Call to scrap RSRT to restore small-business confidence

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Australian Small Business and Family Enterprise Ombudsman, ASBFEO, Kate Carnell is calling on all Federal MPs and Senators to back legislation abolishing the Road Safety Remuneration Tribunal – RSRT.

‘Introducing this legislation sooner rather than later is a welcome development for the thousands of hard-working mum and dad owner-drivers across Australia, whose lives and livelihoods have been thrown into chaos following the RSRT’s Payment Order,’ Ms Carnell said.

‘Drivers are telling me they face financial ruin as a result of the new minimum pay rates, which will do nothing to improve driver safety, and only force owner-operators to charge more for their services, making them uncompetitive and sending them broke.

‘Small businesses need certainty; owner-drivers just want to get on with running their small business within a fair and competitive environment, and I applaud the stance of those MPs and Senators – including those on the crossbench – who have indicated they will support legislation to dismantle the RSRT.

‘I urge those who are still weighing-up the legislation to consider the devastating ramifications the RSRT’s Payment Order will have on mum and dad owner-drivers, who have mortgaged their homes to buy a truck and forge a living for their family.

‘The RSRT was set up by the Labor Government – in close consultation with the Transport Workers Union – to supposedly improve driver safety. However, independent studies have found no link between the safety of drivers and remuneration,’ Ms Carnell said.

Ms Carnell said the decision to re-direct the savings from abolishing the RSRT to the National Heavy Vehicle Regulator – NHVR – is a sensible one.

‘Unlike the RSRT, the NHVR is best placed to develop practical solutions to help ensure all truck drivers get to where they’re going – and back home to their families – safely. Importantly, too, the regulator has the support of the industry,’ Ms Carnell said.

Ms Carnell said if legislation to abolish the RSRT is defeated, it is imperative separate legislation is passed next week, to at least defer the Order until January 2017.

‘Owner-drivers are facing a very uncertain future, and I urge the banks and other financial institutions to bear these circumstances in mind and provide some leniency to those who may be struggling financially as a result of this upheaval,’ Ms Carnell said.

Ms Carnell said the uncertainty created by the Payment Order is compounding a pre-existing problem for many owner-drivers, who are already struggling to make ends meet as a result of payment delays.

‘Ensuring all small businesses are paid promptly and on time for their services is an issue I intend to focus heavily on in my role as Ombudsman.  Payment periods stretching out to 120 days is simply unacceptable; late payments are a hand-brake on small business productivity and I will be investigating this issue closely to develop practical solutions to this growing problem,’ Ms Carnell said.