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Action and the highest ethical standards needed in 54th Parliament

Tue, 15 May 2012 10:07:57 +1000

Chamber of Commerce and Industry Queensland (CCIQ) and the state’s business community is looking forward to the commencement of Queensland’s 54th Parliament today.

Throughout the recent election campaign, CCIQ worked with both sides of politics to ensure that the business community’s views were accurately represented and commitments made.

While the election results have delivered a strong majority of 78 seats to the LNP Government, CCIQ is looking forward to seeing all 89 MP’s take the oath of office today and believes each member will play a vital role.

Consisting of 51 new members, it is essential that the Premier and the Opposition leader work tirelessly in maintaining the highest possible standards on behalf of Queensland business.

There has been an overwhelming increase in business confidence across the state following the election, and CCIQ is looking forward to the resumption of Queensland Parliament so the Government can honour their election commitments.

CCIQ believes the strong mandate provides a great opportunity to usher in the real change that Queensland business so desperately needs.

With a large majority comes large responsibility in upholding the highest possible standards that are required when passing legislation.

Of the legislative agenda that Premier Newman has flagged, CCIQ looks forward to seeing the following steps taken to restore Queensland’s position as Australia’s premier business state:

First and foremost, repealing the waste levy;
A significant reduction of cost of doing business in Queensland including increasing the Payroll Tax exemption threshold;
Delivering better economic and fiscal management; and
Strong action in reducing red tape across the state.

CCIQ welcomes the Premier’s commitment to fast tracking legislation to deliver real outcomes.

New and emerging issues and legislation warrant the highest Parliamentary scrutiny however this State Government has a mandate to action its election commitments.

Business wants Parliament to get on with job of delivering those changes that will assist business and justify the faith that has been given to this new State Government.

Some Aussie Dollar respite for Queensland businesses

Mon, 14 May 2012 17:34:28 +1000

Chamber of Commerce and Industry Queensland (CCIQ) has today welcomed the drop below parity in the Australian dollar against the greenback.

For the first time since December 2011, the Australian dollar has dropped below parity and is welcome regardless of how long this proves to be.

Whilst there is emphasis on the parity benchmark there is widespread recognition that anything above 80 cents is in fact bad for Queensland exporters, retailers and tourism operators.

With Greece’s political crisis, global demand for our commodities, interest rate differentials and Australia’s own two speed economy, businesses will need to remain on their toes in the short to medium term.

CCIQ President David Goodwin said, “Queensland businesses are continuing to mitigate against the high dollar by reducing employment numbers, increasing imports from cheaper overseas markets, sourcing more products online and changing their target markets.”

CCIQ has previously surveyed the Queensland business community to gain a better understanding of how businesses are being impacted by the strong Australian dollar.

Alarmingly two in three Queensland businesses are negatively impacted by the continued strength of the Australian dollar and more than half (56 per cent) of businesses have altered their practices as a result.

The overall message from businesses is clear; they are hurting and will continue to do so until our currency drops further.

Other findings include:

Manufacturing and tourism experience the biggest impact with a significant drop in sales and visitor stays reported;
Retailers are facing significant online international competition;
Queensland businesses unfortunately place their financial viability above the importance of buying Australian goods and services.

Queensland businesses are reluctant to make set in stone predictions of where the Aussie dollar will lie in 12 months. However a prognosis of continuing high dollar in historical terms is expected.

CCIQ Anti-Racial Discrimination Submission

Fri, 11 May 2012 16:45:43 +1000

As the State’s peak business organisation, the Chamber of Commerce and Industry Queensland (CCIQ) is extremely supportive of strategies and initiatives to reduce discrimination in the workplace.

It is our firm belief as an employer organisation that all Australians deserve equal opportunity across the whole of society.

However, CCIQ has today opposed in its submission to Australian Human Rights Commission any move to introduce additional regulation relating to racial discrimination in the workplace.

We have adopted this position as the cost and burden of regulatory compliance is one of the most important ongoing issues for the Queensland business community.

Whilst CCIQ is highly supportive of the development of a National Anti-Racism Partnership and Strategy, we strongly warn against the introduction of additional regulation.

Existing legislative frameworks, including the Racial Discrimination Act 1975 and the Queensland Anti-Discrimination Act 1991 are sufficient regulatory deterrents against racial discrimination.

Therefore CCIQ recommends that as an alternative to additional blanket legislation, non-regulatory instruments, including education campaigns and community forums would have a far greater impact in facilitating social change.

CCIQ believes that the Anti-Racism Partnership and Strategy should ideally focus on raising awareness, educating and ensuring that the existing mechanisms are adequately enforced through appropriate resourcing.

CCIQ would wholeheartedly welcome such an approach and would recommend these initiatives be suitably funded to achieve the maximum benefit for the Queensland business community and its employees.

CCIQ Commentary - A Budget of Broken Promises to Business

Wed, 09 May 2012 10:06:25 +1000

In analysing tonight’s Federal Budget the Chamber of Commerce and Industry Queensland (CCIQ) is supportive of the commitment to return Australia’s budget position to one of surplus.

The measures announced as part of the Federal Budget are consistent with CCIQ’s call to rein in Government expenditure. We are seeing similar moves across the developed economies of the world and Australia should be no different.

However, some of the announced savings measures will ultimately undermine economic growth in Australia in future years.

The scrapping of the planned 1 per cent company tax cut is profoundly disappointing and is not out-weighed by the benefit of the loss carry back scheme for small business and the already previously announced accelerated instant asset write off.

It is a fine balancing act between cutting spending lines which are not needed or can alternatively be supplied by the private sector and cutting measures that assist business and the national economy.

The secret to achieving a budget surplus as well as supporting the economy is for government to cut back on waste and duplication, and spend taxes more wisely.

Unfortunately a failure to prudently rein in spending when the opportunity presented itself in prior budgets now leaves the budget awkwardly out of step. A surplus for a surplus’ sake is bad for the economy.

There can be no doubt that the difficult position facing the Federal Government is not only driven by the expenditure side but also by falling revenue caused from an underperforming national economy.

For this reason the Federal Budget will be seen as an example of policy inconsistency on the part of the Federal Government in that other initiatives currently being rolled out will significantly hurt the economy and accordingly the budget in future years.

Policies such as the carbon tax will have a net dead weight on our economy from 1 July, as will the superannuation increase which despite what the Federal Government proclaims is funded by the mainstream business community.

The business community will hurt from these measures, the economy will hurt from these measures and ultimately the Federal Budget’s bottom line will hurt from these measures.

We have a headline surplus but with significant fears we are pushing out the burden to future budgets whilst at the same time breaking more promises to business.

Federal Budget Context & CCIQ Wish List
Economic Outlook
Fiscal Outlook
Taxation
Infrastructure
Workplace Skills and Migration
Education and Training
For Individuals

Federal Budget Context & CCIQ Wish List

The pre-dominant focus for the Federal Government in the 2012-13 budget is to achieve a headline surplus. Therefore rather than spending announcements in portfolio areas the major focus is on growth forecasts and on savings whether achieved through spending cuts, removal of tax benefits or tax hikes including the raising of charges. It is also likely there will be an increase in tax audit activity and recovery processes as this has proven to be a measure governments can use to help bolster revenue.

