Big businesses continue to inhibit productivity and innovation

THE Council of Small Business Australia (COSBOA) acknowledges the decision by the government to delay the implementation of changes to Section 46 (regarding misuse of market power) of the competition regulations pending a review.

COSBOA also acknowledges the decision to implement other recommendations from the Harper Review of Competition Regulations.

Peter Strong, CEO of COSBOA, stated today, “We are very pleased to see the major recommendations from the Harper Review back in the limelight where they belong.

“It is pertinent that we focus on developing competition in aged care, human services, intellectual property, roads and other key areas. However, it is of course disappointing that several dominant companies have created enough confusion and fear that we have to delay the important changes needed to Section 46.

“The fact is that the biggest companies Australia has ever seen and their union, the Shop Distributive and Allied Employees' Association (SDA), use their influence and resources to control competition policy to the detriment of productivity, retail diversity and innovation,” said Mr Strong.

"When two major companies have such far reaching influence on producers and manufacturers, innovation is stifled. COSBOA knows this and this is why the changes in Section 46 are vital to ensure we do not develop similar damaging domination in other areas, such as aged care.

“Minister for Small Business, The Hon Kelly O’Dwyer has contacted COSBOA and other key groups and industry bodies to set up a series of round tables to discuss the issues of Section 46 and determine the right changes to make. An outcome is anticipated to be achieved by March 2016,” said Mr Strong.

Small business people can be assured that COSBOA will continue to confront those who spread misinformation and false facts, he said.

“We know that the Business Council of Australia and several of its members, particularly WesFarmers, will now, to the detriment of Australia, attempt to ramp up their lobbying and secret manipulations to get their way. Fortunately we have been assured by the government that all discussions will be open and the decisions will be made with competition, innovation and choice in mind as the outcome.

“COSBOA and its members have said for decades that the current state of competition is unfair and the dominant businesses are killing innovation. Ignored for years, we were finally proven right in 2014 when the ACCC successfully prosecuted Coles for unconscionable conduct towards its suppliers. This is why we need to be heard – to ensure the same thing does not ever happen again. Our innovators need space to do their stuff.

“On the day Bruce Billson, the previous Minister for Small Business, has announced his retirement from politics, it is heartening to see one of his ground-breaking initiatives taken forward,” finished Mr Strong.

www.cosboa.org.au

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