Harper Review decision on hold but watch this space

John Durie
SEPTEMBER 21, 2015
THE AUSTRALIAN
Wesfarmers boss Richard Goyder was no doubt quietly pleased to see the back of former small business minister Bruce Billson, who was seen by the company as operating a vendetta against the big supermarkets.
Wesfarmers (WES) has led the big-business charge against proposed changes to section 46 of the Competition laws and Billson was the major political proponent of the changes.
Big business such as Wesfarmers operates largely in oligopolistic industry structures and the concept of competition from the outside is seen as anathema.
New Assistant Treasurer Kelly O’Dwyer will at least initially take over control of the ACCC.
Just what this means for the fate of the Harper Review remains to be seen.
By all reports Prime Minister Malcolm Turnbull has agreed with the Nationals to take a further look at the Harper reforms, of which section 46 is just one of 56 recommendations.
Whether O’Dwyer retains the ACCC in her remit depends on talks with new Treasurer Scott Morrison and there is a logical case for Morrison to take control because there is a classic conflict of interest for a small business minister, a sectional interest, to take control of an economy-wide regulator like the ACCC.
O’Dwyer would be a different boss than Billson who wore his small business portfolio on his sleeve and proudly told stories of his days running a small shop.
O’Dwyer is a former Freehills solicitor with time at NAB who its married to UBS mergers boss Jon Mant and is both highly intelligent and from a different background to Billson.
Quite clearly the change in minister puts the Harper review on the backburner for a while.
The Murray review was due to go to Cabinet last week when Turnbull’s coup took precedence and it will clearly be decided before Harper.
Treasurer Morrison will also want to take time to get to know his portfolio and macro economic issues before getting his hands dirty with competition policy.
The Prime Minister actually has some passion for business and a deep knowledge of the issues, which is in stark contrast to the days under Tony Abbott.
This may mean he takes more interest in trade practices issues and certainly means when they are up for discussion he will have a clear view.
O’Dwyer is also highly intelligent and would be seen as taking a more open view on small versus big business issues.
The bottom line is the new broom in Canberra means policy change is on hold for the short term at least and the entrenched views of the old guard are now up for grabs.