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Turnbull flips and supports an effects test in competition law – politics live Turnbull flips and supports an effects test in competition law – politics live
(35 minutes later)
2.30am GMT
02:30
We'll gag if you do: Greens
Shalailah Medhora
The skirmish over who is more progressive on same-sex marriage is continuing after a messy day in the Senate over the issue yesterday. The Greens have now written to Labor asking them to bring the debate on same-sex marriage to a vote on Thursday. Labor conceded its private members time to debate the Greens bill, after the Greens voted with the Coalition to gag debate on the bill on Tuesday. The debate will go for just one hour, meaning it would need to be gagged in order to move to a vote. “A number if senators from all sides of this debate have already made contributions to this bill,” the letter from Greens leader Richard Di Natale and senator Robert Simms, said. “We look forward to the Labor party moving for a vote during your Private Senator’s time, and assure you of the support of the Australian Greens for this vote.”
Updated
at 2.31am GMT
2.24am GMT
02:24
Down in one of the courtyards, the National leader Barnaby Joyce, is stoked. How did you get past the lawyers, he’s asked? How did you get past the Liberals? Everyone agreed this was the best course, Joyce says, diplomatic in victory.
2.22am GMT
02:22
Let the angels sing.
2.20am GMT
02:20
There was a final question about unions right of veto about tenders in the ACT, which is a story from The Australian this morning, which I’ve ignored, because it’s not a national story. The Dorothy Dixer to the prime minister from Dennis Shanahan, political editor of The Australian, gives the prime minister a helpful opening to change the subject. Labor needs to pass the ABCC bill, he says. Like now. (Except not this week, because the government yesterday declined the opportunity to debate the ABCC legislation this week.)
2.16am GMT
02:16
2.14am GMT
02:14
Q: I know you are saying we should suppress our curiosity – good luck with that – but I think Australian voters might be confused at the moment. They are hearing there is going to be a double dissolution, there is not going to be, there is going to be an early budget, there won’t be tax cuts, there will be tax cuts. What’s going on?
Malcolm Turnbull:
The first thing, as you know, there is always speculation about what will be in the budget. It is an annual fever. The budget speculation starts this time of year and comes to an end when the budget is delivered. That’s an annual event.
There is a triennial event which is speculation about the election date. That follows a familiar pattern. All I can say to you is this is election speculation, budget speculation, these are traditional parts of our political process and they will all be resolved, in one case, when the budget is delivered, in the other case, when the election is called.
2.10am GMT
02:10
Will the legislation be presented before the election? The prime minister says the legislation will find its way into the House in the normal manner.
Morrison is asked about the key concern about an effects test: that companies in a competitive market don’t know in advance the effects of their action, hence the provision might chill normal commercial activity. The treasurer says companies can seek authorisation if they are worried via the ACCC.
Q: Are you saying your position hasn’t evolved or changed on these matters since the discussion in the Abbott Cabinet because it was widely understood at that time you were at least sceptical about the Harper review?
Malcolm Turnbull:
I have always been open-minded about this.
2.06am GMT
02:06
Q: Last time it was discussed in Cabinet, it was put by some of the lawyers in Cabinet it would produce a lawyer’s picnic. Have the same arguments been presented this time around? What’s convinced you that still isn’t the case?
Malcolm Turnbull:
My Cabinet is – you may speculate about what is said in our Cabinet but you won’t get the same degree of transparency if you like as to Cabinet discussions; they are confidential.
We do have lots of lawyers in the Cabinet. All I can tell you without breaching Cabinet secrecy is the discussion was extreme erudite and I was proud to be the leader of such a fine and thoughtful and well-schooled group of men and women.
2.04am GMT
02:04
Excuse me suppressing a chuckle. I think I described it earlier today as a guffaw.
2.03am GMT
02:03
"I've always had an open mind .."
First question it to Turnbull. Why have you backflipped?
No, no nooooo, says the prime minister.
I have always taken a thoroughly open mind to this issue. I have had quite a lot of experience with competition in a practical sense, particularly with emerging businesses competing with larger businesses so I’m not a theorist in this area – but I’ve approached this issue of law reform in a very open-minded way.
2.02am GMT
02:02
The assistant treasurer Kelly O’Dwyer, who worked in the office of the former treasurer Peter Costello, when he was hell bent on making sure the Nationals didn’t get an effects test, now thinks this is terrific for small business.
This is a government that backs small business. This is a government that backs competition. This is a change that is unashamedly pro-competition.
1.59am GMT1.59am GMT
01:5901:59
The treasurer, Scott Morrison.The treasurer, Scott Morrison.
