Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I move:

That the Senate—

(a) notes that:

(i) the Harper Review into competition policy called for the introduction of an effects test in relation to the misuse of market power,

(ii) supporters for the introduction of an effects test include the National Farmers’ Federation, and the newly-formed Independent Business Alliance for Competition made up of the Council of Small Business Australia, the Australian Retailers Association, Fresh Markets Australia, the Australian Newsagents’ Federation, the Australasian Convenience and Petroleum Marketers Association and the Master Grocers Association, and

(iii) the National Party unanimously passed a motion at its National Conference calling for the introduction of an effects test; and

(b) calls on the Government to bring forward legislation that amends Section 46 of the Competition and Consumer Act 2010 to introduce an effects test so as to better protect farmers and small business owners from anti-competitive conduct.

I seek leave to make a short statement.

Stephen Parry (President) Share this | Link to this | Hansard source

Leave is granted for one minute.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

The government's own Harper review recommended an effects test. This effects test is a change to legislation that will help make a more level playing field in terms of competition policy in this country. It is about standing up for small businesses and farmers against potential abuses of market power by big business. This has long been sought after by a number of stakeholders across this country. I note that Minister Barnaby Joyce said to the media yesterday in relation to the change of prime ministers that he wanted the National Party to be taken seriously by the Liberal government. This is an opportunity for the National Party to be taken seriously and to stand up for what they believe in, in this chamber—cross the floor and vote with the Greens and other parties to support an effects test.

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I seek leave to make a short statement.

Stephen Parry (President) Share this | Link to this | Hansard source

Leave is granted for one minute.

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

The Harper review has considered the operation of the misuse of market power provisions as part of a broader examination of the competition framework and put forward the possible changes. The government is carefully considering its response to the competition policy review undertaken by Professor Harper. Among its 56 recommendations, the review made a strong case for amending the current misuse of market power provisions so that it aimed at a corporation with substantial market power from engaging in conduct that substantially lessens competition. The review found that Australia's current misuse of market power provisions had proven unworkable in practice. According to the review, without an effective misuse of market power provision, large powerful companies can undertake particular activities to the detriment of consumers. Harper's proposed reframing of section 46 seeks to address this. A formal government response is expected to be released in the last quarter of this year.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

I too seek leave to make a short statement.

Stephen Parry (President) Share this | Link to this | Hansard source

Leave is granted for one minute.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

I will support this motion because, as Senator Whish-Wilson said, it was something that was passed at the National Party conference on the weekend. Competition law is a very important part of our laws, because they allow and make sure that small businesses have the opportunities to compete and threaten big businesses. Without an effective competition law, big businesses will not be threatened but will be a protected species, and that will not be good for our market economy. The National Party has a strong and proud history of standing up for small business.

We were proud to support the government's root and branch review of the competition policy legislation and, as Senator Whish-Wilson has outlined, one outcome was a suggestion to reform and change section 46 of the act. While there are some issues around those changes, in broad terms the National Party does support these changes and we are happy to vote with Senator Whish-Wilson on this motion.

Stephen Parry (President) Share this | Link to this | Hansard source

The question is that the motion moved by Senator Whish-Wilson be agreed to.