It is worth highlighting that the need for Australia's austerity measures comes not only from previous undisciplined spending but from an underperforming economy failing to deliver the revenue required. Treasurer Swan has announced revenue collections will be down by a further $5 billion in both 2012-13 and 2013-14 compared to the last forecasts in the mid-year budget update in November. This takes the total write-down in tax collections since the 2008-09 Budget to almost $150 billion over five years.

This adds to the case to not only find substantial savings in order to achieve the surplus objective but also to stimulate the economy through assisting business to ultimately generate additional tax receipts.

CCIQ’s key messages going into the Federal Budget were:

The budget should take cost pressure off doing business
A surplus is achievable if the government only spends where spending is necessary. A surplus achieved by removing necessary support for the economy is a false saving
The budget should announce a policy reversal on the carbon tax
The budget should outline the wage trade off mechanism to fund the 2013 superannuation levy rise
The budget should accelerate past investment in skills, education and retraining
The budget should announce a framework for broader tax reform.

Economic Outlook

Australia's real GDP is forecast to grow 3¼ per cent in 2012-13 and 3 per cent in 2013-14. The main drivers of economic growth are expected to be business investment and exports. However economic conditions remain uneven across sectors with activity in the non-resource related sectors of the economy likely to be uneven (refer to break-out box for more details on the impacts of the two-speed economy).

New business investment growth is expected to be a strong 12½ per cent in 2012-13 and 8 per cent in 2013-14. This reflects an expectation of unprecedented investment in the resources sector, with investment elsewhere in the economy expected to be subdued.

Exports are expected to grow 4½ per cent in each of 2012-13 and 2013-14 as non-rural commodity export capacity continues to expand to meet global demand. However, the high Australian dollar is expected to weigh on growth of exports of manufacturers and services, notwithstanding the positive outlook for major trading partner growth.

Employment growth is expected to be 1¼ per cent through the year to the June quarter of 2013 and 1½ per cent through the year to the June quarter of 2014, reflecting economic growth, notwithstanding the challenging conditions in some sectors of the economy. The unemployment rate is expected to drift up to 5½ per cent by the end of 2012-13 and remain there through 2013-14.

Wages growth is expected to remain around trend over the forecast period, in line with expected subdued labour market conditions and the moderate inflation outlook. The Wage Price Index is expected to grow 3¾ per cent through the year to the June quarters of both 2013 and 2014.

Underlying inflation is expected to be 2¾ per cent through the year to the June quarter of 2013, including a ¼ of a percentage point increase from the introduction of the carbon price in 2012-13. Underlying inflation is expected to ease to 2½ per cent through the year to the June quarter of 2014.

Headline inflation is expected to be 3¼ per cent through the year to the June quarter of 2013, including a ¾ of a percentage point increase from the introduction of the carbon price. Headline inflation is expected to ease to 2½ per cent through the year to the June quarter of 2014.

Household consumption is expected to grow moderately over the forecast period, broadly in line with household income growth. Nevertheless, consumers remain cautious and the household saving rate is expected to remain elevated. Household consumption is expected to grow 3 per cent in both 2012-13 and 2013-14.

Dwelling investment is expected to remain subdued over the forecast period, with households reluctant to take on more debt and some investors hesitant because of the prospect of continued subdued house price growth. Dwelling investment growth is expected to be flat in 2012-13 before rising to 2½ per cent in 2013-14.

Two-Speed Economy

While the Australian economy is expected to grow at around trend over the next two years, much of this growth is expected to be driven by surging resources sector investment and growth in non-rural commodity exports.

Robust demand in Asia should continue to underpin the strong outlook for the resources sector, where investment has reached unprecedented levels. Businesses expect to invest a record $120 billion in the resources sector in 2012-13, around 150 per cent higher than its level just two years before, and 13 times the level of investment before the first phase of the boom. The resources investment pipeline is currently over $450 billion, with more than half of these projects already committed or under construction. Over the forecast period, new business investment as a proportion of GDP is expected to reach its highest level on record.

Strong growth in the resources sector is expected to continue to spill over into other sectors, including parts of the construction sector, parts of manufacturing and parts of the services sector. Together, the resources and the resources-related sectors of the economy are expected to account for 15 to 20 per cent of total GDP over the forecast horizon and grow by an average of nearly 9 per cent per year.

However, conditions remain difficult for those sectors not benefiting directly or indirectly from the resources boom.

The high Australian dollar is weighing particularly heavily on trade-exposed sectors of the economy such as manufacturing and tourism. Ongoing global uncertainty has also reinforced the cautious behaviour that consumers have shown since the global financial crisis and they remain reluctant to take on more debt. This is particularly challenging for the retail sector and other sectors linked to the retail sector such as wholesale trade and road transport. Weak demand and tight credit conditions are also making conditions challenging in parts of the construction sector. While some of the headwinds outside the resources sector are likely to be temporary, some are structural, reflecting the transition that is currently underway across the economy.

Overall, the non-resources part of the economy is forecast to grow at a below-trend average annual rate of 2 per cent over the next two years.

Fiscal Outlook

Government revenues continue to be affected by structural changes in the economy and the lingering effects of the global financial crisis. This has led to weaker-than-expected tax receipts compared to those anticipated at the Mid-Year Economic and Fiscal Outlook 2011-12 (MYEFO).

In response, the Government has made $33.6 billion in targeted savings to return the budget to surplus and deliver a number of new budget measures.

An underlying cash surplus of $1.5 billion (0.1 per cent of GDP) is expected in 2012-13, largely unchanged from the estimate at MYEFO. In accrual terms, a fiscal surplus of $2.5 billion (0.2 per cent of GDP) is expected for 2012-13.

On current projections, the underlying cash surplus is expected to reach 1 per cent of GDP in 2017-18, the same year as projected in MYEFO. Net debt is projected to return to zero in 2020-21, also unchanged from MYEFO (Chart 2).

A key challenge that the government faces is the ongoing write-downs in tax-receipts which continue as a legacy of the global financial crisis period of 2007-08.

The tax-to-GDP ratio fell 3.6 percentage points from its pre-crisis level in 2007-08 to 20.1 per cent in 2010-11. This was the biggest decline in the ratio since the 1950s. Relative to the forecasts made at the 2008-09 Budget, total tax receipts have been written down by around $150 billion over the five years to 2012-13.

Combined with the write down in revenues across the forward estimates, tax receipts, as a percentage of GDP, are expected to be significantly lower than their 2007-08 level across the forward estimates.

In 2012-13, the tax-to-GDP ratio is expected to be 1.6 percentage points lower than the 2007-08 level, which equates to around $24.1 billion of tax in that year. Tax receipts are projected to reach 22.9 per cent of GDP in 2015-16, around 1 percentage point below the unsustainable levels reached in the mid-2000s. This means that tax as a proportion of GDP in 2011-12 and the previous two years is the lowest it has been since 1993-94.

Consequently the Federal Government will continue to need to find savings or increase revenue streams in order to maintain a budget surplus.

