Bernie Ripoll (Oxley, Australian Labor Party) Share this | Link to this | Hansard source

At the outset of my contribution I want to make a few things clear. One is my great support for football in Queensland. It is a great code and a great sport. Soccer—football—has one of the highest participation rates of any sport in Australia if not the world. Particularly for young players, juniors and kids it is a big part of their sporting life and upbringing. It was for me as a youngster and it was for my kids when they were a bit younger as well. In fact, I think it even goes deeper. On any weekend you can go out and see countless numbers of fields being used by young people playing football—soccer to the uninitiated—and it is truly a great code. Like all great codes, of course, it has associations at state and federal levels. It is made up of a range of people—mostly parents and volunteers—who put in an enormous effort, their own time, resources and money, ensuring the code succeeds and delivers on its charter. There are also paid people in associations, chief executive officers and other people, with different responsibilities and different roles.

I am a big supporter and I brought this forward because of that and because of my concern for a number of years that there are some issues in that Football Queensland has a special exemption on competition from the ACCC, the Australian Competition and Consumer Commission.

Football Queensland Ltd is an Australian public company. It is limited by guarantee and is responsible for the administration of football in Queensland, including the collection of national fees on behalf of the Football Federation of Australia. It covers all of Queensland. It is in nine regions, which is great, right up and down the state from the most remote areas to the metropolitan areas around Brisbane. Again, we all support that. We think it is a great thing. There are approximately 340 clubs. It is quite big. There are 66,000 players participating in Football Queensland, so it is a big code and I am a big supporter. I have got many local clubs myself.

Of note, interestingly—and I will come back to this—from 2008 to 2010, the total number of players has actually gone down. I do not have an explanation for that. It has only gone down a little but still it is an issue and something that we ought to look more closely at. We all support young people, seniors and female players being involved in the sport.

Football Queensland lodged notification on 28 April 2008 asking the ACCC for a special Football Queensland teamwear program. The ACCC gave a special exemption to Football Queensland from prosecution, so it would not need to abide by the normal laws and regulations that other codes, businesses or anyone else in the community have to on the basis that it would do a number of things. In particular, Football Queensland's teamwear program was likely to—and this is what Football Queensland said—generate some benefit through ensuring a minimum quality standard for teamwear products. This is commendable, as it should. It would generate revenue through suppliers paying the FQ licence fee, fees and royalties and so forth. The extent of damage this would do in terms of the extra costs built in for football players would be outweighed by the public benefit. They said they would do that as well. Licence fees payable, while they are a public detriment, would be passed through to clubs and would be minimal. Football Queensland said that no clubs had complained about the apparel costs when they increased.

In March 2010, the ACCC received a complaint regarding the teamwear program and has been pursuing a number of issues with Football Queensland. That there had only been one complaint, Football Queensland stated at the time that that justified the program and there was nothing wrong with it. Unfortunately, a number of people disagree. I am one of those people who have written to the ACCC and have been following this up. I believe that the teamwear program damages the code. It damages the code by increasing the cost to players, and perhaps one reason—there may be others; I do not have any evidence of this—why numbers have been steadily falling since 2008 is cost.

It is expensive to play; I think we all agree on that. In the end, we all agree that we want to make it affordable for young players. We want to make it affordable for families and that, where special exemption is granted from the ACCC, it meets the objectives. The whole point is you get an exemption based on a number of objectives.

Football Queensland did a survey requested by the ACCC and only five submissions were returned: three from existing licensees who supported the program, as you would expect because they are in the program, but only two from associated clubs who did not like the program. They thought it would be better to levy the players directly and it would be cheaper for them. There is certainly plenty of evidence that that would be the case. The board concluded from the lack of response that there was a general satisfaction with existing arrangements. I would actually say that rather than satisfaction there was perhaps disinterest or a view that their views may or may not have counted. Again, I do not have evidence of that but you cannot have it both ways. You cannot say that it is because of one thing unless you can confirm it. So I am not prepared to say why that is the case.

