Small Business Minister, Norm Marlborough, today called on the Federal Government to beef up its Trade Practices Act to help protect small business against predatory pricing by big business.
Predatory pricing is where a dominant business sells a product at a loss in order to drive some or all of its competitors out of the market. With fewer competitors, or possibly even a monopoly, the predatory business can then increase prices to compensate for earlier losses.
Mr Marlborough said he would call for a significant strengthening of the TPA at the Australian Small Business Ministerial Council today in Melbourne.
"I am concerned the Howard Government has ignored pleas from small business for greater protection under the TPA," he said.
The Minister accused the Federal Government of forcing small business into an even more costly and complex court process than currently exists to prove predatory pricing by big business.
"It is already difficult for small business to prove predatory pricing; with this amendment, the Howard Government is going to be making it even harder,"
Mr Marlborough said.
"The Federal Government's position highlights its blatant disregard for the interests of small business."
The Small Business Ministerial Council is an annual meeting of Federal, State and Territory Ministers to discuss matters of national importance to the small business sector.
"I look forward to hosting this meeting in Perth next year when we will be able to focus on the issues facing small businesses in Western Australia," Mr Marlborough said.
