The House of Representatives Standing Committee on Economics will hear from a range of experts in competition law, experimental economics and market design via videoconference as part of the committee’s inquiry into promoting economic dynamism, competition and business formation.

Media release issue date: Wednesday, 17 May 2023

The House of Representatives Standing Committee on Economics will hear from a range of experts in competition law, experimental economics and market design on Thursday 18 May via videoconference as part of the committee’s inquiry into promoting economic dynamism, competition and business formation. Committee Chair, Dr Daniel Mulino MP, said: “Innovative market designs have been shown to lead to life-changing, and even life-saving, results, so the committee is looking forward to hearing from pioneering economists in this field, including CalTech’s Professor Charlie Plott; UQ’s Professor Flavio Menezes and John Quiggin; and the University of Melbourne’s Centre for Market Design (Professors Simon Loertscher and David Byrne, and Gary Stoneham). Dr Mulino said that market design could lead to increases in quality of life while simultaneously providing better value for a range of government spending areas. “A local example is a bus transport pilot for students attending the Northern School of Autism. Students were travelling up to two hours each way and missing classes. The long travel times increased the students’ anxiety, which led to increased tension among families. “Market design economists used algorithms to devise a scheme that determined the optimal travel route; the optimal vehicle size; and the prices at which services were provided within the parameters of a maximum travel time of one hour each way. The result was happier children and families for no additional cost to government.” Dr Mulino said 'matching markets' was another type of market design – “and a great example is the kidney exchange system, which has saved many more lives following its implementation”. ‘‘Market design theory can be applied to Australia’s economy in a variety of ways — whether that be designing markets that are fair and efficient, mechanisms that encourage new entrants into the market and prevent collusion, as well as developing platforms and marketplaces that facilitate these transactions.” Market design can also substantially improve procurement outcomes. This could be of direct relevance to a number of quasi markets that have been established for the provision of social services. The committee has looked at a number of issues relating to market concentration and competition issues more broadly. Dr Mulino said that competition and merger law was another complex area, and that the committee was looking forward to hearing from former ACCC Chair Professor Allan Fels AO and other competition law experts, including Professor Deborah Healey (UNSW) and Dr Rhonda Smith (the University of Melbourne) on their experiences and ideas for ways to improve competition, foster economic dynamism and increase productivity. More details about the inquiry and upcoming public hearings, including the full terms of reference, are available on the committee’s website. Public hearing details Date: Thursday 18 May Time: 9.30 am to 2.45 pm AEST via VIDEOCONFERENCE The public hearing will be broadcast live at https://www.aph.gov.au/live. Media inquiries Committee Chair 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can make a submission to the inquiry, read other submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track this Committee’ button in the bottom right-hand side of the page.

The House of Representatives Standing Committee on Economics will hear from strategic thinkers about competition on 2 May and from the tech sector on 3 May 2023 in two days of public hearings.

Media release issue date: Monday, 1 May 2023

The House of Representatives Standing Committee on Economics will hear from strategic thinkers about competition on 2 May and from the tech sector on 3 May 2023 in two days of public hearings. The hearings, part of the committee’s inquiry into promoting economic dynamism, competition and business formation, will be conducted by videoconference. Committee Chair, Dr Daniel Mulino MP, said: ‘There is substantial evidence that Australia’s economy has become more concentrated. Research has found that wages tend to be lower when fewer employers dominate the market.’ ‘Rates of business start-up and job switching have also declined, which is concerning because both are important factors in higher wages.’ ‘Furthermore, over the past year alone, our economy has experienced a number of supply chain shocks, in part because of the war in Ukraine, which speaks to the importance of economic resilience.’ ‘And competition is one way to build resilience – a diverse and dynamic economy is also a resilient economy that is better equipped to deal with unexpected shocks and adapt to the challenges of an uncertain world.’ ‘In a nutshell, less competition is associated with higher prices, fewer new businesses, less consumer choice, lower quality, less innovation and, ultimately, fewer jobs and less growth.’ ‘For all these reasons and more, it is really important that we set the scene and hear from economists and thinktanks from across the political spectrum about their ideas on a robust competition policy. We are fortunate to have in Australia a number of highly experienced economists who can provide this commentary.’ The committee will hear from several experts on 2 May, including e61, the Grattan Institute, the Institute of Public Affairs, former ACCC Chair Rod Sims, and UNSW economist Richard Holden. On 3 May the committee will hear from the tech sector, including the Tech Council of Australia, FinTech Australia and Microsoft. ‘Given the extraordinary pace and scale of technological change and its impact on businesses in this country, we need to hear from those at the cutting edge about the opportunities and risks for competition in sectors such as banking, energy, and retail, as well as across the broader economy.’ ‘We need to fully understand how regulation can keep up with the disruption resulting from technological change while also not stymieing innovation,’ Dr Mulino said. More details about the inquiry and upcoming public hearings, including the full terms of reference, are available on the committee’s website. Public hearing details Thinktanks and economists Date: Tuesday 2 May 2023 Time: 11.00 am to 4.00 pm Tech sector Date: Wednesday 3 May 2023 Time: 9.00 am to 2.30 pm Both public hearings will be broadcast live at https://www.aph.gov.au/live. Media inquiries Committee Chair 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can make a submission to the inquiry, read other submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand side of the page.

