28/01/2011 - 00:00

FCA critical of franchise change

28/01/2011 - 00:00


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FCA critical of franchise change

THE Franchise Council of Australia has questioned the need for Western Australia to introduce state-based franchising legislation, because it would duplicate national regulations.

FCA executive director Steve Wright said the need for state-based legislation, which is being assessed by a WA Parliamentary Committee, had been canvassed and rejected by five inquiries since 2007.

Mr Wright said FCA members reported limited numbers of contract renewal issues with the existing national regulatory frameworks in place.

“There is simply no need for this legislation,” Mr Wright said.

“Regulation of the franchise industry is already covered by a national code of conduct that was strengthened just six months ago, the Trade Practices Act and the Australian Competition and Consumer Commission.

“With increased compliance costs, a disincentive to investment in WA and duplication of the national regime, this approach is all risk with no benefit.”

The FCA has called for the abandonment of state-based legislation and regulation; a moratorium on regulatory changes until 2012-13 and an increased focus on education and dispute resolution.

Mr Wright said most of the recommendations of the recent inquiries into franchising had been implemented by the federal government in its reform package announced mid last year.



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