Taxation

Proposed cut to the company tax rate of 1 per cent is scrapped.
Government is introducing a loss carry‐back, and extending this to a two year carry‐back from 2013‐14. In 2012-13, companies will be able to carry back tax losses of up to $1 million and from 2013-14 companies will be able to carry back losses for two years of up to $300,000 per year.
From 1 July 2012, small businesses will be able to immediately write off each eligible business asset they buy costing less than $6,500 per asset;
Assets costing $6,500 or more will be depreciated in a single pool at 30 per cent (15 per cent in the first year);
Small businesses will be able to claim up to $5,000 as an immediate deduction for new or used motor vehicles acquired from 1 July.
From 1 July 2012, the Government will introduce the Minerals Resource Rent Tax.
The Government will also extend the Petroleum Resource Rent Tax to onshore oil and gas projects and the North West Shelf from 1 July 2012.
Increasing the Superannuation Guarantee from 9 per cent in 2012‐13 to 12 per cent by 2019‐20. This measure was previously to be partially funded through the cut to company tax rate which has now been scrapped.

The Government will continue to fund the Small Business Advisory Service (SBAS) with an additional $28 million over the next four years for additional support and advisory services. An Australian Small Business Commissioner will also be appointed to represent and advocate small business interests to the Australian Government.

Infrastructure

The budget included several infrastructure initiatives including:

Investing over $36 billion in roads, rail and ports over six years to 2013-14 as part of the Nation Building program, including continued support for the Moreton Bay Rail Link project and the Calliope Crossroads road project;
76 major new regional health infrastructure projects across Australia, worth $475 million;
$3.6 billion to duplicate the Pacific Highway by 2016, conditional on agreement with the NSW Government;
$350 million per year for the Roads to Recovery program and $60 million per year for the Black Spots program;
Continue building the National Broadband Network to ensure Australians can benefit from the digital economy;
$30 million for local sporting infrastructure.

From the 1 July 2012, the Australian Industry Participation (AIP) plan requirements will also be extended to apply to all projects receiving significant federal funding. The Government will also be required to publish AIP Plans.

Workplace Skills and Migration

Skills

Additional $50.3 million over 4 years for the Australian Skills Quality Authority which will be provided, in part, by implementing cost recovery arrangements from 1 January 2013. Extra Government investment is $4.2 million.
National Workforce Development Fund substantially preserved and extended with some changes, including $140 million additional funding in 2015/16. The main changes to the fund are:
- $35.0 million over four years to the National Workforce Development Fund to improve the skills of mature age workers, aged 50 years and over, consistent with their workforce development needs. This is additional and complementary to the previously announced employment incentives of $1000 for mature age employment and other training and careers advisory initiatives – funding of $29.6 million.
- $18.1 million redirected to fund three Centres for Excellence, including manufacturing, green skills and possibly NBN.
Funding for the Australian Workforce and Productivity Agency unchanged.
Workforce Innovation Program discontinued – saving $26.3 million.
Funding for Community Based Service Development Program reduced by $15.7 million.
An additional $225.1 million over five years in Jobs, Education and Training Child Care Fee Assistance to support increased demand and better target assistance.

Migration

Modest increase to the Migration Program from 185,000 to 190,000 including 129,250 skilled stream places, 60,185 family stream places and 565 special eligibility places. Up to 16 000 places have been reserved for the regional sponsored migration scheme.
Introduction of graduated tiers of sanctions relating to employer obligations regarding the employment of non-citizens, anticipated to increase revenue by an estimated $1.7 million over three years.

Education and Training

Vocational Education and Training

Funding of VET National Program Support reduced by $34.4 million
Additional funding for MySkills website - $6.5 million
Expand and improve VET-fee help - $3.7 m for redesign; $60.1 million to support COAG reform agreements.

Apprenticeships

Discontinuation of $1,500 standard employer commencement incentive payment for existing employees who are converted to an apprenticeship/traineeship that is not on the National Skills Needs List, saving $353.7 m over four years. Employers of these apprentices/trainees will however be eligible for the $500 increase to the standard completion payment.
Deferral of commencement payment from 3 months to 6 months, saving $47.8 million over four years based on the drop-out rate between 3 and 6 months.
$19.4 million to fund training in business and finance skills for newly graduated apprentices to prepare them to run their own business.
Modest reduction in Accelerated Apprenticeship funding to reflect demand; no change to mentoring and advisory funding.

Higher Education

Continuation of the demand driven, uncapped system.
Science and research funding substantially preserved.
Additional $23.4 million over 4 years for disadvantaged participation in university education.

School Education

Postponement of the National Trade Cadetships program by one year.
One off grant $11.7 million to One Laptop per Child (OLPC) Australia to support expansion of this initiative to primary school students in partnering regional and remote communities and low SES schools

Other Education and Training

$54 million spread across DIISRTE and DEEWR to take up the recommendations of the Chief Scientist to increase science and maths outcomes.
Savings of $17.0 million over three years by ceasing to fund the National Career Development Strategy from 30 June 2012.

For Individuals

From 2012‐13 the Government will more than treble the tax free threshold from $6,000 to $18,200 and from 2015‐16 the tax free threshold will increase further to $19,400 (funded by the Carbon Tax).
Revenue from the Minerals Resource Rent Tax will go to $1.8 billion worth of increases to family payments from 1 July 2013, and a new Supplementary Allowance of $1.1 billion for eligible income support recipients, with the first payment in March 2013.
From 1 July 2013 Family Tax Benefit Part A (FTB-A) will increase for all eligible families. For those on the maximum rate, the Government will deliver an increase of $300 per year for families with one child and an increase of $600 for families with two or more children.
Changing living-away-from-home allowances and benefits by ensuring it can only be used for the expenses of people who are legitimately maintaining a second home in addition to their actual home, for a maximum period of 12 months.
The Government will change the fringe benefits tax treatment of cars. Instead of providing a sliding scale of rates that rewards those who drive further, the Government is transitioning to a flat rate by 1 April 2014 that will apply irrespective of the distance travelled.

A Budget of Broken Promises to Business

Tue, 08 May 2012 20:44:31 +1000

In analysing tonight’s Federal Budget the Chamber of Commerce and Industry Queensland (CCIQ) is supportive of the commitment to return Australia’s budget position to one of surplus.

However, some of the announced saving measures will ultimately undermine economic growth in Australia in future years.

The scrapping of the planned 1 per cent company tax cut is profoundly disappointing and is not outweighed by the benefit of the loss carry back scheme for small business and the already previously announced accelerated instant asset write off.

It is a fine balancing act between cutting those spending lines which are not needed or can alternatively be supplied by the private sector and cutting measures that assist business and the national economy.

The secret to achieving a budget surplus as well as supporting the economy is for government to cut back on waste and duplication, and spend taxes more wisely.

Unfortunately a failure to prudently rein in spending when the opportunity presented itself in prior budgets now leaves fiscal policy awkwardly out of step. A surplus for a surplus’ sake is bad for the economy if conditions don’t permit.

There can be no doubt that the difficult position facing the Federal Government is not only driven by the expenditure side but also by falling revenue caused from an underperforming national economy.

CCIQ President David Goodwin said, “The business community will hurt from these measures, the economy will hurt from these measures and ultimately the Federal Budget’s bottom line will hurt from these measures.”

“We have a headline surplus but with significant fears we are pushing out the burden to future budgets whilst at the same time breaking more promises to business,” said Mr Goodwin.

2012 Federal Budget Focus

Tue, 08 May 2012 11:55:30 +1000

The key focus for the Federal Government in the 2012-13 budget is to achieve a headline surplus.

Therefore rather than spending announcements in portfolio areas the major focus will be on growth forecasts and on savings whether achieved through spending cuts, removal of tax benefits or tax hikes including the raising of charges.

It is also likely there will be an increase in tax audit activity and recovery processes as this is proven measure governments can use to help bolster revenue.

