Submission to Department of Finance NSW

In response to Consultation Paper

“Easy and Transparent Trading – Empowering Consumers and Small

Business”

RESPONDENT

This submission is made on behalf of the Specialised Textiles Association, representing the Shade Sails and Shade Systems Installation industry. This submission is endorsed by the

President, Specialised Textiles Association

Council of Management, Specialised Textiles Association

Representations from members

ASSOCIATION BACKGROUND & REPRESENTATION

The Specialised Textiles Association (STA) is the peak national industry association representing the specialised textiles industry. Its members are predominantly small business employing less than 10 employees who represent approximately 2000 Australian workers. In addition, the association represents industry people who are non-members in Australia who also use our services including attending conferences, receiving communications and receive support. A large part of the Specialised Textiles Association’s role is to encourage Australia’s vibrant and growing shade structure industry. This is a growing sector represents some 65% of our direct membership. Members may be shade structure installers, designers, fabricators and engineers. Shade Structures were first installed in Australia since 1988 as an extension of the established tent making and sail making industries. The design and construction of shade structures is complex, high risk and unique. Our members strive to operate at the highest levels to deliver quality products and create a point of differentiation between themselves and poor operators and practises which undermine, undercut and to under skill our industry. We seek to raise the bar not lower it. Removal of licencing is not conducive to achieving our aims.

Page 1 of 8

The Specialised Textiles Association has introduced many initiates to support and ensure operators are trading at the highest level including:

o Accreditation to identify and encourage skilled operators; o Working side by side with Governments to achieve good policy with industry input; o Hold trade exhibitions to showcase advances in our industry; o Formation of the Fabric Structures Committee to raise standards and awareness

about shade structures; o Work closely with NSW TAFE in there new BE programme to promote training and

industry co-operation and o Promoting and supporting the national apprenticeship courses within MST30216

Certificate 111 Manufacturing Textile Products and MSF30913 Certificate 111 Blinds and Awnings Security Screens, Grilles.

KEY ISSUES

The focus of this submission is to respond to the proposal to remove 13 minor trade licences in particular, Licence 10 Shade sails and shade systems installation. In this submission there is sequential reference to the sections of the discussion paper where the Association wishes to comment.

1 Making it easier to do Business

1.1 Extending Licence Durations

We support Option 2 to extend licence duration Our licences have a 3-year duration and fall into the 23% of licences with a duration of three to five years. The contractor licence fee is approximately $950.00 for three years. This is a large impost when there is little direct regulation overview or professional development from Fair Trading. We do not see this price as justifying the level of service received. Renewal of licences is essentially the pro forma activity of completing a form and payment of the licence fee. As most operators remain in business long term and many businesses are generational and pass within families a longer duration of licence is supported. Offering option to extend the licence duration for 3 or 5 years is supported.

Page 2 of 8

1.6 Removing 13 categories of Home Building Licences

We support Option 1 of maintaining the status quo Licence 10, Shade sails and shade systems installation should be retained for the following reasons

A. Consumers need to be able to have information to make an educated decision on who to select for their projects. Consumers undertake licence checking through NSW Fair Trading on a daily basis in this industry.

Consumers have an inherent belief that the state will not issue licences to poor operators and do obtain peace of mind believing that a licenced installer is more likely to deliver a good product than an unlicenced installer and thus reduce the risks of legal action.

Licence checking is pre-emptive protection for consumers and a first line of protection for consumers before work commences. The STA supports offers consumers a selection criterion for selecting a qualified installer. Licence checks are one of the criteria. Removal of licences will reduce consumers’ opportunity to check the bona fides of a contractor other than “gut feeling” or “word of mouth”. It reduces the ability of the consumer to make an informed choice.

B. Most installers have their licence numbers clearly and proudly displayed on vehicles, advertising and quoting documents. They have worked hard to obtain their licences and it represents a point of difference in skill level and experience between them and the competitive market where “here today gone tomorrow” operators strike. Our industry is plagued with them.

C. Licence removal takes away a career development pathway for young entrepreneurs. The STA wants to encourage a lifelong career path and some of the skilled shade structure installers will eventually move into their own licenced businesses. Holding a licence is a badge of honour that they have reached the next level of skill and excellence.

D. If licences are removed we will see more inexperienced, poorly trained operators and opportunists who will cut corners in areas of price, engineering, contracts, concept design, council approval, specification of materials, skills training and safety.

