High rates, confusion over ministries hurting Canberra businesses: chamber

In an ACT budget submission, Canberra Business Chamber chief executive officer Michael Schaper said the 37 ministries had overlapping responsibilities and were creating confusion and inefficiencies.

He also reiterated concerns commercial rates reform was reducing investment, and tenants and landlords were looking across the border to run their businesses.

Dr Schaper said businesses and groups had to advocate to a number of different ministers and it was sometimes unclear who was responsible for what.

He said a specific minister for business would mean that person would be across all the issues facing businesses and there would be a clear voice in cabinet.

"We think that government works best when it's small, efficient and tightly run and everyone knows who's responsible for what," he said.

"By our reckoning, there are at least four different portfolios, covered by three different ministers, that make up the overall business portfolio.

"Why not have one person to invest time and knowledge and be able to put the best case forward to cabinet?"

Dr Schaper said the government's commercial rates reform regime continued to hurt businesses and could push investment over the border.

He said rates for commercial properties had increased on average 400 to 500 per cent, and commercial properties about $600,000 now paying rates of 5.2 per cent on unimproved land value.

"The current commercial rates regime is a regressive tax on the people and businesses that want to invest in the future prosperity of Canberra," he said.

"The consequence is reduced investment in commercial properties, and tenants and landlords seeking alternative places to invest or run their business.

"Tenants are contemplating the viability of doing business in the ACT, and the attractiveness of renting in Queanbeyan or further afield in the region is becoming a reality for many businesses in the ACT."

The group recommended the government review the commercial rates regime, including extensive consultation with the business community.

"We're not saying throw it all out but it would great if government could sit own with the business community," he said.

Dr Schaper said while the territory had enjoyed an enviable level of recent economic growth compared to other jurisdictions, that growth was largely supported by specific industry sectors and infrastructure projects.

He said there was a high turnover of new businesses and called for greater support for small businesses.

Dr Schaper said creating a small business advisory service could stop the number of closures of new businesses and start-ups by helping them with thinks like early days market plan.

He said ACT was the only state or territory that did not fund such a service.

The ACT government was contacted for comment.