It is worth highlighting that the need for Australia's austerity measures comes not only from undisciplined spending but from an underperforming economy failing to deliver the revenue required.

Treasurer Swan has announced revenue collections will be down by a further $5 billion in both 2012-13 and 2013-14 compared to the last forecasts in the mid-year budget update in November.

This takes the total write-down in tax collections since the 2008-09 Budget to almost $150 billion over five years.

This adds to the case to not only find substantial savings in order to achieve the surplus objective but also to stimulate the economy through assisting business.

Tonight CCIQ will be focusing on a number of areas:

The budget should take cost pressure off doing business
A surplus is achievable if the government only spends where spending is necessary. A surplus achieved by removing necessary support for the economy is a false saving
The budget should announce a policy reversal on the carbon tax
The budget should outline the wage trade off mechanism to fund the 2013 superannuation levy rise
The budget should accelerate past investment in skills, education and retraining
The budget should announce a framework for broader tax reform than the carrying back of small business losses.

A number of further questions need to be answered tonight:

In forecasting a budget surplus will the savings measures adversely affect the mainstream economy and the level of aggregate demand?
Are the GDP forecasts realistic in the light of significant fiscal contraction?

CCIQ will be releasing a budget review following today’s budget statement.

RBA decision the boost needed to secure Queensland confidence and growth

Tue, 01 May 2012 15:21:57 +1000

Chamber of Commerce and Industry Queensland (CCIQ) has welcomed today’s decision by the Reserve Bank of Australia to cut the official interest rate by a full half of one per cent, saying it was the right decision in the current economic climate.

At its meeting today, the Reserve Bank Board decided to lower the cash rate by 50 basis points to 3.75 per cent, effective 2 May 2012.

This decision is based on information that suggests economic conditions have been somewhat weaker than expected, while inflation has moderated.

Yesterday’s Pulse Survey of Business Conditions found that business confidence in the Queensland economy for the next 12 months has rallied strongly yet prevailing business conditions remained very poor.

CCIQ President Mr David Goodwin said that the economy has been in desperate need of stimulus and that this rate cut is just what we needed to drive a turnaround in consumer confidence and spending.

“It is no secret that Queensland businesses have been doing it tough over the past twelve months with the reality of a two-speed economy really biting into business profitability and viability.”

“With rates remaining high, businesses were under significant pressure, especially in those sectors including building and construction, retail and tourism which are arguably sensitive to interest rates.

“The single most significant factor affecting business viability over the past twelve months has been the level of demand and economic activity.

“Hopefully, today’s Reserve Bank decision will remove some financial pressure off households and businesses and will drive a turnaround in spending across the economy.”

Coupled with a generally positive outlook for the coming Quarter, a raft of business friendly and cost-cutting measures promised by the new State Government and the strong turnaround in business confidence, CCIQ believes that the foundations for business, employment and economic growth are now potentially in place.

CCIQ has expressed concerns that banks are dragging their feet to adjust interest rates for business owners.

“Whilst banks have moved quickly to adjust the pricing on their variable home loans, they have unfortunately dragged their feet when it comes to their business customers,” Mr Goodwin said.

“We urge Australia’s commercial banks to pass the benefits of the cut in official interest rates onto business without delay. The interest rate cut should be passed on swiftly and in full to business customers.

“The failure of the banks to act hinders the intention of the Reserve Bank in assisting those weaker areas of the economy,” Mr Goodwin said.

CCIQ has been in regular communication with the Queensland Office of the RBA and the Bank’s Governor to ensure that it adequately understands the continuing pressure facing business across the State.

Business confidence in Queensland economy soars following State Election.

Mon, 30 Apr 2012 06:59:44 +1000

Business confidence in the Queensland state economy has rallied strongly in the March quarter, increasing to levels not experienced since 2008 prior to the GFC, according to the latest Commonwealth Bank CCIQ Pulse Survey of Business conditions released today.

It is clear that Queensland State Election promises relating to payroll tax, red tape, abolition of the waste levy and tighter economic and fiscal disciplines have had a direct impact upon the optimism shown.

CCIQ President David Goodwin said, “Clearly the surge in optimism amongst Queensland business is a good thing as optimistic businesses invest in infrastructure, people and services and help drive the economic fortunes of the State. What we know is that business and consumer confidence translates into spending and investing and can therefore make or break an economy.”

As expected, the State’s most authoritative business survey found that Queensland businesses suffered a challenging March quarter with sales, profitability and employment remaining down for most sectors over the period.

“Obviously as a state we are not out of the woods yet, however a renewed optimism amongst the business community will help to sow the seeds of long term economic growth and reverse the challenging trading period experienced by businesses over previous quarters,” said Mr Goodwin.

In relation to the national economy businesses are feeling less optimistic.

Business confidence in the Australian economy continued in negative territory in the March Quarter with an increasing number of businesses expecting the national economy to become weaker over the coming twelve months.

Mr Goodwin was concerned that events and policy at the national level could erode gains made in Queensland business confidence.

“The report sends a clear message to the Federal Government that they must start listening to the needs of the business community. In summary, there is now the real possibility that the Queensland State economy returns to the historic, pre-GFC trend of outperforming the national economy as the resource industry continues to boom and other sectors recover.”

Key findings

Key findings of the Commonwealth Bank CCIQ Pulse Survey of Business Conditions for the March Quarter 2012 include:

Pulse Business Confidence – Queensland Economy Index increased by over 10 percentage points to 60.8 with more than half (55 per cent) of all businesses expecting economic conditions in Queensland to be stronger over the coming twelve months.
The majority of businesses reported weaker (38 per cent) or similar (36 per cent) sales and revenue outcomes over the past three months, however a growing number of businesses (37 per cent) expect stronger sales and revenue conditions for June. Accordingly the Pulse Sales and Revenue Index is forecast to reach 55.1 in June 2012.
The Pulse Profitability Index remained relatively steady at 41.8 over the March Quarter. This is consistent with reports of generally slow business conditions over the past three months, dampened by the election period, poor weather and the usual post-Christmas and holiday period slump.
The Pulse Employment Index fell slightly to 45.4 in the March Quarter reflecting an increase in businesses reporting weaker employment levels (up by 7 percentage points to 30 per cent).
The on-going trend, reflected in a marginal decrease in the seasonally adjusted Pulse Capital Expenditure Index to 41.7 for March, has been for capital expenditure to remain the same (49 per cent of business respondents) or weaken (37 per cent of business respondents).
Level and demand and economic activity continues to be the most significant factor impacting on opportunities for business growth. This is largely influenced by continued falls in consumer confidence and spending and reduced international demand due to international economic stability and the high Australian Dollar.
Political and economic stability also remains a key concern for Queensland businesses. Whilst many businesses have commented that they are confident the new State Government will be conducive to growth, concern remains over the ability of the Federal Government to instil confidence in the consumer market and economic environment.

Regional Analysis

Review of regional business and economic indicators for the March 2012 quarter really highlight how dramatic an impact the change in state government is expected to have across Queensland.

With a few exceptions, all regions experienced a downturn in general business conditions, sales, profitability and employment levels over the March Quarter.
However, across all regions of the state the message is quite clear that businesses are expecting a resurgence in business confidence and economic activity as reflected by a significant increase in the state 12 month outlook indicator.Of particular note, the North and Far North Queensland regions are enjoying their highest levels of business confidence for over 3 years, suggesting businesses in these regions are significantly rallied by state government commitments for major infrastructure and industry development programs in these regions.

