'Reboot economy with competition'
Pharmacies would be open to competition, regulations controlling the taxi industry ditched and the way we pay for roads overhauled under a string of plans to re-boot the economy through greater competition.
A draft report commissioned by the Abbott Government, and released today, also advocates major changes to planning rules to allow more competition in the supermarket sectors, the axing on remaining restrictions on parallel importation and an end to almost every restraint on retail trading hours.
Headed by Professor Ian Harper, the review was one of the Government’s pre-election promises with an aim to re-starting the competition agenda that helped drive the economy through the 1990s.
In its report, it notes that properly functioning competition will help Australia deal with major economic issues ahead including the rise of Asia and the ageing of the global population.
“Reinvigorating Australia’s competition policy is essential to help meet the economic challenges and opportunities we face now and into the future,” it said.
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Among its most contentious proposals is a plan to axe the restriction on pharmacy ownership and location which currently means only pharmacists can own an outlet.
Woolworths and Coles have long argued that the restriction hurts consumers while protecting the powerful pharmacy lobby which, when this issue was last raised more than a decade ago, forced the direct intervention of the Howard Government.
The review panel noted existing restrictions did not appear to ensure quality advice was provided to consumers.
“Such restrictions limit the ability of consumers to choose where to obtain pharmacy services and limit the ability of suppliers to meet consumers’ demands,” it noted.
The taxi industry is also up for change if the recommendations of the draft report are eventually adopted. File picture: The West Australian
Taxi regulations, including the restriction on taxi licence plates, would be effectively ditched in a move that mirrors long standing arrangements in New Zealand.
New technology would enable motorists to actually pay for the use of roads with taxes, such as fuel excise, gradually phased out.
The panel noted that WA retained some of the most restrictive retail trading hours in the country. It said the only restrictions that should remain are the public holiday requirements around Good Friday, Christmas and the morning of Anzac Day.
The review also backed an overhaul of the competition watchdog, with a new authority to promote competition with the ACCC more a regulatory enforcement agency.
