Various reviews on food regulation indicate that food labelling is an ongoing concern to industry, consumers and government. These reviews prompted the Council of Australian Governments (COAG) to initiate a review into food labelling law and policy, of which the second round of consultation is currently underway.

For manufacturers of food products, food labels are the primary means for communicating product information to the consumer. Legislative labelling requirements are designed to protect consumer health and safety, advance government objectives relevant to food and provide a level industry playing field. Consumers also call for accurate information to provide them with confidence to make informed choices.

COAG agreed for the Australia and New Zealand Food Regulation Ministerial Council (the Ministerial Council) to undertake a comprehensive Review of Food Labelling Law and Policy (the Review). An initial consultation response of nearly 6,000 submissions formed the basis for a second round of consultation to address issues of fair and competitive trade in the market, minimisation of regulatory burden on business, secure government objectives in food labelling and the needs for consumers.

CCI considers the overarching principle of the Review must be to ensure evidence based policy. Any changes arising from the Review must undergo regulatory impact assessment to ensure that benefits outweigh costs. CCI will seek to ensure that recommendations arising from the review are accessible to industry, government and the consumer, are evidence based and have regard to cost implications for industry. The effect of the recommendations must not impact on public health and safety, adversely affect Australia’s food reputation or restrict trade opportunity.

CCI responded to the initial consultation paper and has met with former Australian Health Minister and chairman of the Review Dr Neal Blewett AC and other members of the Review committee, raising industry issues and concerns. CCI will also submit a further detailed response to the current Issues Consultation Paper.

Minister for Local Government John Castrilli announced on 10 May that:

• ten local governments have decided to merge into four new entities;
• eleven local governments have agreed to prepare regional business plans with a view to amalgamation in 2013;
• sixteen local governments have resolved to form Regional Collaborative Groups to explore the benefits of an extended shared service agreement.

CCI believes this represents a missed opportunity to significantly reform the local government sector.

The sector’s own research found that 83 local governments were financially unsustainable in 2004-05. According to the Minister, only 65 local governments had ‘responded positively’ to the reform process.

This is proof that the Government’s voluntary reform process has failed.

The State Government is now left with no option but to step-in and require unsustainable councils to amalgamate and to initiate significant reform of the entire sector. CCI believes that this reform should be based on:

• adequate population levels, as population has been a key driver of local government administrative efficiency;
• financial stability so that they can make meaningful decisions; and
• Western Australia’s future requirements.

In addition, councils should be required to undertake a detailed examination of their operations to give ratepayers, including businesses, confidence they are receiving value for money. With research suggesting that up to a third of the costs of some services can be reduced through shared service arrangements it is important that local governments embrace reform.

Local government has emerged as a key bottleneck for continued investment by business.

It plays a critical role in the liveability of regional areas as well as the vibrancy of Perth through planning and business investment decisions.

On 28 April 2010, the Federal Government announced that it had decided to delay the introduction of an emissions trading scheme until 2013 at the earliest. 

While this development has been criticised by some, the decision has given all sides of politics more time to develop a policy that will benefit the environment and help, not hinder, local business.

CCI believes that climate change is one of the most significant issues to face the international community. Because of the potentially devastating outcomes that are possible from climate change impacts, CCI has argued for some time that it makes no sense to rush the introduction of policy, which if not handled properly, can also cause significant harm to the local economy and business.

Now is the time for our political leaders to get the policy right.

An emissions trading scheme must be carefully designed and implemented to ensure that it does not harm the international competitiveness of local business, including the State’s resources and energy sector.

WA business is looking for a climate change policy that:

• is market based;
• minimises the risk to the economy;
• does not diminish our international competitiveness;
• provides education and support to business should carbon be priced;
• encourages Australian based innovation;
• does not limit mitigation and abatement opportunities to implementation of an emissions trading scheme;
• is part of a single, consistent national response; and
• ensures adaptive measures form part of the overall response.

These goals can best be achieved through bi-partisan agreement.

