the Coronavirus and its effects on your business.

Until the next edition of the magazine – Stay Safe and take care of your mental wellbeing!

Jos de Bruin CEO MGA Independent Retailers

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LEGAL AND IR

NATIONAL

The need for reform of the enterprise agreement making system in Australia Currently, employers and employees can negotiate terms and conditions for an enterprise agreement that allows them to operate outside the award subject to meeting strict legal requirements that are often restrictive and inhibiting.

Enterprise agreements have been a feature of Australian workplaces for many years and, following on from the “WorkChoices era, and prior to the Fair Work Act, they were negotiated using the awards as a base, with the ability to replace parts of the award using the “no disadvantage test”(NDT).

The NDT required that employees must not be worse off under any new agreement and that was measured and determined by the Australian Industrial Relations Commission at that time. The close monitoring needed for making agreements was imposed after the bad experiences of WorkChoices which had, in many cases, destroyed confidence in the fairness of the agreement making system.

The Fair Work Act 2009 (Cwth) (FWA), which became operative in 2010 and provided that agreements could be negotiated based on the new modern awards. The new agreement, making provisions that were operative from 1 January 2010 provided for a

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new test known colloquially as the ‘BOOT” or more correctly the “better off overall test”. This remains effective today and requires the parties to ensure that under any new agreement if any terms differ from the award, then the replacement terms must be similar or better terms and conditions than those of the award. The FWC has, since the making of the FWA 2010, decided that the BOOT applies to every individual employee that might be subject to the agreement. The new 2010 procedure ushered in the making of a spate of new agreements together with an optimism that industrial relations was at a turning point for the better. Thousands of new agreements have been negotiated over the last ten years, but recently there has been a decrease in the number, and there are many reasons for the decline.

One of the major reasons for the ‘slowing down’ of agreement-making can be found in the way in which the awards, in particular the General Retail Industry Award (GRA), have been amended over the past ten years. There have been many changes to the GRA over the years, and some clauses have been highly criticised as far too restrictive.

The need for reform of the Industrial relations system has been proposed over the last five years, and these voices are gathering momentum. There is no doubt that the award system has become complex and there may be other drawbacks in the industrial relations system that need attention, but the ability to make agreements now, that can be tailored to suit the needs of employers and employees is a high priority.

LEGAL AND IR

NATIONAL

MGA seeks zero wage growth in 2020 MGA recently made a submission to the Fair Work Commission Annual Wage Review with the intention of demonstrating to the Commission that there was strong evidence to support wage restraint for award employees in 2020. The independent grocery industry has experienced great financial difficulties in the past three years due to the combined 9.8% wage increase, awarded by the Fair Work Commission in that time. It was, therefore, essential to propose to the Commission the need to provide some respite in 2020 to the hardworking retailers who contribute so much to the economy but who are unlikely to survive unless wages are reined in in 2020.

Small family-owned businesses employ thousands of employees in both city and regional areas all over the country, and collectively, they make a vital contribution to the Australian economy. They face many challenges, and although the threat that Kaufland posed for a short time has now been alleviated there are other sources such as Amazon that still pose a massive danger.to small businesses. However, small familyowned businesses have managed to remain viable despite many obstacles, including increased penalties in the awards, unfair competition and wage hikes.

Independent retailers are resilient, but now they are in a difficult and strained economic environment. Inflation and interest rates are low, and the economic outlook is very uneasy. The independent retail industry, along with many other industries, is facing the most unexpected and unprecedented set of economic circumstances they have experienced for decades.

Currently, the outbreak of the coronavirus has sent the economies of the world reeling and has created a world-wide state of uncertainty.

There is help being sought for small businesses from the Federal Government that is desperately needed, including tax relief, and we are constantly receiving information on how to cope with the challenges that lie ahead.

Whilst COVID 19 has become an all consuming and frightening threat to the Australian social and economic well- being, it comes at a time when many small retail businesses in Australia are already struggling to overcome the impact of the bushfires that have ravaged many areas of the country. Businesses that had been established for years were destroyed and just as they were ready to face the process of rebuilding their lives, they now face yet another threat in this dangerous disease.

Despite the fact that our economy was boasting an unemployment rate of 5% at the end of 2019 that figure needed to be considered in the light of the high underemployment rate of 9 %. Underemployment is rife in the retail industry. As wages increase, retailers need to use part-time and casual labour more often. Still, even these jobs could be at risk as family members and owners themselves start working in their businesses themselves. There is a greater reliance on junior employees who are less experienced, but also a cheaper

option. Even working in the local supermarket by a young person could soon disappear if a store is no longer able to provide employment due to the cost of higher wages.

There are many deleterious factors impacting on retailers at the present time that raise the question of whether the retail industry can sustain a wage increase in such uncertain times. Earlier in the year, the economy was weak, with underemployment growing too quickly, then came the devastating bushfires and now the coronavirus. In such unstable times, with the economy looking extremely precarious, wage increases should not be increased because, although we will recover in time, it would be untenable for the Fair Work Commission to make it harder by increasing the award wage rate in 2020.

Next month: a deep dive into the legal and IR implications of the virus on our industry

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INDUSTRY NEWS

ACCC authorises supermarket coordination measures to ensure supply Toward the end of March this year the Australian Competition and Consumer Commission (ACCC), the competition watchdog, authorised supermarkets to coordinate a consistent and reliable supply of food and grocery items. This, at a time when panic buyers and hoarders were clearing our supermarket shelves of toilet paper, baking goods, flour, tinned foods, frozen meals and vegetables, pasta, rice, cleaning goods and sanitisers to name a few.

The ACCC interim authorisation has allowed supermarkets to coordinate with each other when working with manufacturers, suppliers, and transport and logistics providers.

The watchdog hoped this would ensure the supply and equitable distribution of fresh food, groceries and other household items.

Benefits from the measure were expected to flow to those who are vulnerable or living in rural or remote areas.

Supermarkets will not be allowed to discuss and agree on retail prices for products under the interim authorisation.

The authorisation applies to Coles, Woolworths, Aldi and Metcash, as well as any other grocery retailer wishing to participate in coordination efforts.

Supermarkets will be protected from any court action for conduct that might otherwise raise concerns under the competitive provisions under the Competition and Consumer Act 2010.

“Australia’s supermarkets have experienced unprecedented demand for groceries in recent weeks, both in-store and online, which has led to shortages of some products and disruption to delivery services,” says ACCC chair Rod Sims.

“This is essentially due to unnecessary panic buying, and the logistics challenge this presents, rather than an underlying supply problem.”

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“We recognise and appreciate that individual supermarket chains have already taken a number of important steps to mitigate the many issues caused by panic buying. We believe allowing these businesses to work together to discuss further solutions is appropriate and necessary at this time.”

As a consequence of this authorisation together with a directive from the National Cabinet, Minister for Home Affairs Peter Dutton was given carriage to form and oversee a National Supermarket Task Force.

The National Supermarket Task Force Executive Committee consists of CEOs of various supermarket companies. Below the executive group are a series of committees dedicated to addressing various initiatives to help fast track the procurement of food and grocery items and household goods. These sub Committees include; logistics and state planning regulations, Covid-19 safe supermarkets for staff and customers alike and home deliveries.

MGA, together with other industry leaders and stakeholders have been active members of these National Supermarket Task Force Committees with MGA sometimes attending up to 7 meetings a week. MGA, on behalf of members, has continuously spoken out about the challenges of the nonsupply of essential goods which independent supermarkets have been experiencing. Notably, around mid-April when we saw the chain stores receive stocks of food and grocery and household items, such as toilet paper in great bulk, while the independent sector was still in desperate need and unable to obtain supply.

