“Effects test” long overdue, says AUSVEG
Vegetable industry body AUSVEG has welcomed Prime Minister Malcolm Turnbull’s announcement that the government will introduce an “effects test” to address the misuse of market power, as recommended by the Harper Competition Policy Review.
“This is a long-overdue reform for Australia’s vegetable and potato growers. Many of these growers are small business owners that will now be better protected by rules that take into account the conduct of those with market power,” AUSVEG Deputy CEO Andrew White said.
“The introduction of an “effects test” is a vital development for the Australian vegetable and potato industries and will go a long way to ensuring growers can operate in a more open and competitive marketplace that treats all supply chain participants fairly.”
“It is essential that our growers are protected against anti-competitive behaviour and that there are adequate provisions in place for them to operate their businesses profitably so that the local industry can remain economically viable in the future.”
AUSVEG is the leading horticultural body representing Australia’s 9,000 vegetable and potato growers.
The changes will be applied to Section 46 of the Competition and Consumer Act (CCA), which regulates unilateral conduct. The announcement comes after industry efforts for better protection for small business owners, including farmers.
Following the announcement, the Australian Competition and Consumer Commission (ACCC) will have meaningful provisions to protect businesses that have been subject to the misuse of market power.
“In an environment where growers are struggling to remain profitable due to rising production costs and tighter profit margins, it is important that they can operate their businesses without any extra and unfair pressure that comes from the misuse of market power by other operators in the supply chain,” said Mr White.
“Giving the ACCC the authority to take action against those who are found to be abusing market power is reassuring news for our growers.”
“Considering the Australian vegetable and potato industries contribute significantly to the national economy and employ tens of thousands of workers across the country, it is vital to ensure that our growers can conduct their businesses in a fair environment and are protected from those who participate in anti-competitive behaviour.”
MEDIA CONTACT: Shaun Lindhe, AUSVEG Manager – Communications
Phone: (03) 9882 0277, Mobile: 0405 977 789, Email: email@example.com