The comments come just a few days after the proposals were originally put forward by independent members, along with the Liberal and Family First parties. The Franchise Council of Australia yesterday said it supported those amendments.
MP Tony Piccolo, who has pushed for changes to franchising legislation for several years and backs the current bill, says that after having read the amendments, he believes the FCA is being "disgraceful".
While he praised both independents and minor parties for playing "a constructive role", he told SmartCompany this morning the Liberals are "playing a destructive game and are trying to derail the Bill."
"Their amendments would gut the bill and deliver a victory to the top end of town which the FCA want, but kick the small mum and dad business owner and farmer in the guts."
The amendments put forward would stop any code of conduct being changed by the commissioner unless it was subject to Parliamentary approval.
This is in response to concerns voiced by the franchising industry that the legislation was actually a stealthy way of allowing the commissioner to change the industry code, rather than being forced to pass dedicated legislation.
Piccolo accuses the Liberals of not taking part in any meaningful dialogue, adding the party's behaviour "has been as disgraceful as the FCA".
"It is no accident that all key small business and farming groups support the bill. The Liberals have allowed themselves to become a franchise of the FCA and have abandoned the mum and dad business owner."
The Liberal party has argued that because the legislation deals with two separate issues – the franchising code and establishing a small business commissioner – there must be two different bills.
Opposition small business spokesman Steven Griffiths, along with small business minister Tom Koutsantonis, were both contacted this morning, but unavailable prior to publication.
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written by Ida.Veritas, October 30, 2011
Congratulations to MP Tony Piccolo and Franck Zumbo for fighting for the rights of franchisees who remain unprotected from rogue Franchisors.
Franchisors know where their bread is buttered as does the Franchise Council of Australia (FCA) for their organisation is funded by Franchisors not franchisees, which is why the FCA fights tooth and nail for the rights of Franchisors. The FCA Board of Directors comprises of Franchisors, CEO’s and Lawyers who look after the interests of Franchisor not franchisees. Only one FCA Director is a franchisee Tony Melhem and the FCA awarded him the 'Franchisee of the Year' two years in a row in 2005-06… Therefore, the FAC has no independent franchisee lobbying for the interests of franchisees. The FCA Directors comprise of Stephen Giles, Chairman (a Lawyer and partner with national law firm Deacons/Norton Rose); Michael Paul, Deputy Chairperson (Franchisor, CEO and founder of Pack & Send); Tony Melhem, Deputy Chairperson (aligned with the FCA who awarded him the 'Franchisee of the Year' two years in a row in 2005-06); George Yammouni, B.Bus., CPA, Director (CEO of the Bathroom Werx Group); Jim Cornish, Director (co-founder of Ecowash Mobile); Ralph Edwards, Director, QLD State President (Owned and successfully managed Bright Eyes Sunglass Stores Australia); Jason Gehrke, Director (18 years at franchisee, franchisor and advisor. Jason is the director of the Franchise Advisory Centre (FAC) who lobbies for the rights of Franchisors); Mark Langford, Director, SA State President (Managing Director and the founder of the computer games retail franchise Gametraders); Elisabeth Ritchie, Director, NSW State President (Lawyer and partner of HWL Ebsworth's Franchising & Licensing); Dean Salomone, Director, VIC State President (Managing Director of FC Business Solutions, a specialised Consulting Company); Mike Stringer, Director, WA State President (Franchisor of Car Care and Housework Heroes); Steve Wright, Executive Director (Ex FCA Chairman, a media and communications professional).
The Franchisee Association of Australia (FAA) is the only independent group interested in the plight and rights of abused franchisees. No surprise that The FCA does not have a member of the FAA on its board of Directors....
Franchisees are the victims of franchising abusive relationships and remain unheard and ignored. Franchisees need better protection, help and support. Hopefully, Tony Piccolo and Franck Zumbo will pave the way for national fairness, equity and justice for franchisees the silent abused victim of the franchising industry. ACCC have a duty of care to help and protect franchisees, not just hide behind the FCA and FAC's bullying antics. Hopefully. Rod SIMS, the new Chairman of ACCC will take action against rogue Franchisors and not emulate the arrogant indifference of the former ACCC Chairman, Graeme Samuel.
Well reported and well said Mr Piccolo!
With so much to lose, the FCA will stop at nothing to protect the carte blanche their members currently have.
Mind you, screaming the walls down and mounting scare campaigns against every attempt at meaningful reform must be getting expensive?
The question I have always had regarding the constant blocking of reform from the FCA was summed up perfectly by SA MP Hon Carmel Zollo
From Hansard...'The Franchise Council of Australia has tried to whip up the mother of all scare campaigns over the industry code provisions, but one must ask why: does it not want strong accountability in the industry; does it not want greater fairness in this sector; does it think that if a business breaks the law it should not be penalised? I am happy to report that whatever mysterious agenda the Franchise Council of Australia has, it is almost a lone voice...'
The Hon. J.A. Darley is on the right track...
'The second criticism is that this legislation is unnecessary because there is already a federal franchising code of conduct and regulatory scheme in place. I am advised that the ACCC has a national priority and rarely gets involved in individual disputes. In practice, if an individual wrote to the ACCC, they would be advised of their rights and options, such as mediation. The ACCC simply does not have the resources to deal one-on-one with all disputes that are referred to it.'
Generally speaking, unless there have been numerous complaints by franchisees about the behaviour of the same franchisor, the ACCC is unlikely to take action.'
'Every day that this bill is delayed is another day that small business has to operate without the protections afforded by this bill.'
Keep up the good work, the facade of franchising presented by the FCA is showing some real cracks!