House debates

Wednesday, 28 February 2024

Bills

Competition and Consumer Amendment (Fair Go for Consumers and Small Business) Bill 2024; Second Reading

10:04 am

Photo of Graham PerrettGraham Perrett (Moreton, Australian Labor Party) Share this | Hansard source

I rise in support of the measures proposed in the Competition and Consumer Amendment (Fair Go for Consumers and Small Business) Bill 2024, introduced by the honourable Assistant Minister for Competition, Charities and Treasury. I do not support the amendment put forward by the member for Hume. The establishment of a 'super complaints' function was a key component of the better competition election commitment that we took to the Australian people in 2022. This bill is honouring the commitment by creating what we now call the designated complaints function within the Australian Competition and Consumer Commission. The Albanese Labor government is taking action to support consumers and small business to get a fair go. The Competition and Consumer Amendment (Fair Go for Consumers and Small Business) Bill 2024 ensures the development and implementation of a designated complaints framework, meaning consumers and small businesses are not left behind or disadvantaged. Once again, the Albanese Labor government has the backs of consumers and, more importantly in this instance, the backs of small business. At a time when Australians are facing tough cost-of-living pressures, this is vital work. We have seen too many examples of consumers and small businesses not getting a fair go. You only have to look at airfares, the weekly grocery shop or the price of mobile phone plans.

The amendments in this bill are a continuation of the work the Albanese government has done to improve Australia's competition laws and policies. We're making things fairer for consumers and for small businesses. Why? Because small businesses are critical to our economy and to our communities. They're so much more than the services they provide or the goods they sell. They're deeply embedded in the community. They employ local staff. They support the local school fete. They promote a sense of community that brings people together. They support local sporting clubs. To small businesses, customers are not just numbers on a spreadsheet or some data to be given to the ASX; they're highly valued and at the core of their service. Contrast this with the big-name brands, who, at a time when Australians are feeling the pinch, continue to increase prices and profits—although I did notice that one of the big two has taken a bit of action now that the Senate has kicked off an inquiry. Enabling a fair go for consumers and small businesses ensures that all Australians benefit from increased competition, and it's why the Albanese Labor government has focused on these necessary improvements. We know that robust competition is a driver of economic growth and that competition fosters innovation, whereas uncompetitive markets stymie growth and fairness.

The Albanese Labor government has already been hard at work to make things fairer for consumers and small businesses. There are now increased penalties for breaches of competition and consumer law. We've made it harder for big companies to dominate the market using sneaky tactics. We have increased the penalty for anticompetitive behaviour from $10 million up to $50 million, deterring corporations from unscrupulous dealings. We've created a level playing field when it comes to negotiations between big companies and small businesses and consumers by strengthening protections against unfair contract terms. Businesses can now face large penalties for including unfair terms in contracts, as opposed to merely having the terms declared void.

To directly address cost-of-living pressures, we're scrutinising the supermarket sector. Former competition minister Dr Craig Emerson will lead a review of the Food and Grocery Code of Conduct to ensure that the supermarket sector is working as it should and that prices are fairer both for suppliers and at the checkout. Hopefully, they will do their bit to ensure that there's less waste in the supermarket sector. I'm convinced that some of the practices that the big companies take with their farmers mean that they're having to plough stuff in because they can't strike a bargain, and it's creating unnecessary waste in the agricultural sector.

Crucially, the Albanese government has directed the ACCC to investigate pricing and competition in the supermarket sector for the first time in a decade. Hardworking Aussie mums and dads feeling the squeeze need to be sure they're paying a fair price to put food on the table for their families every night. Labor has also granted ongoing funding for three years for the consumer group Choice to provide quarterly price transparency and comparison reports. These reports will provide cost comparisons, empowering consumers to make informed choices about the purchasing of essentials. Thank you, Choice, for the great work that you do. The government has established the Competition Taskforce to foster greater dynamism in the economy, with a focus on competition, innovation and wage growth. The taskforce will be examining merger laws and non-compete clauses, which can deter workers from moving to higher-paying employment. With this bill, we're building on this extensive work and delivering increased protections for consumers and small businesses.

The bill enables designated complainants to put forward evidence of significant or systemic market issues to the ACCC in a timely and transparent way. The development of the designated complaint function and prioritising complaint handling highlight just how important the issues of consumers and small businesses are to the ACCC. Designated complainants are approved by the minister. It may be a corporation, an individual or an unincorporated association and includes groups that represent the interests of consumers or small businesses. These advocate organisations have a key role in promoting emerging issues.

In 2021, the ACCC ordered Telstra to pay $50 million in penalties for breaking the law in its sales tactics with Indigenous customers. The issues were first raised with the ACCC by financial counselling groups and advocates such as the Bush Money Mob. Other successful ACCC enforcements have come about through advocacy from organisations such as Legal Aid New South Wales, the Consumer Action and Law Centre, and the Australian Small Business and Family Enterprise Ombudsman. As the ACCC chair, Gina Cass-Gottlieb, said, 'A number of our successful compliance and enforcement outcomes have come about from referrals to us by consumers or small businesses and advocacy groups. This proposed measure will provide an official avenue for this information and hence cultivate research and advocacy.'

To fit the criteria for the new designated complaints function, the complaint must be related to a significant or system market issue affecting consumers or small businesses and it must be related to a breach of the Competition and Consumer Act or the ACCC's powers under the act. Once a complaint has been brought, the responsibilities of the ACCC include assessing the complaint at first rush, publicly providing a response and notifying of any action within 90 days. If action is pending, it must start in a timely way as soon as is practicable and definitely within six months. This will be an improvement on the current complaints process within the ACCC, where, due to the volume, complaints are categorised and actioned by the watchdog in order of urgency. The separate channel proposed by this bill will ensure designated complainants' issues are fast-tracked. The resulting action from the ACCC may include education, research, compliance and enforcement functions or a combination. As the assistant minister said, 'This is good for consumers and it is good for small businesses.'

Labor is committed to transparency and accountability. It is worth noting the minister and the ACCC will have to publish information on the Department of the Treasury and ACCC websites. At a time when public confidence in competition, consumer and fair trading issues has decreased, the establishment of a fast-tracked complaints process will reinforce confidence in the ACCC as a consumer watchdog with bite and will promote that great Australian idea of a fair go for all.

As my colleague the honourable member for Franklin said:

Small businesses work hard, and they deserve to be heard. We are fulfilling our commitment to give small businesses and their representatives better opportunities to have their concerns addressed quickly.

It is also sustainable measure, as the minister may cap the number of the designated complainants and the number of complaints submitted in a specified period. This ensures the ACCC can undertake the work within the required time lines while maintaining all that crucial enforcement work. It will also encourage designated complainants to consider the type and quality of the complaint before making a submission.

This is all part of the Albanese government's broad efforts to boost competition and put downward pressure on prices for Australians. Consumers need competition; it is the easiest way to reward Australians. Without it, prices are higher and, significantly, productivity is lower. A lack of competition also unfairly affects the vulnerable, with increased opportunities for monopolies to gouge these vulnerable customers. I'm proud that Labor will fight for consumers and fight for small businesses and the great work they do in communities. This bill has broad support from stakeholders, including industry bodies, organisations and consumer groups. It is expected the first designated complaint will be able to be lodged with the ACCC, all going well, from July this year. I commend the bill to the House.

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