It’s about competition. It’s not about whether one is taking the view of larger businesses or smaller businesses or medium-sized businesses.It’s about competition. It’s not about whether one is taking the view of larger businesses or smaller businesses or medium-sized businesses.
It’s about taking the view that competition benefits the consumer. That’s what is at the heart of changes we have announced today.It’s about taking the view that competition benefits the consumer. That’s what is at the heart of changes we have announced today.
1.57am GMT1.57am GMT
01:5701:57
Malcolm Turnbull:Malcolm Turnbull:
This is yet again a case of my government taking long overdue reforms out of the too-hard basket and getting on with the job.This is yet again a case of my government taking long overdue reforms out of the too-hard basket and getting on with the job.
This is reform, a long overdue reform, one that has been canvassed for many years, one that has been in the long grass for many years ...This is reform, a long overdue reform, one that has been canvassed for many years, one that has been in the long grass for many years ...
(It was certainly in the long grass during the Abbott years, because of a cabinet revolt. Yes, it was.)(It was certainly in the long grass during the Abbott years, because of a cabinet revolt. Yes, it was.)
1.55am GMT
01:55
There has never been a more exciting time .. to have hot breath
The prime minister has bounded into his courtyard announcing the government will accept the recommendations of the Harper review on the effects test. I’ve shared those with you in a post earlier.
Innovative businesses are competitive businesses, Turnbull says.
They are more innovative if the hot breath of competition is coming down their neck.
1.52am GMT
01:52
Gabrielle Chan
Back to the effects test and small business clapping hands. Peter Strong, chief executive officer of the Council of Small Business Australia (Cosboa) has long campaigned for an effects test and has congratulated the Turnbull government for its “gumption” and following due process.
“Congratulations to the cabinet for showing gumption,” Strong said. “They resisted BCA (Business Council of Australia) and Wesfarmers and the like.”
“We think it is not strong enough but they have gone with the recommendations of an independent panel and it is really pleasing that the government can make the decision.”
Strong said Cosboa had been openly consulted in two roundtables and then he heard nothing. “Yet the CEO of Wesfarmers was saying last week he didn’t know any cabinet minister that supported it. He was obviously wrong.”
1.50am GMT
01:50
Ah yes, he gets to it. Fifield explains that the new environment has hit the revenue streams of what he politely terms longstanding media companies. Ad revenues are down, particularly in print.
Mitch Fifield:
This is the environment the more long established platforms are operating in. It is a market defined by unparalleled choice across multiple platforms. The current media regulations that I’m seeking to remove are a pair of cast iron shackles. They’re a pair of cast iron shackles on competition and I think they’re to the detriment of media of longstanding.
(So the rationale is if you let Rupert Murdoch own both the Ten Network, pay television interests and the newspapers, and Nine merge with Fairfax, all will be well. A bright new future looms.)
Speaking of bright new futures, the prime minister and the effects test will be with us in a moment. I will need to look there.
1.42am GMT
01:42
Over at the National Press Club, the communications minister Mitch Fifield is talking about disruption. It troubles the communications minister that disruption is seen as a negative word, that it implies that change is somehow bad.
Whereas, I think technology and the way it’s changing lives is one of the most overwhelming forces for good in human history. Our lives are easier, we are more productive, people are more connected and that’s all good.
(Except in a media context, where technological disruption is leading to the destruction of the business model for commercial journalism, leading to circumstances where quality journalism is under significant threat. I wonder if that will get a look in at any point today?)
1.37am GMT
01:37
Here is the specific recommendation on the effects test from the Harper review. The Harper review was established under the Abbott government to consider the whole sweep of the competition law, and make recommendations about how it could be improved.
The effects test sits at section 46.
1.28am GMT
01:28
Assuming it’s a full bottle effects test, small business will love it.
1.25am GMT
01:25
The cabinet decision on the effects test is being put now to a special meeting of the Coalition party room. The prime minister and the treasurer will address reporters afterwards.
1.19am GMT
01:19
Big business won’t like it. As long as the Nationals have campaigned for an effects test, big business has campaigned against one.
1.18am GMT
01:18
The short version of the politics of an effects test. The Nationals want it. They’ve campaigned for it for years, and when I say years, I mean as long as I’ve been in this building. The economic rationalists of the Liberal party have resisted this notion for years. Including Turnbull, when he wasn’t the leader.
1.06am GMT
01:06
If you don’t speak competition law – an effects test is designed to stop big firms misusing their market power. Critics of effects tests say they drive up consumer prices.