Regional Focus – Far North Queensland

Far North Queensland, while still having some room for improvement saw a positive turnaround in business confidence over the March Quarter. Business Confidence, as indicated by the 12 Month Outlook Index, grew by over 15 percentage points to 61.3.
The Far North region also saw only marginal declines in general business conditions and sales and revenue, and when considered against the declines seen in other regions, overall didn’t fair too poorly over the March quarter.
That being said, profitability and employment both fell sharply and remain significantly depressed. Hopefully the positive upswing in business confidence will crystallise into improved economic fortunes for business in this region over the coming three month period to June.

Regional Focus –North Queensland

North Queensland businesses saw the greatest increase in business confidence across all regions, and as such this region has the strongest 12 month outlook (66.4) in the state.
The other positive change has been in the area of employment, which has seen an improvement of about 3 per cent on the previous quarter. While the Index still sits below the positive 50 mid-point line, it is strong compared to some of the other regions across the state. With businesses looking to grow their workforce, it affirms the business outlook for improvements in business conditions.
Not unlike businesses across the state, other indicators including sales and revenue, profitability, and general business conditions all declined, however not to the same degree experienced in other regions.
Put in context with other regions and the historic outcomes for this region, North Queensland businesses have had a fairly positive quarter overall.

Regional Focus – Brisbane

Business confidence in Queensland economy lifted by 10.9 per cent
All other indicators remained on trend relative to the past 12 month period.
General business conditions improved marginally, however still remain in negative territory at 48.6.
Sales and revenue, profitability and employment levels decreased marginally
Overall a generally optimistic quarter for the Brisbane region

Regional Focus – Sunshine Coast

The twelve month outlook is significantly positive for the sunshine coast region, lifting by 9 per cent in the March quarter. It is amongst the strongest levels across the regions.
There was a significant decline in general business conditions over the March quarter.
Sales and revenue and profitability indicators also took a dive over the March quarter.

Regional Focus – Central Coast

Whilst suffering a significant downturn in sales and revenue over the March quarter, businesses in this region reported that general business conditions remained fairly steady at 51.5 over the March quarter.
The 12 month economic outlook for this regain remains very positive at 65.5, one of the strongest across the state.

Regional Focus – Gold Coast

Comparatively the Gold Coast region has performed the worst over the March quarter.
Business confidence increased by approximately 2.5 per cent to bring it into positive territory however is the lowest across the state.
General business conditions, sales and profitability which were all down over the three months to March, are also performing poorly compared to other regions.
Despite poor economic outcomes, employment remains strong in the gold coast region.

Regional Focus – South West Queensland

South West Queensland experienced a positive upturn in business confidence consistent with that in other regions.
Yet, general business conditions, while certainly not the worst across Queensland regions, experienced one of the more significant declines during the March quarter.
Sales and revenue and profitability were consistent with the other regions, falling somewhat over the March quarter.
Employment fell, but only marginally.

Regional Focus – Central Queensland

Central Queensland enjoyed a positive upwards swing in business confidence. Businesses are considerably more optimistic about the coming twelve months then they were about the previous three month period.
General business conditions remains marginally in positive territory, but as was the case for all other regions, experienced a decline over the March period.
Accordingly sales and revenue and profitability were also down.
However Central Queensland was one of only two regions that saw an improvement in employment levels well into positive territory and combined with good expectations for the coming twelve months suggests businesses are expecting business activity to ramp up throughout the remainder of the year.

Sensible minimum wage decision required to renew confidence in the economy

Fri, 27 Apr 2012 11:05:22 +1000

In a submission lodged today with Fair Work Australia, the Chamber of Commerce and Industry Queensland (CCIQ) has called on the umpire to ensure minimum wages do not act as a barrier to gaining employment.

A substantial increase to minimum wages is not recommended at a time when economic conditions remain weak and uncertain, particularly in award reliant industries.

The majority of award reliant employees tend to be located in industries which are experiencing a very poor economic environment at present (ie retail, hospitality, accommodation, construction, manufacturing industries).

Employers in these industries currently have very limited capacity to afford a substantial increase in minimum wages.

The cost imposts for the coming financial year, including the carbon price, transitional arrangements associated with the modern awards, increasing costs associated with implementing the Fair Work Act and other regulatory requirements, are just the tip of the iceberg of concerns raised by businesses in the lead up to the 2011/12 Annual Wage Review decision.

Many businesses are in a precarious position with significantly diminishing capacity to absorb the continuing onslaught of rising business costs in a price-sensitive consumer environment.

Businesses will have limited options available but to implement cost cutting measures, which is likely to include reducing employment costs and therefore numbers.

Businesses require time to overcome the significant cost implications associated with industrial relations changes and wage increases over previous years, and the implementation of further cost increases looking forward.

An increase to minimum wages above that supported by award reliant businesses will jeopardise the performance of the economy and further reduce the ability of these employers to employ and retain staff.

CCIQ strongly urges Fair Work Australia to implement an increase to the minimum wage that is substantially less than $9 per week, with preferably no increase until such time when businesses are better placed to afford it and remain viable.

CCIQ does not want to see an outcome where incentives to employ are diminished and employment opportunities are reduced.

There is a need for Fair Work Australia to protect confidence in the economy by encouraging employment.

CCIQ Supportive of Business Electricity Changes Planned by State Government

Thu, 26 Apr 2012 08:54:25 +1000

In response to media speculation on the forced shift to market contracts for high energy use businesses, the Chamber of Commerce and Industry Queensland (CCIQ) has said that small and medium sized businesses in the main have little cause for concern.

CCIQ has today moved to allay alarmist media statements that claim businesses may face electricity increases of up to 85 per cent, instead highlighting that market contracts have been proven to provide cost savings for many Queensland businesses.

In 2011 the previous Queensland Government announced a full review of the electricity pricing methodology and tariff structures and at the same time announced that non-residential customers in the Energex network area consuming more than 100 megawatts per annum would be unable to access regulated retail tariff and would have to transition to market contracts from 1 July 2012.

CCIQ consulted thoroughly with the Queensland Government and Queensland Competition Authority on this matter and undertook a full review of the impacts this change would have on Queensland businesses.

Accordingly CCIQ does not believe this will disadvantage any small or medium business in Queensland and that shifting to market contracts presented opportunities for businesses to seek a more competitive retail price for their electricity.

Businesses have been able to voluntarily shift to market contracts for a number of years and that the fact that over 95 per cent of businesses in south-east Queensland had already done so, on the basis there is proven benefit from shopping around for a better deal from electricity retailers.

However, CCIQ did agree that businesses should ensure they fully understand the implications of moving to market contracts and as with all areas of business, should carefully consider the fine print before agreeing to any market offer.

CCIQ has also for a number of years argued strongly that small and medium business should be provided access to dispute resolution services such as those afforded to residential customers through the Queensland Energy Ombudsman.

CCIQ believes this is important to help facilitate the uptake of market contracts and growth of competition in the electricity market which should lead to more competitive pricing in the long term.

Businesses with questions about this change or who need advice on negotiating and comparing market contracts should contact CCIQ on 3842 2244 or email policy@cciq.com.au.

