BCCM features in draft competition review

20 October 2014

The draft report into competition policy (Harper Review) has provided further evidence that by working together as a broad based mutual sector, the co-operative and mutual sector can have an impact on policy discourse with significant implications for the sector in terms of new markets and opportunities. Citing the findings of the BCCM’s White Paper on Public Service Mutuals, the draft report encourages government to be open and flexible in allowing a wider range of entities, including co-operatives and mutuals, to provide services traditionally assumed by governments.

In a stand alone section on Mutual Providers (pg.158) the report highlights the work of the BCCM and the Australian Public Service Mutuals Task Force in raising awareness of the potential for co-operatives and mutuals to play an expanded role in public service markets. Referring also to the BCCM’s Green Paper on mutuals, the report notes the potential consequences of markets which lack diversity, such as the concern that for profit providers are likely to ‘cherry pick’ lower risk or more profitable consumers (pg.158).

The Business Council of Co‑operatives and Mutuals and the Australian Public Service Mutual Task Force have released a White Paper on public service mutuals that seeks to explore an alternative where co‑operatives and mutuals play an expanded role in delivering public services. Public service mutuals are:

An organisation … whereby members of the organisation are able to be involved in decision‑making, and benefit from its activities, including benefits emanating from the reinvestment of surpluses.[1]

The White Paper suggests public service mutuals deliver several benefits including that they can:

• Increase organisational diversity in public service markets.
• Harness the ethos and professionalism of public service employees and unleash their entrepreneurialism.
• Increase consumer choice and control.
• Stimulate public service innovation.[2]

Public service mutuals now play a significant role in some other jurisdictions including the UK, where there has been concerted effort through public policy levers and capacity building activities to establish and expand public service mutuals.

The report also refers to the role of co-operatives and mutuals in promoting the economic potential of our nation in relation to agricultural competitiveness (pg.196) and small business profitability (pg.65). Competition issues effecting BCCM Members (including The Co-op and Murray Goulburn) are mentioned in the report’s interim findings on parallel importation restrictions and the coordination of the timing of the various merger approval processes that exist under Australian law. BCCM Member, NRMA notes the effect of market concentration through aquisitions in supermarket and fuel retailing sectors on pg.185.

In the past year, the BCCM has made more than eight submissions to federal and state inquiries. The BCCM meets with federal and state political representatives to raise awareness of the contribution of the co-operative and mutual economy.

Competition Policy Review media release: Competition Policy Review – release of Draft Report, 22 September 2014