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Media Releases - Economy

28

"The revelations in 'The Australian' today (also revelations to me as I was never contacted about them) that the Birdsville Amendment protecting small business is going to be removed should bring tears of happiness to the major retailers and the major oil companies and anybody else who wants to squash small business.

"It took two years to get the trigger mechanism for the instigation of a predatory price case changed. The trigger was market power which meant that small business had to prove a big business was so big that if it raised its prices it would not lose any customers. Unfortunately, once the big business is that big the small business is broke. The trigger became market share which just talked about the size of the business in the market place.

"After mine and others hard work trying to get a better deal for small business, the Labor government, on behalf of big business, is moving from market share back to market power. This is the position big business formerly held and they have been extremely capable in stopping any case ever getting any legs whatsoever. In fact, since 2003, under this definition of market power, not one case has been successful.

"How on earth can Minister Chris Bowen and Minister Craig Emerson say they're helping small business and keep a straight face after doing this to them? It's not surprising at all that the Shop Distributors Alliance is one of the biggest unions in Australia. Two of the major employers of members are Coles and Woolworths and every small business that goes broke because of Coles and Woolworths is another union membership for the SDA, who are proud supporters of the retailing status quo. The SDA know full well that small businesses are non-unionised workforces and Coles and Woolworths are two of the most unionised, a very nice and cosy relationship between the SDA, big business and the Labor Party.

"How can Mr Rudd hold a straight face that he's dealing with inflation when he's just put another nail into the coffin of diversified market participation by removing the Birdsville Amendment which protects small business from predatory pricing in a manner which gives easy access to initiate a case? Predatory pricing is widely acknowledged, the problem has always been how it can be proven. The Birdsville Amendment made it easy to prove predatory pricing; prior to this it was impossible.

"Mr Bowen, Mr Emerson and Prime Minister Rudd have moved the pendulum back towards impossible."

Ends
 

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