Australia’s competition landscape will be the focus of the House of Representatives Standing Committee on Economics’ public hearings with the Productivity Commission and the Australian Competition and Consumer Commission (ACCC) on 16 and 17 March 2023.

Media release issue date: Tuesday, 14 March 2023

Australia’s competition landscape will be the focus of the House of Representatives Standing Committee on Economics’ public hearings with the Productivity Commission and the Australian Competition and Consumer Commission (ACCC) on 16 and 17 March 2023. These are the first hearings for the committee’s new inquiry into promoting economic dynamism, competition and business formation. Committee Chair, Dr Daniel Mulino MP, said that ‘Healthy competition and stimulating productivity can enhance the wellbeing of all Australians. ‘Boosting productivity is a key driver of wages growth, while healthy competition can lead to higher quality goods and services, greater variety, lower prices, and more innovation.’ ‘The Productivity Commission and the ACCC are key players in these areas and a number of other issues that the committee will be exploring throughout this inquiry. Both organisations have done extensive work in this field, so the committee will benefit from their perspectives and experience.’ The committee is also seeking submissions that respond to some or all of the inquiry Terms of Reference by Friday 31 March 2023. Submissions can be made online via www.aph.gov.au/economicdynamism. More details about the inquiry and upcoming public hearings, including the full terms of reference, are available on the committee’s website. Public hearing details Productivity Commission Date:Thursday 16 March 2023 Time: 2.00 pm to 4.00 pm Australian Competition and Consumer Commission Date: Friday 17 March 2023 Time: 11.00 am to 1.00 pm Both public hearings will be broadcast live at https://www.aph.gov.au/live. Media inquiries Committee Chair 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can make a submission to the inquiry, read other submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand side of the page.

Building a stronger and more resilient economy is the focus of the House of Representatives Standing Committee on Economics’ new inquiry into promoting economic dynamism, competition and business formation.

Media release issue date: Sunday, 12 February 2023

Building a stronger and more resilient economy is the focus of the House of Representatives Standing Committee on Economics’ new inquiry into promoting economic dynamism, competition and business formation. The inquiry will examine how encouraging healthy competition, stimulating the creation of more businesses and fostering entrepreneurship can enhance the well-being of Australians. Committee chair Dr Daniel Mulino MP said there had been two significant inquiries into competition over the past few decades – the 1993 Hilmer report and the 2015 Harper review. ‘The committee does not plan to go over old ground. The economy has changed significantly over the past decade or so, particularly in digital technology and disruptive new technologies. We need to ensure we are harnessing this technology in the best way in the interests of consumers.’ Dr Mulino said that while new digital technologies/approaches could be a very effective way to increase competitive tension, they can also create regulatory challenges. ‘The committee will also investigate the continued market power of the Big 4 banks, especially in the area of mortgages, retail deposits, and loans to small and medium enterprises, and whether more can be done to encourage competition through changes to macroprudential arrangements or other measures. ‘In recent decades Australia’s productivity growth has stalled. The committee will examine the extent of market concentration, the fall in the establishment of new enterprises, the increase in mark-ups, and reduction in job mobility—and whether these have contributed to a decline in economic dynamism,’ Dr Mulino said. The pandemic and the war in Ukraine had challenged supply chains and a diverse and dynamic business environment was one answer to that problem, he said.   ‘It is also timely that as a committee we explore economic plans that better equip Australia in the face of global uncertainty. As the nation emerges from the pandemic it is critical that we renew our focus on competition and business dynamism, to boost our productivity and for the benefit of all Australian workers and consumers.’ Dr Mulino said the committee ‘would scrutinise the extent to which the consolidation of market power had undermined productivity, stifled wages, created more fragile markets and led to higher mark-ups.’ The committee will also examine: the degree to which anti-competitive behaviour and economic barriers—regulatory, as well as restrictions on access to finance, infrastructure, suppliers, customers, and workers—contribute to rising market concentration, and international examples of best practice and innovative policies that demonstrate how Australia could lower economic barriers to competition and business formation, further limit anti-competitive behaviour, and better manage changes in industry structure that affect market power. The committee is seeking submissions addressing some or all of the inquiry terms of reference from interested groups and individuals by Friday 31 March 2023. Submissions can be made online via www.aph.gov.au/economicdynamism. More details about the inquiry, including the full terms of reference, are available on the committee’s website. Media inquiries Committee Chair 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can make a submission to the inquiry, read other submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track this Committee’ button in the bottom right-hand side of the page.