Another state small business commissioner appointment strengthens hopes for federal position

The surge in small business commissioners across the country has strengthened hopes the Federal Government will announce a federal position early next year.

Western Australia this week appointed David Eaton, a former small business owner and Australia Post employee as the state’s first Small Business Commissioner. Eaton will be tasked with investigating complaints about unfair market practices affecting small business, and providing a low-cost alternative dispute resolution service.

There are now four small business commissioners across the country, with South Australia, Western Australia and New South Wales forming independent bodies this year to deal with dispute resolution.

Victoria already had a Small Business Commissioner and Queensland has a Business Commissioner which is focused on red tape, although it’s not yet clear whether a change of Government could lead to a broadening of the role.

Peter Strong, executive director of the Council of Small Business of Australia, says feedback to the new the state-based commissioners is “very positive.”

“One thing that makes us very excited about how this is going to work is some of the business associations are expressing concerns, which must mean they’re forced to be fair with small business,” Strong says.

“We’d expect to see more transparency and fairer deals, particularly with leasing and contracts.”

Strong says he’s hearing the “prospects are good” for a federal Small Business Commissioner being announced early next year, although there are also expectations the next Federal budget will be a “fierce one.”

“We’re certainly working hard in consultations with Government departments in saying, we need an independent small business commissioner.”

“We need a federal commissioner which then ties the states together.

“It won’t have jurisdiction over retail leases, but will certainly be able to influence policy put together by the Federal Government, which is very important.”

Associated Professor in Business Law, Frank Zumbo, welcomes the increase in small business commissioners, saying they “will fill a clear gap left by both the ACCC’s inability to provide dispute resolution services and the absence of a federal one-stop shop for dispute resolution services.”

Writing in the Punch, Zumbo says “small business would also be looking to [new Small Business Minister Mark] Arbib to create a federal small business commissioner so that small businesses can finally have access to a federal one-stop shop for dealing with disputes with larger business.”

South Australia passed its Small Business Commission Bill two months ago, and the independent statutory office is asked to monitor the treatment of small business in their commercial dealing; investigation complaints about unfair market practices; mediate between parties; and mediating retail tenancy disputes between small businesses and landlords.

Yasmin King was appointed NSW’s first Small Business Commissioner earlier this year.