BUSINESS NAMES (COMMONWEALTH POWERS) BILL 2011

Mr SOUTHWICK (Caulfield) -- It gives me great pleasure to rise and speak in the debate on the Business Names (Commonwealth Powers) Bill 2011. It is always a privilege to be able to speak on important legislation which is going to make it easier for Victorians to transact and do business effectively and more efficiently. This particular bill is all about cutting red tape; it is about streamlining processes. It will benefit businesses because there will be firstly, lower fees; secondly, less red tape; and thirdly, an ability to deal with a single regulator -- that is, the Australian Securities and Investments Commission -- rather than multiple state bodies in relation to matters involving business names.

The opposition is supporting the bill. The opposition when in government flagged this opportunity for some three years as having the potential to do something about the issue and make it easier for businesses to transact, but it did not take it up.

It is quite interesting when you hear opposition members talk about business because their lack of knowledge and understanding is shown.

It is very clear that many members on this side of the house who have had firsthand experiences of running small businesses know what it is like to turn up every day to ensure that the business is at least turning a profit, paying bills, paying staff and contributing to the economy.

We heard some interesting commentary from the member for Clayton, who was previously on his feet. The member for Clayton started to say that this bill would increase costs for small business. That shows a complete lack of understanding about small business and this bill. For the benefit of that member and the opposition I will clarify that this measure will reduce fees for small business. There will be a single regulator. Businesses do not operate on a state-by-state basis. We are now in an economy whereby as soon as you put something on the internet, you are dealing with the world. You are not just dealing with those in Victoria and other states but you can deal nationally and internationally.

Under the current legislation, if you are running a business in Victoria and you have a business name which is your own intellectual property and has enabled you to build a reputation and brand over many years, and you want to protect it by registering your business in another state, you have to have register it multiple times. Under the current provisions not only does it cost you another lot of money each time you register your business in another state, but someone has to monitor those registrations when they come up for renewal. This is an impediment in terms of time and cost.

Under the new laws there will be one fee that will apply right across the nation. The fee will be $70 for a three-year registration and $30 for a one-year registration. In comparison the current fees in Victoria alone are $85.50 for a new application and $61.10 for a three-year renewal.

There will be a huge cost saving for many businesses that operate not just in Victoria but right across the board. In my electorate of Caulfield there are many small businesses, and they will be very happy to hear that we are cutting red tape and reducing the costs of small business. This government has a commitment to reduce red tape by 25 per cent over its term, and it is working towards that. It is not just a commitment in one particular ministry but a commitment across the board. I note that the Treasurer has made the commitment to ensure that all departments work towards cutting red tape.

Today in the gallery are students from Beth Rivkah Ladies College, which is in my electorate. The families of many of the college's students are involved in small business and work every day to ensure that their children can go to a great school and have a great education.

Those students whose families are involved in small business will be happy to report back to their parents tonight that we were talking about another way of reducing red tape for small business and another benefit to ensure that it is easier for businesses to run so that there are fewer impediments and obstacles in the way of running your own business.

There are two important reasons for the registration of businesses taking place. Firstly, there is the protection of a business name. It is a very important factor -- probably the key factor -- of any business, because when you register a business name, that is your intellectual property. In order to protect your business name, you must register it and ensure that its registration is current. Secondly, the registration of a business name benefits consumers, as was pointed out by the previous speaker, the member for Preston. This process enables consumers to identify the businesses with which they are dealing and to find them.

If consumers have a dispute with a particular business, they will now have one place to look for that business so they do not have to go searching in each register of every state; they can go to one register to find a business and see where it is registered.

The other important factor of this process is the way in which registration will take place. The new process will be online registration, with an immediate response. I recall that when I first started registering businesses a few years back that you would toddle off to the registration office, wait in line for a very long time and, when the light finally flicked on and it was your turn, you would present your four or five potential names and sometimes wait for months to find out whether those names were available. Then a letter would arrive to tell you whether you had been successful or not.

In this day and age, when minutes can mean lots of dollars and perhaps a loss of those dollars as a result of potential ideas and innovations that many people come up with every single day, there is nothing better than being able to ensure that people's ideas and innovations are protected by having a smooth and efficient way of transacting on the internet and getting an immediate response to whether you have been successful or unsuccessful in registering your business. This means that if you are sitting at home and you come up with an idea across the kitchen table with the family, you can jump online, look and see if that name is available, register it and, under the new regime, get an immediate response. You will then be able to register your domain name and, within the same day, be transacting both here and wherever your heart desires.

This is a very important piece of legislation. It is part of this government's overall commitment to reduce red tape.

It is part of our overall commitment to ensure businesses do what they want to do -- that is, get on with transacting, doing business and ensuring that they are efficient and effective and contribute to the bottom line and, most importantly, to the economy. There are almost 495 000 small businesses in Victoria, and they contribute to about 25 per cent of employment. Stimulating employment, reducing red tape and ensuring efficiencies are key for this government. We will be doing everything we can to ensure that these things happen.

I hear interjections from the opposition. As I said earlier, opposition members had three years to do something about this, but they dillydallied, as they always do. When the member for Mill Park, the opposition lead speaker in this portfolio, had the opportunity to speak on this bill, she did not even front up on time to do so, and she spoke for only 15 minutes instead of her allotted 30 minutes. I am proud that I have taken my total time today to talk about this important bill. It is an important piece of legislation and important for Victoria.

The member for Albert Park keeps interjecting. He would not know the difference between a small business and a brown paper bag. I commend this bill to the house. It is a good bill. It is an important bill. It is yet another bill that demonstrates this government is getting on with business and delivering, as it will continue to do, for all Victorians.