Competition Policy Review
NFF submission on the Issues paper
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'.
