John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and Deregulation, Senator Wong. Given that the UN-declared International Year of Co-operatives is coming to an end, given that the sector has invested in and supported an entirely industry-funded national campaign to raise the level of awareness of the role of cooperative and mutual businesses in the national economy, with no federal financial contribution, and given the proposed new national regulations designed to reduce red tape, cut costs and improve cooperatives' ability to compete with other businesses: with the release by the New South Wales state government of the draft cooperatives national regulations for public and industry comment, can the government give a commitment to support the full national implementation of the newly coherent laws to ensure Australia's estimated 1,600 cooperative businesses can take advantage of the approved and practical operational laws that govern their formation and business activities?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

There were a number of aspects to that question. I will seek to deal with them. If there are any further aspects I can deal with, I will obviously seek to refer them to the relevant minister. First, I want to be very clear that the government recognises the important and valuable role that cooperatives play in the Australian economy. I think on the last occasion on which the senator asked a question in this area I did respond in a similar vein and spoke about some of the policies and approaches that the government has put in place.

Whilst I acknowledge Senator Madigan's very strong commitment to and interest in this sector, I do take issue with the suggestion that the government has not provided any financial contribution during the International Year of Co-operatives. I think I have previously indicated—perhaps in the context of a different answer—that the sector's major conference was supported by the government through Regional Development Australia - Mid North Coast.

The primary aspect of the question really deals with the full national implementation of coherent laws. In the context of this area or many other areas where one would like more harmonised national laws, they are always easier to discuss in the abstract than to deliver in reality because they generally require agreement from other levels of government. Notwithstanding the public policy merit of a harmonised position, that is not always forthcoming. I encourage the senator to consider what role might be played in terms of other levels of government and discussions with those. In addition, the senator might be aware that as part of last year's budget the government announced its regulator for the not-for-profit sector, which the Senate has already dealt with. (Time expired)

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given that Australia's cooperatives have laboured under a legislative regime of state-based cooperative law that has restricted their ability to compete on an equal and fair footing with other corporate forms of business, what plans does the government have to encourage and support the development of cooperatives, including funding for small- and medium-enterprise development intermediary services, with the skills and resources to advise on cooperative business formations and assist the aim of growing the number of cooperative businesses operating in the national economy?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I think the senator did refer to the legislative regime of state-based cooperative law. Again I make the point that the not-for-profit commission bill—the ACNC Bill—which was passed, does establish a regulatory framework that could be extended to all NFPN entities, including cooperatives, in the future. Initially it does only relate to tax-endorsed charities.

We are also progressing, through the COAG Legislative and Governance Forum on Consumer Affairs, cooperatives national law, which I think is the sort of harmonised approach that the senator referred to. That is subject to an agreement with the states and territories, as he flagged. One sector in which the government has ensured a range of policies to facilitate cooperatives is the banking sector, where the government's package has sought to facilitate the competitive power of Australia's credit unions— (Time expired)

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given that a national-level representative body for member-owned and cooperatively-owned businesses will be launched in March 2013 as a legacy initiative of the International Year of Co-operatives campaign, does the government plan to consult more widely with Australia's cooperative and member-owned business sector on issues of policy, legislation and regulation? Will the government commit to amend the current rules that prevent cooperative businesses accessing the services provided by government-funded business enterprises like Enterprise Connect?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I think there are three aspects to that question. The first is the launch of a national-level representative body for cooperatives. Whilst that is an issue for the industry, as a matter of principle I think a body which enables more focused lobbying and more focused communication with government is obviously going to be of merit for the sector. The government will always consult with Australia's cooperative and member-owned business sector on relevant issues of policy and regulation and having a national body does enable that consultation to be more effective. In relation to Enterprise Connect, I am advised that some cooperatives have been accepted under that program on an exceptions basis. Cooperatives are also able to participate in Enterprise Connect's workshop, industry intelligence and network activities. Each round of these is themed to provide SMEs with targeted information—(Time expired)

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.