Retail Regulatory Reform

Ms LYLEA McMAHON: My question is to the Minister for Small Business and Regulatory Reform. Will the Minister update the House on the Iemma Government's plans to cut red tape for retailers in New South Wales?

Mr JOSEPH TRIPODI: Not many people realise that the regulation governing when shops can and cannot open is quite strict in New South Wales.

The SPEAKER: Order! I call the member for Ballina to order.

Mr JOSEPH TRIPODI: Currently the Shops and Industries Act 1962 prohibits shops trading on Sundays. It also prohibits trading on New Year's Day, Australia Day, Good Friday, Easter Sunday, Anzac Day, Christmas Day and Boxing Day. However, through an involved system of exclusions and exemptions New South Wales has a relatively deregulated retail trade. In recent times shops in New South Wales have been opening on Sundays and many public holidays because they have been granted extensions.

The Iemma Government is committed to making the lives of working mums and dads easier by opening up Sunday shopping. What was originally simply a convenience for weekend shoppers has now become an essential service for working mums and dads who need to provide for their families. Consumers now expect and need to be able to shop over long weekends and holiday periods. In line with these needs and demands of consumers the Government has been providing exemptions to many businesses across New South Wales so shops can legally open their doors on Sundays and some public holidays. Exemptions have been provided for small shops, specific kinds of shops, individual businesses, holiday resort areas and other specific geographical areas. This patchwork of exemptions has become messy and confusing and applying for an exemption can also be costly.

The legislative requirements around public holidays are also outdated and confusing. The legislation currently require shops to close on the day observed as a public holiday, usually the following Monday, rather than the day itself. This means that every year Christmas and Boxing Day fall on a weekend the Government must enact amending legislation to ensure shops close on the actual Christmas Day and Boxing Day but can open on the Monday and Tuesday. This uncertainty is frustrating and costly for retailers. One major national retailing chain has indicated that managing the staffing and other administrative issues around opening on public holidays can cost up to $10,000 per holiday. This is in addition to advertising expenses of up to $50,000 to inform the community of the new opening hours.

The Government requested its Better Regulation Office to examine trading hours as a targeted red tape review. The review was prompted by a recommendation from the Independent Pricing and Regulatory Tribunal [IPART] in its investigation into the burden of regulation and improving regulatory efficiency, which reported to the Government. The Better Regulation Office's report is now complete and recommends a number of measures to cut red tape out of the system and make the regulation of shop trading hours clear, simple and reflective of contemporary community expectations.

The review found there is still a case for some regulation of shop trading hours. Retail workers need time off to spend with their family and friends on certain days of cultural significance. Submissions to the review from retailers indicated shop owners also appreciate shops should close on certain days of the year. That is why these reforms will maintain Christmas Day, Boxing Day, Good Friday, Easter Sunday and the morning of Anzac Day as prohibited trading days. This amounts to four and a half days a year.

The review recommends a number of reforms that will make the legislation work effectively and cut red tape for retailers. Restrictions on some public holidays, such as New Year's Day and Australia Day, and restrictions to trade on Sundays, will be completely removed. The process for providing extensions to allow a shop to open on prohibited days will be streamlined into a single power of the director general with transparent criteria set out in the Act. While this Government is keen to provide for the needs of working families, we will also protect the rights of retail workers. Any exemption granted from now on will be on the proviso that staff working on a prohibited day in a shop that has been exempted will only do so voluntarily. This is a new industrial right secured through consultation with the Shop, Distributive and Allied Employees Union for its members and all hard-working retail employees.

This provision will provide an extra level of worker protection. Penalties for shops that unlawfully trade on prohibited days will be increased to $10,000 for a first offence. This is a significant red tape reform. Red tape reform is never easy. The challenge is to maintain appropriate protections while imposing the least possible burden, which I believe we have achieved with this package. Regulatory reforms such as this demonstrate the Iemma Government is delivering on its promise to ensure New South Wales is open for business. Our recent budget was endorsed by the New South Wales business community, in particular the $3.6 billion in tax cuts such as payroll tax, and massive infrastructure spending. These trading hours reforms complement a business friendly budget. I thank the Better Regulation Office for its work on a tough but necessary reform. I also want to thank the Australian National Retailers Association and the Shopping Centre Council for their endorsement of this package and reform.