THE Australian Competition and Consumer Commission has certainly had its eye on the Hunter lately.
Subscribe now for unlimited access.
or signup to continue reading
Late last year, the national competition regulator announced it was taking court action over the originally secret protection given to Port Botany by the NSW government, which effectively stopped Newcastle from developing its own container terminal.
Now we learn that some three dozen or so car yards in Newcastle and the Hunter are at the centre of the ACCC's concerns over a proposed $2.3-billion merger of Australia's two biggest auto groups, Brisbane's AP Eagers, and the Perth-based Automotive Holdings Group, which between them own almost 300 new vehicle dealerships.
With the auto industry under continual pressure to find new efficiencies, the boards and management of both companies are hoping that a new merged entity will give them a substantial advantage over their rivals.
But as the ACCC points out, size does not always mean cheaper prices as far as consumers are concerned.
While many in the business world criticise the ACCC for being over-prescriptive in doing its job, it is worth remembering the "consumer" part of the regulator's name when it comes to its analysis of motor vehicle sales methods.
As anyone who has ever been to a car yard will attest, bartering is an intrinsic part of a vehicle purchase. The ACCC says that while the recommended retail prices set by manufacturers are "transparent", real prices are usually "opaque".
Customers might think they are shopping around going from dealer to dealer, not realising that apparently competing businesses have common owners.
Clusters of supposedly competing brands under the one roof are not restricted to the auto world, but with a car often being the second-biggest purchase that many people will make - or the biggest if they do not own a home - it's important that consumers are treated fairly.
Without pre-empting the ACCC's decision, there are clear signs that it will require as many as half of the Hunter dealerships involved in the merger to be sold to another party. In seeking more information from the industry, it is also looking at the impact on parts and servicing, and on fleet purchases.
A decision is expected by the end of July.
ISSUE: 39,342.
Ian Kirkwood
Reporting journalist at the Newcastle Herald since 1987. Editorial writer, general reporter, industrial relations, industry and coal.
Reporting journalist at the Newcastle Herald since 1987. Editorial writer, general reporter, industrial relations, industry and coal.
