Footnotes

Chapter 1 - Introduction

[1]        The Hon. Chris Bowen, 'The Government introduces into Parliament the biggest reform to the Trade Practices Act in over 20 years', Press Release, 26 June 2008.

 

Chapter 2 - Predatory pricing

[1]        The 2004 inquiry was chaired by a Labor Senator. The then Government Senators made a dissenting report.

[2]        The Explanatory Memorandum of the bill makes several references to the 2004 report.

[3]        The final draft of the amendment was sent by Senator Joyce from the hotel in the western Queensland town of Birdsville. For a good overview of the Birdsville Amendment, see Freehills, 'The Birdsville Amendment: Getting back on track', November 2008, http://www.freehills.com.au/publications/publications_7040.asp

[4]        Michael Hodge, Submission 4, p. 4. Matthew Drummond, 'New Law may turn predators into prey', Australian Financial Review, 28 September 2007.

[5]        The term 'substantial market power' replaced 'dominance' in 1986, with the intention of lowering the threshold; Associate Professor Frank Zumbo, Proof Committee Hansard, 5 August 2008, p. 5.

[6]        The Hon. Chris Bowen, 'Second Reading Speech', House of Representatives Hansard, 26 June 2008.

[7]        The Hon. Chris Bowen, 'Reviewing the federal government's amendments to the Trade Practices Act 1974', Keynote address to the 4^th Annual Trade Practices and Corporate Compliance Summit, The Grace Hotel, Sydney, 28 April 2008.

[8]        This point is made by Ms Nicole Rich, Consumer Action Law Centre, Proof Committee Hansard, 5 August 2008, p. 42.

[9]        This argument was put by Mr Graham Maher, Proof Committee Hansard, 5 August 2008, p. 25 and Mr Ian Stewart, Proof Committee Hansard, 5 August 2008, p. 29.

[10]      Associate Professor Frank Zumbo, Proof Committee Hansard, 5 August 2008, p. 9.

[11]      Fair Trading Coalition, Submission 3; Mr Kenneth Henrick, NARGA, Proof Committee Hansard, 5 August 2008, p. 35; Ms Nicole Rich, Consumer Action Law Centre, Proof Committee Hansard, 5 August 2008, p. 43.

[12]      Associate Professor Frank Zumbo, Proof Committee Hansard, 5 August 2008, p. 3.

[13]      Associate Professor Frank Zumbo, Proof Committee Hansard, 5 August 2008, p. 3. He also mentioned that 'Canada recently issued some predatory-pricing guidelines whereby they see a threshold of 35 per cent or more as a central element of determining market power'; pp 5-6.

[14]      Associate Professor Frank Zumbo, Proof Committee Hansard, 5 August 2008, p. 2.

[15]      Perhaps a monopoly supplier of insulin would come close to being an exception.

[16]      This proposition is demonstrated in any standard economics textbook. For example, see Paul Samuelson and William Nordhaus, Economics, p. 198.

[17]      Associate Professor Frank Zumbo, Proof Committee Hansard, 5 August 2008, p. 2.

[18]      Senator Barnaby Joyce, Proof Committee Hansard, 5 August 2008, many instances.

[19]      Mr van Rijswijk, National Association of Retail Grocers of Australia, Proof Committee Hansard, 5 August 2008, p. 35.

[20]      Mr Henrick, NARGA, Proof Committee Hansard, 5 August 2008, p. 36.

[21]      Associate Professor Frank Zumbo, Proof Committee Hansard, 5 August 2008, p. 6.

[22]      Mr Ian Stewart, Proof Committee Hansard, 5 August 2008, p. 28.

[23]      Law Council of Australia, Submission 8, p. 5.

[24]      Law Council of Australia, Submission 8.

[25]      Mr Ian Stewart, Law Council, Proof Committee Hansard, 5 August 2008, pp 28, 32.

[26]      Mr Ian Stewart, Law Council of Australia, Proof Committee Hansard, 5 August 2008, p. 33.

[27]      As Treasury put it, 'Preventing a corporation or dissuading a person from discounting or otherwise providing a benefit to a consumer simply through an examination of their share in that market'; Proof Committee Hansard, 5 August 2008, p. 16.

[28]      Associate Professor Frank Zumbo, Proof Committee Hansard, 5 August 2008, p. 3.

[29]      ACCC, Submission to the Senate Economics References Committee inquiry into the effectiveness of the Trade Practices Act 1974 in protecting small business.

[30]      Trade Practices Act 1974.

[31]      Senate Economics References Committee, The effectiveness of the Trade Practices Act 1974 in protecting small business, pp. 12–14.

[32]      Senate Economics References Committee, The effectiveness of the Trade Practices Act 1974 in protecting small business, p. 13. The quotation comes from the ACCC's submission, p. 4.

[33]      Senate Economics References Committee, The effectiveness of the Trade Practices Act 1974 in protecting small business, p. xii.

[34]      Senate Economics References Committee, The effectiveness of the Trade Practices Act 1974 in protecting small business, p. 14.

