SMALL BUSINESS FRIENDLY COUNCILS PROGRAM

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1 ITEM 4. FILE NO: SMALL BUSINESS FRIENDLY COUNCILS PROGRAM S SUMMARY The City of Sydney has long recognised the importance of the small business community and their contribution to the economic, cultural and social life of the city. Small business represents more than 80 per cent of all businesses in the city. The City s Economic Development Strategy recognises that a thriving small business sector is vital to ensuring the continued growth in job numbers and a diversity of employment opportunities. The Strategy sets out the ways in which the City has supported and will continue to support existing and prospective small business operators. Given the City s already strong support for the sector, this report recommends that the City join the recently established Small Business Friendly Councils Program (the Program) developed by the Office of the Small Business Commissioner in partnership with the NSW Business Chamber. The City s long-standing actions to support small business are in accordance with the Program. The Program was trialled with four councils in late 2013 and, following enhancement of its design, it is being expanded. The City has been invited to join. The Program is to be launched by the Deputy Premier and Minister for Small Business, The Hon. Andrew Stoner MP, the Minister for Local Government, The Hon. Paul Toole MP and the Chief Executive of the NSW Business Chamber, Stephen Cartwright. To join the Program, the City must make a number of key commitments that encompass: encouraging proactive and effective engagement by councils with small businesses; identifying and agreeing to standards for engagement with small business; and identifying best practice approaches to encouraging a vibrant and flourishing small business sector. This report recommends that the City of Sydney join the Small Business Friendly Councils Program. RECOMMENDATION It is resolved that: (A) (B) Council join the Small Business Friendly Councils Program; and authority be delegated to the Lord Mayor and Chief Executive Officer to sign the Charter of the Small Business Friendly Councils Program, based on the draft at Attachment A to the subject report.

2 ATTACHMENTS Attachment A: Small Business Friendly Councils Charter and Program

3 BACKGROUND 1. The Office of the Small Business Commissioner, in partnership with the NSW Business Chamber, has developed a program for local government to proactively work with and support local businesses - the Small Business Friendly Councils Program (the Program). 2. A trial of the Program was conducted in late Four councils participated in the trial. The Program has now been enhanced and councils across NSW, including the City, have been invited to join. 3. The Small Business Commissioner has advised that some 45 councils have expressed interest in participating in the Program, and firm commitments are currently being sought. 4. The Program is to be launched by the Deputy Premier and Minister for Small Business, The Hon. Andrew Stoner MP, the Minister for Local Government, The Hon. Paul Toole MP and the Chief Executive of the NSW Business Chamber, Stephen Cartwright. 5. The Small Business Friendly Councils Partnership Panel has endorsed the Program. Members of the Panel include NSW Business Chamber, Division of Local Government, Local Government NSW and Local Government Professionals Australia (NSW). 6. To join the Program, the City must make a number of key commitments which include: (a) implementing an on-time payment policy, including the reporting of the proportion of identified small businesses paid on time each quarter; (b) (c) (d) implementing and reporting on two strategies to improve business processes for small business; the Lord Mayor and Chief Executive Officer making a public commitment of support for the Program; agreeing to refer any business disputes to the Office of Small Business Commissioner Dispute Resolution Unit, which has a 94 per cent success rate; (e) in conjunction with a local business chamber, establishing a Business Advisory Board to work with Council; and (f) selecting one additional new initiative from a range suggested, which includes: (i) (ii) (iii) implementing strategies for engaging with small local businesses; setting service standards to advise small businesses about fee structures and the timeframes they can expect in relation to approvals; implementing strategies to improve small business access to Council s procurement processes;

