Commerce Queensland has raised concerns about the proposed commencement date, permit allocation arrangements and the governance framework of the Federal Government's proposed Emissions Trading Scheme (ETS).

Commerce Queensland has offered in principle support for the scheme, however believes a number of key issues must be addressed to ensure the scheme does not damage the international competitiveness of Australian business. It is imperative that Australian action on climate change mirrors that undertaken by other industrialised countries.

The complete submission is available from the Commerce Queensland website (PDF).

For further information please contact Sarah Kearney, Senior Policy Advisor, at skearney@commerceqld.com.au.

Commerce Queensland has worked with other key stakeholders to successfully convince the State Government to drop its proposal to extend responsibility for cleaning up industrial accidents to landowners and others who derive a commercial benefit from the land.

In May 2008, the Minister for Sustainability, Climate Change and Innovation released details of a plan to change the laws governing the remediation of sites. The announcements followed the Binary Chemicals fire at Narangba in August 2005 where the Queensland Government ultimately wore the cost of the environmental clean up.

Under the Minister's plan, responsibility for the remediation costs in the event of a serious contamination incident would be pushed onto the owner of the property, whether or not they were operating the business on the site.

This proposal was of grave concern to Queensland business as it would have resulted in a significant increase in costs in terms of insurance premiums and compliance, with indications from the insurance industry that insurance coverage would either not be available, or be prohibitively expensive.

For further information please contact Sarah Kearney, Senior Policy Advisor, at skearney@commerceqld.com.au.

• Media release - Industrial accident remediation: Impost on business avoided

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The Reserve Bank of Australia's decision to reduce official rates by 0.25 basis points to 7.00 per cent has brought some relief to many Queensland business operators, however further cuts are still required.

Commerce Queensland remains concerned that the Reserve Bank's monetary policy settings continue to be too restrictive for the level of economic activity currently occurring within Australia and Queensland.  Accordingly we are encouraging the RBA over the coming months to further lower official interest rates to a level that will be both symbolic to the business community and overcome the inertia of major lending institutions in adjusting their variable rates downwards.

Commerce Queensland has been very active in moving the monetary policy debate towards an appreciation of the need to take interest rate pressure off a rapidly slowing National and Queensland Economy.  Commerce Queensland has been in regular communication with the Queensland Office of the RBA and Mr Glenn Stevens to ensure the RBA understands the mounting pressure facing business across the state.

For further information please contact Nick Behrens, State Manager - Policy, at nbehrens@commerceqld.com.au.

• Commerce Queensland presses RBA for rate cut

In May the Treasurer, Wayne Swann announced the Henry Review of Taxes, a comprehensive review of Australia's tax system. Currently Australia has at least 125 separate taxes, yet just 10 of these account for 90 per cent of total tax collected.

The review aims to create a tax structure that positions Australia to deal with the demographic, social, economic and environmental challenges of the 21st century and enhance Australia's economic and social outcomes.

The review will encompass all Federal Government and State taxes, except the GST, and will be conducted in several stages until a final report is presented to the Treasurer at the end of 2009. 

Commerce Queensland will be arguing for the alignment of company and personal tax rates, the abolition of payroll tax, and changes to fringe benefits and capital gains tax.

For further information or to provide comment please contact Nick Behrens, State Manager - Policy, at nbehrens@commerceqld.com.au.

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The Queensland Government is currently reviewing the administrative arrangements for the Queensland Fuel Subsidy Scheme.

As part of that review process, it has proposed that the existing $0.0834 per litre subsidy be claimed by consumers at the point of sale rather than being delivered to consumers via lower retail prices as occurs at the moment.

Under this approach, the fuel price advertised on service station price boards and pumps would be the unsubsidised price. Retailers would then deduct the subsidy from the advertised price at the point of sale (similar to the existing Coles/Woolworths fuel discount arrangements).

To facilitate these changes, the Government is proposing to introduce some form of card that consumers will need to present in order to claim the subsidy. Read the full article.

Commerce Queensland is currently preparing a submission and would appreciate feedback from the business community. For further information or to provide comment please contact Sarah Kearney, Senior Policy Advisor, at skearney@commerceqld.com.au.

The Garnaut Review recently released its supplementary report on emissions trading scheme caps and trajectories. The key recommendations made in the report include:

1. Australia's aim should be to work with the international community to secure a global agreement around a firm emissions stabilisation goal. We should also be willing to play our full, proportionate part in achieving that goal.

2. In the event of a comprehensive global agreement, Australia's target should be to reduce emissions net of international trading by 10 per cent from 2000 levels by 2020 (equates to a per capita reduction of 30 per cent) and by 80 per cent from 2000 levels by 2050 (equates to a per capita reduction of 90 per cent). In the absence of a comprehensive agreement, the Review proposes that Australia should commit to reducing its emissions by 5 per cent from 2000 levels by 2020 (a per capita reduction of 25 per cent). This target is consistent with the Government's long-term policy goal of reducing emissions by 60 per cent from 2000 levels by 2050.

3. The proposed targets have been selected as they are consistent with the abatement efforts of other developed and developing countries, although the Review's approach to emissions reduction targets requires Australia to make somewhat higher per capita reductions than many other developed countries (reflects the fact that our per capita emissions are amongst the highest in the OECD).

