08 July 2008
A top competition lawyer says that the Federal Government has the power to force changes to State planning systems and break the stranglehold of the current shopping centre owners.
The ACCCs inquiry is able to recommend tough federal action to deal with anti-competitive town planning rules, according to Aaron Gadiel, the Urban Taskforces chief executive.
Currently, planning laws attempt to restrict supermarkets to established centres, resulting in traffic congestion, restrictive trade and higher grocery prices.
Mr Wright found that the Federal Parliament had the power to give retail developments access to a streamlined development process, if State governments refused to amend their planning laws to make them more competition-friendly.
State governments could be forced to amend their planning laws so that decisions must promote competition, as well as satisfying other objectives. Town planners would also be barred from making decisions aimed at protecting existing businesses from any loss of trade.
Federal action will be crucial if any meaningful reform is to be achieved, Mr Gadiel said.
In May Professor Allan Fels released his report Choice Free Zone saying that an overhaul of the State government shopping centres policies would allow greater competition, leading to consumers paying up to 18 per cent less for basic food items and up to 28 per cent less for other household products.
Professor Fels warns that under the present planning regime Governments appear to be up-holding anti-competitive processes that elsewhere would potentially considered to be contravening the Trade Practices Act.
Planning laws treat food and clothing stores as one of the most dangerous parts of the economy, alongside mines and brothels, Mr Gadiel said.
Struggling families will be the big winners if the barriers to the development of the most cost-effective retail stores are lifted.
Families are being penalised by having to travel greater distances to do their shopping and they need a greater choice nearer their homes.
Reforms could deliver an extra $296 billion to the Australian economy and create an extra 147,000 jobs.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.
