THE DEATH OF SECTION 49
In the USA, Price Discrimination is illegal under the Robinson-Patman Act. This is consider the “Magna Charta of Small Business” to prevent a business practice the US High Courts called an “evil”. In Australia, the equivalent law, section 49 of the Trade Practices Act, was repeal by Prime Minister Keating and the recommendation of Westfield director Professor Hilmer.
The removal of section 49 (Price Discrimination) from the Trade Practices Act, will go down in history as the greatest act of bastardry ever inflicted on Australian small business.
Professor Hilmer
* Director of Westfield.
Westfield area company engaged in Price Discrimination of such magnitude and of such recurring and systematic character that it has substantially lessened and distorted competition in the Australian retailing market.
*Appointed by Paul Keating to head enquiry in changes in the Trade Practices Act.
* Recommends that sections of the Trade Practices Act that prohibits “a corporation discriminating…..if the discrimination is of such magnitude or is of such recurring systematic character that is has or is likely to have the effect of substantially lessening competition in a market…..” Section 49 (Price Discrimination) be abolished.
Prime Minister Keating
* Appoints Westfield director Professor Hilmer to head Committee to recommend changes into the Trade Practices Act.
* Although Hilmer is director of Westfield at time, Keating give the committee the Orwellian name of ‘The Independent Committee”
* Accepts Hilmer’s proposal for elimination of Section 49 Price Discrimination Laws, making Australia the only developed country in the world without specific Price Discrimination Legislation to protect small business.
*Appoints Westfield Chairman Frank Lowy as board member of the Reserve Bank.
* Former senior Keating advisor Mark Ryan goes to work for Westfield for reported 6-figure sum.
* Since leaving The Lodge, Mr Keating has acted as a paid consultant to the Lowy group; his former office in Bligh Street re-opened last month as the new home of the Lowy Institute for International Policy; former Keating international affairs adviser Allan Gyngell is now executive director of the Lowy Institute and former Keating adviser Michael Fullilove is its program director.
Frank Lowy
* Chairman of Westfield
* Keating government abolishes Price Discrimination Legislation.
* Uses Price Discrimination of such magnitude and of such recurring and systematic character that competition is destroyed, enabling Westfield to increase rents to small business and earn billions in profits.
* Westfield major tenants, Woolworths/ColesMyer/David Jones all shielded from competition by small business resulting from the repeal of Price Discrimination Laws.
* While Keating is Prime Minister, reportedly has a tax bill reduced by $25 million, a decision which upsets two tax investigator so much they take stress leave. Appointed by Prime Minister Keating to the board of the Reserve Bank
* When Keating leaves office, pays Keating as consultant for Lowy group and employees former senior Keating advisors, Mark Ryan, Allan Gyngell and Michael Fullilove