Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

My question is to the Leader of the Government in the Senate, Senator Abetz. Can the minister outline to the Senate what steps the government is taking to address imbalances of market power between supermarkets and suppliers?

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

I thank Senator O'Sullivan for his question and his longstanding interest in the issue. The government has recently introduced the Food and Grocery Code of Conduct to provide extra protections for suppliers in their commercial dealings with supermarket retailers and grocery wholesalers. The Australian Food and Grocery Council have said:

We congratulate the Government for progressing the Code as an industry-led solution to problems impacting on suppliers and consumers.

And, 'It is a historic day.' The code has three core objectives: to improve clarity and transparency for suppliers, to improve the standard of business conduct and to provide fair and effective dispute resolution.

The code will provide protections to suppliers above and beyond those already in the Competition and Consumer Act, including a reasonable test with the burden of proof squarely on the retailer or wholesaler to establish these circumstances; broadening the good faith obligation to ensure consistency with the common law; improve dispute resolution processes; improved record-keeping obligations; provision for free freedom of association for suppliers, allowing them to have a forum to discuss matters without the risk of adverse consequences if they decide to do so; a tailored regime for wholesalers; and, finally, a review of the code after three years to assess its effectiveness in addressing sectoral concerns and to consider the need for more stringent protections.

These changes that we have outlined are clearly being well received within the community and I congratulate those on the coalition side who have worked so hard to achieve this result.

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Will the minister detail to the Senate what additional powers the Australian government will provide the ACCC to investigate supermarket treatment of suppliers under the new voluntary code of conduct?

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

The food and grocery code outlines new reporting and record-keeping obligations on retailers and wholesalers. This provides the ACCC with more efficient ways to instigate further inquiries and request that these documents be provided to it for inspection to assess compliance with the code using its audit power.

Senator Conroy interjecting—

Under the code, the ACCC can access such information and documents that go to the heart of how suppliers are being treated by retailers in a much faster and more reliable way than was previously possible. ACCC chair Rod Sims said, 'The new code makes it clear that no matter how much bargaining power a retailer holds, they must deal with their suppliers fairly.'

That is something we on this side fully agree with and, from the interjections from Senator Conroy, one suspects that the Australian Labor Party does not. (Time expired)

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

A darn fine answer, Minister. Mr President, I ask a further supplementary question. Will the minister further detail how the Australian government is reviewing Australia's Competition Law policy and institutional framework to help strengthen our important small business and farming sectors?

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

The government understands that effective competition is a vital element of ensuring a strong economy that allows small business to grow and prosper and thereby create jobs. That is why the government has commissioned a wide-ranging independent review of Australia's competition policy. This is the first comprehensive review of these laws and the institutional framework underpinning them in 20 years and delivers on yet another key election commitment by the coalition. The review's draft report was released last year and canvases a wide range of issues of interest to the small business and farming sectors. This includes the operation of misuse of market power, access to justice and remedies, and flexibility for small businesses such as farmers to collectively bargain with larger businesses. This is all about strengthening our economy and growing jobs for the future. Mr President, I ask that further questions be placed on the Notice Paper.