Fed: Lack of competition in Aust economy: Latham

AAP General News (Australia)
08-09-2004
Fed: Lack of competition in Aust economy: Latham

CANBERRA, Aug 9 AAP - Competition was falling away in the Australian economy when the
government should be encouraging it, Opposition Leader Mark Latham said today.

In an address to the Australian Industry Group, Mr Latham said a future Labor government
would do much more to encourage competition in the marketplace.

Mr Latham said a series of industries, such as telecommunications and banking, were
squeezing out competition to the detriment of the wider economy.

He said competition was vital to a vibrant and increasingly productive economy.

But if it was not encouraged, a lack of competition would develop that would in turn
hurt the economy.

"I'm worried in the current context that the Australian economy has many of its industries
that are re-concentrating, they have declining levels of competition," he said.

"This is especially the case in the retail, transport, banking, media and telecommunications
sectors, where there's a clear trend to duopoly and oligopoly markets."

Mr Latham said the government had effectively surrendered efforts to encourage competition.

"In the political system the conservatives talk about markets, while Labor actually
reforms them," he said.

"So too, the conservatives talk about competition, well we actually believe in it and
we take the policy steps to make sure it happens.

"Competition is the key to competitive pressure, innovation and technological upgrading
right across the economy."

Mr Latham promised a Labor government would continue reforms across a range of economic areas.

He said reform was also important in terms of ensuring every skilled person contributed
to the economy.

"Every person we waste weakens the wealth of the nation," he said.

"That's why economic efficiency is no longer enough. It's absolutely vital of course
but it also needs to be matched by a commitment to social justice - an inclusive society
where all Australians share in the benefits in education and enterprise, assets, and opportunity.

"That's Labor's vision for the Australian economy, that's our plan for the next 20
years - reform, reform and more reform in the key areas."

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KEYWORD: LABOR

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