As usual, the announcement of Labor’s much-hyped merger reform package presents more questions than answers.

The reforms are being fashioned by Treasurer Jim Chalmers and Assistant Minister for Competition Andrew Leigh as an historic, once in a lifetime, development – comparable to the competition reforms of the 1990s.

But, beneath buzzwords like ‘faster, simpler, stronger, transparent and targeted‘, Australians are unaware what information led to the policy’s development or how effectively it will actually work.

The Coalition supports increased competition and productivity, including through well-considered merger reform, but it recognises that the future regulation of mergers is too important to Australia’s economic wellbeing to get wrong.

Labor can claim its changes will deliver ‘greater benefits to the economy and to consumers and provide certainty to business’, but, if implemented poorly, they risk damaging Australia’s appeal to outside investment and swamping potential mergers in regulatory red tape.

Given the transparency requirements the planned reforms place on merger parties, Labor should follow suit and release the evidence and modelling it has used to guide its decision making so far.

In particular, the Government ought to provide evidence demonstrating the benefits of its reforms to Australian consumers.

And, while he’s at it, the Treasurer – who focussed heavily today on the role of considering the ‘national interest’ in this process – should reveal what improvements to Australia’s GDP we can expect to see from his new initiative.

There are also important considerations regarding the planned reforms and the ACCC, whose release today the Coalition notes.

Elements like deemed approval mechanisms, for example, may require considerable additional resourcing by the ACCC – well beyond the user-pay model Labor has proposed.

Unfortunately, the recent Armaguard/Prosegur issue raises concerns about the ACCC’s capacity to manage merger matters – and the Coalition continues to seek a full explanation regarding the ACCC’s failure to competently assess the circumstances of this merger.

Labor is on notice that the Coalition expects a rigorous Senate Committee process to examine its new merger reform initiative in detail.

While it may choose to present today’s announcement as a fait accompli, it is not.

Comments attributable to the Hon Angus Taylor MP

“None of this will restore the collapse in Australians’ standard of living. This is a Treasurer who is all spin and no substance.”

“It's important the government doesn't confuse competition policy with competitiveness of the economy. Labor's policies on energy, IR and tax are making Australia a less attractive place to do business.”

“We will scrutinise this to make sure this policy gets the balance right.”

“Labor is on a go-slow on competition policy: on the news bargaining code, on cash, and on reform to support our farmers and growers – Labor is failing to stand up for Australian consumers, Australian businesses, and Australian jobs.”

Comments attributable to Senator Dean Smith

“Labor’s proposed merger reforms must not be another example of the style over substance we’ve not come to expect from them.”

“Well constructed reforms, shaped by data and evidence, and properly implemented, could have a very positive effect on boosting competition – but if that is not the case, the results could be dire.”

“Australians have a right to know how the Albanese Government has arrived at these reforms and what actual economic benefits we can expect to receive, rather than more spin from the Treasurer and Dr Leigh.”

ENDS