Commerce Queensland Business Update

The St.George - Commerce Queensland Pulse Survey of Business Conditions is expected to confirm a significant deterioration in business confidence when the March Quarter results are released next week.

Rising interest rates and a decline in the level of demand are also expected to feature prominently as constraints on business growth across the state.

The survey will also provide an insight into the effect an increase in the minimum rates of pay and the current global market turmoil is having on business confidence and business operations.

Full state-wide and regional results will be released on Thursday 1 May and available from www.commerceqld.com.au/policy. For further information contact Sarah Kearney, Senior Policy Advisor, on (07) 3842 2253 or email skearney@commerceqld.com.au.

The recent Council of Australian Governments (CoAG) meeting in Adelaide announced reforms in health, water and regulation.

CoAG's announcement of an accelerated reform agenda for reducing the costs of regulation and enhancing productivity and workforce mobility in areas of shared Commonwealth and State responsibility is encouraging. Areas of reform include:

27 areas of regulatory reform including an Intergovernmental Agreement by May 2008 to harmonise workplace health and safety laws, closely examining the scope for a reduced implementation timetable at its meeting in July 2008;
12 further regulatory reforms including trade measurement, environmental assessment and approval processes, rail safety regulation, product safety, trade licensing, further payroll tax harmonisation and institutional lending arrangements;
standard business reporting, food regulation, mine safety, electronic conveyancing, upstream petroleum (oil and gas) regulation, maritime safety, wine labelling, directors' liabilities and financial service delivery; and
a new financial framework which will result in a significant rationalisation of Special Purpose Payments (SPPs), primarily through combining many into a smaller number of new national SPP agreements, without a reduction in total Commonwealth funding for these activities. This reform will see a reduction from the current 92 SPPs to five or six new national agreements for delivery of core government services - health, affordable housing, early childhood and schools, vocational education and training, and disability services.

For further information contact Nick Behrens, State Manager - Policy, on (07) 3842 2279 or email nbehrens@commerceqld.com.au.

Commerce Queensland met with the Australian Fair Pay Commission last week ahead of the Commission's minimum wage review.

Commerce Queensland emphasised its support for the ACCI Submission (PDF) to the process, which argues for any increase should be genuinely moderate in nature and take proper account of inflationary pressures which have emerged in the economy.

Commerce Queensland has presented a detailed overview of the deterioration in the Queensland economy as well as providing evidence from the March Quarter Pulse Survey of Business Conditions of the effects an increase to minimum rates of pay would have on business.

For further information contact Nick Behrens, State Manager – Policy, on (07) 3842 2279 or email nbehrens@commerceqld.com.au.

Supporting issues papers have now been released for the Productivity Commission inquiry into paid parental leave. The timetable for the inquiry is as follows:

Commerce Queensland is currently in the process of drafting a policy position on this issue. For further information contact Nick Behrens, State Manager – Policy, on (07) 3842 2279 or email nbehrens@commerceqld.com.au.

The Workplace Relations Amendment (Transition to Forward with Fairness) Act 2008 commenced on 27 March. The Workplace Authority will administer the new no-disadvantage test, and it is anticipated that it will soon release its policy guide on agreement making for certified agreements and ITEAs.

As a result of the Transition Act, employers can no longer create new Australian Workplace Agreements (AWAs). As a transitional measure, employers can offer ITEAs to new (including previous employees) and existing employees (on statutory individual agreements) if the employer had any employee as at 1 December 2007 on a statutory individual agreement.

For further information contact Stephen Nance, State Manager- Workplace Relations, on (07) 3842 2236 or email snance@commerceqld.com.au.

The Queensland Water Commission (QWC) has moved beyond the emergency response phase of the water supply crisis towards a business-as-usual approach with the release of its draft South-East Queensland Water Strategy.

The draft strategy includes a number of objectives surrounding the level of service to be provided by the Water Grid. The nub of this is ensuring a specified average total urban demand figure (375 litres per person day to accommodate residential and non-residential demand) through a combination of investing in additional water supplies and maintaining a level of restrictions. This 'Water Supply Guarantee' is important as it provides business and the wider community with greater assurance in respect of future water supply and the restriction regimes which may be imposed in the event of another severe drought.

While the development of a long-term, comprehensive water strategy is a positive move, it is important that the strategy is implemented effectively and in its entirety. Commerce Queensland has expressed concern that the draft strategy does not provide further detail on the impact that the planned infrastructure will have on the price of water. This information is integral to the investment decisions of many businesses, particularly those undertaking water-intensive activities. Businesses need certainty on the price of water so that they can plan for the future and adequately adjust to any new price regime.

For further information contact Nick Behrens, State Manager - Policy, on (07) 3842 2279 or email nbehrens@commerceqld.com.au.

The Minister for Immigration and Citizenship, Senator Chris Evans, recently announced a review to examine the integrity of the temporary skilled migration program.

measures to strengthen the integrity of the temporary skilled migration (Subclass 457visa) program;
the employment conditions that apply to workers employed under the temporary skilled migration program;
the adequacy of measures to protect 457 visa holders from exploitation; the health and safety protections and training requirements that apply in relation to temporary skilled workers;
the English language requirements for the granting of temporary skilled migration workers’ visas;
and the opportunities for Labor Agreements to contribute to the integrity of the temporary skilled migration program.

The review is to be headed by Industrial Relations Commissioner Barbara Deegan with a working party of industry and trade union leaders will be formed to provide advice. The review will report periodically to the Minister for Immigration and Citizenship and the Deputy Prime Minister with a final report to be presented by 1 October.

For further information contact Nick Behrens, State Manager – Policy, on (07) 3842 2279 or email nbehrens@commerceqld.com.au.

Commerce Queensland has prepared a letter inviting key members from the local business community to join its Regional Council.

The major role of the Regional Councils is to highlight and consider issues of importance to their respective regions and to advise Commerce Queensland accordingly. More specifically the Regional Council is instrumental in:

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