Thu, 8th May 2008

Labor backs States mates over consumers

The Hon Peter Dutton MP
Shadow Minister for Finance, Competition Policy and Deregulation

Luke Hartsuyker MP
Shadow Minister for Business Development, Independent Contractors and Consumer Affairs

Joint Release

The Rudd Government has failed its first test and backed down to its Labor mates in the states over the reform of consumer protection law, Coalition Shadow Ministers said today.

The Productivity Commission has put forward plans for a single national consumer protection regime to replace different state and territory legislation. It’s estimated that this could save consumers $700m a year and save the economy as a whole $4.5bn a year.

“I support any measures that increase protection for consumers and reduces red tape for business,” said Peter Dutton, Shadow Minister for Finance, Competition Policy, and Deregulation. “But it appears that the Rudd Government is not going to listen to the Productivity Commission, who is urging for product-safety enforcement be handed solely to the ACCC. The Government’s proposal is the second best option.

“Rudd is caving in to the states who will retain the existing fair trading offices. The states are protecting their own vested interests instead of helping to deliver lower prices to consumers and less red tape for business.”

The Coalition would be pressing the Rudd Government to deliver savings for consumers in all areas where different state and territory regimes and the lack of a single, national system pushed up costs for business, Shadow Consumer Affairs Minister, Luke Hartsuyker said.

“Australia and Australians simply cannot afford eight different versions of consumer protection law and eight different enforcement agencies. If the Rudd Government can’t or won’t push through reform of the state fair trading offices, then what chance of them successfully reforming workers’ compensation or occupational health and safety (OHS), areas in which the unions have a strong interest?

“The unions have already put a stop to the NSW Government’s long-overdue reform of OHS. The Rudd Government has failed the first test of its willingness to reform costly legislation for consumer protection by giving in to its states mates and it won’t stand up to the unions either.

“Kevin Rudd has been talking about an efficiency dividend in next week’s Budget. What price his efficiency dividend if he won’t stand up to the states?”