Less red tape for better mid-market return
Mid-market compaction business Conplant has expressed concern over the amount of regulations governing mid-market businesses and says it is high time red tape is cut especially with the recent change in the Federal Government.
Conplant Managing Director Ian Coleman says mid-market businesses like Conplant punch well above their weight in terms of their contribution to the economy but could do better with less red tape to deal with.
"While mid-market businesses – those with turnover in the range $10million to $250 million- represent a small fraction of all businesses in Australia, they’re responsible for more than a thirs of Australia’s business revenue," he says.
"But mid-market businesses have to deal with significant and ever-increasing amounts of red tape that really inhibits our ability to get on with the job of driving productivity and growth."
According to Coleman, the administration workload imposed by all the red tape makes it difficult for businesses to focus on the core aims, which is productivity and growth.
"Changes to the Immigration Act for instance, make Conplant responsible for informing our sub-contractors about their legal obligations when employing their staff to ensure we avoid civil and criminal proceedings," he says.
"We also have 11 pages of guidance for managers on managing our relationships with sub-contractors."
"Administering these and many other requirements such as those imposed by the Personal Property And Securities Act (PPSA) takes up a lot of time.
"Many mid-market businesses don’t have the resources to do this while still maintain a balanced focus on other important areas of their businesses."
Coleman adds the change in Federal Government makes now a good time to assess and address ways the red tape and over-regulation are impacting on mid-market businesses and the broader Australian economy.
"I’d like to see industry and government work together to find better ways for mid-market business to function and thrive," he says.
A recent GE Capital report shows the middle market sector adds about $425 billion to the Australian economy and accounts for 3.2 million full-time jobs or 1 in 4.
"The report also found mid-market players to be inherently resilient, so these companies are extremely important to our economy," he says
Conplant is the largest privately owned compaction specialist in Australia and is the sole distributor for Ammann Compaction Equipment. It also has a hire fleet of over 750 rollers.
"Business like Conplant are innovative and optimistic," Coleman says.
"We’re proud of our achievements and excited about what the future holds and we want to find ways to make it easier for Australian business to get ahead."
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