4 (iv) establishing a system of pre-da (development application) meetings; and (v) implementing electronic payment facilities to ensure all types of payments can be made this way, thus reducing paperwork for small business. 7. The City already has had in place long-standing actions that meet the requirements of the Small Business Friendly Councils Program. The current activities and proposed new initiatives are outlined below. On-time Payments to Suppliers (in place) 8. The City s Accounts Payable Policy provides a framework for the processing of invoices and payments at the City. It sets out an ongoing commitment to on-time payments for all suppliers, including small business. 9. From Quarter 2 in 2014, on-time payment performance will be reported on every six months. These reports will demonstrate the timeliness of payments to all suppliers, inclusive of small business suppliers. Business Improvement Processes (in place) 10. The Economic Development Strategy makes a commitment to making it easier for business, particularly small business, to navigate government procedures and approvals needed for business to operate. This includes simplifying processes and removing barriers wherever possible or, where this cannot be achieved, clarifying and providing assistance to small business to ensure their dealings with the City and other levels of government are as efficient as possible. 11. The continuing program of activities to support small bars is an example of this commitment. To help business obtain the necessary approvals the City has developed a series of resources such as a video of our Small Bars 101 Workshop and several documents available on the City s website. These include: (a) (b) (c) (d) (e) (f) (g) how to open a small bar in the city; how to open a small bar (flowchart); how to apply for a street or laneway event; small bars DA assessment process (guidance only); how to complete the DA form for a small bar (guidance only); food and drink premises DA form; and food and drink premises DA fact sheet. 12. The current program of 101 workshops is another way the City shares information to existing and prospective business operators to clarify approval and other processes. Each event features presentations and the opportunity to ask questions of industry experts and City staff who look after applications, as well as to hear stories from people who have successfully been through the process. Many of the workshops have been recorded and the content is available on the City s website for those who cannot attend a workshop.

5 13. The recently adopted Creative City Cultural Policy and Action Plan and Live Music and Performance Action Plan also include wide-ranging actions to increase opportunities and lower regulatory barriers for local businesses. This includes reviews of red tape, increased support and information on negotiating planning and regulatory matters, streamlined approvals systems for creative enterprise and the use of outdoor spaces and initiatives to increase precinct distinctiveness and encourage visitation to the city area. 14. Two new initiatives pertaining to small business to which the City has committed and will report on progress include: (a) implementing a pilot program trialing the use of a permit system, which allows musicians and other workers associated with live music and performance to access existing loading zones adjacent to music and performance venues in the City of Sydney Local Government Area (LGA) for fifteen minutes for the purpose of unloading and loading instruments and equipment; and (b) developing information guides in multiple formats that provide specific information on the planning requirements and resources available for setting up a temporary or permanent live music or performance venue in the City LGA. Public Commitment 15. The City will work with the Office of the Small Business Commissioner on the most appropriate timing of a public statement by the Lord Mayor and Chief Executive Officer in support of the Small Business Friendly Council Program. Referral of Disputes (in place) 16. The City has in place guidelines on how it resolves issues to prevent their escalation into a dispute. These guidelines include mechanisms for referral of issues within the organisation as well as their referral to an outside agency, such as the NSW Ombudsman, the Office of Local Government or to an alternative dispute resolution provider. 17. In addition to the general provisions outlined above, the use of alternative dispute resolution mechanisms, such as mediation, was an action endorsed in the Live Music and Performance Action Plan. 18. Given that the use of alternative dispute resolution mechanisms is part of the City s current practice, the City is happy to add the Office of Small Business Commissioner s Dispute Resolution Unit to the range of third parties used for this purpose.

6 Business Advisory Board (in place) 19. The City receives advice through a range of mechanisms, including advisory boards such as the Aboriginal and Torres Strait Islander Advisory Panel, the Retail Advisory Panel and the Inclusion (Disability) Advisory Panel. It is also informed by groups such as the Better Building Partnership and through the establishment of reference groups to inform specific issues, such as the recent review of the planning system to identify ways to better support existing and new hotel development. Quarterly forums are also held with representatives from the liquor accords, business partnerships and chambers of commerce. 20. The Office of the Small Business Commissioner has confirmed that the range of existing opportunities for small business to inform and be informed by the City s programs meet the requirements of the Program and that it is appropriate that the City continue its engagement with business through these existing channels. Engagement with Small Business (in place) 21. The City is committed to working with local businesses to ensure the economic vitality and vibrancy of the city. As identified in the Economic Development Strategy, the development of an action plan is underway, which will set out a series of actions to support the economic activity that occurs in the villages and main streets outside central Sydney. The focus of this plan is on small business. In June 2014, the City invited over 600 local businesses to participate in a series of workshops designed to give small business a voice in the development of the action plan. The workshops sought feedback on issues and priorities identified by businesses to help create collaborative solutions. This includes improving the way the City partners with key stakeholders, communicates to businesses and coordinates and delivers business support services. 22. With approximately 25 per cent of the city s economic activity taking place in the villages outside central Sydney, it is vital that each area perform to the highest level possible. 23. The City currently makes a considerable investment through its Grants and Sponsorship Program to support the work of local chambers of commerce and business associations in these village areas. 24. The City takes direct action to support precinct development and promotion initiatives by delivering events, marketing collateral, the finegrain and small bars program and supporting tourism and retail marketing campaigns. 25. Other projects and programs aim to build capacity in the small business sector, predominantly located in the village precincts. 26. The approval in November 2013 of a 12 month trial to provide 15 minutes free parking on nine main streets was another initiative that was informed by the views of business. It was designed to help embed local businesses in their communities, building brand loyalty to local traders. The trial period began in December 2013 and continues. 27. The City also engages with the business chambers and business partnerships that represent thousands of local businesses within our LGA.

