The franchising industry has baulked at the announcement that advocate for state-based franchise legislation Frank Zumbo has been appointed as the new deputy South Australia small business commissioner.
The appointment comes after months of debate in the state about the introduction of state-based legislation, which many franchise experts believe undermine the current federal code. Many veterans believe this existing code to be substantial in its current form.
Chief executive of the Franchise Council of Australia, Steve Wright, says it's impossible for Zumbo to claim impartiality after the University of New South Wales professor claimed to have drafted state-based legislation.
Zumbo was contacted this morning by SmartCompany, but was unavailable prior to publication. Small business minister Tom Koutsantonis was also contacted.
"We share the concerns flagged by the Opposition about this appointment, particularly as it appears to have happened without any selection process, without advertising the position, and that appears to be at odds with usual practice for public service appointments," Wright told SmartCompany.
"We also believe it is impossible for Professor Zumbo to claim impartiality. He therefore must excuse himself from any issue brought before the office, and we do not believe he is a credible candidate."
Although Koutsantonis has defended the appointment in The Australian by saying Zumbo is the right candidate for the job, it hasn't halted the criticism – especially as Zumbo himself won't be living in Adelaide for the part-time position.
"I think it is exactly who we would hire," Koutsantonis told the publication. "The fact he gave advice goes to show his level of commitment to his discipline."
The only people who think it is a conflict of interest is the Liberal Party, who have abandoned small business."
Zumbo said he believes he can commute, but Wright says this would be asking a lot from taxpayers.
"To suggest he can now fulfil this role of acting small business commissioner for South Australia from home in Sydney, cannot possibly give confidence to small businesses that their concerns are being taken seriously."
Zumbo has reportedly said he will focus on creating new codes of conduct for the farming and franchising sectors – a fear which many franchises believed would come true after the small business commissioner legislation was passed.
The legislation allows the commissioner to amend certain codes of conduct. Many industry experts claim this would be "legislation by stealth", although Zumbo and the South Australian Government say it's nothing of the sort.
Wright now says small businesses in South Australia won't be able to have any confidence in the role.
"To suggest to South Australian farmers their concerns will be addressed by someone in another state... this cannot possibly give any confidence."
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