Response from BALI's CEO re: Hort Week Article

I contacted BALI direct regarding the article in last week's Hort News. I took real exception to it having started out that way, like many. We now run a larger business (VAT reg.) and felt BALI fails the small to medium landscape businesses. I have never joined BALI because of that perception and have NEVER been asked by any of our clients if were members. I asked if BALI had lost the plot ? Here is their response - make of it what you will. I feel it side-steps the issue - your views ? ---------------------------------------------------------------------- Dear Gary, Please find the following response from Sandra Loton Jones: 'BALI is first and foremost a body of landscapers and grounds maintenance contractors, and garden and landscape designers, who value being part of an organisation of like-minded individuals, i.e. those who believe continual improvement in the way in which they operate is the only way to ensure business success, and are prepared to invest, through their membership subscription, in achieving it. It is run by officers, elected by fellow members, to deliver business, training and professional support and to promote the resulting benefits – well trained, professionally competent and accountable contractors - to commercial and domestic clients alike. The Association’s membership profile ranges from sole traders, whose turnover may be well below the VAT threshold, to nationally represented contractors and global supplier companies. Size should be no judge as to whether a business will be better or worse than any other, as evidenced by the breadth of BALI member organisations and individuals. BALI members’ influence helps to ensure the concerns of the wider industry are fully considered at the highest levels. Sadly, the benefits that result from corporate representation are often not fully appreciated by smaller operators, even though they are just as likely to be affected by decisions taken at Government and EU level and their interests are equally represented by the lobbying work BALI undertakes. Size does not preclude any business from the need to comply with technical training and health and safety legislation but smaller businesses, if they are operating in isolation, may not always be aware of their obligations. And that is where an organisation like BALI comes into its own. The comments made by BALI’s Chief Executive, Sandra Loton-Jones, in the article on page 5 of the 6th November 2009 edition of Horticulture Week, were extracted selectively by the journalist from a longer interview and, in isolation, could be open to misinterpretation. There is no question that, from a price perspective, operators who work in the domestic market and are VAT registered are at a disadvantage when competing against non-VAT registered businesses. The domestic client is unable to reclaim the VAT charged by the VAT registered contractor yet the contractor must charge it by law. The non-VAT registered operator is immediately 15 per cent (17.5 per cent from January 2010) cheaper before selection of materials and labour is even considered. Whilst there are undoubtedly ‘rogue traders’ amongst VAT registered contractors, there is a greater risk of becoming the victim of an unscrupulous landscaper amongst non-registered companies if they are not, then, members of a recognised trade association or customer protection scheme. Indeed, it is arguably more important for sole traders and small businesses to belong to a trade association with strict entry criteria and recognised industry standards so that the client can be reassured of their professional capabilities and trustworthiness. The member is also then protected against unscrupulous domestic clients who exploit smaller contractors by trying to extract last minute discounts for often spurious claims of dissatisfaction with the work completed. There is, undeniably, a large contingent of sole traders and micro businesses, outside of landscaping trade associations, that operates effectively and efficiently and represents all that is good in the industry. As we respect their decision not to join a landscaping trade association, so must the decision of other contractors to become members be respected.'