Facts about Market Contract for Electricity:

As at 31 December 2011, over 95 per cent of large/non-residential customers in South-East Queensland were already on market contracts, meaning that only 530 businesses remained on the non-contract regulated tariff rates.
From 1 July 2012 all non-residential consumers with usage greater than 100 megawatt hours per year (or 100,000 Kilowatt hours per year) will no longer be able to access electricity on the noncontract regulated tariff rates.
This will only apply to those businesses in the Energex-distribution area which is South-East Queensland and will not apply to businesses in the Ergon area (being the rest of the state.)
CCIQ understands that Energy retailers have been active in communicating these changes with their existing customers affected by this change.
The basis for this policy position is that significant competition exists in the SEQ distribution area (over 20 retailers operate in this area) and this move should hopefully drive further competition and price competitiveness in the Energex area.
Calculations undertaken by CCIQ have further confirmed the advantages for large business users moving to market contracts. Based on a comparison of the 2012-13 notified tariffs with the Energex network tariffs for small and medium business we estimated that a business consuming 100Mwh/annum would save over $700 per month (and this excluded any additional discounts or negotiated benefits commonly offered by retailers).

Shadow Ministry – First steps taken in rebuilding trust

Thu, 19 Apr 2012 14:42:12 +1000

The State's peak business organisation, the Chamber of Commerce and Industry Queensland (CCIQ), looks forward to working with Opposition Leader Annastacia Palaszczuk’s new Shadow Ministry throughout the next term.

CCIQ President David Goodwin today said that, “while the Opposition has a tough job ahead of them, the longest journey starts with the smallest steps.”

“By announcing its Shadow Ministry today, the Opposition has taken its first steps in rebuilding broken relationships with Queensland voters and the business community.”

While the LNP Government received a strong endorsement from the Queensland public, as a nonpartisan organisation CCIQ is committed to achieving the best possible outcomes for Queensland businesses.

CCIQ looks forward to working with the Leader of the Opposition and respective Shadow Ministers to enhance the future of the Queensland economy through:

1. Reduced government costs on business;

2. Better economic and fiscal management; and

3. Reduced red tape.

CCIQ’s relationship with Queensland Labor has greatly improved in recent years and we look forward to continuing to build on this progress with the ALP in Opposition.

CCIQ congratulates the following Shadow Ministers on their appointments:

Annastacia Palaszczuk – Leader of the Opposition; Attorney-General, Justice and Industrial Relations; Education, Training and Employment; Tourism, Small Business, Major Events and Commonwealth Games; the Arts.

Tim Mulherin – Deputy Opposition Leader; State Development, Infrastructure, Planning and Racing; Agriculture, Fisheries and Forestry; Local Government; Science, IT and Innovation.

Curtis Pitt – Leader of Opposition Business; Treasury and Trade; Energy and Water Supply; Main Roads; Aboriginal and Torres Strait Islander Partnerships, Sport and Recreation.

Jo-Ann Miller – Opposition Whip; Health; Natural Resources and Mines; Housing.

Desley Scott – Deputy Opposition Whip; Disability Services; Community Services, Child Safety, Multicultural Affairs and Women; Mental Health; Transport

Bill Byrne – Police, Corrective Services and Emergency Services; Construction and Public Works; National Parks, Environment and Heritage Protection.

There is strong community support for change in Queensland and the Opposition must re-establish its close links to the business community and CCIQ extends an open hand to forging those linkages.

Mature-Aged Worker Incentives Welcomed by Industry

Thu, 19 Apr 2012 11:25:08 +1000

Business and industry have welcomed the announcement of a new $1000 jobs bonus and other initiatives to encourage employment of mature-aged workers.

Treasurer Wayne Swan announced yesterday that 10,000 employers who employ people over 50 will be eligible to receive a $1000 "jobs bonus" from July 1.

The announced initiatives aim to help tackle age discrimination and encourage businesses to employ older Australian who want to stay in the workforce.

The need to improving workforce participation and address the ageing of our current workforce is well established.

Only weeks ago, Minister Bill Shorten co-launched a Chamber movement initiative on workforce participation titled “Employ Outside the Box – rewards of a diverse workforce” which focused on mobilising employers to employ groups that are underrepresented in the workforce.

The first of these employer guides is “The Business Case for Recruiting and Retaining mature Age Workers.”

Liz Roberts, CCIQ’s Education and Training Policy Advisor, said that “through experience, skills and knowledge, mature-aged workers have the capacity to contribute significantly to the Australian economy and workforce.”

“Queensland businesses are facing significant skills and labour shortages. Initiatives and incentives to increase mature-aged workforce participation can help to reduce the impact of skills shortages on the economy and assist businesses to better harness the skills and experience of older Australians.”

April 28 an important time for Local Government

Thu, 19 Apr 2012 09:39:57 +1000

After running the successful ‘Big 3 for Business’ campaign highlighting the top priorities for Queensland businesses in the lead up to the 2012 State Election, CCIQ is now preparing for round two.

The Local Government Elections to be held on April 28 is an equally important date for the Queensland business community and one which CCIQ will play an important role.

Accordingly, CCIQ has today delivered the ‘Big 3 for Business’ to Queensland Mayoral candidates, ensuring business views are front and centre for Local Government decision makers.

CCIQ has focused on the ‘Big 3 for Business’: priorities of absolute critical importance.

By focusing Council efforts on these three major goals both leading into the Local Government elections and through the next 4 year term, CCIQ believes this focus will have the greatest impact for Queensland businesses.

Businesses are overwhelmingly clear on their big three issues for Local Government:

Deliver better economic and fiscal management;
Reduce Local Government costs on business; and
Reduce Local Government red tape.

CCIQ recognises the challenging tasks ahead in supporting businesses and communities alike, but believes our recommendations if adopted will create the optimal environment for business success.

In connecting with the regions across Queensland, CCIQ is continuing its important work in representing business interests at a local and regional level.

By building on our relationships with Local Chambers, the distribution of the ‘Big 3 for Business’ to Mayoral candidates gives them the chance to commit to the changes that Queensland businesses really need.

The importance of the regions in supporting Queensland economies cannot be underestimated.

Therefore, throughout 2012 CCIQ and beyond will work with all Local Councils to help achieve these goals.

Additional Information:

CCIQ recognises the vital role that Local Government plays in building and sustaining the Queensland economy. Queensland businesses believe Local Government matters to be of crucial importance in their day to day activities.

The cost and delivery of Local Government services represents a significant business input in Queensland and naturally business sees themselves as a major customer of Local Government. Hence CCIQ’s significant interest in the outcome of the elections.

CCIQ believes there must be greater emphasis placed on ensuring that the efficiency, effectiveness and price paid for Local Government services is appropriate. In our view this is as equally important as focusing on what Local Government can do to foster growth.

Local Government rates and charges represent a significant business input cost, and as with other 'costs of doing business’ that are within our control CCIQ believes we should champion the need to be competitive.

From the perspective of business, Local Councils are additionally becoming increasingly involved in business regulation. With increased delegation from State Government, the regulatory powers of Councils now covers activities such as planning and building approvals, environmental and health regulations including advertising and business signage, noise, nuisance issues, parking and public health.

While the business community acknowledges that some level of regulation is necessary, moves to rationalise and standardise local laws within and across local government areas in order to remove an unnecessary compliance burden for business would be very timely.

CCIQ believes that in general much greater priority must be given to examining Local Government’s own systems and processes that involve interaction with the business community and seek to streamline those systems where improvement can be identified. It is imperative that Local Governments use their resources efficiently and effectively to deliver the services and infrastructure for which they are responsible.

