Fran Bailey (McEwen, Liberal Party, Minister for Small Business and Tourism) Share this | Hansard source

Firstly, I would like to thank all those honourable members who participated in this debate today on the government’s Trade Practices Legislation Amendment Bill (No. 1) 2007. In the first instance, I make particular reference to the member for Batman’s contribution. His entire speech was devoted to the advocacy of big business, and we are here today ensuring that we are introducing amendments to the Trade Practices Act which are going to make it much easier for small business.

I would also like to make reference to the member for Chifley and the speech that he has just given. He has mentioned shopping centres and retail tenancies and for the member’s benefit—as he may not be aware—the government has already initiated a Productivity Commission inquiry into this. It is a very important issue for small business.

I could not allow this occasion to pass without also making some reference to the criticism that the member for Chifley levied at me. In terms of championing small business, I will stand and allow small business to make a decision as to who is the real champion of small business—this government or the opposition that the member for Chifley belongs to. When you look at tax reform, capital gains tax reform, superannuation reform, greater accessibility to the simplified tax system and especially workplace relations, getting rid of unfair dismissal and enabling flexibility in the workplace for small business with AWAs, I can tell you, it is no contest. This government is such a strong supporter of small business so, member for Chifley, do not get too carried away.

In summing up, the government’s bill delivers for small business in a number of important ways in enhancing the effectiveness of section 46 of the Trade Practices Act. The bill addresses the issue of predatory pricing, allowing the court to consider sustained below-cost pricing when looking at a breach of section 46. It clarifies the threshold for misuse of market power in a number of important ways. For example, it refers to leveraging power from one market into another. It specifies that more than one corporation may have a substantial degree of power in a market. It also provides that a corporation can have market power without substantially controlling that market. Further, the bill makes amendments to the unconscionable conduct provisions by raising the transaction limit from $3 million to $10 million. This limit assists in protecting small business from unconscionable conduct. The bill also provides that the court should look at whether a party can unilaterally vary a contract term or condition in considering whether there has been unconscionable conduct.

It also creates a deputy chairperson of the Australian Competition and Consumer Commission. The government has announced that the position will be held by a person who is experienced in small business matters, not, as the member for Rankin indicated, someone with just some background but someone who has actual experience in small business.

The government has consulted extensively with small business groups in developing these amendments. In fact, I can tell you that the government has consulted over many months with a number of the small business representative organisations. Following the passage of the government’s Trade Practices Legislation Amendment Act (No 1) 2006, known as the Dawson Act, the government has met with a number of groups to discuss the concerns of small business. We have not assumed what small businesses want; we have engaged one-on-one and in groups with the small business organisations. Both the Treasurer and I have been involved in those meetings along with the Leader of The Nationals in the Senate, Senator Boswell, as well as Senator Barnett.

I want to take this occasion to particularly acknowledge the work of Senator Boswell, whose strong advocacy on behalf of small business has been appreciated and has been instrumental in achieving and strengthening these amendments before the House. The consultative process has been a long and involved one but one which the government has worked hard at to try to get right. I particularly want to acknowledge the work of the Council of Small Business Organisations of Australia, COSBOA; the National Association of Retail Grocers of Australia, NARGA; the Fair Trading Coalition; and the National Farmers Federation. The government look forward to continuing our ongoing work program with all of these small business groups on all issues affecting small business.

The government welcomes the report of the Senate Standing Committee on Economics into the provisions of the bill. I would like to thank the committee for its timely consideration of and report on the bill. The committee’s inquiry attracted a broad range of submissions from groups interested in trade practices reform, and many of the above-mentioned groups made a submission to that Senate standing committee. I particularly welcome the committee’s conclusion that the bill should be passed in its current form.

This bill delivers for small business; it builds on the agenda implemented by this government to reform the Trade Practices Act. Earlier this year we saw the commencement of the government’s Trade Practices Legislation Amendment Bill (No. 1) 2006, which contained a number of reforms arising out of the review of the competition provisions of the Trade Practices Act, chaired by Sir Daryl Dawson. The act provided for a simpler notification scheme when small businesses collectively bargain under the Trade Practices Act, making the process quicker, easier and cheaper for small business. It significantly increased the maximum penalties for anticompetitive conduct to the greater of $10 million or three times the value of the benefit of the anticompetitive behaviour or, where that value cannot be determined, 10 per cent of the company’s annual turnover. The act also increased the powers of the ACCC, granting it increased search and seizure powers—and I note the member for Prospect spoke about that issue when he spoke earlier. In fact, we have already done that.

The government will shortly be moving to introduce legislation imposing criminal penalties for serious cartel conduct. The government is concerned about the ability of small businesses to be competitive in markets where there is cartel activity, where they are often the direct victims of cartel behaviour. If the opposition is really serious about doing something positive for small business and standing up for small business, it would not reinstate unfair dismissals and it would not get rid of AWAs. That, I can tell you, is the acid test for small business.

As I have said, this bill implements a number of important government announcements in relation to the Trade Practices Act and the protection of small business. It comes as a result of extensive discussions with key stakeholder groups. I believe that these amendments achieve the right balance of ensuring small business gets a fair go, while ensuring they can operate in a competitive environment and consumers can benefit from that competitive environment. I commend the bill to the House.

Question put:

That the word proposed to be omitted (Mr Bowen’s amendment) stand part of the question.

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