FCA notes overwhelming opposition to Abetz bill in submissions made to Parliamentary inquiry

An overwhelming majority of WA franchising businesses have joined state and national legal and Government bodies in registering their opposition to the private member’s bill raised by backbencher Peter Abetz, the Franchise Council of Australia reports.

Around 120 submissions were made to the WA Parliamentary inquiry created to examine the bill, with approximately 90 percent opposed to the legislation.

While the bill is purported to help franchisees, only two have so far made submissions in favour of it. Five ex-franchisees also registered their support, but in contrast 19 current franchisees made submissions against the bill.

Mr David Lieberman, a leading trade practices, competition and consumer protection expert also made a submission opposed to the bill.

A former commissioner of the ACCC, Mr Lieberman was a member of the expert panel appointed by the Federal Government to evaluate franchising regulation in 2009/10.

FCA Executive Director Steve Wright says that the submissions to the Parliamentary inquiry are further proof that Mr Abetz failed to undertake any meaningful consultation with the franchising community prior to introducing the bill.

“It is a poor reflection on due process,” Mr Wright states. “It has the hallmarks of vested interest campaigning rather than responsible policy development.”

Mr Wright also believes the submissions make it clear what should be done with the bill.

“The Abetz bill should be scrapped,” he says, cautioning of significant consequences should it be implemented.

“If implemented, it would lead to a sudden and damaging drop-off in investment and employment in the WA small business sector. And it could be years before this was recovered, potentially costing the WA economy hundreds of millions of dollars of active business spending and employment.”