Retail Sector

The Hon. J.S. LEE (14:31): I seek leave to make a brief explanation before asking the Minister for Business Services and Consumers a question about South Australia's retail sector.

Leave granted.

The Hon. J.S. LEE: Reported on the front page of The Advertiser of Monday 19 May, it revealed that Australia's biggest retailers and industry leaders used their submissions to the Productivity Commission's retail inquiry to demand an end to South Australia's outdated red-tape regime. Some of the industry leaders said they would be better off moving their businesses overseas.

They described the South Australian retail environment as 'anti-business, uncompetitive, inefficient, over-regulated, overtaxed and out of touch with economic reality'. Nigel McBride from Business SA described on FIVEaa on 19 May that 'if these things didn't exist they'd invest more and they'd employ more people'. He further said that industry complaints about our uncompetitive taxes, levies and charges have got to be heard. My questions to the minister are:

1. How will the minister intend to rescue South Australia's retail environment from the excessive over-regulation, taxes and red tape?

2. With various industry leaders wanting to invest in South Australia, what processes will the government introduce to ensure their complaints are heard?

3. With the state budget to be released in June, can the minister confirm what measures will be in place for red tape reduction?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (14:33): I thank the honourable member for her questions. The CBS, the Consumer and Business Services agency, has been working extremely hard to reduce red-tape costs to the community. They are particularly mindful of how difficult it is to get the balance right between making sure that we have enough regulation in place to ensure that, for instance, consumer rights are protected and that safety standards are upheld, whilst, at the same time, making sure that the cost imposts associated with that regulation are not prohibitive.

I think the agency, CBS, does an extremely good job at getting that balance right and they are basically in a constant state of reviewing and monitoring and looking at opportunities to cut red tape wherever they can. For instance, a number of initiatives have been implemented in recent years by the CBS that have saved over $21 million per annum and they are currently working on implementing a number of additional measures. It is anticipated they could save up to a further $17 million per annum.

Some of the initiatives implemented in recent years include the interim approvals that are now issued to applicants for approval as responsible persons for liquor licences and gaming machine employees. This allows people to commence in their new roles much sooner. That is an estimated saving of about $9.3 million per annum. A simplified financial assessment method for building work contractors' licence applications was recently introduced that is estimated to save around $5.6 million per annum. A national registration of business names has commenced and businesses need now only register once to operate anywhere in Australia, and that is an estimated saving of about $3.5 million.

A simplified reapplication process has been developed for people whose building work licences have lapsed within the previous 12 months, which is a saving of about $1.9 million. The regulation of trade measurement was transferred to a national body, which makes sense, and nationally consistent laws have been introduced, and that is a saving of about $0.5 million. There are some aspects of product safety; simpler liquor licensing for smaller venues; a streamlining of approval requirements for gaming machines; and a simplified process for councils to apply for declarations for dry areas, and so it goes on.

The CBS has also introduced a range of online services; things like removing the prohibition against bankrupts working as subcontractors; allowing building work contractors to engage their supervisors on a contract basis rather than as an employee; replacing the application approval process for gaming machine managers; and amending the approval requirements for responsible persons, as I have said, and so the list goes on.

As I said, it is an impressive track record. They work very hard in that space. It is a balancing act. We require regulation and legislation, as I said, to ensure that businesses are doing the right thing, that consumers' rights are protected, that safety standards and other standards are enshrined, while at the same time making sure that we keep reviewing the cost imposts of such regulation and looking at ways of streamlining and making businesses' lives easier.