Extract from Hansard [ASSEMBLY
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Extract from Hansard [ASSEMBLY — Tuesday, 13 August 2019] p5381b-5440a Mrs Alyssa Hayden; Mr Sean L'Estrange; Ms Libby Mettam; Mr Kyran O'Donnell; Dr Mike Nahan; Mr Stephen Price; Ms Jessica Shaw; Ms Lisa Baker; Mr John Carey; Ms Janine Freeman; Mr Yaz Mubarakai; Mrs Liza Harvey; Mr Zak Kirkup; Mr Peter Katsambanis; Mr Dean Nalder; Mr Tony Krsticevic; Mr Paul Papalia; Dr Tony Buti; Mr David Templeman SMALL BUSINESS DEVELOPMENT CORPORATION AMENDMENT BILL 2019 Second Reading Resumed from 12 June. MRS A.K. HAYDEN (Darling Range) [4.45 pm]: It is my pleasure to stand today and say I will be the lead speaker for the Liberal Party opposition on the Small Business Development Corporation Amendment Bill 2019. At the start I would like to say that the Liberal Party opposition supports this bill in principle. It supports any legislation to protect and support our small business community. As a Liberal opposition we completely understand the importance of the small business sector. We will always stand up and support the sector. We understand how much it contributes to our state. I want to put on the record that the Liberal Party opposition fully supports any amendments that will assist small businesses and subcontractors. Before I go on, I would also like to make a special mention to the minister’s policy adviser, Emma Roebuck, who has been extremely helpful and professional. I want to thank her and show my gratitude for all her help. She has worked extremely hard and I appreciate it. Mr P. Papalia: She is very good, isn’t she? Mrs A.K. HAYDEN: She is an excellent staffer. I also note for the record that this was the Labor Party’s commitment going into the last state election. It won the election handsomely and had the mandate to bring forward amendments to support its commitment at the election. Those commitments were to support our subcontractors—to protect them from slow or non-paying businesses. I have a few friends who have been victims because subcontractors have not been paid and small business owners who are constantly fighting to make sure their invoices are paid. As an aside, I apologise that my voice is disappearing. With a bit of luck, my voice will get through the speech! In 2011, the Liberal government introduced WA’s first Small Business Commissioner. That was an extremely proud moment. The Liberal Party is completely supportive of small business. The purpose of introducing a commissioner in 2011 was to make sure that our small businesses, particularly retail shops and outlets, got the protection needed, especially in shopping centres and forum-style outlets. As we all know, small business operators are busy working in their businesses simply trying to keep things afloat, trying to get business through the door, making sure people pay the bills, employing staff, making sure staff are happy, covering sick leave, cleaning the office in general, doing their accounts, completing their business activity statements and making sure wages are paid on time. Small business owners do not have the time to worry about what we are doing in this place right now. They do not have the time to worry about legislation and they do not have the resources to compete with larger business organisations. It was vital that we introduced a Small Business Commissioner. At the time, the conversation was whether we gave that commissioner enough teeth. Since the introduction of the Small Business Commissioner that has been a conversation not only across all levels of politics but also across small business operators in large and small industries: “We’ve got a commissioner. Let’s see how he goes.” But there is always room to give that commissioner more power and the ability to protect small business more. As I said, the discussion has always been there. It is good to see amendments that will give the commissioner a bit more grunt; however, one thing I want to thrash out with the minister in this debate is to ensure that these amendments we are making and the powers we are extending to the commissioner will not have unintended consequences. We can do everything we can in this place with good intentions, but I would like the minister to address in his reply to the second reading debate my fear that some unintended consequences may result from this legislation. As we are all aware, the whole focus of the Small Business Commissioner and the Small Business Development Corporation is to ensure that they protect and stand up for small business. The last thing we want is to dilute that in any way simply because we have not thought about what these amendments could do and what impact they might have. Government always has to make sure that it legislates to reduce red tape, to reduce the burden on small business and to protect small business. A lot of things are confronting small businesses right now. The cost of living is having a huge impact on small business operators; people do not have spare cash in their pockets and are not going out to support restaurants or buying that extra item at the shop, and they are window shopping more than they are actually spending. That is having a massive impact on small businesses right now. I recently read a report that revealed that more than 60 restaurants across the Perth metropolitan region have shut down over the past 12 months. When restaurants are shutting down, it is one of the first signs that people are not spending money. These are well-known restaurants, not pop-up, overnight restaurants; they are restaurants that have been in our community for quite some time. [1] Extract from Hansard [ASSEMBLY — Tuesday, 13 August 2019] p5381b-5440a Mrs Alyssa Hayden; Mr Sean L'Estrange; Ms Libby Mettam; Mr Kyran O'Donnell; Dr Mike Nahan; Mr Stephen Price; Ms Jessica Shaw; Ms Lisa Baker; Mr John Carey; Ms Janine Freeman; Mr Yaz Mubarakai; Mrs Liza Harvey; Mr Zak Kirkup; Mr Peter Katsambanis; Mr Dean Nalder; Mr Tony Krsticevic; Mr Paul Papalia; Dr Tony Buti; Mr David Templeman Another issue that is facing small businesses right now is shoplifting and antisocial behaviour. I saw antisocial behaviour and shoplifting for years in my experience of having a business in Midland and also when I had an office in Midland as a former member of the Legislative Council, and I saw the effect that that had on our business community. I refer to not only retail businesses, but also accountants and lawyers and other small businesses along the strip where this antisocial behaviour was being conducted outside offices. That is another major issue and stress that small businesses face. It is something that the government needs to look at. We need to address that on top of the issues we will debate in the Small Business Development Corporation Amendment Bill 2019. Delayed and unpaid invoices is one of the biggest issues that small business has always faced. It is nothing new, and I know the minister is trying to address that issue in this legislation. Small businesses can go out and do their work, but to send out invoices and then have to chase up unpaid invoices is a waste of their time and resources. They are out there following up on unpaid invoices instead of getting new business and servicing their existing customers and keeping them happy. Small businesses run on very tight, small turnovers, and if invoices are not paid on time, they suffer very quickly. Larger companies can carry up to 90 days, but a small business generally operates on a seven to 14-day turnaround. If they have gone into a 30-day agreement, they will be waiting for day 30 to come around and making sure that they have that money in the bank on day 30; one day later will make the difference between whether or not they can go home with a wage, pay their staff and keep their creditors happy. Underpaid and delayed invoices has always been a massive burden on small businesses. Will this legislation fix that? No, of course, it will not. We cannot force every single person who gets an invoice to pay their bills on time through this legislation. I note that the minister is focusing a lot on subcontractors, and one of the purposes of bringing this bill forward is to assist subcontractors. We are all well aware of what happened to subcontractors around 2015 and, I have to say, long before that time subcontractors were getting late payments, if not no payment whatsoever, for work they did under government-funded construction projects. A few of my friends are subcontractors, and this issue was happening in the 1990s; it is nothing new, but in 2015 we saw a massive escalation of that occurring. It was a very sad time—a time I do not think anyone in this place would like to see repeated. Certainly no-one in the industry wants to see it repeated. Subcontractors get up early, work hard, put in their bill and expect the money to be put in the bank. If it is not in the bank, they are too busy out there the next day working for the next dollar to follow it up. We saw so many families go through that pain, and unfortunately there was a loss of life that we are aware of. I hate to say this, but I am sure there sadly may have been more than one life lost because subcontractors were not getting paid, but we were all publicly aware that there was one.