Cabinet to consider 'effects test'

15 SEP, 2015
AAP
The Nationals have won a significant concession from the government, which will take a hard look at beefing up competition law.
As part of the Nationals’ coalition agreement with new Prime Minister Malcolm Turnbull, the cabinet will seriously consider the merits of the “effects test”.
Nationals leader Warren Truss said Mr Turnbull had indicated support for the measures in the past.
“We are keen for this issue to be resolved by cabinet as quickly as possible,” Mr Truss told reporters.
“He has given the assurance that this issue will be dealt with by cabinet.”
Coalition MPs want the test as a way to stop big retailers from dominating particular markets, at the expense of consumers and smaller operators.
As it stands, competition law bars big firms from taking advantage of their market power. Under the effects test, the regulator would consider the actual effect on the market, a lower threshold.
Cabinet is divided on this issue while Labor says it will strangle business with every company board looking over its shoulder wondering if its business will end up in court.
Mr Truss said Small Business Minister Bruce Billson, who supports the change, had liaised extensively with industry.
“We believe reforms to ensure there is some kind of fairness in the marketplace are absolutely essential and need to be agreed,” he said.
The measure was behind Mr Turnbull’s first revolt on Tuesday, when three Nationals senators crossed the floor to vote against the government.
Bridget McKenzie, John Williams and Matt Canavan backed a Greens motion calling for the effects test to be included in competition policy.