INDUSTRY NEWS

MGA now questions the purpose of the authorisation to allow the two big chains to come together with the independent sector during this Covid-19 pandemic, as the original intent of making sure that community supermarkets and supermarkets located in remote and regional Australian communities would be served as a priority has definitely not been achieved. Onlookers could view it as having had the opposite effect of putting the independent supermarket sector at significant risk of failing their local communities resulting in a significant competitive disadvantage.

â–ś Photos from IGA Mt Evelyn Victoria

Next month: We learn how Australia’s groceries supply chain unravelled in a matter of days from the perspective of industry heavy-weights, wholesalers, banner groups and independent retailers caught in the eye of the storm

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INDUSTRY NEWS

ACCC says - Supermarkets are not price gouging shoppers during the pandemic It seems like an eternity ago but back at the end of March and the beginning of media-driven community “lockdown” scares; there was speculation by consumers and some parts of the media that supermarkets around Australia were price gouging fresh fruit and vegetables.

The head of Australia’s consumer watchdog Rod Sims responded by assuring shoppers there were no signs of price gouging across supermarkets in response to the coronavirus, though noted it was something he was keeping a close eye on.

“If prices are going up and there’s no change in the margin at supermarkets or wholesalers, and it’s all benefiting farmers, that’s OK. I don’t think anybody’s going to begrudge the farmers making a bit more money at the moment or recovering past losses.”

Mr Sims, who chairs the Australian Competition and Consumer Commission (ACCC), at the time, said that he did not see any price gouging evidence “at this stage”.

A spokesperson for Ausveg, the peak industry body for Australia’s vegetable growers, also backed this explanation, saying there had been some reduced supply due to drought and “seasonal fluctuations” in different production regions which had led to a temporary increase in prices.

Consumers had been raising concerns on social media about the price of some products across retailers, primarily fresh fruit and vegetables. Prices per kilogram for vegetables such as capsicums and broccoli had been reported as high as $16 per kilogram.

“We’ve had a lot of feedback that prices, particularly of fresh produce, have gone up,” Mr Sims said.

“The story we’re getting is that’s due to flow on from the drought and the bushfires, and also the continual de-stocking when it comes to products such as meat. So that all seems logical.”

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“The price of fresh produce is, like many commodities, set by supply and demand. As the availability of fresh produce increases and demand resumes to levels that we usually expect for this time of the year, prices will lower to reflect this,” the spokesperson said.

Price fluctuations in non-fresh produce have also been reported by consumers, though the changes are not as drastic. However, supermarket heads have explained this is again due to an unprecedented level of demand, not intentional price gouging.

INDUSTRY NEWS

$130B JobKeeper Program an historic day!

On the 8th April Australia witnessed a Morrison Federal Government economic recovery initiative not witnessed in our living memories.

This is a day that must go down in history as the moment we stood together to stop the COVID-19 virus from destroying workplaces and adding more stress to people’s lives.

The Federal Parliament held an emergency sitting of both houses to debate and then pass the JobKeeper stimulus package which was proposed by the government.

The $130 Billion JobKeeper program.

A program designed to keep workers employed and connected with their employers during the Covid-19 pandemic and ready for work when the recovery phase commences sometime in the near future.

The JobKeeper program officially began on the 30th March 2020 with a key feature being the payment of $1,500 per fortnight, per eligible employee, for up to 6 months, with the first payment to be received by employers in the first week of May.

• This JobKeeper payment must be passed on by employers to their employees.

• Eligible employers include

businesses structured through companies, partnerships, trusts and sole traders.

• To be eligible, an employee must

» their business has a turnover

• The JobKeeper Payment is open to

» the business is not subject to

have been on the employer’s books on the 1st March 2020 and continue to be engaged by that employer.

full-time, part-time and long-term casuals (employed on a regular basis for at least the previous 12 months) and stood down employees.

of $1 billion or more, and their turnover will be reduced by more than 50% relative to a comparable prior period (of at least a month); and the Major Bank Levy.

» Employees that are re-

engaged by a business that was their employer on 1st March 2020 will also be eligible.

• Self-employed individuals will be

eligible to receive the JobKeeper Payment where they have suffered or expect to suffer a 30% decline in turnover relative to a comparable prior period (of at least a month).

• Employers will be eligible for the JobKeeper Payment if:

» their business has a turnover

of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable prior period (of at least a month); or

Next month: How MGA is supporting our members to understand and take up JobKeeper

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INDUSTRY NEWS

SOUTH AUSTRALIA

South Australia’s Foodland launches ‘Act of Kindness’ cards to help SA community stay connected Foodland has launched a new initiative to help keep the SA community connected and increase kindness and positivity during these challenging times

Next month: How independent retailers across Australia have answered the challenge and served their communities during the darkest days of Coronavirus crisis

These postcards are designed to encourage Mighty South Aussies to lend a hand to neighbours in need, such as the elderly, or those who are isolating, or to provide a helping hand to their fellow neighbour or someone they suspect may need a pick-me-up.

“The postcards will not only allow the community to receive the help they need and stay connected to others, but it will also help them to reduce their risk of contracting or transmitting COVID-19,” says Nicole Richards, Marketing Manager at Foodland Supermarkets.

The way these Acts of Kindness cards work is really simple.

Visit your local Foodland to pick up a card, fill out your details and specify how you can help, then drop it in their neighbour’s letterbox to let them know they’re willing to provide them with a helping hand.

“It’s about mighty South Aussies helping mighty South Aussies.

It also provides those most at risk with a way to get assistance without having to ask—we know that can be a tough thing to do.”

Foodland have developed their ‘Act of Kindness’ cards as part of a wider plan to help keep the community stay safe and connected.

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The Acts of Kindness Cards can be found in Foodland stores across the state or in upcoming editions of the Foodland catalogue.

Congratulations to the Foodland team and all the Foodland store owners and operators for driving this powerful community program at this challenging time.

INDUSTRY NEWS

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Changes to the instant asset writeoff scheme for SMEs As the world struggles to come to terms with the ongoing reality of COVID-19, there’s going to be an inevitable impact on small business in Australia. The Federal Government, however, recognises that companies – and small to medium businesses (SMEs) in particular – are the lifeblood of the Australian economy. The Government’s March 2020 Economic Stimulus Package, in response to challenges created by the spread of COVID-19, further extends the already beneficial instant asset write-off tax concessions for businesses This article aims to give you an overview of the revised instant asset write-off scheme. In the coming months, we’ll be providing further information about how to claim and what you can claim for, to help you prepare for the end of the financial year.

What exactly is an instant asset write-off?

Although the instant asset write-off scheme has now existed for a number of years, the changes effective as from 12 March 2020 allow businesses with an annual turnover of less than $500 million to immediately write off, as an expense for tax purposes, new or second-hand asset purchases costing up to $150,000 each.

purchase fridges, freezers, cabinetry, office equipment or a new fit-out for your shop, or any industry-related equipment.

It means that instead of depreciating an asset over a number of years, you can effectively count the asset purchase as an expense in the current financial year. It may reduce your tax bill, provided you have purchased and installed the asset, ready for use by 30 June 2020.

The Government’s communique has made it clear that these investmentboosting measures are only temporary. Unless either the new $150,000 threshold or the previous $30,000 threshold, is later extended to continue beyond 30 June, the instant asset write-off threshold will revert to the long-term standard of $1,000 from 1 July 2020, along with a business turnover limit of $50 million.

So now is the time to act, particularly if you have plans to purchase assets costing more than $30,000 each.

Extended provisions are only temporary.

Boost your business activity and improve cash flow.

Source: Quantum Finance

Businesses with a turnover of $500 million are clearly not small businesses, but SMEs, however, low their revenue, can benefit from the increase to the asset value threshold.

