The ACT Government has been caught out. Its policy on forcing large-mall supermarkets to close early has already been condemned for inconveniencing thousands of Canberrans; costing many youngsters their job and being unlikely to achieve any of its stated aims of saving small businesses at suburban shopping centres. Now, however, it transpires that the ACT might be in breach of federal competition policy. If so, it faces the loss of large sums of federal money forming the compensation pool for states and territories that implement the Hilmer competition recommendations.
These demand that as far a possible uniform rules should apply to all market participants and that anti-competitive conduct is only acceptable in the public interest. It is true that the ACT has among liberal trading hours in Australia, but that is no excuse for going backwards. The regulation of mall-based supermarkets is discriminatory and it would be hard for the government to argue it is in the public interest, given the inconvenience, job losses and unproven outcomes.
Prima facie unequal treatment of business through government regulation should be discouraged. If good sense fails, then the threat of penalising the ACT through loss of Hilmer compensation might bring the ACT Government to its senses and it might repeal these obnoxious laws. Once one state or territory seeks exemptions for going backwards, others will follow and the fruits of competition policy will be lost.