The intervening years to 2013 must not be squandered by political inaction. New options must be researched and canvassed for business and community support to ensure that the most efficient and effective means of addressing climate change are adopted. This is the time for our elected representatives to become statesmen and lead the way in protecting our generation’s and future generations’ economic and environmental security.

Failure to develop a workable climate change policy by 2013 will severely impact on industry’s ability to achieve Australia’s international commitment of a 2020 emissions reduction target range of 5-25% below 2000 levels.

During this time, business must continue being proactive in its search for new ways to lower its carbon footprint, including through increased energy efficiencies and alternative and innovative business practices.

CCI looks forward to working with the major political parties on behalf of the WA business community to develop a climate change policy that is in the best interests of WA and the rest of the nation.

With businesses worried by a return of severe labour shortages, the Federal Government’s new business migration strategy is a timely move to help local employers find and retain the workers they need.

The migration system must allow employers to hire overseas workers for positions that can’t be filled by locals as quickly, and easily, as possible.

The current system is not meeting the needs of local industry. CCI knows that some employers have had to wait up to six months to hire an overseas worker for a position they need filled now.

CCI is pleased the Federal Government’s new policy recognises the unique labour challenges faced by WA employers by allowing the State to develop its own migration plan.

CCI is working closely with the State Government to design a WA migration strategy. It will help local businesses get the workers they need as the State prepares for the next wave of economic growth and prosperity.

By John Nicolaou
CI Chief Officer,
Membership and Advocacy

The Intergenerational Report 2010 released in early February by the Federal Government has a great deal to tell us about the economic and fiscal implications of an ageing and growing population. 

It is known that Australia’s population is ageing and this places pressure not only on the overall fiscal situation but on health and aged care services. Currently, state and territory revenues are growing at around 3-4% per annum compared to 11% growth in health spending. If current revenue and health spending trends continue, it is projected by Treasury that the total health spending of all states will exceed 100% of their tax revenues by 2045-46, or earlier.  This is why health reform must be tackled now. The major issue is the carve-up of Commonwealth and state responsibilities for the funding and running of state public hospitals. 

The Report contains more detail, much of it alarming, about the impact of the growing, ageing population. Currently, more than one quarter of government spending is directed to health, pensions and aged care. Four per cent of GDP in 2009-10 was directed to health and this is expected to rise to 7.1% by 2050. This increase is largely due to increasing demand for health services and the introduction of new technologies. There will also be fiscal pressure with increased demand for pensions and other forms of income support as the population ages.

Spending projections in the Report are in the private health insurance rebate (although there has been mention of capping this to deliver some savings), expenditure on hospitals and pharmaceutical spending. In light of these health pressures, the health system must continue to deliver value for money, demonstrate improvements in efficiency and quality, respond to innovation and be flexible.

Spending on aged care is projected to grow from 0.8% of GDP in 2009-10 to 1.8% in 2050. The main contributor to the increase is growth in residential care (including high care and low care) services, with spending on community care (including various programs and packages such as Home and Community Care) not far behind.  It is also proposed that government will fund people so they can choose the services they want from their preferred provider. It is also proposed to introduce bonds as payment for accommodation, encouraging choice and flexibility.

Population growth is the main driver of increases in aged care expenditure with the proportion of the population over 85 years expected to quadruple over the next 40 years, leading to increased demand for a range of residential options. Other factors that can impact on spending on aged care include changes in the cost of services, projected future increased levels of disability in the ageing population, the mix and availability of residential and community care services and changes in government policy regarding the funding and allocation of aged care places.

Spending projections on aged care also include pensions and income support payments which are expected to increase from 6.5% of GDP in 2015 to 6.9% in 2050. This increase is solely due to population growth and indexation; other income support payments are currently large scale and are not projected to alter much.

While the Report paints a realistic picture of the implications of a growing ageing population for health expenditure, it recommends a broad policy agenda to address the challenges and to ensure long-term sustainable economic growth.

Small business now has its own advocate, with the official launch of the WA Small Enterprise Network (SEN).

