Ian Goodenough (Moore, Liberal Party) Share this | Hansard source

I have listened to the contributions of other members and wish to make the point that the commercial landscape, particularly in the areas of retail and hospitality services, has changed dramatically over the past decade. Retail trading hours have extended. Consumers demand more choice and flexibility in the hours during which they shop and access services. Competition has increased both domestically and from emerging economies in our region. In an increasingly global economy, costs have risen and margins have narrowed. Socially, we have changed as a nation as our nation has become more multicultural, with a diversity of customs. So, no longer is Sunday the universal day of rest that it once was, with different cultures observe Friday or Saturday as their preferred days of rest or those with busy lifestyles choosing to schedule their work and leisure commitments around study timetables or family commitments.

The contemporary Australian workplace must also adapt to these trends in order to stay relevant and competitive. In my electorate of Moore, retail businesses and those in the hospitality services sector make up a significant proportion of the local economy, with Hillarys marina being a major tourist destination, as well as a golf resort, major shopping centres, a bulk goods retail precinct and a service industrial area. Many businesses in my electorate are small to medium businesses, which are represented by the Joondalup Business Association. Our local business community is experiencing difficult times in the economic downturn and would like to extend trading hours to take advantage of the trend in consumers choosing to shop and dine at their convenience.

As a business owner myself, I have experienced a recent decline in retail turnover and have seen a few tenant vacancies as the economy goes through a rough patch. Trading hours in Western Australia have been extended only relatively recently compared with the eastern states. Our dining and hospitality venues tend to close earlier than in the east, leaving locals, tourists and visitors with unmet demand as many small shops, pharmacies and takeaway shops have found it too expensive to open on Sundays and public holidays.

The independent Fair Work Commission has made a determination on penalty rates after extended hearings and consultation. The recommended reforms are both measured and moderate and will mean that our small business sector will be able to compete on a level playing field with big business, which currently uses enterprise agreements to make deals with unions to reduce Saturday and Sunday penalty rates. For instance, the local takeaway shops and cafes at Hillarys marina will typically have to pay their staff $8 per hour more than McDonald's or KFC, which have negotiated enterprise agreements with the unions. Similarly, a family-owned, speciality gourmet greengrocer shop will typically pay $5 an hour more than Woolworths under its union negotiated enterprise agreement. A family bottle shop is more likely to be subjected to a wage bill of $7 per hour more than Dan Murphy's. A family-owned hardware store is likely to pay $5 per hour more than Bunnings.

In the current economic climate, margins can be less than 10 per cent and penalty rates can be the difference between returning a profit or making a loss. I would much rather see businesses in my electorate opening on Sundays and public holidays, employing people, rather than closing due to excessive costs. Why should small businesses be denied the same conditions as large businesses? The independence and consistency of the Fair Work Commission in making its determination on penalty rates should be respected, as it followed due process and is moderate in nature. It will set a bad precedent to arbitrarily interfere with determinations made by the Fair Work Commission, which are designed to boost the economy and create employment. Wages should be determined by productivity as opposed to the time of work. Inflationary pressures arise when wage growth is not matched by productivity gains. The modern workforce has a great degree of flexibility in choosing when to work. To match the contemporary consumer preferences— (Time expired)

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