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Competition Policy Review

NFF submission on the Issues paper

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National Farmers' Federation

The submission addresses the following issues

  • Unconscionable conduct
    (not effective - needs to be more relevant and practical; need legislative definition of unconscionable conduct and suggest statutory recognition of disadvantage for certain classes of suppliers (such as those in perishable goods industry)
  • Misuse of Market Power
    (add effects test or hybrid effects/purpose test and provide for administrative monetary penalties system to give ACCC 'greater power to regulate anti-competitive behaviour')
  • Unfair contract terms
    ( 'seeks recognition of the competitive disadvantage faced by producers' and protection afforded consumers 'should be considered for small business in similarly vulnerable positions')
  • Collective bargaining and collective boycotts
    (relax public interest test for boycott approvals in agricultural markets (or reverse the onus of proof - public detriment test) and increase threshold for primary production bargaining
  • Codes of conduct
    Need mandatory Food and Grocery Code (possibly modelled on UK Grocery Code) with 'robust dispute resolution options'.
  • Statutory duty of good faith
    Want 'positive obligation of good faith'
  • Powers of ACCC
    Suggest mandatory price monitoring or regular price surveillance of at risk industries (inc primary production), divestiture powers similar to those in UK
  • Access
    Additional reforms needed 'to improve the ability of market participants to compete for farmers' produce' - eg, enhancing ability of business to utilise access to services provisions and 'food producers, or their representatives, should have standing in negotiation and dispute resolution over the terms of access'
  • Agri-terrorism
    Extend s 18 ACL to apply to 'activist behaviour', remove environmental protection exemption for secondary boycotts 'where the conduct constitutes "agri-terrorism"' and add prohibition against market disruption
  • Perishable Goods Commissioner
    Should be introduced (within ACCC) and should have power to receive complaints from 'producers and peak bodies', conduct inspections, 'asses produce quality and determine classification/value' and issue 'penalties for improper trading'.