Australian Small Business Minister To Hold ‘Targeted Consultations’ on Franchising Reform

CANBERRA, Australia - Growing public criticism in the media and in parliament by both Labor and Liberal politicians regarding the small business minister's, Craig Emerson’s, failure to respond to the franchising inquiry report has finally resulted in a media release by Emerson.

The Minister quietly released his statement Sunday night. Emerson's statement does little to ease concerns over his impartiality and raises questions regarding the motivation behind his failure to want to protect those small business owners in his portfolio.

In his media release, Emerson states that he will hold “targeted consultations to seek final input into options for responding” (to the report). What should concern everyone is that in this, his final consultation process, Emerson is only consulting those who are lobbying for no or very little change; the Australia Competition and Consumer Commission that watches federal trade practices and the Franchise Council of Australia, a lobbying group for franchisors.

All three franchise inquiry reports highlighted substantial problems in the sector, and recommended significant changes. These reports pressure the Minister to react both quickly and decisively to implement its recommendations. However, Emerson has avoided meeting with those with the most to lose by his failure to act, the franchisees.

This process is far from transparent. In the words of Joanna Gash, MP in Parliament last week, it is also “unacceptable”. The recommendations from this, and the two state inquiries, received bipartisan support and yet the Minister seems content to enjoy only the largesse of those at the big end of town, whilst the franchisees, which this Code is supposed to support, are being refused a seat and voice at the consultation table.

The media release states that an “options paper will released in the next few weeks” with the formal response to the report to be released in late July.

Follow the media coverage from WaToday:

• 22 May 2009 – Labor rift developing over franchise frustration
• 14 Apr 2009 – Customers dirty over kleenmaid washup
• 14 March 2009 – Ministers silence angers franchisees
• 05 January 2009 – Franchises face a shaky 2009
• 18 December 2009 – Franchising Inquiry slammed as Opportunity Missed