Farmers have renewed calls for meaningful competition reform as experts warn the aviation sector faces similar problems to the supermarket sector.
Last week regional airline Rex was placed into voluntary administration – just months after the collapse of regional carrier Bonza. While Rex’s regional routes were still in operation, NSW Farmers President Xavier Martin said the similarities between aviation and supermarket concentration were too big to ignore.
“There’s no doubt that Australia’s current regulatory environment is enabling these dangerous duopolies to thrive, with few checks and balances in place to stop them misusing their market power,” Mr Martin said.
“Thanks to the government’s lack of action on competition, you have two big, heavily supported players in the air – Qantas and Virgin – and two big players in the supermarkets, with Coles and Woolworths.
“As long as anticompetitive conditions are allowed to continue, Australians will pay the price, whether that’s at the checkout, or through a lack of options when it comes to travel.”
Mr Martin said significant reforms to Australian competition law – including the introduction of divestiture powers to bust apart supermarket giants when necessary – were essential to protect rural communities and consumers from further harm caused by anti-competitive behaviour.
“We need farmers to produce our food and fibre, and we’ve talked at length about the problems we’ve had in supplying the big two supermarkets, but our rural communities also need regional air services to stay connected to families, businesses and healthcare,” Mr Martin said.
“Without Rex, we’re certain the cost of flights would skyrocket in the bush for towns lucky enough to have a second airline, and for those who only have Rex , it would either mean long trips in the car or no trip at all .
“It’s time Australia said enough is enough and cracked down on anticompetitive behaviour and the dysfunctional systems that enable it.”
