Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

My question is to Senator Sinodinos, representing the Minister for Small Business. Since July 2012 the Australian Competition and Consumer Commission has been conducting an investigation into fuel discount shopper dockets used overwhelmingly by Coles and Woolworths. In July this year ACCC chairman Rod Sims said:

The ACCC believes this activity is likely to have a negative effect on competition in the petrol industry. Over time, higher petrol prices could be the result.

Can the minister advise when the inquiry is likely to be completed and whether the inquiry is also looking into the effects on the independent grocery sector and grocery prices as well as the fuel sector? Can the government indicate what extra resources have been or will be provided to the ACCC to expedite the completion of this important inquiry?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

I thank the senator for the question and for giving me notice of the question.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

Is it the Greek access?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

No, no, it is not the Greek access; it is the Greek caucus! The government is mindful of the impact that shopper docket fuel discount arrangements can have on consumers and on competition amongst industry participants. We are mindful that it is a complex issue and there is a balancing of considerations. We need to can ensure that the right balance is struck for the benefit of all Australians.

The ACCC is assessing the expansion of shopper docket fuel discount arrangements. While the ACCC investigation at the present time is limited to the purpose or effect of the fuel-saving offers in a relevant retail fuel market, it is envisaged that, should any court action be taken following the investigation, the consequences are likely to extend to the retail grocery sector. I understand the chairman recently announced that the ACCC investigation is expected to be finalised this year. The matter of resources as such does not apply in this case. The matter of resources applies to the ACCC generally, but not to this particular case.

Regardless of the outcomes of the ACCC investigation, this is one of many issues that will be considered as part of the root-and-branch review of competition that this government committed to at the election. The review will be an independent examination of how the competition framework is working and whether it is keeping up with emerging trends. It will be looking beyond the competition framework to identify impediments to competition, with the goal of improving the living standards of all Australians. Most importantly, this review is not restricted to the functioning of the competition laws but extends to broader issues, including regulatory impediments for competition, the impact of concentration and vertical integration in key markets, dealings between small and big business, and government involvement in markets. All stakeholders, in particular small business, will have multiple opportunities to engage with the review and provide input. Further details about the review will be released in due course.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Does the minister share the concerns expressed by groups such as the Master Grocers Association that these predatory discounts offered by Coles and Woolworths will have the effect of driving smaller competitors out of business, which will ultimately reduce competition in the fuel and grocery sectors? There are a number of small businesses I have spoken to who say that they are on borrowed time—that the competition review may be too late for them because of these predatory discounts.

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

I can assure you, Mr President, and through you the Senate that the government recognises the important contribution that small business is making to local communities and the economy more broadly—competing not only on price but on the quality of goods and the convenience, location and services that they provide. We understand that effective competition is a vital element of ensuring a strong economy that allows small business to grow and prosper. As indicated in my previous response, we will be undertaking a root-and-branch review of the competition framework, and that will, in turn, comprehend the sorts of issues that you are raising.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. On 29 July this year Mr Sims also said:

The ACCC has no power to ban shopper dockets offers.

Does the government consider the ACCC should have this power if the effects of shopper dockets are likely to be anticompetitive and, in turn, damaging to small to medium businesses; and does is acknowledge that there are already small and medium businesses that have been driven out of business directly as a result of these predatory discounts?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

While the ACCC has no power to ban shopper docket offers, as an enforcement body the ACCC can investigate market activity and, where appropriate, it can take court action seeking injunctions to stop the conduct and seek penalties in appropriate cases. That is why we have a comprehensive policy as a government for small business to restore confidence, encourage growth and drive employment and innovation. We are abolishing the carbon tax, cutting red tape, removing structural impediments to competition, and changing the culture of government so that small business can grow and employ more people.