But of real interest and of real significance is that the ACCC has now given a draft notification in respect of Football Queensland's exemption to revoke that exemption. There is a fairly hefty document, and this has been the subject of a couple of years of review by the ACCC, which actually says that Football Queensland has failed on the counts that it is meant to meet. Football Queensland, by having its third line forcing conduct, actually distorted demand and supply and made equipment more expensive. It actually did not improve quality but diminished quality, and did not follow through on its claim that it would ensure quality by perhaps going out to the market and testing it. Rather it said that it was the end user who would test that quality and give feedback through to Football Queensland. That has not happened. It has created a number of distortions in the way that the licensing takes place. And it created a false market. Football Queensland's view is that the market is not unique or special in any particular way. Others would disagree. But most importantly it is the ACCC that disagrees rather than me. Football Queensland submits that the teamwear program delivers public benefits, including ensuring a minimum standard of quality, timely supply of teamwear, apparel and equipment, the promotion of the game image, the promotion of the FQ brand and the generation of income for Football Queensland. It certainly generates income for Football Queensland; that no-one argues. But on all the other counts it actually fails. The ACCC agrees that it does not meet its objectives.

The reason it has taken so long—it has taken two years—is because the ACCC did rightly give Football Queensland time to respond. When Football Queensland was granted a special exemption from prosecution, the idea was that it would, like any other organisation having been granted an exemption, come back with a follow-through on that exemption—an explanation and evidence based on what Football Queensland had said it would do. Football Queensland did not do that and to date has still not done that. There is now a process in place to revoke that special exemption.

When I first spoke about this in parliament—and I am not the first member of parliament to speak about this, either, or the first person from the community to have a view on this—I did say that I was disappointed. I am disappointed because I think that Football Queensland, like any other peak body, has a special responsibility, a special role in our community. They have a special responsibility not to me, but to the players, to the teams, and to the clubs. It is price sensitive and we have to do everything we can to ensure that we deliver value, quality, minimum standards and all the rest of it. If you are going to claim to do that, then do it. That is all; just do it. Do what you are claiming to do; don't do the opposite. That has been the case, and now it is up to Football Queensland to prove to the ACCC that their exemption should not be revoked because right now that is what is happening. The ACCC has said it is going to revoke their special exemption from prosecution because in the way they are operating this program they are not meeting any of their objectives. That is the concern for me.

I think there is an opportunity here because Football Queensland is made up of good people, and a good board. I think it is just a matter of them actually getting their house in order, getting their ducks in a row, and getting on with the job of what they are meant to do on two fronts. One is in addressing the ACCC concerns so they do not have their exemption revoked. I do not want that to happen unless it is the best thing for the code. I should not be the arbiter or the judge of these things. When people read the document by the ACCC they will understand the extent to which Football Queensland has failed the code, failed the clubs and failed the players.

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

I rise to speak on this motion as well. Whilst not discounting the previous speaker's motives at all—I think in this House we are all in favour of sporting organisations, of proper administration and of our children and our friends playing sport—but I do not support the member's motion. To look at these sorts of things without taking the holistic view is to promote ambush marketing. Football Queensland's licensing scheme has been running for around 30 years and has been proven to be a successful arrangement. Licensing policies such as this one are standard and are in use in several sporting bodies across Australia.

The previous speaker, the member for Oxley, spoke about cost. It is true that as a parent with two children currently in sport, it is a big cost. Basketball is by far and away my biggest concern in the city of Townsville. I am with the member for Oxley; it still is soccer to me. I ran a rugby club in my youth and I know the very real financial pressures on all clubs at all times, and the opportunity to save money at any time can never be ignored. This, I am afraid, is a very small-picture response. What this thing does is provide Football Queensland by licensing these things with another source of revenue, allowing them to reinvest in the sport, including at a junior level—especially at a junior level—and helping them to keep club fees as low as humanly possible. We all know the cost of insurance; we all know the cost of these things that have gone up exponentially. It also allows for the proper paid and professional administration at the highest possible level, and that is where a game will change. That is where a game will go into the 21st century. If you think about where the Queensland Rugby Union was in the 70s and 80s, we were a fantastic team but as a code we were being held back administratively. I think everyone will agree now that the administration of the Queensland Rugby Union is a lot better. I am not sure that the FFA will stand up to that tonight.