It is now $150,000, up from the previous threshold of $30,000.

There are many ways to take advantage of this generous tax concession for businesses. The Government has given examples of a concrete tank for a builder, a tractor for a farming business and a truck for a delivery business. You could also

You can purchase and write off multiple assets under this scheme, without any limitation on the number of items. So, if you are considering buying equipment for your business which has an individual cost of between $1,000 and $150,000, you could save a lot of tax by bringing forward the date of your purchase to meet the 30 June 2020 deadline.

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INDUSTRY NEWS

MGA delegation visits Parliament House Canberra Before the Covid-19 pandemic, MGA and MGATMA Board members Debbie Smith, Grant Hinchcliffe and CEO Jos de Bruin, paid a visit to Parliament House in Canberra.

The visit was to engage and liaise with various Ministers and members of Parliament to lift the profile of MGA members further and to raise several opportunities and matters affecting the viability and future prosperity of members businesses.

These matters included;

• Sustainability – Waste Management, Waste to Energy

• Industrial Relations Reform – vital for Family Business survival

• MGA Annual Wage Review survey insights

• Energy costs • Mental Health for Family and Private

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payment fees and

• Illicit / Illegal Tobacco All matters will continue to be pursued into the future as we focus on getting through the Covid-19 ‘stay at home’ phase, and we transition into the ‘recovery’ phase.

businesses

L-R: Grant Hinchcliffe, Debbie Smith, Pauline Hansen Leader One Nation Party and Jos de Bruin.

L-R: Debbie Smith and Julie Owens, Shadow Assistant Small Business Minister.

• Least Cost Routing – Merchant

The Treasurer, Josh Frydenburg.

L-R: Jos de Bruin, Trevor Evans Minister for Waste, Debbie Smith and Grant Hinchcliffe.

INDUSTRY NEWS

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MGA and Fairer Merchant Fees Alliance push for lower fees Many members will be aware that MGA is a member of the Fairer Merchant Fees Alliance (FMFA), which was recently formed and launched in order to support struggling merchants such as independent supermarkets, liquor stores and timber and hardware businesses, who are being unfairly hit by high fees for ‘tap and go’ card transactions.

L-R: Grant Hinchcliffe and Rex Patrick, Centre Alliance Party.

It is a fact that the exponential growth of Merchant Service Payment Fees has become a significant and unsustainable cost to doing business in the supermarket, liquor store and timber and hardware businesses.

The FMFA wants to fix the system through action by the banks, regulators and government. Along with MGA, it comprises the Australian Convenience and Petroleum Marketers Association (ACAPMA), the Australian Retailers Association (ARA), and the Council of Small Business Australia (COSBOA).

The issue is that ‘tap and go’ transactions are often automatically routed through expensive international payment networks, leading to hundreds of millions of dollars each year in unnecessary fees across Australia. Our industry sectors are no exception!

This ongoing problem can be fixed by a system known as Least Cost Routing (LCR), which should be automatically enabled by the banks across payment networks – or at least given as an easy option for merchants (MGA members) to choose.

L-R: Grant Hinchcliffe and Debbie Smith outside Parliament House.

A transparent approach such as this would ensure that every ‘tap and go’ card payment would be sent through the lowest cost network for that

particular transaction. Sometimes this might be the international networks, but more often it will be eftpos.

However, today this is not automatically enabled on the payments system, and MGA believes the big banks have been dragging their feet, setting it up.

There is also the potential to implement LCR into online and digital payment systems, which could lead to further savings. This can be no more evident than in our current Covid-19 predicament, in which it is recommended that card transactions are preferenced over cash payments to reduce risk of any Coronavirus transmission.

The aims of our Alliance, the FMFA, is to reflect the Reserve Bank of Australia’s policy direction, as noted in the AFR: “The RBA’s head of payments policy, Tony Richards, told The Australian Financial Review, he is frustrated banks are not proactively providing merchant customers with the cheaper payments option. He has also warned banks against hitting customers with extra fees for using eftpos.”

MGA and FMFA members are taking every opportunity to push the LCR agenda, and are liaising with various stakeholders to support these important reforms.

MGA, has also in its own right, on behalf of MGA and MGATMA members, engaged with the Federal Minister for Small Business, Michaelia Cash, who we have requested speak with the Australian Banking Association to help drive for this result. MGA will keep members informed of any further progress.

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INDUSTRY NEWS

Keeping business costs low is key to a healthyAustralian economy

By Stephen Benton, eftpos CEO

In my job, I spend a lot of time with Australian small business people and retailers, talking about how we can help their businesses grow and best serve their customers.

In fact, most Australian consumers agree with Least Cost Routing. Research conducted by FiftyFive 5 in May 2018 clearly showed that 75% of Australians wanted the merchant to be able to choose the lowest cost network for each transaction. Some of those surveyed said they personally knew small business operators, and they understood the importance of reducing their overheads.

The one issue that keeps coming up in these conversations is cost. Both are keeping the cost of doing business down in a difficult economic environment and being able to pass on cost savings to customers.

The cost of payments is one issue that is consistently top of their mind during these discussions because the fees that businesses pay to accept electronic payments run into many hundreds of millions of dollars across the economy.

Why? Because as more Australians move away from cash and use electronic payments, retailers are seeing rapidly growing numbers of these transactions.

Some say the associated fees are now among their top five cost centres.

That’s not surprising because payments networks are complex and expensive to build, but retailers must have the ability to look for efficient options that save them money.

In recent days we have seen the Reserve Bank of Australia again reduce official interest rates. The Federal Government talk about further stimulus packages to boost the economy in what can only be described as a difficult global environment dominated by headlines about issues such as COVID-19.

Both the Reserve Bank and the Federal Government are trying to do the same mga.asn.au | May 2020 | Edition 2

thing - grow the economy by stimulating consumer spending and driving business growth, particularly small business growth.

This is where a domestic debit scheme like eftpos plays an important role.

Rather than being driven by profit like the international card companies, eftpos is a mutually-owned company running critical payments infrastructure that delivers efficient, cost-effective, secure solutions for the benefit of Australians.

That’s why we support what the Reserve Bank calls Least Cost Routing, as a way of reducing the cost of payments for retailers and small business.

Also known as Merchant Routing or Smart Routing, the principle is simple.

Merchants should be able to choose to route transactions to the network that costs less (whether that be eftpos or another network) because they carry the cost burden.

Low costs for retailers and small business should, in turn, mean lower prices for consumers in many cases.

Least Cost Routing works on multinetwork debit cards – the most commonly used cards in Australia – when they are tapped.

Because the cards have two networks on them – eftpos and an international payments company – the merchant has a choice to route to whichever scheme offers them the best value, if this choice is made available by their bank.

Before tap and go became popular in Australia, around 90% of consumers chose eftpos CHQ and SAV when they docked or swiped their cards.

Tapping took that choice away from consumers without telling them.

In Australia, only about 5% of debit card transactions are currently routed, so there is plenty of opportunities for more costs to be taken out of the economy.

In fact, there’s no reason why Least Cost Routing cannot be applied to more than just the point of sale payments in stores.

The same principle should apply to e-commerce, mobile and other payments as well.

INDUSTRY NEWS

This, coupled with true pricing transparency across all payment fees, means retailers can make better, more informed decisions to the ultimate benefit of their customers.

We have a comprehensive disputes and chargebacks service and are deploying technologies here in Australia to deliver even greater levels of security as we move into new areas of digital payments.

Cost, however, is not the only thing that retailers and eftpos are interested in.

The vast majority (86.3%) of fraud in Australia happens online, not at the point of sale.

Creating secure products that protect customers against fraud is also of great importance, and is a core design principle of everything we do at eftpos.

