Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

We all know that vigorous competition means a better deal for consumers. People battling for our dollar as consumers means that all consumers will be better off. In relation to groceries, this was confirmed in the recent ACCC report, which found:

Australian consumers would significantly benefit if Coles and Woolworths faced more competitive threats that encouraged more aggressive pricing strategies.

At the last election, the Labor Party promised to clarify and enhance the powers of the ACCC to deal with incremental or creeping acquisitions—something the previous government declined to do. Today, I can update the House on the implementation of that important election commitment. Incremental acquisitions are purchases by a large firm of small outlets which might not lead to competition concerns in and of themselves but over time when taken together do lead to competition concerns. The Trade Practices Act, as it is currently devised, does not give the ACCC the proper legal framework to intervene in these instances. Today, I have released a discussion paper which outlines two options for legislation—action which those opposite failed to take over 12 years—which are the aggregation model or the model for a new power under the Trade Practices Act. This is an election commitment and this government will implement the legislation. Those opposite failed to do anything on this over 12 years.

The new law will apply across the economy, not just in relation to groceries and supermarkets but across the economy, wherever the ACCC believes that creeping acquisitions are a problem. It may be the childcare industry or the supermarket industry or any other industry where creeping acquisitions are a problem. This reform is not about protecting small business in itself; it is about protecting consumers to ensure vigorous competition so that consumers can benefit from small business and big business competing against each other and so that one player does not swallow up small players in an anticompetitive way. This is part of our suite of competition policy reforms that we have embraced since the election: freeing up the foreign investment laws so that more retailers can compete for the Australian consumer’s dollar; using COAG to ensure that the planning system promotes competition and does not inhibit competition; and introducing jail terms for serious cartel conduct, which the ACCC called for 15 times and the member for Higgins ignored every time and reneged on his commitment to implement. These are the biggest reforms to the Trade Practices Act in 25 years to do with predatory pricing, which I envisage will pass the House later today. These are reforms that we are moving on with alacrity because they are long overdue and because Australian consumers will be the winners from them.

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