[35]      The Hon. Chris Bowen, Second Reading Speech, House of Representatives Hansard, 26 June 2008.

[36]      Business Council of Australia, Submission 7, p. 4.

[37]      Law Council of Australia, Submission 8, p. 6.

[38]      Business Council of Australia, Submission 7, p. 3.

[39]      Business Council of Australia, Submission 7, p. 4. Minister Bowen has also emphasised the importance of maintaining 'a sufficient causal connection between the offending conduct and substantial market power'. The Hon. Chris Bowen, 'Reviewing the federal government's amendments to the Trade Practices Act 1974', Keynote address to the 4^th Annual Trade Practices and Corporate Compliance Summit, The Grace Hotel, Sydney, 28 April 2008.

[40]      Law Council of Australia, Submission 8, p. 8.

[41]      Mr Graham Maher, Proof Committee Hansard, 5 August 2008, p. 21.

[42]      Mr Ian Stewart, Law Council of Australia, Proof Committee Hansard, 5 August 2008, p. 29.

[43]      Fair Trading Coalition, Submission 3, p. 1.

[44]      Consumer Action Law Centre, Submission 5, p. 3.

[45]      Mr Graham Maher, Proof Committee Hansard, 5 August 2008, p. 20.

[46]      Mr Scott Rogers, Treasury, Proof Committee Hansard, 5 August 2008, p. 12.

[47]      The Hon. Chris Bowen, Second Reading Speech, House of Representatives Hansard, 26 June 2008.

[48]      Senate Economics References Committee, The effectiveness of the Trade Practices Act 1974 in protecting small business, pgs. xiii and 19.

[49]      Senate Economics References Committee, The effectiveness of the Trade Practices Act 1974 in protecting small business, p. 87.

[50]      Senator Barnaby Joyce, Proof Committee Hansard, 5 August 2008, p. 43. See Amendment to Explanatory Memorandum, Trade Practices Legislation Amendment Bill 2007, p. 5.

[51]      The Hon. Chris Bowen, Second Reading Speech, House of Representatives Hansard, 26 June 2008.

[52]      Business Council of Australia, Submission 7, p. 5.

[53]      Mr Ian Stewart, Law Council of Australia, Proof Committee Hansard, 5 August 2008, p. 28.

[54]      Amendment to Explanatory Memorandum, Trade Practices Legislation Amendment Bill 2007, p. 5.

[55]      Ms Nicole Rich, Consumer Action Law Centre, Proof Committee Hansard, 5 August 2008, p. 43.

[56]      Business Council of Australia, Submission 7, p. 5.

 

Chapter 3 - Other provisions

[1]        Post Office Agents Association Limited, Submission 2, p. 3.

[2]        Associate Professor Frank Zumbo, Proof Committee Hansard, 5 August 2008, p. 4.

[3]        Senator Doug Cameron, Proof Committee Hansard, 5 August 2008, p. 11.

[4]        Ms Catriona Lowe, Consumer Action Law Centre, Proof Committee Hansard, 5 August 2008, p. 41.

[5]        Ms Catriona Lowe, Consumer Action Law Centre, Proof Committee Hansard, 5 August 2008, p. 48.

[6]        Explanatory Memorandum, p. 8.

[7]        This threshold was increased from $3 million to $10 million last year (Trade Practices Legislation Amendment Bill (No. 1) 2007).

[8]        Senate Economics References Committee, The effectiveness of the Trade Practices Act 1974 in protecting small business, p. xv.

[9]        The Hon. Chris Bowen, Second Reading Speech, House of Representatives Hansard, 26 June 2008.

[10]      Associate Professor Frank Zumbo, Proof Committee Hansard, 5 August 2008, p. 3.

[11]      Explanatory Memorandum, p. 17.

[12]      Mr Graham Maher, Proof Committee Hansard, 5 August 2008, p. 26.

[13]      Mr Graham Maher, Proof Committee Hansard, 5 August 2008, p. 26.

[14]      Associate Professor Frank Zumbo, Proof Committee Hansard, 5 August 2008, p. 3.

[15]      Mr Ian Stewart, Proof Committee Hansard, 5 August 2008, p. 29.

[16]      Mr G Maher, Proof Committee Hansard, 5 August 2008, p. 21.

 

Coalition Senators' Dissenting Report

[1]        Senator Alan Eggleston (Deputy Chair), Senator Barnaby Joyce and Senator David Bushby

[2]        Mr Kenneth Michael Henrick, Chief Executive Officer, National Association of Retail Grocers of Australia, Proof Committee Hansard, 5^th August, 2008.

[3]        Associate Professor Frank Zumbo, Proof Committee Hansard, 5 August 2008.

[4]        The Hon Chris Bowen MP, Keynote Address to the 4^th Annual Trade Practices and Corporate Compliance Summit, 28^th April, 2008.

[5]        Mr Kenneth Michael Henrick, Proof Committee Hansard, 5 August 2008.