Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Hansard source

I thank Senator Xenophon for the question, and I thank him for the notification to my office about the question and the issues raised. Firstly, yes, I am aware of the announcement, via a press release by the South Australian minister. I have sought detailed copies of the explanation of the amendments. To my knowledge I have not yet received the detail of the amendments, although I am aware of the broad issues they deal with via the press release.

In responding to your question I think it is important to understand that a set of reforms has only just been completed in respect of the franchising code. It is a mandatory industry code established under the Trade Practices Act 1974. It regulates the conduct of participants in franchising towards each other. It requires franchisors to disclose facts to franchisees and to follow set procedures in their dealings with franchisees. They will have more protection following the completion of a recent set of reforms. That transparency and greater certainty results from recent amendments to the Franchising Code of Conduct which took effect from 1 July 2010. So there are reforms that have only just taken effect from 1 July 2010.

Also, I think it is important to note that there will be new enforcement powers for the Australian Competition and Consumer Commission, including audit powers which will commence on 1 January 2011. So I think it is important to understand that there has only just been national legislation. resulting from very extensive consultation, that has only just passed the parliament and new powers to commence—(Time expired)