Opposition lashes Small Business Minister on franchising report delay

The Federal Opposition has criticised Small Business Minister Craig Emerson over his delay in responding to a parliamentary inquiry into the franchising sector.

As SmartCompany revealed on Monday, the Government’s formal response to the Joint Standing Committee on Corporations and Financial Services inquiry has been delayed.

Emerson had hoped to deliver the response by the end of July, but a spokesman said it will be released in the “near future”.

“It’s a complex Code and there’s a lot to consider. We’ve been busy going through all the submissions we received,” the spokesman said earlier this week.

But Liberal backbencher Don Randall has launched a stinging attack on Emerson in Parliament earlier this week, calling on him to “fast-track” the 11 recommendations of the committee.

“I have spoken on several occasions about the plight of hundreds of thousands of franchisees in Australia who have been burned financially and emotionally by rogue and opportunistic franchisors. At the core of fixing the epidemic problem is the need for the government to strengthen the existing laws relating to franchisors. How many times does Minister Emerson need to be told?”

“If the Minister continues to sit on his hands he is sending the message, that despite the findings of several inquiries and his own election promise, the government is ignorant or simply does not care about protecting Australia’s franchisees and stamping out these industry bullies.”

Randall is a supporter of the controversial idea of inserting a “good faith” clause into the Franchising Code, and says this would help prevent problems around end-of-term agreements.

But most franchise commentators believe the good faith clause is unlikely to gain Emerson’s support.