Graham Perrett (Moreton, Australian Labor Party) Share this | Hansard source

I rise to speak on the Competition and Consumer Amendment (Misuse of Market Power) Bill 2016. And just before I get into the substance of the legislation, for the benefit of those listening I want to explain parliamentary processes. There is normally one speaker from the government side and then one speaker from the opposition side. I just want to be clear that I am a member of the Labor Party speaking now. The previous speakers are actually speaking on behalf of the government about the Competition and Consumer Amendment (Misuse of Market Power) Bill. I say that up-front, because I just want to be sure that people understand what the government is proposing.

I remember—not ancient history, but I remember—a government that said 'We will be elected on a platform of jobs and growth.' That was what they talked about. And the other big thing, the great vision of the Abbott-Turnbull government, which they articulated over three years—and I remember the speeches from those opposite—was about red tape reduction. That was their great vision for the 21st century: jobs and growth, innovation and red tape reduction. Well, what do we have here? This bill that the government members are speaking in favour of does exactly the opposite of what the Abbott-Turnbull government promised. It will deter job-creating investment in Australia.

What does this bill do? It introduces the effects test into the Australian consumer law. To be clear, this is an additional test to the current purpose test already in section 46 of the Competition and Consumer Act. Yes, it is correct. The Liberal Party is advocating more red tape when it comes to consumer law—yes. That is why I wanted to be sure that people at home who were listening understood. And what are the dangers associated with this economic policy? Surely if it is designed to protect consumers it would be worth having a look at, because all sensible governments will look at things that protect consumers and also obviously have a look at our agricultural producers.

I will go to the words of a former Liberal Treasurer, pretty well known. I think he was in the job for about 12 years. He did not quite have the ticker to go to A grade but as a Treasurer he had 12 years of experience. He is the pin-up boy for the Liberal Party. Former Treasurer Peter Costello has said:

The so-called effects test is designed to protect competitors, particularly less efficient ones, from a competitive challenge.

That is Peter Costello.

Well, let's have a look at what this legislation means for businesses. It is not the purpose for which a business undertakes an action but the effect that the action has on competition. For example, a retail chain wanting to expand by opening a new store may very likely be advised by their legal team that taking that step—a step that would create new jobs—might attract litigation under the effects test. Businesses would need to think twice before undertaking any capital expenditure. That would cost hundreds of construction jobs and ongoing retail jobs each time a business decides it is not worth the risk.

Wesfarmers—and I declare up-front, as I do on my register of interests, that I have shares in Wesfarmers, as many mums and dads around Australia do—the largest employer in Australia, each year looks at 20 new Bunnings warehouses, 30 new Coles supermarkets and 20 new Kmart stores. Richard Goyder, the managing director of Wesfarmers, wonders how this proposal to change Australia's consumer laws will affect the growth of their company. And remember: Wesfarmers are an international business, with Bunnings stores in the United Kingdom and beyond, so they know how to compete on the world stage. Richard Goyder said:

… does that mean now every time we have a capital expenditure proposal come to us that we've got to look at the likely effect on competition?

I know there are problems with Coles and Woolworths in terms of selling food and grocery items. And I know that, wherever there is competition in a suburb, Coles and Woolies will actually be cheaper; so the competition is a good thing. But we have to be very careful about bringing in expensive red tape.

Even small business is concerned about this proposal that the party of markets has put to the chamber. The Council of Small Business Australia has raised concerns that the laws will lead to a lawyers' picnic, as litigation around the meaning of the wording could lead to complex court cases. I am all for lawyers having a job, Mr Deputy Speaker Vasta, and I know your family is well connected with Brisbane's legal fraternity. But we have to invest in markets that produce lower prices wherever possible. Small businesses are the ones who are supposed to benefit from this crazy policy straight out of the Deputy Prime Minister's thought bubble. But even small business thinks it is a crazy policy.

As I said, the only people who will benefit from this legislation are lawyers. And I do not have anything against lawyers. I see a few of them in the chamber. I would not say a bad word against them; they do a valuable job. But it is bound to cause a raft of litigation. Obviously lawyers have to work, but why create extra red tape—especially when you have retailed your politics to the Australian people for so long, in the 45th Parliament, saying that there are going to be red-tape-reduction days with celebrations throughout. And now you are bringing in more red tape.

Sadly, what does red tape mean? I do not want to quote back to them those speeches that I heard day after day from those opposite, but red tape means that the real losers in this policy will be the consumers—the mums and dads who are already battling to put food on the table each and every week, as we see a 75-year rise in inequality and wages growth at the lowest level of increase since they started measuring wage growth. So we know families are doing it tougher. Why would you bring in more red tape so that every food item you buy is going to be more expensive?

On the day the policy was announced, the Deputy Prime Minister, Barnaby Joyce, said that selling milk for $1 a litre was too low and the price should be higher. Obviously, this was the National Party looking after dairy farmers. That is a good thing. We all do what we can to support our dairy farmers in terms of buying milk. But, in the same press conference, he said that in China Australian milk sells for up to $11 a litre. So how much does the Deputy Prime Minister think Australians should pay for their milk?

See this speech in context