Firms, farmers back Joyce on effects test

Business and farmers have thrown their support behind Deputy Prime Minister Barnaby Joyce's stance on the so-called "effects test".

Business and farmers have thrown their support behind Barnaby Joyce for his efforts in giving small firms a fair go.

The deputy prime minister on Sunday backed the so-called "effects test", a key element of the Harper review into competition policy.

Under existing laws, a small firm has to prove that a bigger rival is deliberately trying to force it out of business, but under the proposed test it would only have to prove it had been affected by its presence.

This recommendation has been under the consideration of the government since November.

Australian Chamber of Commerce and Industry boss Kate Carnell was heartened by Mr Joyce's stance, agreeing there is a clear case for including an effects test.

"Claims that changes could endanger innovations like the iPhone, or push up the price of milk, are simply wrong," she said in a statement on Monday.

The National Farmers' Federation president Brent Finlay also reiterated his support for the change.

"By no means do we view the effects test as a silver bullet solution but rather just one tool in a number of measures which have potential to improve competitiveness," he said.

But shadow treasurer Chris Bowen is against the change, describing it as dangerous economic policy that would have serious implications for competition and entrepreneurship.

He said it was extraordinary the deputy prime minister, and not the treasurer, was calling the shots over competition law.

"It is a symptom of a government without an economic policy," Mr Bowen told Sky News.


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Source: AAP


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