Federal election 2016: fallout from truckie tribunal under scrutiny

The small business watchdog will assess damage to truckies’ businesses wrought by the short-lived ‘safe rates’.

The small business watchdog has said it will assess damage to truckies’ businesses wrought by the short-lived “safe rates”, flagging an inquiry that could inflame debate during the election campaign over minimum pay for owner-drivers.

The Small Business and Family Enterprise Ombudsman said yesterday it would probe the fallout from the minimum-pay regime imposed by the now defunct Road Safety Remuneration Tribunal.

The order sparked a furious campaign against the Transport Workers Union-backed tribunal amid fears the minimum pay rates would force owner drivers out of business. The campaign culminated in the Coalition’s abolition of the industrial body last month in a move supported by Small Business Ombudsman Kate Carnell.

The Turnbull government referred the inquiry to the ombudsman in one of its last acts before ­entering caretaker mode.

In her first inquiry since she was appointed Ombudsman, Ms ­Carnell said yesterday she “will consult broadly with stakeholders to establish exactly how widespread situations of financial hardship are”.

“The anecdotal evidence we’re hearing of the financial difficulties small businesses continue to face as a result of the payments order is extremely concerning, so a formal investigation into the extent of the impact is certainly warranted,” Ms Carnell said yesterday.

“Some owner-drivers are saying the battle to stay afloat has only just begun, as they struggle to stay on the road and try and ­recoup the income they were forced to forgo during the weeks of uncertainty triggered by the RSRT, so we’ll be looking for feedback to determine just how prevalent these sorts of cases are.”

Ms Carnell, whose previous role was chief executive of business lobby Australian Chamber of Commerce and Industry, said she wanted to “hear from small businesses who have been subjected to heavy-handed practices from creditors”.

“I’ve been made aware of ­instances whereby people have ­resorted to borrowing money from family members in order to stay on top of their payments,” she said.

Although the order was in force for only a few days, the inquiry would examine “the period before and after” the order.

Labor has vowed to resurrect the order, and Bill Shorten has said he will consider reinstating the ­tribunal in consultation with industry.

Employment Minister Michaelia Cash and Small Business Minister Kelly O’Dwyer said in a joint statement that “many owner-­drivers are now receiving default notices from their banks, financiers and suppliers, despite the government’s action to abolish the tribunal”.

“Many owner truck drivers are struggling to recover from the ­effects of the payments order, the unfair rates it sought to introduce and the economically disastrous effect it had on their small business,” the statement said.