While eftpos has very low fraud levels, and eftpos cardholders enjoy the same protections as any other cardholders in stores under the national ePayments Code, we have not stopped there.

To reduce the risk of fraud in these digital environments and deliver secure and efficient eCommerce payments, eftpos is combining a number of processes, techniques and locally-based tools specifically designed for the Australian market.

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That is a clear example of our commitment to continue working with Australia’s retailers, small businesses and consumers to meet their payments needs and deliver the efficient, secure and cost-effective payments solutions they require for their continued and future prosperity.

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INDUSTRY EVENTS

NATIONAL

Ritchie’s milestone celebration!

On Monday 2nd March 2020, a large contingent of over 300 local and multinational suppliers, industry stakeholders and Ritchie’s management and staff, gathered at the Southern Golf Club reception rooms in Dingley, Melbourne, to celebrate 150 years of continuous operation of the Ritchie’s Supermarket Group.

It was also an occasion at which Ritchie’s CEO Fred Harrison, together with Ritchie’s Senior Executives; Jarrod Swaine, Jamie Cameron and Karl Loh, presented to all those in attendance, a group sales performance update. They shared the marketing, promotional and sales strategies and plans for the coming year.

The Ritchie’s Community Benefit Card was introduced in 1993 and allowed customers to nominate a % of their purchase to their preferred local school, kindergarten, hospital, or charity. This initiative resonated with Ritchie’s customers and becoming an instant success, and to this day has contributed over $50m back to the communities.

To commemorate this auspicious occasion, we had Thomas Ritchie (story-teller) appear as a special guest and speaker, sharing with the audience his own experiences upon arriving in Australia and establishing his first Ritchies food and grocery store 150 years ago.

In 1984 Mr Barry Cameron, who was the sole owner of Ritchie’s group of 7 Mornington Peninsula based stores, passed away.

He left an incredible legacy, and that was to follow the Thomas Ritchie way, to put the community first in everything a Ritchie store does.

The celebration of 150 continuous years in the Australian supermarket business cannot be taken lightly. The Ritchie’s name has been enduring and has not changed in 150 years since founder, Thomas Ritchie established his first store in Frankston Victoria. This is an incredible accolade.

In the early 1990’s Fred Harrison (CEO), together with brothers and Directors Malcolm and Jamie Cameron (Barry’s sons) had the vision to grow the Ritchie’s group into other communities in Victoria and later interstate.

Thomas Ritchie, from day one, created a core value that focussed on being a strong “community” based business that supported its local customers with their food and grocery needs, as well as introducing the concept of a “penny for a pound”. A penny for every pound a customer spends was contributed back to the community.

To this day, Ritchie’s Supermarket Group has stayed true to the very core values that Thomas Ritchie introduced and established. This continuous core value has created a unique and trusted connection between Ritchie’s stores and the communities in which they trade.

mga.asn.au | May 2020 | Edition 2

Since the 1990’s the dedicated Ritchie’s team, with agility, innovation and foresight has grown the Ritchie’s supermarket group from being a Mornington Peninsula based group of 7 supermarkets in 1980 to a tri-state group of 76 exceptional supermarkets based in Victoria, New South Wales and Queensland.

In 2001 Ritchie’s group expanded into other parts of Victoria, in 2004 came the first NSW based store and in 2007 Ritchie’s had established its first Qld store. In 2016, the 100-year-old Fishers Family Supermarket Group, located in Northern Victoria, sold its 13 supermarkets to a like-minded community-based company in Ritchie’s.

INDUSTRY EVENTS

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NATIONAL

Today the Ritchie’s Supermarket Group, renowned for its support for local producers and growers and for providing innovative and exceptional shopping experiences for its customers, is the largest independent supermarket employer in Australia.

With over 6000 staff, who have been long-serving dedicated employees driven by the Thomas Ritchie passion for serving customers and making a contribution to their local communities.

Congratulations to the entire Ritchie’s team, over the many years for achieving this incredible accolade – 150 continuous years in business under the one name – RITCHIES.

Photos: Opposite page. Mulitnational suppliers and industry stakeholders enjoy the celebration. This page: Main photo, Story-teller, Thomas Ritchie.

Top left: Ritchies CEO, Fred Harrison. Photos above and right captured from the fabulous advertisement celebrating Ritchies 150 years.

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INDUSTRY NEWS

QUEENSLAND

MGAQ Committee meets with Small Business Minister Fentiman & Small Business Champion Maree Adshead The MGAQ committee met at the Royal on the Park Hotel in Brisbane on Thursday 27th February. The purpose of the meeting was to discuss several Queensland industry issues and matters affecting the businesses of Queensland members, namely:

• Qld Packaged Liquor – Entrepreneurial Pipeline Project • Trading Hours – 5-year moratorium • MGA Waste Management - Circular Economy & Policy • Single Use Plastic Item Bans – cutlery, plates, toothpicks and straws etc.

an issue if ample notice is given to seel through these items, as there are environmentally friendly substitutes available.

The MGAQ Committee has determined a number of workstreams that will be pursued in the near future, and when the opportunity to engage again becomes available, MGA will then begin the consultation process.

Thanks very much to our hardworking and committed MGAQ Committee – they do such a great job representing all independent supermarkets in Queensland.

• Container Deposit Legislation • Planning and zoning inconsistencies • Payroll Tax – increase threshold and decrease % The main topic of our discussion was the ability for Queensland independent supermarkets to be able to source, stock and sell local Qld wines, beers, ciders and distilled products as a means to promote, drive and support the growth of Queensland businesses and employment.

We were able to positively discuss this matter with a number of Queensland Government representatives including Minister for Employment, Training and Small Business, Shannon Fentiman, Qld Small Business Champion, Maree Adshead and Peter McKay, Deputy Director-General, Strategy, DESBT. Other prominent guests at this meeting included Ewan Macpherson, MD for Symphony Hill Wines and David Kitchen, Commander in Chief for Boutique Brewer Ballistics Brewery

L-R: Roz White - Whites IGA Sunshine Coast, Kylie Hughes - Director Dept of Environment and Science, Peter Piccone - Supa IGA Cairns Mark Meszaros - Drakes Stores

It was terrific to be able to engage collaboratively with all concerned, toward finding a solution that will benefit Qld small businesses with opportunities to grow and to lift their presence in the Queensland market away from the major multi-national companies which dominate the Qld landscape. MGA will keep members informed of any progress made in the coming weeks, Covid-19 withstanding.

Kylie Hughes, the Director for the Queensland Dept of Environment and Science - Waste Avoidance & Recovery Policy, also joined the committee meeting to engage and discuss the proposed Qld Govt. Bans of single-use plastic items such as straws, plates, cups, cutlery, toothpicks. Kylie was very keen to understand what impact this would have on MGA’s members’ businesses if any. The MGAQ Committee felt this would not be mga.asn.au | May 2020 | Edition 2

L-R: Peter Piccone - Supa IGA Cairns. Ewan Macpherson - MD, Symphony Hill wines. Debbie Smith - Foodworks - 3 stores in Toowoomba.

Roz White - Whites IGA Sunshine Coast. Shannon Fentiman - Minister for Employment & Small Business and Minister for Training & Skills Development. David Kitchen - Commander in Chief - Ballistics Brewery.

Mark Meszaros - Drakes Stores. Ian Jack - Ritchies IGA Stores.

Terry Slaughter - IGA Springfield Lakes. Maree Adshead - Small Business Champion. Evan Carwood - Foodworks. Penelope Andrews - Metcash.

Jos de Bruin - CEO MGA Independent Retailers

INDUSTRY NEWS

21

QUEENSLAND

Queensland Government announces inaugural Small Business Commissioner MGA would like to warmly congratulate Maree Adshead, former Qld Small Business Champion, for her appointment as Queensland’s inaugural Small Business Commissioner.