7 28. Through the development of the action plan, the City will have ongoing engagement with local small businesses to ensure that the programs and services Council delivers directly, or in partnership with other levels of government or organisations, are relevant and achieve the desired outcomes of continued economic sustainability for our small business community. 29. In 2014, the City launched an online newsletter specifically for our business community. The City Business e-newsletter provides relevant news stories, information on grants and sponsorships, awards programs and educational seminars, as well as the City s strategies for our business sectors. There are already over 1,200 subscribers. Improving Access by Small Business to the City s Procurement Processes (in place) 30. Education and awareness raising initiatives to improve access by small business to the City s procurement processes have proved successful in the past when particular groups of businesses have been targeted. For example, prior to the commencement of procurement of services for the development of the Eora Journey Economic Development Plan, briefings were conducted to explain the project and the procurement processes to ensure that businesses who might otherwise not participate were equipped to do so. 31. In addition to the initiatives the City already has underway, an additional campaign will commence in 2014/15 aimed at raising awareness of the City s procurement processes within the small business community. Pre-DA Meetings (in place) 32. The City provides a free pre-lodgement advisory service, which allows a small business owner to arrange a meeting with planning staff to discuss their proposed DA. This is in addition to access to duty planners who are available to discuss DA matters at the One Stop Shop and neighbourhood service centres from Monday to Friday, between 8am and 6pm. 33. Small businesses are encouraged to speak to the City before lodgement, as it will assist in reducing assessment times and determining whether a DA is in fact needed. 34. DA fees are regulated and are dependent on the costs of the proposed works. Information on these fees is contained in the City s Schedule of Fees and Charges. Information on likely fees that will be payable can be provided to small businesses when they speak to the duty planners, or at pre-lodgement meetings. 35. The City has also started to improve information on DA processes on the website, intended to assist small businesses in preparing and lodging DAs. This includes two video tutorials, one relating to the planning controls that apply to the applicant s site and the other relating to opening a food and drink premises.

8 Electronic Payment Facilities (in place) 36. The City is well-advanced in offering electronic payment facilities for our community, including small business. Payment of rates, childcare fees, property certificates and parking permits can all be done online. Similarly, the preferred method of payment for goods and services provided to the City is by electronic funds transfer direct to suppliers bank accounts. 37. Given the City s existing commitment to working proactively with small business, this report recommends that Council endorse the recommendation to join the Small Business Friendly Councils Program. KEY IMPLICATIONS Strategic Alignment - Sustainable Sydney Sustainable Sydney 2030 is a vision for the sustainable development of the city to 2030 and beyond. It includes 10 strategic directions to guide the future of the city, as well as 10 targets against which to measure progress. This program is aligned with the following strategic directions and objectives: (a) (b) Direction 1 - A Globally Competitive and Innovative City a diverse and sustainable economy with thriving businesses of all sizes is vital to maintaining the City s global competitiveness; and Direction 6 - Vibrant Local Communities and Economies small businesses are the dominant business type in the city s main streets and local village economies. This Program sets out a clear commitment and actions to support this important business sector. Organisational Impact 39. Commitment to and delivery on a range of initiatives under the Small Business Friendly Councils Program is already incorporated into the ongoing work of a variety of City business units. 40. New initiatives, such as reporting on-time payments and the development of an education and awareness raising campaign to facilitate the greater involvement of small business in the City s procurement activities, will be accommodated within existing resources. Economic 41. The largest proportion of businesses (more than 80 per cent) that operate in the City LGA can be categorised as small businesses; that is businesses with fewer than 20 employees. Participation in the Program commits the City to building on its already extensive commitment to and focus on the sector. BUDGET IMPLICATIONS 42. Current and proposed initiatives for 2014/15 can be accommodated within the 2014/15 adopted budget.

9 43. New initiatives for 2015/16 and beyond will be incorporated into draft budgets for each year. KIM WOODBURY Chief Operating Officer Andrea Beattie, Executive Manager Research, Strategy & Corporate Planning