Treasurer and Minister for Commerce Troy Buswell officially launched the Small Enterprise Network on 17 February at an event held at Scarfo’s Meating Place, a butcher who was one of the first businesses to sign on as a member of SEN. Media were in attendance to witness the commencement of this new initiative by CCI aimed at providing specialised
and distinct new levels of service for
small businesses.

Kate Lamont was announced as the inaugural chair of the WA Small Enterprise Network. Ms Lamont brings a wealth of experience to this role, having owned and operated a number of small businesses herself. She understands the highs and lows that come from owning and operating a small business and will apply her direct experience to ensure that SEN is working in the best interests of its members.

SEN aims to provide a big voice for small business, while also providing its members with a value for money membership package. In addition to the practical benefits, SEN will host a number of events that allow members to meet, network and build their knowledge through listening to guest speaker presentations.

Good business is often built upon the formation of trusted, reliable relationships with other local businesses. SEN aims to offer new and exciting ways for small business owners to build their networks and business relationships through a range of events and information channels.

Membership of SEN is open to any business with 30 or fewer employees, across any industry sector. Its role is to ensure these businesses are recognised as a key driver of the WA economy and their concerns and issues are heard clearly by policy makers.

Members will directly benefit from the additional support and backing that will come from SEN being supported by CCI. Members will gain full access to CCI’s existing range of publications and electronic media. Training opportunities and invitations to CCI business briefings also form part of the membership package.

CCI has a long and proud history of representing all business in WA. SEN members will benefit from CCI’s longevity and infrastructure, while also gaining a strong and independent voice specifically for small business in WA.

An SEN Advisory Panel will ensure a direct line of communication between the organisation and its members. The Advisory Panel will provide an avenue for participants to engage directly with SEN around critical business policy issues. Information arising from the Panel will also be communicated to CCI’s broader policy advocacy team.

Nominations for members of SEN to join the Advisory Panel are now open, and members are encouraged to contact andrew.canion@cciwa.com for more information about participating.

Membership of SEN represents a great opportunity for any small business.
To find out more about what SEN Network can offer you and your
business, please contact the membership  team on 1300 4 CCIWA.

Five things you need to know about SEN:     

1.  SEN provides a big voice for small business and have easy access to key decision makers at a state and national level.

2.  SEN provides local business networking opportunities.

3.  The SEN Advisory Panel gathers feedback and frequently engages with small business.

4.  The SEN membership package is designed to be affordable and represent great value for money.

5.  Members benefit from the knowledge, influence and support provided by CCI.

In October 2009, CCI’s General Council endorsed a major restructure of the organisation’s forums and committees.

These changes were introduced to enhance CCI’s ability to engage with members on critical policy issues, while also improving CCI’s representation of the evolving WA economy.

The economy has experienced significant growth and evolution in the last few years. It was necessary to update the policy forums and committees to ensure they reflected the modern WA economy and to ensure CCI’s policy positions best represented the interests of members. In updating its policy structure, CCI established four new sector-focused Member Forums. These Member Forums will focus on issues that impact on the growth and development of all WA businesses from the perspective of the relevant Member Forum and of specific sectors.

Industry leaders, from small and large organisations and from Perth metropolitan and regional settings, have been asked to participate in the CCI Member Forums.

As a consequence of the policy structure changes, a number of committees were disbanded, others have been refocused and still others found their issues elevated into new Member Forums. The Business Policy group was formed to manage the Construction and Infrastructure, Manufacturing, Resources and Energy and Services Member Forums as well as the Education and Training, Environment and Climate Change, Tourism, Innovation and Food Committees.

The Construction and Infrastructure Forum will seek to ensure the State has the infrastructure, and related services, to keep pace with a growing economy. It will play a role in lobbying the Government for a State Infrastructure Strategy, telecommunications, airport, road, rail and port developments. Ray Sputore of Leighton Contractors is the chair of this forum.

