Small businesses are the engine room of the economy, Strong Independents candidates Peter Strong AM and Ann Bray AM stated as they released their Small Business Policy statement today, and they should not be hindered by excessive regulation.
“Whilst regulation is an essential protective mechanism, governments need to avoid putting unnecessary hurdles in their way,” the Strong Independents said. “The government must also appreciate that small businesses are people who contribute enormously to the community.
“The economy is growing so slowly that it teeters on the edge of a recession, and we are in a recession right now, if you measure it in per capita terms. If we aren’t supportive, more businesses will go under, and more unemployment will result.
“It is important that decision makers fully appreciate the cost on small business of their decisions and appreciate the total regulatory burden. Layer upon layer of regulation adds costs and time pressures to small business owners, taking them away from working on and in their businesses.”
The Strong Independents propose that all Cabinet Submissions must include a small business impact statement; that policymakers should be trained how to effectively consult with and regulate small businesses; and that a Regulator Performance Framework be developed to simplify the regulatory burden on small businesses.
“Better decisions are arrived at if all Cabinet Submissions include a small business impact statement, as per the Commonwealth Government decision making process,” Ms Bray said.
An Office of Best Practice Regulation (OBPR) sitting in the Treasury would oversee the statement. The statement would include the costs of the initiative/project/infrastructure on small business and any mitigation strategies.
“We should also train those [public servants] who write policy and regulate small businesses on how to consult effectively with small businesses and to cost the impact of regulation,” Ms Bray said.
This would be for regulators who are in direct contact with small businesses, and those who design policies that affect small businesses. Training could be delivered online as part of induction training, along with how to write a small business impact statement and use the small business cost calculator.
“Also, a Regulator Performance Framework can be developed, similar to the Commonwealth, to ensure the local regulators deal with small business effectively and with respect,” Ms Bray said.
A regulator performance framework would provide guidance about how regulators should deal with business. Having regulators appreciating life as a business owner would assist with their interactions, increase the effectiveness of government and the efficiency of small businesspeople, and help reduce mental health issues. The framework developed by OBPR would outline regulator expectations and include evaluation, providing stakeholders an opportunity to let regulators regularly know about their performance.
OBPR would also lead the measurement of the red tape impact on small businesses, and coordinate projects that streamline red tape.
“The total regulatory burden for small businesses should be reviewed and simplified – a sector at a time,” Ms Bray said. “Other jurisdictions do it, why can’t we?’
Mr Strong criticised ACT Labor for neglecting small businesses.
“The Labor government has shown time and time again that they care little for small businesspeople in the ACT,” Mr Strong said. “They believe they don’t vote for them, and they don’t need their votes anyway. The cost of running a business, including red tape and huge rates, in the ACT must be contributing to the major mental health crisis among small businesses in our community. [Surveys done in 2020 and 2022 indicate that small business owners experience high levels of mental ill-health.] This, of course, also impacts upon employees and families.
“Small businesses provide jobs, often the first job for young people and extra work for those needing more income as the cost-of-living hits. They also sponsor sports teams and charities, and many sit on community boards. They often provide the ‘vibe’ of the cities and suburbs. Respect and support for small business folk is much more important than shoring up a union that the Labor Party in other jurisdictions have walked away from.”
Greg Harford, CEO of the Canberra Business Chamber, commented: “The Canberra Business Chamber is asking all our politicians to embrace the vision that Canberra should be the best place in Australia to do business, and we would like see decisions made through that lens.
“The reality is that business here is heavily constrained by compliance and red tape, and this ultimately limits business growth and increases prices paid by consumers. The real impacts of regulation are often not understood by decision-makers and we would welcome any initiative to improve this.”
