MTAA Responds for Service Station Operators to Caltex Report on the “Fear, Uncertainty and Doubt” Memorandum

Today at 1.05pm MTAA received a letter from Caltex attaching a Media Release describing an internal review by former judge Mr Andrew Rogers QC of the circumstances and facts attending the composition and circulation by management of its notorious “fear, uncertainty and doubt” memorandum designed to harass and intimidate franchisees.

MTAA has accessed the Caltex website for the summary of the report, and has considered it, but needs the complete report before it can properly respond to the claims of Caltex in its media release. In any event, the conclusions reached in the report are open to serious doubt in the absence of any interviews being conducted with service station operators. In the face of that we do not see how the conclusions can stand.

MTAA, on behalf of service station operators, observes that it is now near to normal for those who wish to “positively” manage their media, to release such findings and commentaries late into a Friday afternoon; which obviously on this occasion happens in most jurisdictions to be a long weekend. MTAA does not therefore know how to answer the question of whether it should in response be cynical and negative about this timing and process.

MTAA will study the summary of the report and will seek to secure the full report with a view to preparing a comprehensive response for release as soon as possible. It notes Caltex has not volunteered or provided that full report to us. Obviously that response cannot now be completed and issued to the media, MTAA Members and the public until next Tuesday; after ANZAC Day!

This issues management process, and the fact and the character of it, on an important issue and a fully conceded reprehensible behaviour is really quite unsatisfactory and calls into question the motives of Caltex.

If Caltex was truly serious about correcting the damage its officers did, it would have been inclusive and consulted MTAA and its service station members well before this time and would have made us a party to its findings even if they are self-serving conclusions and self-absolutions. It has not done so and we are entitled, therefore, to doubt the merits of its confessions, and its professed intentions, practices and its conclusions as to its future good behaviour and intentions.

Here again, through this incident and report, small business can show the powerful and profound case for the need to adopt the recommendations of the recent report of the Senate Economics References Committee Inquiry into the Trade Practices Act. Notwithstanding the views of the BCA reported today, or of its member, the Chairman of Caltex, Mr Dick Warburton, on section 46 of the Act, the collective mea culpas of Caltex unavoidably and incontrovertibly ground and prove that case for further reform.

For further information please contact Mr Michael Delaney, Executive Director on (02)6273 4333