Progress continues to be made towards a unified, single voice for Accommodation in Australia through the proposed merger of the Australian Hotel Association/Tourism Accommodation Australia and the Accommodation Association.Tourism Accommodation Australia Chair Martin Ferguson AM and Accommodation Association Chair Julian Clark have provided a joint update this morning at AHICE in Adelaide, outlining the substantial work that has been conducted over the past 12 months on the governance framework required under the complex legal and regulatory processes that apply.
Key Facts
The necessary governance foundations have now been put in place to move into the more formal, mandated and complex process run by the Fair Work Commission while the working group can now focus on the operational framework and approach.
Milestones achieved so far include:
Agreeing the principles on which a merger can be progressed (noting the details will be worked out within the constraints of the legally mandated processes as and when appropriate)
Agreeing the aims of the merger “to produce better services and better outcomes for members”
Drafting and finalising key documentation to allow us to commence the legal review process with FWC (the Scheme of Amalgamation and supporting documents )
The merger is going to take at least 9-12 months to complete given the necessary legal processes which include elections at both a state and then federal level.
The rules have been provided on legal advice to the Fair Work Commission to informally review then the Boards will need to pass 11 resolutions to trigger the amalgamation ahead of a 3 month process of submissions, ballots and hearings
Scheme of Amalgamation is then finalised and lodged with FWC for vote by members – this in itself is a seven step mandated process
The final transition is then subject to the AEC, ROC, FWC’s regulatory processes
Quotes attributable to Tourism Accommodation Australia Chair Martin Ferguson AM
“Australia’s accommodation sector deserves and wants one united voice. Government has told us that a united body would place us in a much stronger position, especially moving forward in the current landscape.”
“This is a monumental and historic moment but there is still a long and complex path ahead in bringing together two democratic organisations with much of the approval process managed and determined by ASIC, the FWC, the AEC and shaped by association law.”
“It’s further complicated by the legal complexities of bringing together a national organisation and a federated organisation with plenty of legal requirements that need to be met. We have and will continue to take our time to get it right in the interests of all members of both organisations.”
Quotes attributable to Accommodation Association Chair Julian Clark
“it feels like it has taken a long time to get here, but we are told by people who deal with these type of amalgamations regularly that we are moving at pace. But in essence, we have reached a point whereby the commercial and legal framework has been largely agreed by the respective boards and the draft rules have been sent to Fair Work Commission for review. It’s not sexy work but it is fundamental work. Indeed, it has taken us 9 months to get to this stage. Whilst this may appear painstakingly slow to an outsider if we don’t get this right the amalgamation is Dead on Arrival. It’s that important and it’s why we have spent so much time on this.”
“Having been around for one of the past merger discussions I can say with hand on heart that this one is different. The is the case for many reasons, but the most important one is that all decision makers are fully committed to making this happen. we are committed to it as we know it’s quite obviously the right thing to do, delivering greater member benefits and a greater advocacy voice within government.”
“We have already worked more hand in glove together on advocacy issues and we will be looking to work even more closely together in the interim period. We will speak with one voice where possible and also look at ways to eliminate duplication where practical. We recognise the importance of getting results for our members now, and in the future. However, I must stress that we cannot rush the compliance aspects, nor can we assume the amalgamation is a fait accompli. It will ultimately depend on compliance with the FWC and legal regulations as well as the votes of our members.”
