An agenda to boost Australia’s economic prosperity and fairness
Rod Sims
Address to National Press Club (23 February 2022)
Introduction
“Thank you for the honour of speaking to you again today at this great venue. Over my nearly 11 years at the ACCC I have enjoyed and benefitted from my interaction with the media, and I thank you for that. You often gave me valuable new perspectives on issues.
I came to the ACCC believing that the media seeks to work in the interests of Australia, and my view on this point has only strengthened over the last 11 years.
For me, it has been a fascinating and I hope productive time at the ACCC, another institution that works hard in the interest of Australia. While I will indulge in outlining some of the things I look back on with pride, I will spend most of my time today on some issues and challenges ahead, which I am sure is of much more interest to you.
When I arrived at the ACCC I mentioned my main objective in chairing the ACCC was “… that Australians see that a market economy and strong competition works for them and that they see the ACCC working tirelessly for the long run interests of consumers”.
We must recognise that a market-based economy is fragile as its organising principle relies on companies and businesspeople pursuing their own self-interest. This is not an obvious way to organise things. For this to work to the benefit of all Australians requires at a minimum strong competition between firms and strong enforcement of the CCA.
In our society large established businesses have a strong voice, which is not surprising as the largest firms employ many people and supply Australians with many of their needs. Often, however, the understandable interest of large established businesses in short term advantage sees them, I believe, work to the disadvantage of their own long-term interests.
Large established businesses have opposed all the main changes to the CCA when they were introduced. They opposed, for example, laws against misleading and deceptive conduct. I would ask, however, how many specific interventions and extra red tape would we now have that would damage our market economy if we did not have this general provision?
The CCA largely has economy-wide laws whose effectiveness underpins the necessary wide acceptance of a market economy. Perceptions of unfairness and inequality will see faith in a market economy eroded.
The vast bulk of the population always wants regulators to do more, including the ACCC, while large established businesses and sometimes governments think our role should be reduced. An occasional criticism of the ACCC can be that it is “toothless”. This charge is levelled at all regulators at some point but for the ACCC in part this is based on the misunderstanding that charging excessive prices, or price gouging, is against the law when, except in exceptional circumstances, it is not.
I will mention later the need for changes to our merger and consumer laws. Large established businesses and their advisers will oppose these changes, but my guess is that well over 90 per cent of Australians would support them. Further, I think such changes would strengthen our market economy, and would benefit the vast majority of Australian businesses.
I will now reflect a little on my near 11 years as ACCC Chair and will then discuss some issues and challenges.”
See also