2020 MGA TMA National AGM and Industry Update – Australian Circular Economy Solutions

MGA TMA (Timber Merchants Australia) held its very first virtual (video) National AGM and Industry Update, titled ‘Embracing the Circular Economy’, on 18th November 2020.

Speakers included MGA President Debbie Smith, who spoke about MGA’s vision to embrace the Circular Economy. Assistant Minister for Waste Reduction and Environmental Management, Trevor Evans, who spoke about the Federal Government’s plans to work with SME’s in embracing recycling, as well as, Chief Executive Officer of Australian Circular Economy Solutions (ACES), Max Haas.

MGA President Debbie Smith said, “while the 2020 year has been one of anxiety, frustration and flux, it has also been a year of innovation, determination and drive.

“While our industry has generally benefitted from COVID restrictions, our member stores in high tourist precincts and inner cities have been challenged by lack of regular foot traffic, incompatible rent demands and downturns in productivity.

Government assistance packages became a lifeline for some,” she said.

“The initiatives and innovations announced at this forum today have been developed to enable retailers of all sizes and brands to pursue a sustainable future.

A future where our members can reduce their cost of doing business and consumers will choose an independent supermarket, liquor store or timber and hardware business because of their waste and energy reduction credentials and values,” Ms Smith said.

MGA Chief Executive Officer, Jos de Bruin agreed that while it has been an extraordinarily busy and challenging year, he was very proud of the resilience that all members around Australia have shown during this time, while at the same time also strongly supporting their communities.

Mr de Bruin said, “panic buying, supply disruption and the online shopping phenomena were evident in 2020, mostly due to vague messaging from our governments, as well as the media misreporting and creating fear within the community.”

“Supply chains were also affected, and we liaised with the ACCC to stop the risk of large suppliers preferencing the chains at the expense of independents. What we need to do now is get the Economy going, while also continuing to trade and keep creating jobs.”

“Between July and October 2020, the MGA TMA was invited, together with COSBOA (Council of Small Business Organisations Australia), to participate in the Prime Ministers IR Reform initiative, led by the Attorney General and IR Minister Christian Porter. There were five working groups which addressed five key areas of IR Reform to drive jobs and grow the Australian Economy, namely; award simplicity, casuals, compliance and enforcement, EBAs and greenfields sites.

MGA TMA also contributed its own submissions to drive award simplicity and flexibility. Minister Porter will be making IR Reform announcements sometime early in 2021, as a result of this initiative.” MGA TMA’s “Annual Wage Review” initiative, led by Legal Counsel Marie Brown, together with a committee of members, focused on two key areas of concern within our industry sector; the growing cost to employ people and the desire to employ more people and give them more hours of work.

Mr. de Bruin was praising of MGA’s IR Reform Committee which embarked upon an extensive research study and survey of our members in late 2019 and early 2020. The findings of this report became the basis of our annual wage review submission to the Fair Work Commission. As a consequence of the survey findings, MGA TMA advocated for a zero per cent wage increase, given the precarious and uncertain circumstances we are living in. The Fair Work Commission took our submission, and that of many organisations into their consideration, and much to our disappointment awarded a wage increase of 1.75 per cent, which is effective from 1st February.”

“MGA TMA has also been dealing with many other issues, including merchant payment fees which have risen to unsustainable levels, and state matters such timber supply shortages, trading hours liberalisation, environmental matters and bans of single-use plastic items.”

“MGA TMA has always been a major driver in addressing issues for our members. Recently these initiatives included IR Reform, competition law reform, the black Economy and the cost of managing waste and energy,” he said.

At the conclusion of Mr de Bruin’s update, Ms Smith went on to explain MGA TMA’s involvement in Australian Circular Economy Solutions, which was the primary topic throughout the industry update.

“The MGA TMA anti-waste strategy also aims to audit waste so that we can see which reclaimable materials are sent to landfill. Organics, plastics and cardboard make up the bulk of our waste streams, and all have viable recycling options. Together we as an industry sector can reduce the cost of doing business, add an income stream, and reduce emissions. Our early test stores have reduced their bin pickups by at least 50 per cent – a huge saving,” she said.

Assistant Minister for Waste Reduction and Environmental Management, Trevor Evans also went on to explain how the Federal Government has become more involved in the circular economy in recent years.

“One headline issue is the discovery that Australia is exporting huge quantities of its waste streams, including potential recyclable materials, to a lot of countries that are unable to deal with plastics and it has ended up back in rivers and oceans. It has also been trucked or transported around Australia to take advantage of different waste levies or taxes by different states,” he said.

“The first thing I did was to organise all state and territory governments to come together, and all agree on the way forward under the National Waste Policy and the action plan that sits underneath it. Because this is the place where we have set out who is doing what over the next ten years and we have some very ambitious targets over this time.”

Minister Evans concluded by saying new recycling laws, including preventing the export of waste plastics, tyre, paper and anything that is contaminated cannot be exported to any country moving forward starting with glass on 1st January 2021.

The new recycling laws will include many announcements and reforms at the federal level over the next few years, including some ambitious targets for packaging in Australia in 2025, he said.

The Circular Economy is a very real and immediate action for all MGATMA members to embark upon – this will save members huge waste pick up costs, not to mention divert waste away from landfill. MGATMA will keep all members informed of an exciting and compelling Circular Economy Solutions launch in early 2021.