Maree is a passionate crusader for the welfare and prosperity for family and privately owned Queensland businesses and has worked closely with the MGAQ Committee over the years.

MGA along with many others has been actively advocating for Qld to have its own Small Business Commissioner for a number of years and we are grateful the Qld Government, through Employment, Training and Small Business Minister Shannon Fentiman, that it has delivered this outstanding result.

DISCOVER OUR QUALITY RANGE OF NUTS, DRIED FRUITS, LEGUMES, SNACKS AND MORE

Small Business commissioners in other states carry an enormous responsibility in their remit to help and assist small business owners with a myriad of matters including, leasing and tenancy matters. Maree and her team will no doubt play a similar role for all small businesses in Queensland.

We thank Maree for all her assistance with various matters to date and look forward to working with the new Queensland Business Commissioner now and into the future.

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TRAINING

NATIONAL

Teamwork and Cross-Training

Cross-training is when an employee is trained or coached to complete different parts of the organisation’s work.

It benefits managers and businesses as a whole, as it provides flexibility in managing the workforce to get the job done. It also benefits the employees because it helps them learn new skills, increase their value to the business and combat position fatigue (a WHS issue).

Benefits Key benefits of cross-training include:

Agility within the workforce By cross-training employees, it distributes certain key skills across the team. It means team members become more wellrounded and can take on a wider range of tasks. This allows the team greater flexibility and the ability to adapt to changing circumstances. It also gives the team a chance to work closely with each other and build their relationships.

Reducing “Key Person” Risk One of the primary benefits of cross-training employees is to reduce risk. Many teams rely on a single person’s knowledge or experience for certain tasks.

What happens when this team member is injured or decides to leave?

Giving other team members the opportunity to work with the key team member, will give them a chance to absorb knowledge and develop their skills.

mga.asn.au | May 2020 | Edition 2

Arranging to spread tasks to other team members also assists.

Appointing a backup to cover the key team member can also reduce the risk of depending on a single person.

However, be careful with adding tasks to a team member’s role.

It only really works if the new tasks are relevant to or provide benefit for the role being performed.

Flexibility Collaboration in the workplace may mean the added benefit of a more flexible work schedule, as members are generally cross-trained to cover for each other’s skills and strengths. In fact, this allows employees to plan their personal obligations (like childcare or doctor’s appointments, for example) with little disruption to operations.

It’s also important to note that a flexible workforce can help improve productivity and develop a better work-life balance for employees (Mental Health awareness/support- WHS Issue).

Efficiency Cross-training forces teams to refine processes. While experienced team members are training others, it forces employees to answer questions, explains their processes, and see the tasks they perform daily through a fresh set of eyes.

TRAINING

Teamwork Teamwork benefits the employer in the long run as well as the employee with facts such as; Employees that connect directly with their workplace are more likely to stay with the business – reducing recruitment costs. Remember that while employees leave their jobs often cite a lacking salary, another common complaint is that their contributions do not seem to matter.

Other benefits include;

Fosters Creativity and Learning Creativity thrives when people work together on a team. Brainstorming ideas as a group prevents stale viewpoints that often come out of working solo. Combining unique perspectives from each team member creates more effective solutions.

Builds Trust Relying on other people builds trust, and teamwork establishes strong relationships with co-workers.

Despite occasional disagreements, an effective team enjoys working together and shares a strong bond.

Trusting teammates also provides a feeling of safety that allows ideas to emerge. It helps employees open up and encourage each other. Open communication is key when working on a team and produces effective solutions in difficult group projects.

Teaches Conflict Resolution Skills Conflicts inevitably happen when a group of unique people are together. Employees come from varied backgrounds and have different work styles and habits. While these unique viewpoints create the most successful work, they can also generate resentment that quickly turns into conflict.

When conflict arises in teamwork situations, employees are forced to resolve the conflicts themselves.

However, it must be pointed out that if

the conflict is not easily resolved that management should intervene to resolve this issue quickly.

Learning conflict resolution firsthand is a skill that employees can use to become efficient managers down the road.

Boosts Productivity Working within a team and cross-training from different areas allows for the workload to be shared equally among members and distributed according to each member’s skills and strengths.

With more ‘hands-on-deck’, tasks are completed faster and more efficiently, thereby increasing productivity.

Improves Morale When the workload is shared, and members of a team collaborate, they can feel a greater sense of accomplishment when they complete a task and reach a goal that they would not have been able to achieve had they been working alone.

This, combined with a sense of belonging, appreciation and recognition, can drastically improve employee self-esteem and morale. In turn, when employees enjoy their work and experience job satisfaction and less stress, the businesses experience lower turnover rate.

Improves Service The importance of teamwork is not limited to the workplace but also to the service provided to customers (internal and external). Customers tend to shy away from businesses with unhappy employees and prefer doing business with organisations whose employees demonstrate a strong work ethic and team spirit. Teams that work well together are essential in improving service and meeting the needs of customers.

Four Tips for Successful CrossTraining

• Identify the specific critical tasks for

which cross-training is needed/desired

• Identify the employees who will be

capable of performing the crosstraining tasks. Match the skill set and learning capability of the employee to be cross-trained with the skills required for a particular position

• Explain the reason for cross-training

and the benefits to the employees to remove any question of both the person being trained and the person whose job is being cross-trained

• Remove any suspicions that the

program is designed to eliminate jobs or a particular employee

• Schedule adequate funds, time,

training materials, and training facilities in order to accomplish the cross-training

• Reduce the workload during the

training process since it will take the new employee longer to perform the task until proficiency is achieved.

Avoid employees feeling resentful that they are being required to do more work and that the business is taking advantage of them.

• Create a recognition and reward

program for employees who have satisfactorily finished cross-training

• Inform the employees that cross-

training will also benefit their own development

• Finally, realise that employees don’t

retain cross-training skills forever and must be re-trained periodically.

Employee cross-training is a great way for businesses to build skill sets while ensuring maximum coverage of key job responsibilities. With cross-training, employees are trained to in another job function, and from time to time may step in to do those duties.

Most of this type of training is done on the job/coaching others with job skills.

Here at MGA Industry training we also offer short training modules on Coaching Others and Working with Others as entry level theory to assist with this implementation.

Next month: We recap mandatory training and why there’s no time like the present to invest in your staff with training- the best ROI you’ll ever get

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24

TRAINING

Dealing with customer conflict and aggression NATIONAL

In general, episodes of aggression are usually triggered by a particular event, which may involve circumstances that have led the consumers feeling threatened or frustrated.

Physical activity: restless or agitated, pacing, standing up frequently, clenching of jaw or fists, hostile facial expressions with sustained eye contact, entering ‘offlimit’ areas uninvited.

At this particular moment in time, this is what our industry is facingcustomers are in fear of missing out, in fear of losing their jobs, fear of losing loved ones and fear of being ill and the biggest fear of all- the unknown.

Mood: angry, irritable, anxious, tense, distressed, difficulty controlling emotion

This has led to conflict within the workspace. While being in retail, we have all faced rude and obnoxious customers in the past- the Coronavirus has pushed customers to the next level.

Moving forward and ensuring your employees are safe, its best to ensure they know how to deal with conflict that becomes aggressive.

Aggressive behaviour does not just encompass physical actions – it includes verbal behaviour as well. In this article, we look at signs of aggressive behaviour and how to avoid conflict This information can be given through team meetings, discussions when restocking, before and after shifts.

This will assist with ensuring the team members are receiving support.

If a customer becomes aggressive, threatening or potentially violent, employees need to respond in accordance with the policies and procedures of the business.

