House debates

Wednesday, 17 June 2015

Bills

Australian Small Business and Family Enterprise Ombudsman Bill 2015, Australian Small Business and Family Enterprise Ombudsman (Consequential and Transitional Provisions) Bill 2015; Second Reading

9:03 am

Photo of Nola MarinoNola Marino (Forrest, Liberal Party) Share this | Hansard source

As I was saying last night about the Australian Small Business and Family Enterprise Ombudsman Bill 2015, the ombudsman will need to be—and be seen to be—impartial in this process. The advocacy and assistance functions are entirely separate, and there will be no conflict between the two.

The ombudsman's assistance function will include a concierge role, responding to requests for assistance by referring requests to another agency of the Commonwealth, state or territory; by working cooperatively with another agency of the Commonwealth, state or territory; and by making recommendations where the request for assistance relates to a matter within the ombudsman's remit about how a dispute may be managed. This includes making recommendations that an alternative dispute resolution process be used—another ADR. Of course, the availability of an alternative dispute resolution process can certainly help preserve business relationships and avoid unnecessary and expensive litigation.

I think back to my time post the deregulation of the dairy industry and some of the challenges that faced us as dairy farmers. That is just a simple example of a group of people who were in a new environment. For example, at the time there were very few buyers in our market and a whole lot of sellers. There were some very interesting business practices applied, including third line forcing, and a range of matters took us before the ACCC. I can remember very clearly representing a group of dairy farmers at a hearing of the ACCC and officers saying to me that they were particularly disappointed in the quality of my presentation on behalf of dairy farmers. The officers were quite scathing, and that is something that has stayed with me to this day. I was appalled at their attitude and their approach to people who were trying to do the best they could in small business—which is where I see the ombudsman's role being important. It may not have been able to have been applied in that instance, but when I sat there and the commissioners looked at us as if we had crawled out from underneath a rock, I wished I had had an ombudsman—especially when an ACCC officer said to me, 'I am quite disappointed, Mrs Marino, in the quality of your presentation and the submission you have made to us.' I asked why that was, and he said, 'We were expecting something more along the lines of what we got in our previous inquiry—what we got from Air New Zealand and Qantas.' Shame!

I was working with a group of dairy farmers that had lost a third-plus of their income overnight in a deregulated environment. We were in a very difficult position, with very few buyers and a large number of sellers, and of course we also had the wolves at the door—Coles and Woolworths. In Western Australia they have an enormous impact over the market and the prices received by growers because it is basically a domestic market. To hear that comment from an ACCC person was extraordinary and showed an incredible level of disrespect for people actively out there, as small business people, getting on with the job and doing their very best to not only survive but also drive an industry and drive a local economy. Deregulation had a massive impact—we saw businesses disappear, not just farmers but other small businesses in our community. I remember driving through the small town of Brunswick, which was very dependent on the dairy industry, and seeing shop after shop closed. We saw businesses exit that small community—even the dairy farmers themselves, who were the ones who had supported not just the school but the local shops. The local store lost $10,000-$12,000 in the first weeks following deregulation. There was a $30 million exit of income out of the Harvey Shire alone, overnight. To have this sort of response from the ACCC at the time was appalling. I am really hoping that the ombudsman will take a very active role in a range of ways and that the ombudsman will be able to make inquiries and obtain information in relation to requests for assistance. This is a very important role. There are so many small businesses out there who find themselves in a David and Goliath situation, and often feel great frustration, as I felt, when dealing with any form of Commonwealth or other agency.

This Australian Small Business and Family Enterprise Ombudsman Bill and its accompanying Australian Small Business and Family Enterprise Ombudsman (Consequential and Transitional Provisions) Bill will fulfil one of the coalition's key election commitments, to establish an Australian Small Business and Family Enterprise Ombudsman. It is another example of how we value small business. That was very strongly reflected in the budget and it has been very strongly reflected in the fact that our small business minister sits within cabinet, sits within Treasury and is at the table for every discussion. The minister himself, as we know, is a very energetic and passionate advocate for small business. I think every small business around Australia knows that they have a champion within the government—but not just one. So many of us on this side are small business people ourselves, so we understand the issues facing small business. We have been the ones, like them, who have borrowed money, taken a risk and often pursued a passion, but, equally, with a very commercial focus. But there are times when we need that assistance from someone like the Ombudsman, someone who says: 'We will look at this for you in a practical, useful way. We will assist you in your dealings.' I am looking forward to what the Ombudsman can and will achieve for small business.

Australian governments historically, particularly the previous government, have not understood the challenges and needs and small business and family enterprises. We certainly do, and this is another plank in our continuing efforts to support such an important part of the Australian economy.

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