Further they may not be traceable if and when their projects fail. Projects do fail from time to time and many of these installers are untraceable and have left the industry when contact is attempted. Even with licensing “Cowboys” exist in our industry and are the bane of good operators. We will see more “cowboys” if licences are removed.

A licence is a show of long term commitment to the industry. This differentiates against short terms “cowboys”.

Page 3 of 8

E. As a new industry which is only 30 years old, best practises continue to evolve. This goes hand in hand with the evolution of modern processes and technology. Skills need to be honed and upgraded. Installers look to their association to guide them in best and newest practises. Specialised Textiles Association encourages higher standards, levels of training & professionalism for the shade industry as the industry advances and becomes firmly established. This again is about raising the bar. Training teaches new processes and technologies and licencing ensures installers are qualified.

The STA has introduced an accreditation program to benchmark and raise standards in the industry. There is potential to collaborate with the NSW Department of Fair Trading to undertake Professional Development of licence holders as occurs in Queensland.

F. The majority of domestic projects built by members are over $10,000.00. These structures may be connected to buildings or be free standing, heavy and large in size. Shade structure building requires structural engineering, use of heavy materials and machinery and excavation. This is a high-risk industry and we need more stringent regulation not less. Workplace Health & Safety legislation is not always applied. Badly made product can fail and kill, even in a back yard.

G. While NSW Fair Trading has challenges in the policing of licences in the work place, once poor operators come up before the tribunal and courts, those operating without licences will be identified and penalised.

Unscrupulous operators and poorly trained operators lurk where the rules are weakest. By the issuing of licences and importantly, in the minor trades, Fair Trading has a clear mandate to fight for consumer protection and removal of poor operators.

H. Existing legislation including Consumer Law, Workplace Health and Safety and Common Law, work together with licensing to comprise the legal framework that business works under. This is essential protection and remedy, not red tape. Existing laws do not replace the inherent importance of licensing.

I. Commercial projects in NSW do not need licensing in our category of Shade sails and shade systems installation, however conditions of commercial tender being usually very stringent make tendering on commercial projects beyond the capacities of many smaller shade structure installers. Consumers are not expected to make the same demands of installers and domestic as commercial tenders request and installers may not be able to offer this information to consumers. Clearly if licences were removed consumer would not have the knowledge to request a complex level of documentation and compliance evidence from installers. Leaving the status quo will protect residential consumers as at least the consumer can choose to have work done by a licence holder who has met a suitable criterion to operate under.

Page 4 of 8

Licenced installers may prefer to work in the domestic area rather than the complex area of commercial shade structure installation. This allows freer competition as installers can choose where they want to operate and still deliver quality.

J. Shade structures must be designed to work effectively and safely in people’s back yards. Design, structural integrity, suitable steel components, working load capacity of fittings, stress loads, properties, how to connect, how to excavate, underground safety overhead safety, operating machinery, working at heights, fabric selection, seasonal solar movement and more, will influence the effectiveness and safety of the shade structure. The Specialised Textiles Association encourages continued training and professional development of installers.

K. In the past years of experience in the trade was recognised and contributed towards obtaining a licence. Today it is not. There is opportunity for experience to be re-visited as a way of increasing the number of licenced operators and liberalising competition.

SUMMARY

The Specialised Textiles Association (STA) is the peak national industry association representing shade structure installers both members and non-members. The STA has a mandate to support not just our members but the whole shade structure industry in Australia. The STA sees removal of licences as a slippery slide into the gutter of quality, training and safety and has outlined its rationale in this submission. The STA encourages industry growth through encouraging youth, training, education and support of quality practises. Furthermore, the STA supports consumer protection through awareness. To this end the STA supports retaining of the licence of Shade sails and shade systems installation in NSW.

CONCLUSION

At the national and international level, Australian companies provide tension shade structures on large projects such in transport facilities, sporting stadiums, airports and public spaces. We are part of an exciting and growing industry both at the commercial and residential level too. The Specialised Textiles Association wishes to see our industry continue to flourish at all levels. Australia, with its sunny climate has a role to play in the provision of shade structures. More and more local councils and authorities see the health benefits of shade structures and promote their use. The shade structure industry will continue to grow and the STA wants to see good operators grow too. Our industry is made up of many passionate small business owners who strive to raise the bar and operate at the highest levels. Our industry demands and our market deserves high standards. Licencing is an integral part of the pursuit of excellence. Page 5 of 8