SMEs central to Barnett's pitch

COLIN Barnett likes to paint himself as a practical, can-do leader who is attuned to the real needs of Western Australia’s business community.

He doesn’t claim to be a purist free-marketeer, nor does he believe he has sacrificed the principles of good policy in the chase for votes.

“Deregulation is fine in principle,” he told WA Business News. “The real skill is to be able to manage it.”

And this is where the great mass of small and medium sized businesses across WA is central to Mr Barnett’s business pitch.

“We have taken a policy decision that we are going to be most concerned with supporting small entrepreneurial business. I think big business can look after itself pretty well,” he said.

Mr Barnett unashamedly sees a direct role for government in fostering the growth of small business.

“I think the State government can play a big role in that by simply giving contracts and work to local businesses.”

His cautious approach to policy making is well illustrated by his opposition to extended trading hours.

“You cannot inflict overnight change on an industry and that applies to small business and trading hours,” Mr Barnett said.

“If you deregulate trading hours, you would simply see the national companies increase their market share to an even more dominant position.”

Mr Barnett’s stance on trading hours is one of several issues, including his opposition to the current Government’s planned energy reforms, that rankles with WA’s peak business group, the Chamber of Commerce and Industry.

Mr Barnett acknowledges there are policy differences but believes the CCI is pitching to the big end of town.

“I don’t think small business identifies with the CCI at all. I think they did but I don’t think they do any more.

“I think the CCI have chosen, and they shouldn’t be criticised for it, but they have chosen that they will represent large businesses in Western Australia.”

CCI chief executive John Langoulant says this assertion is “fundamentally wrong”.

He says 80 per cent of the CCI’s members are small businesses, that small businesses are the biggest users of its services, such as industrial relations and training advice, and that its lobbying is designed to benefit all business.

“We’re not into the practice of playing wedge politics,” said Mr Langoulant, who believes Mr Barnett is being influenced by sectional interest groups.

Mr Barnett said he gauged the mood of the business community by talking to a range of groups – he names the Property Council, the Real Estate Institute and the Australian Medical Association as examples – and had also made a point of meeting with individual business people.

Should the Coalition win the next election, Mr Barnett said his government would be characterised by three themes.

“First, a ‘can-do’ government, a government that makes decisions,” he said. “I think that is a major difference with the Gallop Government, they do not make decisions.”

“Second, it would be a common-sense government, just a practical, commonsense approach to issues.

“And thirdly, it would be a compassionate government. In areas of social welfare spending, it would be directed to those in most need in our community.”

Mr Barnett believes his stance on “basic values” will be important in the election.

“I have taken a strong stand as Liberal leader in supporting what I would call basic, family or community values,” he told WA Business News.

Mr Barnett cites decriminalisation of cannabis and same-sex marriage as areas where his conservative values differ from the government.

And he highlights industrial relations policy as a “clear point of difference” with the Government.

“We would immediately reintroduce State-based workplace agreements, and give flexibility of choice to small business,” Mr Barnett said.

However, he is quick to insist that he would not return to the industrial relations policies of the Court Government, which were championed by former minister and current Liberal candidate Graham Keirath.

Instead, he believes his approach – which has been endorsed by the CCI – is a sensible middle ground between Mr Keirath’s agenda, which at the time was seen as divisive, and the current policies, which are widely considered overly restrictive.

Tax policy is a further issue highlighted by Mr Barnett, and it’s certainly an easy target given the unpopular increases in tax rates and the big jump in overall tax collections under the Gallop Government.

“I would like to see consistent reductions in tax year to year, not just to lower the tax burden but also to offer greater certainty,” he said.

Mr Barnett also plans what he calls “fundamental” reform to the tax system.

“For example, the rate of payroll tax has been reduced but most of those benefits flow to large business,” he said.

“I’d be more inclined to try and concentrate payroll tax reductions so they benefit small business, because that is where it is going to count.”

Infrastructure provision is another of Mr Barnett’s favoured issues, citing last February’s power crisis and issues surrounding water supply as examples of the Government’s failings.

He believes purpose-built industrial estates should be developed to maximise business investment.

Mr Barnett throws out a challenge to Premier Gallop to show him projects the current Government has initiated and built.

“I can’t see the new hospitals, the new infrastructure. They are a government of indecision, a government that would rather form a committee than make a decision.”

Mr Barnett claims he would get more projects up and running, and would do so in a way that delivers more benefits to WA.

“Gorgon is a great project and I have a lot of respect for the people involved but I would have struck a lot tougher deal than Geoff Gallop.”

He believes the Government should have pushed harder to get the main part of the project on the mainland, rather than on Barrow Island.

“Gorgon has got an Agreement Act and I will honour that but I would hope the gas comes onshore,” Mr Barnett said.

He believes WA currently has a “once-in-50-years opportunity” driven by the emergence of China.

“The real challenge for this State is will we take a step up to a higher level as an economy, and at the moment I don’t think we are grasping that opportunity.

“We need to make a quantitative shift like we did in the ’60s and ’70s.”