It is also essential that Local Government continues to deliver core essential services without the ongoing distraction or attraction of entering into those activities that have historically been provided by the private sector. That is, local governments should not provide a service if there are commercial providers of that service.

Initiatives to boost local opportunities welcomed by Queensland businesses

Wed, 11 Apr 2012 16:42:41 +1000

The Chamber of Commerce and Industry Queensland (CCIQ) has today welcomed the announcement by the Federal Government that stronger Australian Industry Participation (AIP) rules will be implemented to improve opportunities for local suppliers to win contracts on large construction, resource and infrastructure developments.

CCIQ is strongly supportive of initiatives aimed at increasing the involvement of Queensland businesses in both public and private sector projects due to the positive impacts on employment and business growth, particularly in those regions that are not performing strongly at present.

The Australian Government has accepted all 21 recommendations from a Working Group established to report on reforms to AIP requirements, with all recommendations to be implemented by 1 July this year.

Key changes to be made include:

Extending AIP requirements to projects funded by Australian Government grants of more than $20 million;
Working with State and Territory Governments to ensure local industry has full, fair and reasonable opportunities on projects receiving significant federal funding;
Increasing scrutiny of AIP plans, particularly for private sector projects valued at more than $2 billion that seek tariff concessions from the Enhanced Project By-Lay Scheme (EPBS);
Requiring major projects to publish summaries of AIP plans that include how they will seek and use local industry capabilities and how they will communicate opportunities to local suppliers.

Support is also provided for the requirement to report on the Australian industry value added component of all opportunities provided to Australian businesses and ensuring that greater efforts are made to engage with Australian suppliers in order to access the EPBS (where tariff concessions are available for eligible imported goods that are not available from Australian production).

These initiatives are welcomed by Queensland businesses who have often commented that they are not aware of the local opportunities that are available to them. Any initiatives that increase the opportunities available to local businesses are strongly supported, along with increased assistance for local industry in gaining contracts.

It is also important to increase the local employment that is engaged in major projects, especially in Queensland where we continue to experience the highest unemployment rate of all mainland states.

CCIQ is additionally supportive of implementing initiatives that enhance local industry competitiveness, create more efficient local markets and encourages the clustering of small businesses to compete and tender for local opportunities.

CCIQ is keen to continue working with all levels of Government to ensure Queensland businesses are provided with full, fair and reasonable opportunity to participate in major projects in both the public and private sectors, in Australia and overseas.

CCIQ welcomes LNP commitment to slashing business red tape

Tue, 10 Apr 2012 11:18:42 +1000

Chamber of Commerce and Industry Queensland (CCIQ) has today welcomed the LNP Government’s announcement that they will streamline property sale contracts and cut red tape for the real estate industry saying that it clearly demonstrates a commitment to Queensland small businesses.

The cost and burden of regulatory compliance is the single most important ongoing issue for the Queensland business community.

It increases the cost of running a business and acts a significant barrier to business growth, investment and employment.

CCIQ are strongly supportive of any measures which aim to reduce regulation and red tape in Queensland, which has been increasing at an unsustainable rate for the past five years.

According to CCIQ red tape case study research, regulatory compliance activities cost the average real estate business over $660,000 per year.

The compliance cost associated with mandatory forms included in home sale contracts such as the sustainability declaration cost over $36,000 per year.

CCIQ have no doubt that these costs add substantially to the cost of purchasing property and have hurt the recovery of the building and real estate industries in Queensland over recent years.

Cutting red tape for Queensland businesses, including significant reform to the Property Agents and Motor Dealers Act and the removal of complex and pointless paperwork including the Sustainability Declaration is a key recommendation in CCIQ's Blueprint for Fighting Queensland's Over Regulation’.

CCIQ said they are pleased that the new LNP government is listening to the voice of Queensland small businesses and getting to work on cutting red tape in Queensland.

CCIQ look forward to working with the new LNP government to identify other areas of excessive regulatory burden as they work towards achieving their commitment to a 20 per cent reduction in red tape.

State Cabinet - Rebuilding Relationships with Business

Fri, 30 Mar 2012 14:58:11 +1000

The State's peak business organisation the Chamber of Commerce and Industry Queensland (CCIQ) looks forward to working with Campbell Newman’s cabinet team over the coming three years.

The LNP government must begin work immediately to address the serious challenges that are confronting the Queensland business community.

CCIQ President David Goodwin today said that “since winning government on Saturday the 24th March the LNP Government has received a strong endorsement from the Queensland business community.”

Nearly 80 per cent of businesses have indicated that the newly elected Queensland Government led by Premier Campbell Newman will contribute to an increase in their business confidence.

However, while the spike in business optimism is good news it is now up to the State Government to get on with the job of creating a friendlier operating environment for business.

The challenge before the new Government is to deliver the results that match the strength of the mandate.

This means addressing the needs of the Queensland business community as outlined in CCIQ’s Big 3 For Business Election Report, which includes delivering better economic and fiscal management, reducing government costs on business and reducing red tape.

CCIQ is committed to working constructively with this State Government. CCIQ has already developed a strong working relationship with the leadership and will be meeting with relevant Ministers to discuss the following issues:

Campbell Newman – Premier

Actioning of all election commitments relating to the Queensland business community.
Standing up to the Federal Government on adverse business policies.

Jeff Seeney - Deputy Premier, State Development Minister, Infrastructure and Planning

Improving infrastructure planning in Queensland and addressing critical concerns regarding Queensland’s transport infrastructure.

Tim Nicholls - Treasurer and Trade Minister

The restoration of the State’s AAA credit rating and bringing the State’s budget back to surplus.
Enhancement of a competitive business operating environment through reducing government costs and red tape on business.

John-Paul Langbroek - Education, Training and Employment

Driving skills development and greater participation in education and training.
Developing initiatives to address reduced private sector capacity to invest in training.

Jarrod Bleijie - Attorney-General and Justice

The understanding and compliance of Queensland businesses with the new WHS regime.
Ensuring the lowest average workers compensation premium rates in the country.

Jann Stuckey - Tourism, Major Events, Small Business and Racing

Focus on a competitive business operating environment.
Recovery of the Queensland Tourism industry.

Andrew Powell - Environment and Heritage Protection

Repeal of the commercial waste levy.

Mark McArdle - Energy and Water Supply

Sustainability of Queensland’s electricity prices.
Implementation of the carbon tax by Queensland businesses.

Scott Emerson - Minister for Transport and Main Roads

Improving infrastructure planning in Queensland and addressing critical concerns regarding Queensland’s transport infrastructure.

Ros Bates – Science, IT, Innovation and Arts

Linkages between innovation and productivity.

These issues are at the core of CCIQ’s forward policy agenda.

Queensland businesses want to work with the State Government, and in turn, the Government to work with business, to ensure the actioning of all election commitments.

There is strong community support for a real change in Queensland and also a rejection of the recent Governance of this State. This State Government must re-establish its links to the business community and CCIQ has extended an open hand to forging those linkages.

CCIQ looks forward to a productive working relationship with the new Premier and all his Ministers, building Queensland's economic future, ensuring its competitiveness but will be holding the next State Government to account to ensure all election commitments are delivered as promised.