Signs of Aggression/Violence Appearance: can be intoxicated, bloodshot eyes, sweaty, dishevelled, body language demonstrating aggression, facial expressions of frustration, anger, muttering under their breath etc mga.asn.au | May 2020 | Edition 2

Speech: loud, swearing or threatening, slurred.

By following the steps below, you will assist with avoiding/minimising confrontation and remain in control in of the situation.

Keep calm The most important thing to remember is to stay calm. This is hard to achieve when a customer is yelling at you or your team. Breathe. It is not about you.

Distance your emotions if possible, from the situation. This does take practice - so for the younger team members this may be difficult to achieve

Control body language Having an aggressive body language sends out negative non-verbal cues.

Pacing, tapping, clenching fists or crossing arms could give away the words spoken as not how you feel. It might even be seen as being as hostile. Try to be confident and act in control (bring in the inner Oscar winner you are), even if feeling intimidated. Refrain from smiling as it may come across that you are not taking the situation seriously

Be aware of personal space When people are angry, they need more personal space. Getting too close to them can be seen as threatening. If possible, try to position yourself behind a counter or table so that there is a physical barrier between yourself and the aggressor in case they turn violent. Avoid any physical contact.

Listen carefully Although an individual may be behaving unreasonably, there is often a root cause or grievance that has triggered this behaviour. Allow them to speak. Listening to what they have to say often helps calm them down, as in many cases, people need to vent their frustration. When the individual is talking, don’t interrupt, maintain eye contact and show you are acknowledging what they are saying.

Reassure them by making sure they know you are trying to help.

Be courteous Use polite and courteous language with people that are abusing you or your staff (as hard as that it is), repeat what they want/demand but word it back to the customer in a polite manner. But also make sure that you do not come across as condescending. This can be achieved through your tone of voice - gentle and clear

Be discreet Being tactful and discreet is crucial when dealing with difficult customers.

Remember, other people are watching, and some may even whip out their smartphones to record the conflict. The last thing you want is for the incident to hit social media.

If you can, move the instigator away from the audience to calm the situation down.

However, ensure you have someone else around from the team just in case they need to intervene if needs be.

Communicate what can or cannot be done Once you’ve heard the customer’s grievance, inform them if there is a solution and a timeframe it can be done on. If the problem cannot be resolved- be honest about it. Explain why.

TRAINING Clarify the issue first and if apologisingNATIONAL do not use the word “I” in this situationuse the term ‘we’. Refer back to government directives, store policies and procedures.

It would also be wise to have signage around the premises to reiterate what the store policies and procedures are and expectations. Therefore, it helps push the message across. It acts as a forewarning (as those who have completed their RSA would know!)

Remember these DON’T’s • Challenge or threaten the customer by the tone of voice, eyes or body language.

• Say things that will escalate the aggression.

• Yell back • Turn your back on the customer • Argue with the customer • Stay around if the customer doesn’t calm down.

• Ignore verbal threats or warnings of violence.

• Tolerate violence or aggression.

The aftermath Always follow up after the incident, remove those involved from the area of the dispute and allow for them (if possible) to have a quick break to

25

on-premises- it is best to try and control them if possible. Measures are being put into place by all supermarkets with limits on purchases, certain times for a group of people etc., extra security and in some areas police presence at certain times.

• react • diffuse • reassemble (before heading back out

Visual signage is also an excellent strategy to use to let customers know about what is expected of them of what they can do and what is not acceptable.

• Write up an incident report (a must!)

Most important in these situations is to be proactive if any foreseen problems. If not, resolve the issues best you can, then revisit the situation with a fresh attitude.

on the floor)

Another issue that has arisen lately is the mob mentality. Mob mentality is how people can be influenced by their peers to adopt certain behaviours on a mostly emotional, rather than rational, basis. When individuals are affected by mob mentality, they may make different decisions than they would have individually—example- Toilet Paper shortage.

In these trying times – there are no clearcut solutions that will remain the same.

All you can do as a collective workplace is be fluid with the situation, do the best with what you have. And as the retail industry, support the team, community and fellow colleagues.

With the mob mentality that is being visibly seen

NEW LOOK!

NEW FOCUS!

Check out our new look Course Guide for 2020—available online through our MGA Website- mga.asn.au.

Make sure you log in as a member to receive member discounts on courses. If unsure contact, either training@mga.asn.au or admin@mga.asn.au

0 2 0 se

2 our C

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PRA CTIC AL•

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If the course you are looking for is not in the guidecontact our friendly Training Department at training@mga.asn.au

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INFO RMA TIVE

26

TIMBER NEWS

NATIONAL

February 2020

IHG EXPO – GOLD COAST QUEENSLAND MGA TMA participated in the annual IHG EXPO and what a terrific, successful event it was.

The biggest and best event to date.

Bringing together the very best of independent hardware, the IHG Expo is a unique networking opportunity where 600 members, 220 suppliers and over 2,000 attendees gather at the flagship B2B exhibition for the hardware, home improvement, building supplies and timber industry.

Working on the motto that we are ALL stronger and better together than acting in isolation, the Expo focused on supporting every member with opportunities to drive sales, improve standards and reduce costs to assist them on the journey to becoming the Best Store In Town.

As well as the trade show and exhibition – the event provided the opportunity to introduce successful IHG members who had set such a high benchmark in 2019.

Across the network, IHG has some amazing stories and passionate teams, all who have a clear drive to be the Best Store In Town. Retailers who lead the way in retail and trade excellence or who have reinvested through training, service and standards.

To name only two who are also current members of MGA TMA Timber Merchants Australia.

Kincumber Mitre 10 NSW Peter Steele and Steve McCumstie

WORKING TOGETHER THROUGH TOUGH TIMES In 2020 IHG shine the spotlight on new ideas and value-add for independents to compete in an increasingly tough market.

mga.asn.au | May 2020 | Edition 2

Proudly supporting the Hunter Coast since 1988, Steve and Peter are a shining example of a communityminded family business that puts loyalty and service ahead of anything else. The team operate under a simple business mantra to offer “fair pricing, guaranteed service and the ability to adjust to their customers’ needs.”

They are early and enthusiastic adopters of every IHG initiative, in particular becoming vocal advocates for the Store Dashboard and customer segmentation / SLA program. Peter and Steve are village elders who continuously make themselves and their store available for other members to visit.

They also build strong relationships with suppliers, engaging with them on a 12-month calendar sales and marketing opportunities.

Provans Home Timber & Hardware – Clifton Hill Victoria Barry, Jarrod and Marie Rosenberg An impressive trade outlet in the highly competitive Melbourne market, Provans continues to set a strong benchmark for trade standards and efficient service.

The purpose-built site has been an overwhelming success for the Rosenberg family, growing their customer base and increasing spend from existing builder accounts. The layout and range are specifically designed to service trade customers and incorporates all key elements such as a multi-lane drive-thru, dedicated trade desk, fully undercover timber and logical traffic flow to the shop floor.

The recent development of their showroom is exceptional, and the commitment from staff in cluster meetings, village meetings, the whole of house training and collaborating with other stores is outstanding.

TIMBER NEWS

NATIONAL

Timber industry advocates call for building and construction stimulus package MGA TMA Timber Merchants Australia in collaboration with other leading timber industry associations has called on the the National Cabinet, representing state and federal governments, to consider the immediate implementation of a six-step stimulus plan to reinvigorate the housing sector and secure regional employment through the construction supply chains.

The group behind the plan included national representation of the Frame and Truss Manufacturers representing timber processors, manufacturers and merchants throughout Australia, including MGA TMA Timber Merchants Australia, the Frame & Truss Manufacturers Association (FTMA), and TABMA, the Timber Trade Industrial Association (TTIA).

The proposed six-step stimulus program includes: 1. Extending the first homeowners program to ensure confidence for first home buyers, targeted at new construction 2. Allow the re-opening of display homes, under tight social isolation measures, to allow construction companies to keep selling 3. Remove or reduce stamp duty and/or land tax, particularly for new construction 4. Accelerate social housing construction programs, particularly in regional areas, with a focus on engaging small and medium sized firms for construction 5. Provide incentives for private investment in the construction of housing to support the NDIS, also freeing up health care facilities 6. Consider a rent-to-buy stimulus program, where the Government owns the land and

leases it to home builders with the option to buy.

According to David Little, TABMA CEO, the Australian governments have used construction and housing stimulus programs successfully for over a century to generate economic activity, jobs and residential accommodation during difficult times.

“The beauty of this approach is that it supports industries that can work through the current socioeconomic restrictions, has a deep impact on supply chains, from plantation timber growers through to builders, and has massive benefits for regional Australia,” said David.

TMA National Membership Manager, Ann Sanfey, said this was a potentially huge program for the industry.

“We are currently preparing detailed briefing material for each of the six policy recommendations.

It’s important to note that we are not looking to reinvent the wheel here, we are asking governments to expand on existing policy mechanisms,” said Ann. Brian Beecroft, CEO of TTIA, added: “What our organisations are suggesting works because it is far deeper reaching than just the immediate future of one small sector – if successful this simple six step plan can provide far reaching benefits through timber supply chains, as well as taking pressure of the stretched health system and

addressing some clear community welfare needs in relation to social and disability housing.”

The plan comes on the back of recent analysis by the Housing Industry Association which shows that Australia’s housing construction sector is facing an unprecedented decline, with Australia’s peak forestry body, the Australian Forest products Association, also calling for an urgent recovery package.

Kersten Gentle, FTMA CEO, said the payment supplements were a great start.

“However, we need to build the economy by getting people back at work, if that can be done safely, we need housing and we have opportunities to generate improved outcomes for regional and at risk Australians. This plan for a comprehensive construction industry stimulus ticks all the boxes to support economic recovery as we emerge from the COVID-19 pandemic.”

Next month: The timber industry and the bridge to recovery

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28

LIQUOR NEWS

NATIONAL NEW SOUTH WALES

NSW Government announces liquor licence relief MGA welcomes the NSW Government announcement made on the 14 April that; it was waiving a wide range of licence fees as part of its economic stimulus package to help businesses survive the COVID-19 pandemic.

Packaged Liquor Licenced businesses that own and operate three or less licenced businesses will become eligible for the automatic fee waiver which will be calculated at pro-rata and waived in full ($0) for 12 months from 1 April 2020 – 31 March 2021.

mga.asn.au | May 2020 | Edition 2

At this stage, bottle shops and packaged liquor home delivery businesses with four or more outlets owned by the same licensee or business will not be eligible for fee waiver assistance.

Although this fee waiver will be timely relief for eligible licenced businesses, MGA will continue to lobby the NSW government to have the fee waiver applied to all NSW package liquor licence holders, as it was by the Victorian Government.

Should you need any further clarification, please contact the MGA National Support Office on 1800 888 479 or email admin@mga.asn.au

INDUSTRY NEWS

29

NORTHERN NORTHERNTERRITORY TERRITORY

Dan Murphy continues push to set up NT store Despite being refused a liquor licence twice by the Territories Liquor Licensing Authorities to open a 1200 square metre Big Box Dan Murphy Super Store in Darwin, Woolworthsowned Endeavor Drinks Group continues to use its endless recourses and financial muscle to secure a licence against strong local community and Health Authority objections.

At the recent NT Liquor Commission hearing 17 different objectors opposed the issuing of the licence. Health organisations across the Northern Territory including Aboriginal primary care organisation Danila Dilba and the Public Health Association of Australia, all arguing that the store would increase the rate of alcohol-related harm in Darwin putting nearby Aboriginal communities at risk.

One must then ask the question, “What is the point of appointing an Independent Liquor Commission to review and make balanced and unbiased decisions on liquor licensing issues. Then have the government declare that they would introduce legislation to accommodate a clear passage for the Dan Murphy liquor application approval when a decision does not suit them!” Where is the democracy in that?

The Gunner Government must be held to account and govern for all its citizens rather than succumbing to corporate pressure.

In its decision, the commission said it was not opposed to the “concept” of a Dan Murphy’s store in Darwin, but argued the proposed location was inappropriate due to its proximity to Darwin’s largest Aboriginal community at Bagot. It is also within 2 kilometres of two other communities, Kulaluk and Minmarama and encouraged Endeavor Drinks to re-apply for a Dan Murphy licence in a different location.

After the Liquor Commission rejected the application last September, Endeavor Drinks launched an appeal with the NT Civil and Administration Tribunal (NTCAT) in December. The NTCAT dismissed the appeal, ruling the company couldn’t transfer a licence from Stuart Park BWS to a store that didn’t yet exist, resulting in the lawyers for Woolworths launching a Supreme Court appeal against the NTCAT decision.

If the Supreme Court appeal, expected to be heard in full later this year rules in Dan Murphy’s favour, they’ll be heading back to NTCAT to appeal again the Liquor Commission’s decision to reject its application.

If the Supreme Court appeal rules against Woolworths, it’s likely to be the end of the road for a Dan Murphy’s store in Darwin as the laws currently stand, or is it?

The NT Gunner Government vowed to change legislation to allow the liquor giant to open and will be tabling the draft legislation in the first sitting of parliament in February. With the Gunner Labor Party Government holding a clear majority of 15 seats in the Legislative Assembly and requiring only 13 votes to pass legislation there will be no stopping its passing.

BUY. OPEN.

WIN. Terms & conditions apply

THELOSTSHIPMENT.COM.AU

30

INDUSTRY NEWS

WESTERN AUSTRALIA

Meeting with Small Business Minister, Paul Papalia

Photo from right: Ross Anile - MGA.Peter Peck - LSA WA. WA Small Business Minister - Paul Papalia, and Small Business Commisioner - David Eaton.

Early in March, MGA WA Director Ross Anile and LSA WA CEO Peter Peck, together with other industry colleagues, attended an exclusive event in the WA Parliament House and met with WA Small Business Minister Paul Papalia and WA Small Business Commissioner David Eaton.

Minister Papalia and David Eaton are both absolutely passionate about the well being and prosperity of family and private businesses in WA. There were many topics covered including; the Coronavirus Pandemic, in particular, supply chain issues affecting the on-

shelf availability of essential food, groceries and household items, shut down rules and regulations in regard to social distancing and preventing the risk of Covid-19 spreading in stores and business and various matters concerning panic buying of essential foods and groceries and also packaged liquor items.

The WA Government is determined to assist as many WA businesses as it can now, during the crisis and into the near future, as the recovery phase begins so businesses can commence and employment is rejuvenated.

Meeting with Minister for Planning, Rita Saffioti On the 25th March 2020, Ross Anile and Jos de Bruin met with Planning Minister Rita Saffioti via teleconference, to discuss all concerning matters regarding the proposed extension of the Perth Airport shopping centre facility.

The proposed development incorporating an additional 30,000 square metres of trading space will have a demonstrable effect on the viability of many small businesses within a 10 km radius of the airport. We advocated for a retail sustainability assessment to be done to ascertain the impact on MGA members of this development. mga.asn.au | May 2020 | Edition 2

The Minster was in agreement with our concerns and suggested to take this matter up with the Federal Minister for Infrastructure – Deputy Prime Minister Michael McCormack.

Minister Saffioti supports all family and privately owned businesses in WA and is opposed to the dominance of large corporations creating an unsustainable retail and business environment.

