Joyce, Xenophon target petrol pricing

Consumers and family businesses will benefit from a proposal to ban retail chains
from pricing smaller competitors out of the market, two senators say.
Independent Nick Xenophon and National Barnaby Joyce used a family-run Sydney petrol
station to launch a private members bill to stop geographic price discrimination -
where the majors cut prices at outlets around independents, but charge higher prices
at other sites.
The bill would force oil companies and supermarket giants to drop prices within a
35km radius of their stations that discount fuel.
The legislation would also extend to protect small players from major chains in
areas such as liquor, groceries and hardware.
However, the government has already indicated it will oppose the bill, saying it
would create a bureaucratic mess and lead to higher prices.
The senators have named their bill the Blacktown Amendment, to honour Marie
El-Khoury, who owns an independent BP station in the western Sydney suburb of
Blacktown.
She has led a group of independent stations across Sydney in dropping prices a
number of times since October 2008 to protest against anti-competitive practices.
Ms El-Khoury held another fuel give-away protest on Thursday, with motorists queuing
for up to three hours to buy petrol for 41.8 cents a litre - the cost of GST and
taxes.
Senators Xenophon and Joyce were at the bowsers pumping petrol and chatting to
motorists about the plight of family-run stations.
Senator Joyce said the bill was about protecting family businesses and jobs.
"People are being forced out of business ... because of corporate actions of the big
players who are gorilla-like and stand over the top of you and send you broke," he
said.
"It's not fair, but what's Marie El-Khoury's alternative, to sit quietly in the
corner ... this battle has to happen. Marie has got to create a stink to be heard."
Senator Xenophon called on parliament to support the bill.
"It needs to be a level playing field," he said.
"Putting an end to geographic price discrimination would mean more competition in
the market place and it gives independents a fair go."
Ms El-Khoury said small operators were struggling against the power of the big chains.
"Small business are the backbone of the Australian economy, we need to stay alive,"
she said.
Competition law expert Frank Zumbo drafted the bill and said it would also cover
liquor, groceries and hardware.
He said Canada had a similar law that was working well.
However, Assistant Treasurer Chris Bowen doubts the bill's worth.
"These proposals are a road to higher prices," he said.
"Legislation that will see retailers from all of the major oil companies charge the
same price is a recipe for higher prices across the board.
"You would need an army of bureaucrats to ensure every single major supermarket or
petrol station of a particular company was charging the same price at the same
time."