What the new NSW government has in store for you

During the election campaign, the Liberal party put forward a range of policies targeting small business. They included the establishment of a Small Business Commissioner and a commitment to reducing government red tape by 20 per cent during the party’s first term in power.

New South Wales Business Chamber chief executive Stephen Cartwright says the emphatic election victory was evidence of strong support “for a real change of direction in New South Wales”.

“The immediate impact of the change of government will be a lift in business confidence,” he says. “The challenge before the new government is to deliver results that match the strength of the mandate.”

While the Liberal policies appear to coincide with SMB demands, implementing them quickly is likely to be a challenge for the new government. The bureaucracy that has flourished during the past 16 years will take time to streamline and increased economic confidence will not appear overnight.

Smarter Business Ideas spoke with three business people to get their take on the future of the state under the new Liberal government.

 The Liberal voter

As a successful business owner, Angela Vithoulkas understands the importance of a strong government when it comes to keeping the economic wheels turning.

Along with brother Con, she has built Vivo Cafe in central Sydney into a profitable and expanding business, collecting a range of awards along the way.  

A vocal supporter of Barry O’Farrell and the Liberal party, Vithoulkas says the election result is very positive for business as it helps to reinvigorate sentiment and “improve the overall mood”.

“I’m really pinning a lot on this new government to make things better,” she says. “I’m quietly optimistic but I know there is a lot of work that needs to be done.”

Vithoulkas says priority must be given to basics such as transportation and healthcare – both areas that have a significant impact on the quality of daily life for everyone in the state. The other priority has to be tacking the massive bureaucracy.

“There also needs to be more investment in fostering new business and encouraging entrepreneurs to develop their ideas,” she says. “Business underpins everything and this is important for the prosperity of the state.”

While feeling positive about the election result, Vithoulkas recognises that the next few months will be critical as the new government begins its long list of promised actions.

“The expectations have been set so high I’m actually starting to wonder how they will be able to deliver,” she says. “They won on the basis that is was time for a change, but now the mandate they have set for the first 100 days has to happen.”

The Labor voter

While the result of the election was essentially a foregone conclusion, for small business owner and Labor voter Peter Wicks it is certainly no reason for celebration.

Wicks, who runs a technology retail distribution company in Sydney’s western suburbs, also stood as a Labor candidate in the seat of Hawkesbury.

“There was no doubt that the people of the state were looking for a change, so there was no big surprise that I didn’t win,” he told Smarter Business Ideas. “However I have to say that I’m feeling more cautious than I am optimistic at the moment.”

He says business in the state has been pretty slow for the past few months, however that’s not seen as unusual prior to an election.

“What is unusual is the problem is that people don’t seem to have started buying again - it’s a bit ominous really.”

Wicks says his major concern regarding the new government’s plans is the potential for job cuts in the public sector. He believes this will have consequences for all business in the state.
 
“When you start cutting things back in the public sector it has an immediate flow-on effect in the private sector as well. When people lose their jobs they stop spending which is not good for business operators.”

On the policy front, Wicks points to the planned Infrastructure NSW initiative as something that could also cause problems for those businesses trying to win contracts with government.

“What they are doing is adding another layer of bureaucracy to the government purchasing process,” he says. “It’s not going to make the process more efficient.”

Wicks says he’s going to be watching closely to see just how the new government will be able to deliver any real support for small business in the future.
 

The legislative ramifications

When it comes to improving conditions for business activity within New South Wales, many agree that there’s a significant amount of work to be done.

Removing bureaucratic hurdles and reducing costs top many people’s to-do lists while other are keen for the new government to improve the overall economic outlook.

Andrew Graham, director of business solutions at advisory firm RSM Bird Cameron, says there was a definite feeling of uncertainty among many of his clients going in to the election. This feeling has now been replaced with one of cautious optimism.

“A lot of promises were made, but now there is some concern about how it will be paid for,” he says. “The proof will be in the pudding.”

Graham points to red tape as one area needing urgent attention. He applauds the promises of reduction made during the campaign but says action needs to begin quickly to make it a reality.

“There is also the promise of more consultation between SMEs and government, but we will have to see how this plays out. While there have been general guidelines the devil has been in the detail.”

In terms of specific issues, Graham highlights payroll tax as an issue that affects many businesses in the state. He sees the tax as an impediment to businesses growing and employing more people.

There are also the anomalies that occur because rates charged in Victoria and Queensland are lower than in NSW.

“If someone is looking to employ substantial labour they might be tempted to cross the border and set up operations there,” he says.

Graham says it will take some time before the full effect of the change of government is felt, but many businesses are now certainly feeling more positive about their futures.