MTAA Welcomes Moves to Promote Fair Competition

The Motor Trades Association of Australia (MTAA), representing 100,000 retail motor trade businesses with a combined turnover of over $120 billion and which employ over 316,000 people, has, since its inception, advocated for legislation that restores lost fairness and competition to the marketplace. MTAA believes that a stronger Trade Practices Act 1974 will be of benefit to not only small business, but to our Society more broadly, by ensuring a diversity of competitors and choice for consumers.

MTAA thus welcomes today’s joint announcement by the Assistant Treasurer, the Hon Chris Bowen MP, and the Minister for Small Business, Independent Contractors and the Service Economy, the Hon Craig Emerson MP, of the Government’s package of measures aimed at strengthening laws to promote fair competition.

Small businesses are sometimes at a distinct competitive disadvantage in the market when set against businesses with considerable market power. MTAA will welcome, then, amendments to the Trade Practices Act 1974 that afford greater protections to small businesses from practices such as predatory pricing and unequitable misuse of market power. The Association also welcomes the extension of the reach of the Australian Competition and Consumer Commission (ACCC) by removing the arbitrary threshold currently applicable to allegations of unconscionable conduct.

MTAA is also pleased with the Government’s announcement that small business will now have a permanent voice in the ACCC, with the requirement for at least one ACCC Deputy Chairman to have small business experience.

Small and medium businesses can have significant costs associated with accessing the courts when faced with efforts to seek redress resulting from anti-competitive behaviour. MTAA welcomes, therefore, the Government’s announcement that cases involving a misuse of market power may now be heard in the Federal Magistrates Court, rather than in the Federal Court.

MTAA supports these reforms and welcomes them as a strengthening of the position of small business, which will also assist in ensuring genuine competition to the benefit of consumers.

ENDS

29 April 2008

For further information contact Michael Delaney on 02 6273 4333