Productivity Commission report into retail recommends change

The final report from the Productivity Commission into retail in Australia was released last week.  The report, Economic Structure and Performance of the Australian Retail Industry, makes for interesting reading.  Newsagents get plenty of mentions thanks to the submission from the ANF.

I agree overall with the findings and recommendations of the report.  However, if we are to see less regulation around trading hours, we need to see less regulation around a key cost of trading, labour.  We also need to see greater fairness in tenancy costs.

The terms of reference for the inquiry did not go far enough in serving newsagents.  I’d like to see inquiries which look at:

1. The treatment of small independent retailers in shopping centres compared to other tenants. I think that such as inquiry would uncover practices which are unfair and disadvantage small and independent retailers and which significantly benefit big retailers beyond the benefits one might expect from their size.
2. The trading terms and financial benefits achieved by retailers all magazines. I think this this inquiry would uncover a disparity in trading terms and benefits accessible to some supermarkets, convenience store groups and other retailers compared to newsagents.
3. The role of Australia Post government owned Post Offices and their impact on privately owned retail businesses. I think that this inquiry would find that Australia Post is operating outside what is permitted under the act and what was envisaged when the act was drafted.
4. The magazine distribution system in Australia – in the context of the impact of the deregulation of 1999 and how it has served consumers and newsagents who had their monopoly taken from them.  I think that this inquiry would find that deregulation was not as fair and thorough as it should have been and that the changes made did not provide newsagents with an appropriate competitive framework.

Of course these points cover more than you would see in a single inquiry.

Maybe this report, its recommendations and suggestions which will flow from associated debate could add to the agenda of the new Minister for Small Business.

I don’t expect any of my proposed inquiries soon so it’s best to focus attention on what we can deal with rather than what we cannot.