Senator GIBBS (1:30 PM) —I rise today to speak on a very important matter relating to newsagents. Recent as well as past events have landed thousands of newsagent owners across the country in a very concerning predicament which I would like to bring to the attention of the Senate. Newsagents undoubtedly perform and provide a vital service in our community. Whilst this is true regardless of whether you live in the country or the city, the products and services newsagents provide are particularly important in rural and regional centres. Newsagents are nevertheless a commercial operation, but in so many respects we have come to depend on newsagents in a way that is somewhat similar to the need we have of many government services and support. Newsagents are not just vendors of newspapers and magazines, although this in itself is an important provision for most of us. Newsagents are often also drycleaning agents, stationers, convenience stores, bookshops, community event promoters and, of course, substitute post offices selling stamps and envelopes, et cetera, particularly where Australia Post is not close by.

With particular reference to my last point, as we witness the disgraceful situation of post office closures unfolding it is clear just how important newsagents around this country truly are. Newsagents do not just represent product and service providers to local communities; they are a fundamental component of the local economy as well. Newsagents are a generator of income and wealth for the local community but, more importantly, they are job creators, giving locals, often young people in particular, stable employment opportunities with which to afford a decent standard of living for themselves and their families. One might find it rather dubious to argue the importance of newsagents to a local community in such a way, but the evidence to support my claim is irrefutable. Like post offices and banks, newsagents are part of a town's pride. When you take away these essential providers of products and services—when you take away a community's local bank or post office or newsagent—you are effectively taking away an element of its pride, not to mention the economic consequences of such an outcome. A newsagent might employ only one, two or 10 employees in each locality, but consider that in terms of a national employment figure and you get a major source of employment and job creation in this country, the loss of which would be devastating both for individual towns and the nation as a whole.

I dare say that most of us have visited a newsagent in the last week, and many undoubtedly have some kind of personal relationship with the staff who work there. In light of this, it is worth while taking the time to consider how we would feel if our local newsagent were forced to close because the business was no longer viable. This is not some frivolous argument but an issue that now faces thousands of newsagents around Australia. It is a problem that is having a detrimental impact on my local newsagent and, I am sure, on those of other senators present. I am referring, of course, to the impact of deregulation and the conditions brought about by the national competition policy which newsagents such as my local one are having to endure.

Senator Boswell —Who brought it in? Good old Labor Party!

Senator GIBBS —Just let me finish, Senator, so that I can get to the point here. The process of deregulation in this country has been a difficult process for many industries. It is a process that has brought many benefits to the community, but there can be no doubt as to the hardship it has placed many small businesses and their employees under. Newsagents are operating in an industry that is constantly facing new challenges. In addition to the impact of deregulation on newsagents, we should not forget the numerous other factors that are making a newsagent's survival that little more difficult. They include: a threat to the ongoing viability of home delivery services; a reduction in the number of newspapers and increased concentration of ownership of Australian newspapers; increased circulation of free suburban, regional and ethnic newspapers; the detrimental impact of the GST on commission revenue; increased competitive pressure from new forms of media, including Internet and pay TV; and changes to the availability of newspapers and magazines, which are now readily available in convenience stores, supermarkets and service stations.

However, a new and equally pertinent issue is now facing the industry. The problem relates to the inability of newsagents to collectively negotiate terms with their suppliers under the Trade Practices Act. I should point out that this prohibition applies not only to newsagents but also to a number of industries dominated by small players. Under the current regime, the Trade Practices Act prohibits collective negotiation and secondary boycotts unless authorisations are granted by the Australian Competition and Consumer Commission. The problem is, however, that the process of gaining an authorisation is expensive, confined by time limitations and must be for a specific purpose. It goes without saying that such a process is extremely lengthy and arduous. In addition, the application carries a significant fee and an authorisation will not be granted if the matter is in relation to margins and/or territories.

These arrangements have inevitably contributed to a grossly inequitable situation whereby small business interests, particularly those of newsagents, are being restricted from effective negotiation with strong and much more powerful suppliers on a collective basis. This obvious disparity is clearly hampering small business operators due to the inherent, weighty commercial disadvantage and is ultimately leading to a major decline in their performance.

The reality faced within the industry is that newsagents, which are owner operated small businesses, are being forced to accept less favourable terms with their suppliers. This means small mum and dad style business operations are having to try to negotiate viable terms on their own with major corporate suppliers—without any help from a representative body, such as the Queensland Newsagents Federation, and without a collective bargaining position. This predicament is obviously precarious and is inevitably forcing newsagents, who have been left out in the cold, to accept less favourable terms that may ultimately lead to their demise.

Given my previous comments on the contribution which newsagents make to the economy, there should be no illusions as to the economic devastation that such a demise would have—not only on the lives of newsagent operators but on the state of the economy as well. Luckily, newsagents out there around the country are putting up a fight. They do not want to close any more than we would want them to, but some of the tactics that suppliers are using against newsagent operators are nevertheless mean and tough and could send many to the wall.

One ongoing example raised with me personally by my local newsagent in Queensland involved a major newspaper publisher using very heavy-handed tactics to gain better product positioning in the shop at great expense to individual newsagents. Unfortunately, when newsagent operators question this proposal, given the considerable financial burden, they are threatened with a substantial cut to their commissions. Of course, there are undoubtedly many more examples just like this one which thousands of newsagents right around the country are having to accept. Unfortunately, either because they are too afraid to raise the matter publicly for fear of reprisal or due to a lack of understanding with regard to their rights, so many newsagent operators are agreeing to unfair terms with their suppliers.

The obvious solution would be to give newsagents the same collective bargaining rights which other industries are entitled to. It hardly seems fair and equitable that newsagents are not entitled to be represented on a collective scale while major corporate retailers such as supermarkets, service stations and franchises are entitled to negotiate agreements and arrangements with their suppliers as a group. It is worth while noting also that a similar situation has evolved in other countries, such as the USA and the United Kingdom. The disparity in negotiation powers for many small businesses has had significant economic and social consequences in local communities, and the governments there are now taking steps to address the issue. However, it seems that newsagents and other small business groups are not being granted the same level of sympathy or even consideration of the matter by the federal government here in Australia.

The Queensland Newsagents Federation has endeavoured on numerous occasions to bring this matter to the attention of the government over a long period, but to this day it has largely fallen on deaf ears. Over the course of this year, the QNF has written three letters to the Minister for Financial Services and Regulation, Mr Hockey, and a letter to the Prime Minister, Mr Howard. Responses to these letters have been either non-existent or unsatisfactory, and it is clear that this issue has the potential to become an important election issue. As noted in the Australian Financial Review on 20 July this year:

In conclusion, the request that newsagents like my local one have asked for does not seem to be an overly complex one. As I see it, they are simply asking for fairer treatment under the law and, in particular, the basic and fundamental right to collective bargaining and negotiation. The government undoubtedly have an ideological opposition to any type of collective bargaining, but their policy on newsagents is nothing short of mean and tricky. Newsagents are not powerful interest groups; they are not even unions. We are talking about small businesses that are operated by mums and dads in our local towns and suburbs. They are a vital part of the economic and social fabric in our society and are asking for nothing more than other businesses in industries like supermarkets and service stations—all powerful rivals of newsagents—are entitled to and expect.

Newsagents are being left without a voice and without much power. They do not deserve the treatment they are currently being subjected to, and they should be entitled to voice their concerns collectively. I ask the Howard government to finally address these concerns, and I will continue to push for better and fairer outcomes for newsagents until such time as this matter is resolved.