The manufacturing sector is an important source of economic activity in WA and CCI has significant membership in this sector. As a consequence, a new Manufacturing Member Forum was established to give this important sector a strong voice in dealing with issues such as workforce development, innovation, OHS, and regulatory impediments imposed. Cameron Schuster of Wesfarmers is the chair of this forum.

The Resources and Energy Forum was formed to represent the interests and issues of the major sector driving WA’s strong recent growth. This forum will engage directly with Government in the development of WA’s State Energy Initiative and will also help frame CCI’s policies on issues such as water, resources and basic raw materials extraction policy. Ian Fletcher of BHP Billiton is the chair of this forum.

The Services Member Forum addresses issues of significance to the largest segment of Western Australia’s economy. A new area for CCI, it will allow the sector to have a greater say on issues such as workforce development, international trace, access and the use of technology, to name just a few. Ian Satchwell of Acil Tasman is the chair of this forum.

These new forums join the existing Business Policy Forum, which is chaired by newly appointed chief executive of Oakajee Port & Rail, John Langoulant.

More details of the Member Forums can be found at http://www.cciwa.com/Member_Forums.aspx. 

The new Forums will begin in early March, with the first meeting dedicated to prioritising the issues it will be dealing with over the year. CCI members who wish to have particular issues considered by a Member Forum are encouraged to contact CCI Business Policy Manager Nathan Taylor on (08) 9365 7508 or nathan.taylor@cciwa.com before the end of February.

CCI will be asking members to complete a survey on the effects of property crime on their businesses.

CCI’s Board has recently noted concern in the business community over the incidence of property crime, and the costs it imposes on business and the wider community.

CCI’s Retail and Small Business Unit and Economics Research Service have been instructed to investigate the extent of property crime against business in WA, with a view to developing some concrete policy suggestions.

CCI is looking for input from business on this important issue.

For more information or to discuss this issue, please contact Nicky Cusworth on 9365 7508, e-mail: cusworth@cciwa.com or Brian Reynolds on 9365 7606, e-mail: reynolds@cciwa.com

Over the coming months, Business Pulse will be featuring articles, comprised from a suite of policy papers composed for the Board, summarising CCI’s general policy objectives on a range of areas across the spectrum of commerce and industry.

These papers reflect the broad scope of CCI’s behind-the-scenes policy work and give members a snapshot of some of the issues and areas in which CCI is working to create an economic and legislative environment that encourages the development of free enterprise.

CCI supports an education and training system that provides choice, promotes flexibility and is responsive to the needs of individuals and industry.

The Australian education and training system is characterised by different, and often diverse, state and territory policies overlayed by the Commonwealth’s policy positions. However, all jurisdictions separate the system into three distinct areas: schools, vocational education and training (VET), and universities.

Although the policy framework in the three sectors is often developed and applied separately, there is considerable overlap and it is increasingly difficult to consider each sector in isolation.

Major policy overlap may be seen in areas such as:

• credit transfer and mutual recognition of qualifications between schools, VET providers and universities
• the student contribution to the cost of VET and university courses and the disparity of costs between sectors
• articulation
• the provision of vocational programs in the post-compulsory school years and the issues this raises for the VET sector
• the graduation of school students with low level literacy, numeracy and employability skills and the issues this raises for the VET and university sectors
• the debate about tertiary entrance requirements and the best way of assessing student capabilities for university entry

Funding and choice

Across all three sectors, public funds and individual choice should be inextricably linked. Student-centred funding allows individuals to take control of the public funds allocated for their own education and training.

In the schools sector, parents who choose private sector education for their children are denied access to the state-provided public funds allocated for their children.

Commonwealth funds are provided to private schools to allow some subsidisation of fees. However, there is no mechanism available for parents to exercise educational freedom and access the public funding to purchase a place for their children at the school of their choice - be it public or private.

Serious consideration should be given by all governments to a range of student-centred funding modules such as student vouchers and charter schools.

The user choice model in the VET sector allows employers of apprentices and trainees to choose the registered training organisation their employees will attend.