MGA will keep members informed of our progress.

LIQUOR NEWS

31

NATIONAL

ALM continues to champion for successful independents

At the 2019 Independent Brands Australia (IBA) trade workshop, ALM CEO Chris Baddock encouraged attendees “to think about our purpose – championing successful independents, our passion.” “Independents are worth fighting for and finally our partnership as it’s the only way we can achieve together”. Baddock went on to say “that these values will be the driver for the organisation in 2020” With the independent retail sector being under extreme trading pressure, it is reassuring that Australia’s largest liquor wholesaler is committed to the success and development of the independent retail industry.

One of the ways that ALM and their retailers may be working together for innovation in 2020 could be in the online sphere, with Baddock hinting to “watch this space”.

“We have some very exciting plans which will be shared with the market during the year. We are working with retailers first, asking them for input to ensure together we deliver a platform which is right for today and can also grow as technology changes,” Baddock said.

MGA is intrinsically aligned with ALM in “Championing Successful Independents” and will continue to work closely with Chris and his national team to achieve that goal.

Chris went on to say there is an “absolute focus on enabling our retail partners to service their customers through the best store in town. Efficient and effective supply chain, a fair retail price for all, building a robust omnichannel and building long term partnerships with suppliers, retailers, contract customers and across the network”.

ALM’s goal is always to ensure that retailers can “service their customers’ needs and do this better than anyone else by using their localised services of the communities they work, live and shop in”.

Since commencing his role as CEO in 2019, Chris has spent a lot of time in the trade engaging with retailers. He has determined the best ways that ALM can help their retailers, is by reflecting on the past and use that information to develop future strategies to grow and build their businesses.

“This has been a great experience; the independent channel is vibrant and well-positioned to capture the ever-increasing need for convenience. The ability of our retailers to move quickly to cater for convenient shopping experiences amazes me. It makes me determined to build programs which enable retailers to keep on innovating.”

Next month: We explore how the independent liquor wholesalers and independent retailers have dealt with restrictions, panic buying and online sales

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LIQUOR NEWS

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mga.asn.au | May 2020 | Edition 2

INDUSTRY NEWS

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WESTERN AUSTRALIA

Container Deposit Scheme deferred due to COVID-19 On 31st March 2020, the WA Environment Minister Stephen Dawson made a decision to defer the launch of the container deposit scheme which was due to be launched on 2nd June 2020 due to the impacts of the Coronavirus

Government will continue to work closely on developing a revised timeline for the launch of the scheme.

Minister Dawson indicated that the WA Government would review the situation in August 2020 to determine whether the scheme’s new start date will be in November 2020 or moved further forward to June 2021.

“COVID-19 has resulted in significant global, national and State impacts, and there has been disruption across the board for Government initiatives and services.

The State Government has responded to calls from the community, local government and businesses for the scheme launch to be postponed, due to the impacts of COVID-19 and to eliminate public health concerns such as the potential risk of infection from handling containers, as well as over-the-counter refund points contravening social distancing.

WA Return Recycle Renew Limited, the Department of Water and Environmental Regulation (DWER) and the State

Comments attributed to Environment Minister Stephen Dawson:

“Starting the scheme on 2nd June would put the scheme’s success at risk and place refund point operators under significant pressure.

“While it is disappointing to be deferring the scheme, we remain committed to delivering the most diverse and accessible scheme in Australia.

“We will continue to work together and update the community, operators and suppliers throughout this period of uncertainty.”

2017 PREECE Great Western Cabernet Sauvignon Supported by fine but firmish grainy tannins, this long, elegant cabernet reveals a floral, perfumed and faintly herbal bouquet of red and black berry fruits, cedary oak and a hint of cola.

It’s a leaner wine that wants a little age to enable its vibrant fruit to flesh out to knit more tightly with its oak and crunchy extract. A couple of years should do the trick.

- Jeremy Oliver Gourmet Traveller Wine Magazine (April / May 2020)

mitchelton.com.au

| 470 Mitchellstown Road, Nagambie, Victoria | (03) 5736 2222

34

CORPORATE PARTNER ADVERTISING

NATIONAL

PFD Foodservices delivers more than just food to the industry Established in 1943, PFD Foodservices is a family-owned, 100% Australian business. With over 70 sites across the country, PFD employs more than 3000 staff.

PFD Foodservices deliver an extensive range of dry, chilled, frozen goods, dairy products, fresh and frozen meat and fresh and frozen seafood, together with paper and cleaning products to the foodservice industry.

PFD customers include local restaurants, cafes, hospitals, schools, pubs and clubs, petrol and convenience stores, aged care and supermarkets.

To ensure personal service is met, PFD employs over 700 drivers. This enables PFD to allocate a regular driver to you, trained specifically to ensure that customer service through

the point of delivery is at the highest level. PFD delivery drivers are trained in food handling and customer service to provide friendly, face to face assistance as part of their delivery routines.

PFD Foodservice vehicles are fitted with the latest in temperature control, all having dual compartment controlled freezer/chilled sections, allowing for dedicated temperature control during transport.

To discuss your requirements, call Robert Boskovski, PFD Key Account Manager, 0436 328 404

INTRODUCING GRENACHE WIZARDRY CLEVER, SURPRISING, MAGICAL...

WITH A BIT OF THE DARK ARTS THROWN IN.

De Bortoli Wines are excited to be releasing a new range of wines championing the Grenache grape variety, simply titled Grenache Wizardry.

Grenache thrives in warm, dry climates and originated across Europe, between Northern Spain and the South of France.

It is now grown widely all over the world and is becoming more and more popular in Australia.

The Heathcote region in Victoria is particularly suited to this grape variety and is where the wines in the Wizardry brand hail from.

Available 1st April, Grenache Wizardry will be supported by eye catching point of sale, a tasting program and will have a recommended retail price of $24.

Grenache 2018

A red wine from Northern Heathcote – gorgeous, fragrant, drinkable, medium bodied and great with food. Grenache is the warmer regions answer to Pinot Noir. Pair with traditional cassoulet.

Grenache Blanc 2019 This white wine from Northern Heathcote, where the climate is similar to many southern European regions, is minerally, textural, briny and smashable. Pair with freshly shucked oysters.

Grenache ROSE 2019

The rockstar of pale, dry, textural rosé, this Heathcote Grenache Rosé is just the ticket for warm sunny days and a shady spot.

Pair this rosé with cured Atlantic salmon.

mga.asn.au | May 2020 | Edition 2

Contact your De Bortoli Wines Area Manager for further information and exciting launch deals.

debortoli.com.au

/DeBortoliWines

CORPORATE PARTNER ADVERTISING

35

NATIONAL

Introducing MGA’s new Corporate Partner – Tassal.

Tassal is the largest producer of Tasmanian grown Atlantic salmon, supplying to both domestic and international markets. Tassal’s home is Tasmania, a beautiful island with cool waters and a rich maritime history where Tassal’s ambition to produce healthy, fresh Atlantic salmon began more than 30 years ago.

From humble beginnings, their focus on quality and sustainability has underpinned Tassal’s reputation as a global pioneer and leader.

Tassal are dedicated to continuous improvement and innovation and as farmers take pride in what is produced and how they produce it.

Tassal salmon is a natural super food and one of the best food sources of Omega-3. So, the next time you’re eating Tassal Salmon, you can be confident it is high quality and responsibly sourced, the perfect protein for all to enjoy.

Contact details:

• www.tassal.com.au • Paul Holmes - National Business Manager 0419 816 570.

• Phone: 1300 TASSAL (1300 827725)

470 Mitchellstown Road, Nagambie Victoria

|

(03) 5736 2222

|

mitchelton.com.au