Minister for Small Business, Tom Koutsantonis, introduced legislation to Parliament to establish a Small Business Commissioner in the biggest shake up of one of the state’s largest industry sectors in a generation.

The legislation will create a long overdue balance between small businesses and larger companies with fair dealing and good faith encouraged in all business dealings, and with fines of up to $50,000 enforceable for corporations failing to comply with industry codes spelled out in the new laws.

Mr Koutsantonis said the proposal to create a Small Business Commissioner and an associated office will give the state’s Small Business sector a greater voice and a level playing field during disputes.

"We understand that for too long small businesses, franchisees and tenants have felt powerless when dealing with unfair practices of franchisors, larger businesses or large scale landlords," he said.

"These are the mum and dad and family businesses which form the basis of our economy, and this legislation will give them a voice, a champion to help them through tough times, disputes and compliance issues."

Mr Koutsantonis said the Member for Light, Tony Piccolo, was an integral part of the initial Economics and Finance Committee inquiry and had led the way on the forming of the new legislation.

Mr Piccolo said while the initial inquiry dealt with franchising he was pleased to see that the new laws will enable any small business to access cheaper and quicker dispute resolution service.

"There are more than 136,000 small business operators in South Australia and every single one is vitally important to South Australia," he said.

"Once again South Australia will lead the country in providing support for our small business sector."

Mr Koutsantonis said the legislation is based on an improved model of the Victorian Small Business Commissioner which had already been involved more than 8000 matters since its inception in 2003.

"In any business or industry there are always going to be issues, but I feel the way it is at the moment the big players, the national-multinational companies, the franchisors are holding all the cards."

"The establishment of a Small Business Commissioner will create a level playing field, it will allow the small guys to stand up for themselves and promote good-faith dealings between all parties."

"This legislation is the biggest change to the sector in a generation and the feedback I have received already is extremely positive."

The Government will be appointing the new Commissioner at the earliest opportunity following the passage of the legislation.The South Australian Small Business Commissioner will be able to:

• Allowing for civil action and enforcement powers against corporations failing to comply with prescribed industry codes under the Fair Trading Act

• to receive and investigate complaints by or on behalf of small businesses regarding their commercial dealings with other businesses and to facilitate resolution of such complaints through measures considered appropriate by the Commissioner such as mediation or making representations on behalf of small businesses;

• to assist small businesses on request in their dealings with State and Local government bodies;

• to disseminate information to small businesses to assist them in making decisions relevant to their commercial dealings with other businesses and their dealings with State and Local government bodies;

• to administer Part 3A of the Fair Trading Act 1987 (which relates to industry codes) and the Australian Consumer Law (SA) to the extent that responsibility for that administration is assigned to the Commissioner under the Fair Trading Act 1987;

• to monitor, investigate and advise the Minister about—

• non-compliance with industry codes that may adversely affect small businesses; and

• market practices that may adversely affect small businesses;

• to report to the Minister on matters affecting small businesses at the request of the Minister;

• to report to the Minister on any aspect of the Commissioner's functions at the request of the Minister or on the Commissioner's own initiative;

• to take any other action considered appropriate by the Commissioner for the purpose of facilitating and encouraging the fair treatment of small businesses in their commercial dealings with other businesses or assisting small businesses in their dealings with State or Local government bodies;

• any other functions conferred on the Commissioner by or under the Small Business Commissioner Act 2011 or any other Act;

• The administration of the Retail and Commercial Leases Act 1995 will be transferred from Commissioner of Consumer Affairs to the Small Business Commissioner. The Small Business Commissioner will take responsibility for retail and commercial leases and bonds.

For further information see the following links:

• Small Business Commissioner Bill 2011
• Consultation Outcomes Paper

Source: Hon Tom Koutsantonis Media Release 28/7/11 http://www.southaustralia.biz/library/28%20July%202011%20Media%20Release%20smallbusinesscom.pdf