Senate no 'road block' to effects test

Catie Low
October 15, 2015
The Age
The Australian Chamber of Commerce and Industry said it was confident the Senate would not put up any “road blocks” in the way of strengthening Australia’s competition law if it got the green light from Malcolm Turnbull’s cabinet.
The chamber was among more than 25 industry bodies that came together in Canberra on Wednesday to argue their case for competition law reform and the introduction of an effects test.
Led by Master Grocers Australia, this broad coalition including the Australian Hotels Association, the Australian Retailers Association and the National Farmers Federation was hoping for an audience with the Prime Minister to air their arguments.
Mr Turnbull did not front the gathering but his Treasurer, Scott Morrison, addressed the group along with Small Business Minister Kelly O’Dwyer.
The Australian Chamber of Commerce and Industry’s John Osborn said the next step was to “secure the passage of reform through cabinet,” Mr Osborn said.
“The Parliament more broadly looks as if it’s receptive and we are reasonably confident a solution could be found in the Senate.
“We don’t see any other road blocks.”
Mr Osborn said it was encouraging that the government was listening but he said the opponents to the effects test were also running a very effective campaign.
The Treasurer did not provide any specific undertakings to the group except to say he was open to all discussions about section 46, which relates to the misuse of market power.
The Ian Harper review of competition policy, proposed a number of changes to Australia’s competition legislation, including a rewriting of section 46 to stop businesses undertaking any activity that has the purpose or likely effect of lessening competition.
MGA chief Jos de Bruin said the Treasurer understood the gravity of having all these industry associations chiefs in the one place at the one time.
First collaboration by disparate groups
It’s the first time these peak industry bodies have come together over a policy issue and it’s aligned such disparate groups as the Australian Diary Farmers, the Australian Hotels Association and the Motor Trades Association.
Mr Bruin said the Treasurer gave them a commitment it would deal with the issues of competition law seriously and listen to all point of view.
“My sense is that the hold up is in cabinet,” Mr de Bruin said.
“We were told to keep talking to our local members, so that they could keep talking to cabinet members.”
He said there were also fears cabinet may “go slow” on competition policy and shelve it until after the next federal election.
“The Treasurer has committed to making a decision but not when,” Mr de Bruin said.
Mr Turnbull put competition policy squarely back on the agenda after he made it a major plank of his coalition agreement with The Nationals.
The major retailers, including the big supermarket chains are vehemently opposed to the effects test and they have campaigned hard through their mouthpiece, the Business Council of Australia.
The BCA claimed the effects test would increase prices and worked the halls of federal Parliament, warning politicians of a voter backlash sparked by sharp increases to grocery bills.
Under the leadership of former prime minister Tony Abbott the proposal was effectively put on hold.
The MGA said the big end of town should not be driving a debate that was about changes that were in the national interest.
“I honestly believe that every industry association is committed to doing what is right and correct,” Mr de Bruin said.
“If it’s right in 32 countries why can’t it be right here.”
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