The public funds available for this training then follow the student to the provider of choice.

However, all states and territories have progressively moved backwards from full user choice arrangements. The current user choice system is characterised by bureaucratic processes that discourage the entry of new private training organisations into the market, by fixed quotas and ceilings on numbers of apprentices and trainees that can be trained by private providers and by a thin market approach that restricts access in regional areas or occupational areas with low enrolments.

All state and territory governments should immediately implement full user choice arrangements for all employment-based training programs.

In the university sector, individuals are able to exercise choice over course and institution. However, student numbers have been regulated by fixed quotas and student demand controlled by fixed funding models.

The recent higher education reforms will provide greater competition, encourage choice and ensure value and demand are factors that will be considered in determining course offerings.

Choice promotes quality, responsiveness and flexibility. The provision of public funding to support choice should be an essential element of the education and training system.

Literacy, numeracy and employability skills

Parents, post-school education and training providers, and employers share a common expectation that students graduating from the school system will have an acceptable level of literacy, numeracy and generic skills. Unfortunately, these expectations are often not met.

For employers, many young people presenting for employment lack a range of basic skills such as communication, teamwork, problem-solving, initiative, planning and organisation skills, self-management and an appreciation of technology. These basic skills are essential to enable an individual to secure and maintain employment.

There should be a concerted effort to ensure all school graduates possess adequate literacy and numeracy skills.

The ACCI / BCA Employability Skills Framework should be adopted by the schools sector and the key skills in the framework embedded into the school curriculum.

Self-managed institutions

In the schools and VET sectors, a highly centralised and bureaucratic model is used for the management and operation of the systems.

The university sector operates under a decentralised, self-managed model, which has become further deregulated under the recent higher education reforms.

There is a need to move public sector schools and TAFE colleges to a self-managed model where responsibility for major operational issues such as staffing, asset and resource management and financial management is devolved to the schools and colleges.

Two key elements of this decentralised approach are single line budgeting and selection on merit.

Under current arrangements schools and colleges are unable to make major expenditure decisions. Staff costs are allocated and managed centrally and school principals have no control over this area.

Similarly, recruitment and selection processes are managed centrally. School principals have little control over teachers allocated to their school and a similar lack of control over the selection of teachers for senior or supervisory roles.

Teachers are promoted to senior positions based on a range of criteria with length of service being a key consideration.

Schools and TAFE colleges should be locally managed and supported by an expert external board drawn from local community and business and they should have direct control over expenditure, staff costs, selection, recruitment and promotion on merit.

Quality teaching and learning

The most important element of the educational process is the relationship between the individual teacher or trainer and the student. It is essential that all sectors of the education and training sector provide the support needed to allow quality teaching outcomes.

In the secondary school years, teachers should have access to industry access programs or return to industry programs that allow them to maintain links with the workplace and apply their teaching to real world situations.

There should also be a focus on providing programs to suit individual learner needs, which particularly in the senior secondary years will support student retention strategies.

Schools should enter into partnerships with VET providers and universities to offer integrated programs in an effort to make the post-compulsory schooling component meaningful and relevant to the students’ post-school needs.

The quality of teaching and learning will be enhanced by improving the articulation arrangements across the three education and training sectors and by ensuring closer collaboration and connection between schools, VET providers and universities.

Evaluation of program outcomes

Although there is some benchmarking of educational outcomes, there is not a standardised and systematic approach to benchmarking provider performance.

Employers cannot be confident that the same qualification issued by different schools, colleges or universities has covered the same content, been assessed at the same level and produced the same outcome.

There should be a standard approach to the measurement of education and training outcomes to ensure consistency of results.

Equality

All individuals regardless of gender, ethnicity or personal circumstance have a right to access education and training that is relevant to their needs.

With this right comes the responsibility to contribute financially to their own learning in a way that fits their personal circumstances.

There should be education and training opportunities available for disadvantaged groups and people with special needs and recognition that individuals need appropriate resources to support their learning.