Five reasons the independents could be good for small business

The intense focus on Australia’s new political kingmakers – independent MPs Bob Katter, Rob Oakeshott and Tony Windsor – is only likely to get hotter this week, as Julia Gillard and Tony Abbott begin talks with the trio with a view to forming minority government.

In the meantime, political commentators, business pundits and other analysts are poring over the backgrounds of the three men, trying to get a sense of which party they are likely to support and what policies they are likely to push for.

In the area of business and economic policy, it is very much a mixed bag.

Katter and Windsor have strong views on the flaws of Australia’s competition regulatory regime, with Katter leaning towards outright protectionism to support some sectors of agribusiness – a stance that would send shivers down the spines of many economists.

Oakeshott supports the mining tax, but is in favour of general company tax cuts and broader tax reform.

But overall, the stance of the independents looks reasonably favourable for small business. Let’s have a look at five positives:

Competition policy

Both Katter and Windsor have been outspoken about the need for more government involvement in competition policy to protect rural business people and ensure services continue to be provided to regional areas.

Katter and Windsor have both spoken out against the market power of supermarket giants Woolworths and Coles, and the impact this has had on SMEs in rural and regional areas.

“In Queensland, Woolworths and Coles have run amok. The Federal Government has done nothing to restrain Woolworth and Coles,” Katter told a parliamentary inquiry last year.

Katter has also been an advocate for tariff protection for farmers, particularly in the sugar and banana sectors, while Windsor has argued against the sell-off from Telstra, saying competition policy is not strong enough to ensure communications services are improved in rural areas.

Tax reform

While Windsor and Oakeshott have argued in favour of a resources rent tax, Katter’s Queensland roots are likely to make him less supportive of anything that could hurt the mining industry.

Oakeshott has said he supports tax reform and wants to see more of the Henry Review’s reforms implemented, including a recommendation that company tax fall to 25%.

Broadband

All three men are supportive of improved broadband for rural and regional areas, and appear to see the value in developing the National Broadband Network – or something very close to it – as a piece of nation building infrastructure. They appear well-placed to force the Coalition to pick up its game on broadband.

Industrial relations

Oakeshott has heavily criticised aspects of Labor’s Fair Work Act, most recently following the introduction of Modern Awards in the retail sector, which introduced a standard three-hour minimum shift across the country, and led to the sacking of some student workers who worked shorter shifts after school.

In August and July, Oakeshott said the sacking of these workers highlighted the inflexibility of the Fair Work system and urged “both the Liberal Party and Labor Party to re-engage on industrial relations over the coming three years.”

Climate change

Climate change emerged as a big issue for small business during the election campaign, and one that most entrepreneurs want some action on. That appears to the stance of the independents too.

While Katter and Windsor are opposed to putting a price on carbon, they do want to see action on renewable energy, renewable fuels and energy usage. Expect the independents to push for a clearer timetable for direct action.