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Dissenting Report from Coalition Senators
Senators Alan Eggleston (Deputy Chair),
Barnaby Joyce and David Bushby
As the Trade Practices Act now stands, there is no
specific power to stop creeping acquisitions. There is also no specific power
to undo acquisitions that have been allowed to occur individually over a period
of time, but which collectively substantially lessen competition to the
detriment of consumers.
With Australia having the highest levels of market
concentration representing a lack of real competition, it is clear that
fundamental reform of the Trade Practices Act needs to occur to restore
competition into the market place. We need to enact a divestiture power which
allows the Court to break up corporations that dominate markets by acquiring a
substantial market share to the detriment of small businesses and consumers.
The proposal contained in the Inquiry into the Trade
Practices (Creeping Acquisitions) Amendment Bill 2007 [2008] represents one way
to deal with creeping acquisitions problem. There are other, superior, ways of
effectively dealing with creeping acquisitions to restore competition in key
Australian Markets for the benefit of small businesses and consumers.
Consideration should be given to enacting a divestiture power under the Trade
Practices Act.
Recommendation
Dealing with Creeping acquisitions in the manner proposed by
the Family First Bill is meritorious but strong consideration should be given
to exploring superior alternatives in preventing creeping acquisitions and
restoring competition through the enactment of a divestiture power under the Trade
Practices Act.
Senator
Alan Eggleston
Deputy
Chair
LP
Senator
Barnaby Joyce
LNP
Senator David Bushby
LP
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