AACS: NSW GOVERNMENT HAS THE CHANCE TO SHOW ITS SUPPORT FOR SMALL BUSINESS REGARDLESS OF ELECTION RESULT

MEDIA RELEASE
February 11, 2015
As voters in New South Wales prepare to go to the polls in a few weeks, the Australasian Association of Convenience Stores (AACS) has reminded the Government – whichever party prevails – to recognise and respect the importance of small business in the state economy.
Specifically, AACS CEO Jeff Rogut identified the spiralling issue of petrol theft and the inefficient response to this crime, draconian measures like excessive tax hikes, and a fairer go for small businesses to compete with the major supermarket chains in categories like packaged alcohol.
“The crime of petrol theft hits small businesses and motorists directly in the hip pocket and must be addressed by the NSW Government without delay, irrespective of who wins the election,” Mr Rogut said.
“The AACS is committed to working with all parties to achieve a more appropriate response at a Government and law enforcement level, as we are currently working on in Victoria. Petrol theft is a national issue which costs the convenience industry approximately $60 million per annum and New South Wales has a big role to play.
“We are putting aside Government inaction to date and calling on whoever wins next month’s election to take a stand against criminal behaviour and support small businesses in the process,” he said.
Petrol is a very low margin product, meaning petrol theft has a direct and significant impact on retailers, the majority of which are small businesses operating under license or franchise agreements.
“There is no option for these retailers but to incur the losses while criminals enjoy the disingenuous, uncoordinated and unenthusiastic approach to this crime by Government and police,” Mr Rogut said.
Mr Rogut has also called on the NSW Government-elect to recognise the important role small business plays in the state’s economy and take a reasonable approach to regulations that govern the sale of restricted products.
“Too often retailers and small businesses are the ones who bear the brunt of unimaginative and discriminatory revenue raising efforts such as excise increases on tobacco, rumoured sugar taxes and the like,” Mr Rogut said.
“New South Wales has the chance to take a more reasonable approach in support of small businesses. For example, time and again it has been proven that education is the best tool to reduce the incidence of smoking, with draconian measures like plain packaging having unproven results yet placing a huge operational burden on retailers.
“Convenience store operators are proven responsible retailers more than capable of enforcing restricted sale regulations on products like tobacco.
“Attaching further hurdles in the form of new taxes on these products purely for the revenue raising aspect compounds the burden on these retailers, driving customers to the major chains, and failing to recognise how important these categories are to a small business’s bottom line.
“We are calling on the NSW Government to work with those in the industry for better solutions and look beyond the unimaginative default of raising taxes on certain products,” he said.
Finally, Mr Rogut reaffirmed the need for Governments, both state and Federal, to promote a more level playing field in the retail sector through the deregulation of products such as packaged alcohol.
“Given the two major supermarket chains control approximately 60% of the packaged alcohol market in Australia, the urgent need for a more competitive environment is clear. Convenience stores are responsible retailers, the nature of our stores aligns with consumers’ habits when they buy these products, so it stands to reason we should have the opportunity to participate as well,” Mr Rogut said.
“The AACS has been working with state and territory Governments around Australia to secure the right for convenience stores to be able to participate in the packaged alcohol category if they choose to do so. The NSW Government has the opportunity to take the national lead and progress a level-headed debate in this area in support of small businesses throughout the state.
“Small businesses like convenience stores are vital to the economy, they employ many staff, and the voices of these voters must be heard. The AACS is eager to understand the positions of both the Government and Opposition when it comes to supporting small businesses leading up to the NSW election and this begins with recognition of the important role small business plays,” Mr Rogut said.
Further information:
Jeff Rogut
Chief Executive Officer
Australasian Association of Convenience Stores
Media enquiries:
Stephen Naylor
Wise McBaron Communication
Ph: (02) 9279 4770