Western Australia’s peak business group says a new report into the retail industry should sound a death knell for the state’s “out of date, anti competitive and anti-business” trading regulations.
The Productivity Commission’s draft report into the performance of the retail sector, released today, recommended retail trading hours be de-regulated in all states, including on public holidays.
The report said the current restrictions in WA reduced choice for consumers, imposed onerous and costly compliance costs on business and are drove consumers online.
“The peak organisation representing WA business, CCI, says enough is enough,” CCI chief economist John Nicolaou said.
“Our elected representatives must end their political standoff and allow all retailers to open when they want, where they want.”
Retail Traders’ Association Wayne Spencer agreed, saying the report identified the key challenges facing WA retail, including the need for new regulations covering workforces, planning and zoning, retail tenancy and online trading.
“The report goes further to bust the myths that have been used by some over the years to block this essential reform,” Mr Spencer said in a statement.
“It highlights that the current regime is bad for consumers, retailers and the economy.
“Change is not only warranted, but is demanded now.”
Mr Spencer said the report concluded the retail industry would need to improve its productivity to remain competitive with global market forces and the growth of online shopping.
Although the state government has committed to extensive reform of retail trading regulations in recent years, the report found WA continued to have the most restrictive trading laws in the country.
Recent changes include the expansion in January last year of tourism precincts to include Subiaco, Mount Lawley, East Perth , West Perth, North Perth, South Perth and Victoria Park, and an extension of trading hours at Perth and Fremantle to 9:00pm on weekdays.
In September last year, the state government created a new special trading precinct in Joondalup, allowing weeknight trading to 9:00pm and Sunday trading.
In October, the state govenrmnet released a discussion paper discussing the possibility of allowing Sunday trading for white goods and bulky goods throughout the metropolitan area.
The Liberal Party announced in February it would go to the next state election with a policy of full de-regulation.
And in June, Commerce Minister Simon O’Brien announced a proposed change for the classification of small retail shops to allow 7,000 existing retailers to trade without restrictions on opening hours.
Mr Nicolaou said today’s Productivity Commission report was proof that there was “no good reason” for WA politicians to stand in the way of Sunday trading.
