Business SA has pulled full support for shop trading deregulation, saying the impact is too harsh on small business

The state’s peak business group has changed its tune on the always contentious issue of shop trading hours. In fact, its new position looks a lot like … Labor’s?

Business SA has walked back its support for full deregulation of shop trading hours, abandoning its endorsement of the State Government’s policy position and falling closely into line with the Labor Opposition’s compromise solution.

The business organisation’s pre-election policy wishlist proposes a more measured approach than open slather on shop trading hours, saying that large national and multinational businesses would prosper to the detriment of local companies should full deregulation be implemented.

The stance, laid out in Business SA’s 26-point Charter22 document, released on Thursday, puts it at odds with the Marshall State Government, which intends to hold a referendum on shopping hours in concert with the next state election in March.

This follows the government’s previous failed attempt to pass legislation deregulating shop trading hours – a 2018 election promise – with the Opposition and crossbench scuttling the proposal.

Treasurer Rob Lucas has been a strong advocate for full deregulation of shop trading hours.

Business SA’s new position, which advocates for extended shopping hours on weekends and regular trading hours on Boxing Day, brings it closer to being in line with the Labor Opposition, which softened its hard line approach following the 2018 election loss.

A month after the election Labor leader Peter Malinauskas changed the party’s policy to back shops opening at 9am, instead of 11am, on Sundays, after Labor held a roundtable with retail groups.

Mr Malinauskas maintained that total deregulation would be a bad outcome, saying the roundtable produced “a whole suite of compelling reasons around why deregulation of shop trading hours here in SA would hurt small businesses and hurt working families”.

Opposition Leader Peter Malinauskas has proposed a compromise solution on shop trading hours which is similar to the Business SA recommendation.

The Business SA proposal includes the change to Sunday morning trading, as well as recommending shops be allowed to open until 6pm on Saturdays, up from 5pm, and recommends shops be allowed to open for normal hours on Boxing Day.

Business SA chief executive Martin Haese said the organisation had consulted widely with supporters and opponents of deregulation, but what sealed the deal was the opportunity which local, independent retailers presented for small, South Australian suppliers to get a foothold in the hyper-competitive supermarket space.

“We went very deep on that, we had retailers who were for total deregulation and against present to our board,’’ he said.

“What got the board over the line was the somewhat unsung impact that total deregulation would have on the supply chains of the shopfronts.

“There are thousands of businesses that get a start through independent retailers and if they lose the ability to get that start, it’s quite a significant impact. That’s why we revised our

position.’’

Business SA chief executive Martin Haese says his organisation consulted widely on the issue.

Business SA says in the Charter22 document that total deregulation would likely benefit the dominant players in retail.

“While further liberalisation would undoubtedly benefit consumers, in the current environment there also needs to be a balance to ensure local independent retailers and their local supply chains can remain viable against national and multinational players which are better placed to absorb the higher costs of weekend and public holiday penalty rates’’.

Mr Malinauskas seized on the Business SA position on Thursday morning.

“I welcome Business SA’s decision to abandon support for Steven Marshall’s total deregulation of shop trading hours, which recognises the importance of family-owned independent small businesses and the workers who are employed by them,” he said.

“Labor supports modest, sensible changes to shop trading hours and it is great to see Business SA agrees.”

Treasurer Rob Lucas said he did not agree with Business SA’s view on trading hours.

“Our policy isn’t designed for Business SA, it’s designed for the 70 per cent of punters out there who say they want greater freedom of choice,” he told ABC Adelaide.

SA’s independent grocery retailers, such as Foodland and Drakes, punch above their weight, with independents making up about a third of the market locally, compared with 19 per cent nationally.

The Advertiser has previously reported that Business SA is also advocating that whoever wins the next election should look at the feasibility of building a “natural pool’’ in the River Torrens.

The organisation also argues that South Australians are “over-governed’’, and advocates for a reduction in metropolitan councils from 19 to 10, and a review of the numbers of seats in both houses of state parliament.

The council proposal envisages maintaining the Adelaide City Council, three councils to the city’s north, four to the south, and an eastern and western suburbs council.

Business SA is also proposing the Adelaide desalination plant be used to provide water into the irrigation market, and a series of red tape and business cost reduction measures at the state level.

CHARTER22 HIGHLIGHTS

• A payroll tax discount of 50 per cent for regional businesses

• A permanent payroll tax exemption (and equivalent cash grant support to small businesses) to incentivise businesses to take on apprentices and upskill current employees

• Take a range of meaningful steps to improve university and business collaboration

• Positioning the State as a future destination to host a United Nations Conference of the Parties (COP) event

• Ensure more local South Australian businesses have a genuine opportunity to benefit from State Government procurement

• Expand shop trading hours to enable an appropriate balance between serving consumer needs, supporting locally owned businesses and maintaining a competitive retail environment

• Establish a permanent mechanism whereby the Adelaide desalination plant can be used to provide temporary water into the irrigation market

• Committ to a full duplication of Dukes and Augusta Highways, and commence further investigations on an East-West link for Adelaide

Originally published as Business SA has pulled full support for shop trading deregulation, saying the impact is too harsh on small business