The climate is now right for Australia to embark on a third wave of competition and consumer policy law reform, ACCC Chairman, Mr Graeme Samuel, said today.*
"Australians are currently experiencing a difficult period as the cost of living increases," Mr Samuel said. "But this is not the first time we have experienced such pressures."
Similar pressures had been felt in the early 1970s and 1990s and governments had responded by "unwavering campaigns of competition reform and opening previously closed markets to increased competition."
"These reforms sparked a period of unprecedented growth and prosperity in Australia, directly increasing the spending power and earnings of millions of citizens.
"The time has now come for Australia to embark on a third wave of competition and consumer policy reform."
The proposed reforms already foreshadowed to the Trade Practices Act 1974, include changes to the misuse of market power and predatory pricing provisions, legislating against so-called creeping acquisitions, the introduction of criminal sanctions for cartel conduct and reforms to the whole framework of consumer protection.
Mr Samuel said it was "difficult to estimate, but unfortunately easy to underestimate, the significance of the changes proposed.
"The Productivity Commission has estimated that its recommended changes to the consumer protection framework alone would result in a net gain to the community of between $1.5 and $4.5 billion a year – a potential saving to every household of up to $542 every single year.
"This is not an easy time for many Australians. Many households are justifiably upset to see costs they cannot control, rising on a daily basis. They are right in demanding that their legislators do what they can to address these issues.
"But it is important to realise there is no silver bullet solution that can suddenly reverse rising costs. If there was, governments would have used it long ago.
"In the struggle to contain costs and improve basic standards for Australian consumers we need to remember where the biggest savings come from and ensure our focus remains firmly on getting long term reforms right. In dealing with immediate arising concerns we must also not forget the ways we have achieved success in the past.
"The best way to put more money back into the pockets of everyday Australians is to ensure we deliver them the most competitive environment we can, where they can effectively exercise their right to choose the cheapest and best quality goods and services on offer."