I have discussed this motion with Townsville Football and Helen Stalin, who is the administrator and life member of Townsville football, and they have no issue with it. Townsville and North Queensland as a region have a wide range of supplies that are licensed with Football Queensland and through these suppliers clubs are able to choose from a range of different price and quality levels when selecting apparel manufacturers. My son plays for Saint Sand Crabs. They were unlucky on the weekend but football was the winner: they lost one-nil. Of course my son played absolutely brilliantly. They looked sharp and everyone out on the field looked sharp. I helped out with the trophy presentations and medal presentations because it was the end of the junior season in Townsville. To see the kids there in their match uniforms and their post-match uniforms with all their socks, and as the member for Oxley said, everyone wearing boots and everyone wearing shin guards, it is a wonderful thing to see out there. The kids will get out there and enjoy themselves.

Far from increasing the cost and reducing the quality of apparel for regional clubs as the motion suggests, this scheme has helped foster local football with greater investment and lower club fees without impacting the price manufacturers are charging or their choice of supplier. I congratulate Townsville Football on the job they did in the season just passed with Cyclone Yasi going through Townsville. I take this opportunity to heap praise on Greg Riddington, Helen Stallan and all the volunteers and administration staff at Townsville Football. The damage is still being assessed and it is still being fixed post Cyclone Yasi and the tremendous amount of rain we had in the off season.

One of the great things you do when you are there is when all the under-eights, 10s and 12s kids are standing around you get them to give three cheers for all the parents, coaches and managers. I think that is something we should do in here—have the day of the parent, the coach and the manager who take their time and give of their time to take children to sport, to take other people's kids to sport and to have a great time. To the groundspeople that produce a quality product every weekend for not only Townsville Football but for the Razorbacks and what used to be the Fury before the FFA did the dirty on us, should never be underestimated. I would like to say thank you to Townsville Football for another great season and, which ilst I understand the motives behind the member for Oxley bringing this motion forward, I simply cannot support it.

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

I rise to support the motion moved by the member for Oxley on the Football Queensland licensing scheme. I am proud to say that I can support it and that is particularly tough for me with Football Queensland being based in my electorate. I have looked at this matter and when you have a draft notice from the ACCC you know that you are on the right track. It is unfortunate that the previous speaker, the member for Herbert, was not able to support it.

Every Australian would agree that club sport is a quintessential part of Australian culture. I see a football-playing member of the House opposite in the member for Forde and he would agree that it is arguably more important than the big clubs like the Roar or the Broncos, the Lions, the Reds or the Firebirds. Whilst it is important we have our teams to follow, club sport is going to touch more lives and is more important for our communities. It is a great way for men, women and children to get active, which is important, to stay fit and, more importantly, to learn social skills and to make friends. Sometimes friends we make in junior sport stay with us for the rest of our lives. Sport also teaches us to work as a team, to develop leadership skills and, very importantly, to learn how to lose. I know some people find it hard to accept when they have lost, but it is an important skill that we learn in sport.

Sport does not happen at the local level without many volunteers and coaches who give their time to help keep club sport alive. I particularly thank the coaches for my son's team, the under-6s, playing at El Salvador in Yeronga, and the great work they have done this season. That is why, with all those great features of local sport, the behaviour of Football Queensland seems so insulting to players, volunteers and parents. The ACCC has previously issued a competition law exemption which enables Football Queensland to require its member clubs to use only apparel and equipment from licensed suppliers. Suppliers purchase a licence from Football Queensland to supply gear, and clubs have limited options as to who they can purchase gear from. Known as third-line forcing, this arrangement must pass the public benefit test and deliver significant benefits to players and clubs that outweigh the higher costs of a closed market.

The government believes that competition in markets is the best way to ensure lower prices for consumers. Whether it be football gear or carbon pricing, we do believe in markets. The general rule is to err on the side of competition and, under the Competition and Consumer Act 2010, businesses are prohibited from engaging in anti-competitive conduct. This act also prohibits organisations from requiring a purchaser to acquire goods or services from a particular third party except in cases such as this where the ACCC has issued a specific exemption.