4. Garnaut concludes that there are two clear macroeconomic implications from the modelling:
(1) the overall cost to the Australian economy from tackling climate change is manageable and in the order of one-tenth of one per cent of annual economic growth. Australia can readily afford to make commitments to reduce emissions by either 5 per cent or 10 per cent by 2020; and (2) there are clear benefits from broadening the level of international co-operation on emissions reduction - Australia can significantly increase its abatement effort at a negligible cost if a broad global agreement can be reached.

The complete article is available on the Commerce Queensland website. For further information please contact Sarah Kearney, Senior Policy Advisor, at skearney@commerceqld.com.au.

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The Queensland Government has released its new Queensland Skills Plan 2008.

Commerce Queensland's view is that it is not a new program or a new investment of funds, rather it is a reviewed policy approach and redirection of funds in the context of new priorities for the sector, changing markets and alignment with Commonwealth government initiatives.

It will aim to address issues of skills and labour shortages, investigate opportunities to boost participation in VET and has a focus on getting people into work and improving skill base of those already in the labour market.  Five key action areas in the revised Skills Plan (in addition to those programs and initiatives already in place):

• Develop skills of existing workers and apprentices: achieving better recognition of existing skills, development of improved skills pathways and engagement with employers
• Attract unemployed and underemployed workers into the labour force
• Improving Youth Transitions
• Building VET Sector Capacity
• Building 'Professional' skills

Commerce Queensland provided extensive input into the Skills Plan on behalf of Queensland business. For further information please contact Megan Lewis, Education & Training Advisor, at mlewis@commerceqld.com.au.

An independent integrity review process conducted by industrial relations expert Ms Barbara Deegan, is currently underway. The review includes the release of three issue papers on the Subclass 457 visa arrangements:

• Minimum Salary Level and Labour Agreements
• English Language requirements and Occupational Health and Safety issues
• Integrity and Exploitation issues.

Commerce Queensland has prepared responses on the first two papers with the third issues paper just released. Commerce Queensland is currently in the process of preparing a response to the third paper.

For further information or to provide comment please contact Jillian Fairbrother, Policy & Public Affairs Advisor, at jfairbrother@commerceqld.com.au.

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Infrastructure Australia has released a discussion paper calling for submissions on the national priority list for energy, transport, communications and water assets as part of the Building Australia Fund worth $20 billion.

Submissions close on 15 October with Infrastructure Australia due to hand down its final report to the Council of Australian Governments (CoAG) in March 2009.

Commerce Queensland will be making a submission. For further information or to provide comments please contact Nick Behrens, State Manager - Policy, at nbehrens@commerceqld.com.au.

Premier Anna Bligh has released Towards Q2, the State Government's blueprint for growing the Queensland economy over the next ten years and outlining the Government's plans and priorities for the future.  The blueprint outlines ten specific targets for 2020 under five broad headings - strong, green, smart, healthy and fair. The State Government is now consulting with Queenslanders to get their views and ideas. The targets by 2020 are:

Strong - Creating a diverse economy powered by bright ideas:

• Building Australia's strongest economy with infrastructure that anticipates growth
• Increasing by 50 per cent the proportion of Queensland businesses undertaking R&D

Green - Protecting our lifestyle and environment:

• Cutting Queenslanders' carbon footprint by one third with reduced car and electricity use
• Protecting 50 per cent more land for nature conservation and public recreation

Smart - Delivering world class education and training:

• All children to have access to quality early childhood education so they are ready for school
• Three out of four Queenslanders to hold trade, training or tertiary qualifications

Healthy - Making Queenslanders Australia's healthiest people:

• Cut obesity, smoking, heavy drinking and unsafe sun exposure by one third
• Reduce public hospital waiting lists to the shortest in Australia

Fair - Supporting caring communities:

• Halve the proportion of Queensland children living in households without a working parent
• Increase the proportion of Queenslanders involved in their communities by 50 per cent.

For further information please contact Nick Behrens, State Manager - Policy, at nbehrens@commerceqld.com.au.

Australian Chamber of Commerce & Industry (ACCI) Chief Executive, Peter Anderson spent two days in Brisbane last week to listen to the needs of Queensland businesses and update members on the thinking of the Rudd Government after its first nine months in power.

Mr Anderson informed businesses that increasingly more decisions are being made in Canberra, especially funding decisions in areas such as infrastructure.

The Government's plans for changes to the workplace relations legislation will make already tough business conditions even tougher if implemented as proposed and as desired by unions. One particular proposition of concern to Queensland business is possible removal of an exemption from unfair dismissal for businesses employing less than 100 people. 

Other issues covered in discussions between Mr Anderson and business leaders include:

• the Emissions Trading Scheme (ETS)
• the successor to the successful Australian Building and Construction Commission (the agency regulating industrial relations in the construction industry)
• harmonisation of industrial relations laws
• interest rates
• the Henry review of Taxes.

Commerce Queensland is a founder member of ACCI and will be pressing for the most business friendly outcomes possible at both Federal and State levels. For further information please contact Nick Behrens, State Manager - Policy, at nbehrens@commerceqld.com.au.

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