JUST three weeks after he ditched the Grocery Choice website, Competition Policy Minister Craig Emerson is facing pressure from the grocery sector to jettison another policy proposal intended to protect consumers — a tightening of "creeping acquisition" laws.
Treasury yesterday released the submissions received as part of its second investigation of ideas to tighten creeping acquisition laws, revealing the strength of feeling among the major retailers against any need for change.
The grocers — both in their own submissions and through industry group the Australian National Retailers Association — rejected policy alternatives floated by Treasury to toughen the laws, arguing creeping acquisitions were not a significant issue and the proposed rules could stifle investment.
"Despite the lack of evidence that creeping acquisitions are occurring, let alone jeopardising competition, the Government is effectively contemplating imposing market caps on successful Australian businesses," the ANRA stated.
"Such a cap could prevent a business from acquiring new assets as well as existing businesses, regardless of the implications for competition."
It urged the Government to withdraw the proposals.
A spokesman for Dr Emerson declined to comment on when the minister would respond to the latest discussion paper.
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