Wage Trade-offs Essential to Fund Superannuation Increase

Fri, 30 Mar 2012 13:45:19 +1000

The Chamber of Commerce and Industry Queensland (CCIQ) has today written to Bill Shorten, the Minister for Employment and Workplace Relations, to uphold his commitment for superannuation increases to be paid by deferred wage rises.

Last Monday, the Federal Parliament passed the mining tax bills which included higher compulsory superannuation payments for Queensland employers. However, at the same time the Federal Government did not pass any measures that would assist in funding the rise in superannuation, or offset the cost to businesses.

CCIQ has rejected the Federal Government’s claim that the controversial mining tax will pay for the superannuation increase.

It is essential for the increase to the superannuation guarantee to be offset in future wage increases and enterprise bargaining.

Queensland businesses widely welcomed Minister Shorten’s comments last week that superannuation should be treated as wages, subsequently allowing employers to fund super the increase as part of normal wage rises.

CCIQ stressed that it is essential for Minister Shorten to counter the decision by the ACTU to formally oppose wage trade-offs for a compulsory 3 per cent increase to superannuation.

Bill Shorten should formally direct Fair Work Australia to offset wage increases associated with the annual review of the federal minimum wage.

Queensland businesses remain strongly opposed to funding the levy increase which will significantly impact on business profitability with likely negative flow on implications for employment.

Businesses can not continue to absorb the cost increases imposed on them by governments and remain viable into the future.

All levels of Government, whether that be local, state or federal, should be working with the business community to encourage and promote employment and investment in Australia, not continue to make decisions that encourage businesses to downsize, close their doors or move overseas.

Assisting businesses to fund the mandatory superannuation increase is particularly important considering the business uncertainty surrounding the commencement of the carbon tax on the 1 July this year.

State Election Result Boosts Business Confidence

Thu, 29 Mar 2012 11:32:25 +1000

According to Chamber of Commerce & Industry Queensland (CCIQ) members the result of the Queensland State election has boosted business confidence across all sectors with 77 per cent of responders indicating that the change of government is going to lead to greater business confidence in the coming months.

Key industries that have indicated they will be positively affected by the change of government include accommodation; cafes and restaurants; manufacturing; property and business services; construction and retail.

They believe there will be improvements in the following areas;

Government efficiency in approvals and general processes;
A positive community attitude towards a new government will increase consumer confidence;
Red tape reduction;
Standing up to the Federal Government on Carbon tax and workplace relations;
Making oversized State Government departments more efficient;

While the results are not surprising, it is interesting to note that the majority of those that responded either ‘no’ or ‘no difference’ indicated that their issues lay with the Federal Government.

This includes industrial relations issues, interest rates and lack of confidence in Federal Government policies to assist small business in a two speed economy (mining boom and high Australian dollar). The change of State Government might go some way to meeting these needs in standing up to the Federal Government.

CCIQ’s General Manager of Advocacy, Nick Behrens, commented, “Business confidence in Queensland has been subdued in recent times; however this snap poll shows there is a clear mood of optimism amongst members.”

“Business confidence is an important measure for the economy as confident businesses invest in infrastructure and staff as they feel secure about their longer term prospects and viability.

“We look forward to the LNP putting their policies into action over the next 100 days and providing business with solid foundations to their new found confidence.”

Delivering the Results That Match the Strength of the Mandate

Sun, 25 Mar 2012 09:06:55 +1000

Chamber of Commerce and Industry Queensland (CCIQ) has congratulated incoming Queensland Premier, Campbell Newman, on his party's historic win in the State Election.

“This is a comprehensive victory and indicates strong community support for a real change in Queensland – and it is also a rejection of the recent Governance of this State," said David Goodwin CCIQ President.

The immediate impact of the change of government will be a lift in business confidence. This result has determined not only the Premier and State Government, but also indirectly the course of our state economy and business conditions over the coming three years.

The challenge before the new Government is to deliver the results that match the strength of the mandate.

CCIQ has been tireless in promoting its ‘Big Three for Business’ and has argued for better economic and fiscal management, reducing government costs on business and reducing government red tape.

Over the next 100 days and beyond CCIQ will be ensuring that the LNP keeps to the following commitments that reflect the thrust of our ‘Big 3 for Business’ including:

Commitment to reduce red tape by 20%
Commitment to reign in Government expenditure
Commitment to increase the payroll tax exemption threshold from $1 million to $1.6 million.
Commitment to scrap the commercial waste levy.

One thing is clear, CCIQ will be holding the next State Government to account to ensure all election commitments are delivered as promised.

CCIQ has developed a strong working relationship with the leadership of the new government including Campbell Newman, Tim Nicholls, Bruce Flegg, John-Paul Langbroek, Ted Mallone, Fiona Simpson, Lawrence Springboard, Jeff Seeney and Jann Stuckey. We look forward to working with them and others in the coming term.

Elections are a cruel business and it is sobering to see many of previous State Government’s Cabinet be overlooked by their electorate.

CCIQ’s relationship with Queensland Labor has greatly improved in recent years and we look forward to continuing to build on this progress with the ALP in Opposition.

Queensland Labor needs to re-establish its links to the business community and CCIQ extends an open hand to forging those linkages. Our State will get the best performance from a Government with an effective opposition.

The new LNP State Government will have a crucial role in helping to shape and secure Queensland’s economic future. Most bad government has grown out of too much government and Queensland businesses are looking to the LNP to now execute on their promising vision.

Saturday is an Important Day for Queensland Businesses

Thu, 22 Mar 2012 14:39:13 +1000

This Saturday the State election will determine not only the next Premier and State Government, but also indirectly the course of our state economy and business conditions over the coming three years.

During the election campaign Chamber of Commerce & Industry Queensland (CCIQ) has been tireless in promoting its ‘Big 3 for Business’ seeking the commitment of the major parties to create the optimal environment in Queensland for business success.

One week out from the election CCIQ produced a summary of key election commitments and sought the views of members on the extent to which the major parties have listened to the needs of the Queensland business community.

Businesses have shown a keen interest in those policies announced which best address the big three issues for business including better economic and fiscal management, reducing government costs on business and reducing government red tape. Accordingly the survey results speak for themselves.

Despite very good commitments by Queensland Labor towards apprentices and trainees and also the tourism industry, overall the ALP’s policies are not regarded by Queensland businesses as aligning with the ‘Big 3 for Business’ as much as the LNP’s.

These results are our member’s views and their assessment of the policies put forward by both sides. Their support for the LNP is based around:

Commitment to reduce red tape by 20%.
Commitment to reign in Government expenditure.
Commitment to increase the payroll tax exemption threshold from $1 million to $1.6 million.
Commitment to scrap the commercial waste levy.

CCIQ over recent years has gone to significant lengths to portray and action itself as a balanced and representative organisation and in particular throughout this election has sought to promote and protect the interests of Queensland businesses in a bipartisan manner.

When people vote this coming Saturday they should do so on the basis of who they think will deliver the best landscape for business to grow, employ and provide the foundation for community prosperity.

Every Queenslander, be they business owner, employer or employee has an opportunity to determine the future prosperity of their state. Our economic fortunes are irreversibly intertwined.

CCIQ wishes both parties the best of luck heading into Saturday’s poll and looks forward to working closely with the next state government in ensuring the needs of the business community are given priority.

One thing is clear, CCIQ will be holding the next State Government to account to ensure all election commitments are delivered as promised.

Please see survey results below: