Ethics

I feel completely let down by the election campaign. There has been little in the way of passionate debate about nation building policy. Little discussion of what is important economically for the whole country, as opposed to select special interests. Little to boost consumer confidence from any of the major parties. Little in the way of a vision for the future of the country. And, little in terms of encouragement for small business beyond some tweaks at the endges.

We lack strong political leaders in Australia, conviction politicians who even though you may not like their politics you do admire their leadership.

Right now we are in the middle on considerable structural change in Australia in terms of our business mix and natural resources revenue. We are also in the midst of tremendous structural change world-wide, in retail as well as more broadly in economies – just look at some of the European countries. These challenges need real leadership for the good of the country, beyond partisan politics.

I’m disappointed that this election is not presenting me with the quality of leadership I’d prefer.

The front cover of The Daily Telegraph today shows why Rupert Murdoch and the company he controls, News Limited, is campaigning aggressively against the National Broadband Network.

The NBN opens a new channel of access to content, a new channel of influence, a channel that would compete with Murdoch’s newspapers. The NBN challenges his position of extraordinary influence.

The cover of The Daily Telegraph newspaper today shows how News Limited uses its influence. Instead of news on the front page we have a shrill piece telling us how to vote.

A completed NBN roll out reduces the influence of front covers like on The Daily Telegraph newspaper today. This would be good for democracy in Australia.

It would be a mistake to read this blog post as supporting Kevin Rudd. This post is about how a news organisation controlling 70% of Australia’s newspapers is using its position of influence to drive the election result it wants. I’d prefer to see news on the front page of my newspapers.

The questions from customers about the tax packs keep coming and we keep answering them and the ATO does nothing but talk. While many newsagents have written to their members of parliament and the issue has received considerable media attention, nothing has been done. Newsagents continue to provide a valuable public service for free.

As I wrote two weeks ago, this move by the ATO is, in my view, a breach of their charter. That they continue to ignore newsagents at the coal-face is evidence of how out of touch the ATO is with the real world. Shame on them.

Further to my posts about the ATO handling of the tax pack matter, here is the text of a complaint lodged by one newsagent with the ATO:

I am a newsagent – you have, without consultation, added 100’s of hours to my working schedule. In doing that you intend to compensate me $8.00.

Many of my customers don’t have a PC.

Many of them don’t understand the Internet at all.

They do not want to spend an hour on hold waiting to ask for a tax pack to be sent to them.

Your move is out of step with community needs, your compensation is below minimum wage and is insulting in the extreme, your decision to do this without consultation and at the last minute is offensive.

You have placed my staff and I at the forward edge of angry customers, your actions are directly affecting my businesses reputation and potentially a percentage of its earnings.

I am disgusted, I am angry, I am appalled at your treatment.

I need 1000 tax packs

or

I need some significant compensation for the 100s of hours of work, calming customers and explaining the new procedures to them.

Sums it up very nicely I think.

Check out the advice provided to newsagents about the changes to handling of Tax Packs this year. The Australian taxation Office expects us to put up a sign, hand out flyers and answer customer questions. Imagine the response from one of the major supermarkets, petrol outlets or convenience stores to such a request.

The $8.00 payment by the ATO is an insult. It is a pittance for the time we will spend, for the cost of employee time in answering these questions. The payment is below minimum wage – this from an organisation that polices us to ensure we fulfill our tax obligations.  Indeed, the ATO is effectively taxing us to do this work for them.    This is not fair ATO.

It disgusts me that the ATO treats small business newsagents in this way.  I’m complaining to my local federal member to ensure my complaints are heard.

Small business was lost in the budget and the budget reply in Canberra this week.  For me, the best example is the hundreds of millions in benefits delivered to the free to air TV networks to enable them to fund structural change while small business newsagents continued to be ignored as we move through a more significant structural change of our own.

What did I expect? Not much … but this does not block my disappointment.

Politicians care only about where their money comes from and those with the loudest voices. One day maybe they will understand that investing in small business can deliver excellent rewards.

Check out the story from the ABC two days ago about Woolworths a decision to give a local school supplies to the value of $2,700 as a reward for diving spending of $460,000 by people connected with the school community.

Woolworths was not going to reward the school because of an issue with the claim by the school.

I m shocked that Woolworths is so stingy. I am sure that had local independent retailers been delivered more $460,000 in sales by people connected with the school these businesses would have rewarded the school to a much higher value.

The newsagent who brought this to my attention is offering a reward of $1 for each $20 spent. The Woolworths reward equals $1 for each $170 spent.

This is the difference between big business and small business. To me it looks like the Woolworths campaign is a promotion for them more so than a fund raiser for the school whereas in small business, campaigns connected with local schools and community groups are usually more about them than the retailer.

Schools and community groups should support small business newsagents and other retailers and expect to do better than the paltry sum from Woolworths.

It frustrates me that we in small business do more as a percentage of revenue for our local communities than big business yet are recognised less. Do we do it for recognition? Ultimately, yes for it is this recognition that drives sales and its sales that are vital to supporting local groups.

Representatives from a supplier visited one of my newsagencies yesterday and while there they took photos of products from a competitor.

Too often I hear of supplier reps taking photos of competitor products in newsagencies. Suppliers should make an appointment for each visit and get owner permission before taking any photo.

We need to exert more control over our businesses.

The announcement yesterday by General Motors Holden that they will cut around 500 jobs is another reason for us to question the value of the massive handouts from successive governments to auto companies. Holden has apparently receives two billion dollars over the last ten years.

As I tweeted yesterday…

What’s the ratio of small business redundnancies to govt support VS auto mfr redundancies to govt supt? #holden #auspol Journalists pls ask.

Seriously, small businesses, like newsagencies, receive little in government subsidies. I suspect that redundancies across our channel are lower than for the auto industry this year. So, the amount of government support ‘spent’ per redundancy in our channel is far lower than in the auto industry.

We small business newsagents have to stand on our own in the face of extraordinary change in our channel and in an economy brimming with complex challenges. These much bigger businesses with many more shareholders continually put their hands out for cash.  It has to stop.

Politicians of all sides agree to subsidies and other financial support out of fear. I think it’s a massive con with the Australian taxpayer the victim.

Yes these big business employee people on which we rely in our businesses. But small businesses employ people too. We tend to hang onto people longer.

Politicians need to take a more whole of the economy view of their engagement with and support of small businesses. Not just newsagents but all small businesses. More support for us could drive much needed economic growth.

While there is no doubt that big manufacturing is important to the economy, the Holden announcement is a reminder that investing too much in one sector or one business can be risky. A similar investment across many businesses could be more economically beneficial. Unfortunately, Australia has not had politicians with the leadership nor vision to pursue this for decades.

The Holden announcement sucks. It ought to be a wake up call to all politicians. Stop giving away money to big businesses, especially foreign owned big businesses. Focus on small business and get smarter at leveraging the efficiency, entrepreneurship and community value of small business.