Yesterday, questions were raised by callers to my programme about the high cost of fitting kids out for sport.
In particular, of course, this brand new swimsuit in which the best swimmers are smashing world records. Prices quoted of $800 a swimsuit. And legitimate questions being raised as to how parents could possibly afford to give their children the best chance if that kind of equipment was central to their doing well.
Well, then callers rang about tennis and the price of tennis shoes and racquets. And of course, all this inevitably leads back to what we've talked about for months and months, the Trade Practices Act. In this instance, the absurd situation of retail rents in Australia.
For example, a Prince tennis racquet that sells in Australia for $349, sells in America for $210. Same racquet.
So an Australian father has to pay an extra $139, 66 per cent higher than in America.
Now $34 dollars of the $139 is GST. The rest goes into the pocket of the shopping centre landlord.
Because the Trade Practices Act is useless and inhibits competition, Westfield, Lend Lease, AMP and others have been able to impose what is nothing more than their own private tax on Australian consumers, by imposing the world's highest shopping mall rents on retailers. So Rebel Sport's higher price in Australia is a simple reflection of the fact that they've got to have a higher mark-up because they have to pay absurd rents.
We had a Finding The Balance inquiry into all of this more than ten years ago. The inquiry confirmed what I'm saying.
Remember, tenants gave evidence in camera, frightened to speak out in public.
Nothing's happened.
So when shopping centre landlords use their monopoly power to exploit independent retailers, Australian families pay in higher prices. When the government, any government, closes its eyes and allows shopping centre landlords to exploit retailers, they're simply allowing shopping centre landlords to tax consumers.
Instead, federal and state governments, Labor and Liberal, have shafted the small retailer. And in so doing, have shafted the consumer.
And we're constantly told by the Productivity Commission and others that the market's working well.
How the hell can the market be working well when you're paying $210 in America for a racquet that costs $349 in Australia?
The Productivity Commission has proved itself nothing more than a bunch of clueless bureaucrats, completely out of touch with reality and the responsibility of their jobs.
A pair of men's tennis shoes in Australia, $80 - or $79.99 - America, same shoe: $53. 50 per cent more an Australian father has to pay.
The ACCC or the Productivity Commission could do their own homework, whether it's football boots, Coca-Cola, milk, bread or jeans.
And do these prices cause inflation?
All because of the collapse of competition and the failure of the Trade Practices Act.
Governments could easily bring inflation under control without jacking up interest rates. But you'd be upsetting the Woolworths and the Lend Leases and the AMPs and their mates.
And obviously no politician in Canberra or Macquarie Street has got the guts to do that.
So it's best for them to pretend the problem doesn't exist.
Then they don't have to worry about the solution.
