Blocking Qatar harmed consumers: Fels
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The news: The government's decision to reject additional Qatar Airways flights into Australia has harmed the interest of consumers, according to a report on price gouging and unfair pricing practice by former ACCC chair Allan Fels.
The numbers: The report made 35 key recommendations, with six relating to prices, four to mergers and divestiture, five to competition policy, and 20 to specific industries issues.
In his address to the National Press Club on Wednesday, Fels said the Qatar block allowed Qantas to charge ticket prices 30% higher.
The context: The inquiry was commissioned by the Australian Council of Trade Unions (ACTU) and authored by Fels.
It also found that:
- Corporate profits had added significantly to inflation with some businesses having too much power over customers, supply chains and workers;
- Many businesses were resorting to dodgy price practices; and
- A range of sectors were insufficiently competitive or insufficiently regulated.
What they said: In the report recommendations Fels said the government should “remove restrictions on international aviation which are harmful to the interests of consumers”.
“[The government] was acting in the interests of Qantas. Following the expression of public concern, the government has launched a discussion paper on future aviation policy. It is important that this paper deals with serious restrictions on competition,” he said.
Pointing to the energy market, ACTU secretary Sally McManus said: “The gaming of the system in the wholesale energy market is particularly concerning. Generation makes up 30% of our household bills and Fels asserts there is gouging in the system which is causing workers to pay too much. Action here could have an immediate effect on our cost of living”.
