Anne Stanley (Werriwa, Australian Labor Party) Share this | Hansard source

I rise to make my contribution to the Competition and Consumer Amendment (Fair Go for Consumers and Small Business) Bill 2024. The purpose of this bill, as evidenced by its name, is simple: it's about ensuring that Australians, whether they are consumers or small-business owners, are treated fairly in the market. Buying an airline ticket for a holiday, finding a better phone or internet plan, shopping for groceries, a small-business owner signing a contract with a large corporation—all of these activities should be underpinned by the simple principle of competition.

It's simple: competition between firms lowers prices and provides Australians with the best possible prices and services. However, this is not the reality that Australians have been experiencing, especially over the last few years. Every day they are feeling the effects of anticompetitive behaviour. Both consumers and small businesses are feeling it. Unfortunately, that feeling is justified. There are too many examples of anticompetitive behaviour by large firms, and there's been a marked decline in competition over the past few decades.

This rise in anticompetitive behaviour has coincided with an increase in the concentration of market power across Australia. In October 2022, the Treasury Round Up article 'Competition in Australia and its impact on productivity growth' highlighted the declining competition in the economy. In 2001-02, the largest four firms in each industry made up a total of 41 per cent of the average industry sales. In 2018-19, that had increased by two per cent to 42 per cent.

Another metric that confirms the rise of market power is the concentration of incumbency. Incumbency is the percentage of the four largest firms in an industry that have maintained their market share after two years. This metric also increased, with approximately 75 per cent of those four largest firms in each industry still leading in 2018-19 when compared to 2016-17. The two-year comparison rate increased from 2001 to levels of around 71 per cent, and the four-year incumbency rate also increased over a similar period.

Another measure of market concentration is one that will sound incredibly familiar to most Australians: mark-ups—that is, the difference between the price of a product and a corporation's production cost. This increased by six per cent between 2003-04 and 2016-17. This all points to an increase in market concentration, which in turn affects competition, drives inequality, hurting the vast majority of Australians.

The 2016 paper on the subject by the now Assistant Minister for Competition, Charities and Treasury, and Adam Triggs noted that over half of Australia's industries are concentrated markets. It stated:

Concentrated markets are not solely responsible for rising inequality, but it seems likely that they have played a part in the steady rise in inequality over the course of the past generation.

Government has a responsibility to ensure the rules and regulations that govern markets create competition for the benefit of all Australians. Since the 2022 election, we've been working to ensure that Australia's competition laws and policies create that environment. We've increased the penalties for breaches of competition and consumer laws, so that fines are not just seen as a cost of doing business but are a legitimate deterrent; established a competition task force to foster greater dynamism in the economy; and strengthened protections against unfair contract terms, to help small businesses and consumers when they negotiate with big businesses.

Recently, the Albanese government has commenced several inquiries into the supermarket sector. We appointed the former competition minister, Dr Craig Emerson, to lead the review into the food and grocery code of conduct, to ensure that the supermarket sector is working the way that it should. We have directed the ACCC to monitor and investigate pricing and competition in the sector. The Albanese government has been clear: Australians should not have to pay any more than they should for their groceries, especially when supermarkets are getting cheaper prices from farmers. The government has also taken further measures to increase transparency, not only in the supermarket sector but across the economy, by funding consumer group CHOICE to provide quarterly price transparency and comparison reports for three years.

The bill being debated today will add to the list of measures that our government has taken to strengthen the framework of Australian competition laws. Currently, anyone can make a complaint to the ACCC, and each year the ACCC receives a large number of complaints which require it to prioritise and be selective in what matters it investigates. That process is reviewed each year to ensure the ACCC is functioning effectively. However, advocates have long called for a system that allowed designated complainants to bring matters to the attention of the ACCC.

In the last election the Albanese government promised to establish such a function, as part of our commitment to improve competition. This bill delivers on that promise and establishes a designated complaints function within the ACCC. The bill will empower the minister to designate entities as designated complainants. They can be individuals, corporations or incorporated associations, allowing for a broad range of entities and an opportunity to advocate for and represent the interests of consumers and small businesses. There will be requirements that applicants must meet to become a designated complainant, and there are certain compulsory criteria that the minister must take into consideration, ensuring that only those that will genuinely represent the interests of consumers and small businesses and those that will act with integrity are approved.

The minister may also prescribe additional discretionary approval criteria to ensure flexibility and high standards when determining an entity's application. Once approved, designated complainants can bring to the attention of the ACCC evidence of significant or systematic market issues that will require the ACCC to issue a public response. The ACCC will be required to respond to the designated complainant within 90 days and inform the designated complainant if they will or won't take any action. If the ACCC issue a further notice, they must endeavour to commence action within a maximum of six months. Any actions taken by the ACCC will be based on their existing powers and may include education, research, compliance, enforcement action or a combination of all of them.

Importantly, this bill will include several transparency and accountability measures around the designated complaint mechanism. Both the minister and the ACCC will be required to publish information on either the department or the ACCC's website. That includes the minister's determination of an entity's application to become a designated complainant, a revocation of an application, publication of an action or no further action notices, and details of the proposed action in relation to the complaint.

Since the early 2000s, Australia has had a growing crisis. Throughout the economy, there have been increases in market concentration, increases inequality and a decrease in competition. The Albanese government are committed to reversing these trends and we are committed to ensuring that we have a more dynamic economy, one that allows for new entrants into the market, allows for competition, and one that benefits all Australians. This designated complaints mechanism detailed in this bill is another step in fixing the issues of our competition laws and policies. It will help the ACCC and the government identify significant and systematic issues within the economy so that action can be taken and the market operates as it should. I acknowledge the work of the assistant minister in this area. He has written extensively on the issues of competition in Australia and has worked tirelessly on policy solutions to fix these issues. I commend the bill to the House.

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