Sarah Henderson (Corangamite, Liberal Party) Share this | Hansard source

I rise to stand arm in arm with 20 industry bodies which are calling on the Turnbull government to amend section 46 of the Competition and Consumer Act. The current provision, which is meant to prohibit a misuse of market power, is simply not working. This is a very powerful group of organisations, representing some one million businesses, employing more than five million people across a broad spectrum of Australian industries. Let me just state who they are: the Australasian Convenience and Petroleum Marketers Association, the Australian Chamber of Commerce and Industry, the Australian Booksellers Association, the Australian Hotels Association, the Australian Retailers Association, Australian Dairy Farmers, the Australian Newsagents' Federation, the hairdressing association, the Commercial Asset Finance Brokers Association, the Convenience and Mixed Business Association, Fresh Markets Australia, the Central Markets Association of Australia, MGA Independent Retailers, Independent Contractors Australia, the Motor Trades Association—the list goes on and on. Of course, last but not least is the National Farmers' Federation.

This alliance notes that it is almost one year since the federal government appointed the Harper panel to review competition policy, and the Harper panel made some very important recommendations about changing this provision. There is no doubt there is a serious deficiency in the competition dynamic in Australia. There is no doubt that we urgently need a practical mechanism to ensure healthy competition in markets comprising business enterprises of all sizes. I am very pleased to say that a review of this section is currently being undertaken by the Assistant Treasurer, and I have also met with the Treasurer on this matter. This is also recognised by the ACCC and the former head of the ACCC, Allan Fels, as an area which does need urgent attention.

We saw that in spades, and perhaps the best, most recent example is the conduct of Coles in December 2014, when it basically held its suppliers to ransom. It was fined many millions of dollars as a result. It engaged in a form of corporate blackmail and it was absolutely disgraceful, when you look at the combined market power of Coles and Woolworths. I spoke to someone on a confidential basis 10 days later who is dealing with Woolworths. Unbelievably, despite the national attention placed on the appalling conduct of Coles, Woolworths was engaging in the same conduct.

The current provision is simply not working, and frankly it is disgraceful that the Labor Party is not supporting a change in this provision. We are seeing the Labor Party saying one thing and doing another. Our government recognises how important small businesses are and we recognise how important competition law is in making sure that they can operate on a level playing field.

This alliance recognises that section 46, as its proposed change—I think the proposal is that a corporation that has a substantial degree of power in the market shall not engage in conduct that has the purpose, effect or likely effect of substantially lessening competition in that or any other market, known as the effects test—moves Australian law closer to international best practice, which prohibits unilateral conduct by a dominant firm that has a harmful effect on competition.

Small business is the engine room of our economy. We have seen right across the farming sector, food processors, agriculture and particularly in regional Australia how important it is to make sure that small business can thrive in the market. We have seen a situation in the market, particularly in the grocery and supermarket sector, where that is simply not happening. We need this change in our law. It is very important to give consumers the choice, to give consumers the right to access the lowest prices and to ensure that we look after small business—something the Labor Party has fundamentally failed to do.

See this speech in context