The idea of licensing is that sporting organisations are able to raise revenue through licensing schemes to cover costs of administration and club development. On the face of it, this is good for sport because it does keep the money flowing for sporting administrators. However, as with any restricted market, the limited number of suppliers inflates the cost of football apparel, making it very expensive for those who just want to run around on the footy field. It was never the intention of the ACCC to make sport less accessible, especially in some of the poorer parts of my electorate, and in Australia. If these licensing arrangements are kept in place, it will mean that more Australians miss out on sport because they simply cannot afford the expensive sports apparel and equipment. We all know, if you have got young children, how important it is you wear what everyone else is wearing in sports gear.

The exorbitant licence fees also price smaller suppliers out of the market. Sports administrators are also free to increase licence fees at any time. But Football Queensland is yet to detail the benefits to my community. That is why I welcome the draft notice issued by the ACCC last week proposing to revoke the competition law exemption for Football Queensland. The ACCC are now seeking comments on this draft notice. I encourage Queenslanders to have their say.

Football Queensland also need to open up their books and show how their revenues are being used to benefit the code, particularly at the grassroots level. Is it to line the pockets of administrators? I am sure it is not. I am sure it would be about delivering tangible benefits to the football clubs in my electorate and the electorate of the member for Oxley. I commend the member for Oxley for having the courage to bring this matter to the attention of the parliament and I commend his motion to the House.

Bert Van Manen (Forde, Liberal Party) Share this | Link to this | Hansard source

Along with my two colleagues on the other side of the chamber, I have for many years enjoyed playing the world game. The member for Moreton and I enjoy a social game down on the Senate oval most weeks. It is a little concerning. Like the member for Herbert, I find it very difficult to support this motion because I have not heard any complaints in the over 20 years I have played this game with a number of clubs, including a number of premier league clubs. Certainly not since commencing my current role have I had any complaints from local football clubs or parents. My son too plays in a local football club. It has certainly not been a topic of discussion. Costs have certainly been a topic of discussion, but by far the biggest part of registration costs are for insurance.

The Queensland football licensing scheme has been in force for about the past 30 years. It has allowed clubs to invest more in the junior level of the sport. As my colleagues have noted, it has also been a successful arrangement for clubs nationally. Other sports have also taken advantage of these schemes. The board of Football Queensland continue to view this as a valuable arrangement that allows the organisation to obtain funds from goods or necessities purchased by their members and affiliates that can then be invested into the sport. It also provides funding for a professional administrative organisation.

I readily admit that Football Queensland is not perfect, but what sporting organisation is? It does a fantastic job, with currently 330 clubs across Queensland and also a few in Northern New South Wales. It has a turnover of some $4 million per annum. It also employs 20 people on a full-time or part-time basis in its head office at Mount Gravatt. It is a non-profit organisation, so all of the funds it raises through sponsorship, fees or other things are reinvested into the growth of the world game in Queensland and Northern New South Wales. This scheme has been tried and tested and has provided great investment in local football clubs and has provided lower fees and costs. It not only benefits up-and-coming players and their families but, through the tight control and regulation of the supply of quality apparel, provides a worthwhile additional revenue source for Football Queensland.

This motion intimates that Football Queensland has not been proactive in expanding the range of products available to the clubs. That is actually not the case. Over the past four years the number of suppliers has more than doubled, from six to 13. This indicates to me that Football Queensland is looking to provide an increasing range of options for clubs. The list of suppliers ranges from internationally recognised brands, such as Nike and Adidas, to local suppliers, such as Living Edge Designs and Apparel in Brisbane.

It is important to note that, despite the context of this motion from the member for Oxley, this arrangement was approved by the ACCC in July 2008 and it was based on information provided by Football Queensland at that time. It also followed consultation with a number of clubs randomly selected by the ACCC. The member for Oxley is correct that the current arrangement is again being reviewed by the ACCC, but it is important to note that Football Queensland have sought to cooperate with the ACCC in this review. They believe they have provided all the information that is required and they are more than happy to provide more information if the ACCC wishes them to do so. I spoke this afternoon with the CEO of Football Queensland in that respect. (Time expired)

Debate adjourned.

Sitting suspended from 20:50 to 21:0 2