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1 faculty of Law Shop Trading Hours in Western Australia: A Research Report A legal, social and economic analysis of the regulation of shop trading hours in Western Australia Tracey Atkins, Assistant Professor, Law School The University of Western Australia 1 November 2011
2 Table of Contents Information about consumer research at The University of Western Australia Law School 01 Information about the Author 01 Foreword 02 Acknowledgments 02 Executive Summary 03 chapter one Introduction Chapter Outline Research Report Process Scope of the Research Report Structure of the Research Report Methodology 10 chapter two A review of previous research undertaken on shop trading hours in Western Australia Chapter Outline Surveys of Western Australian consumers attitudes toward extended shop trading hours Research and policy papers 18 Chapter Two: Summary 28 chapter three The history of the regulation of shop trading hours in Western Australia Chapter Outline Early developments in the regulation of shop trading hours in Western Australia Retail Trading Hours Act 1987 (WA) The impact of National Competition Policy on the regulation of shop trading hours in Western Australia The 2005 Western Australian Referendum on Shop Trading Hours The failure of Western Australia to meet NCP legislative review commitments regarding shop trading hours Changes to shop trading hours since the 2005 Western Australian Referendum on Retail Trading Hours 45 Chapter Three: Summary 46 The University of Western Australia i
3 chapter four The current regulation of shop trading hours in Western Australia Chapter Outline Regulation of shop trading hours in Western Australia Application of the Act Categories of retail shops General Retail Shops Motor Vehicle Shops Special Trading Precincts and Prescribed Holiday Resorts Non metropolitan trading hours Variation of retail trading hours Small Retail Shops Special Retail Shops Filling Stations Previously Exempted Shops Proposals for change to shop trading hours in Western Australia Chapter Four: Summary 59 chapter five Regulation of shop trading hours in other Australian jurisdictions Chapter Outline New South Wales Queensland South Australia Tasmania Victoria Australian Capital Territory Northern Territory Chapter Five: Summary 81 ii Shop Trading Hours in Western Australia: A Research Report
4 chapter six How does regulation of shop trading hours in Western Australia compare to the regulation of shop trading hours in other Australian jurisdictions? Chapter Outline Legislation regulating shop trading hours Operation of the legislation Restrictions on shop trading hours Chapter Six: Summary 86 chapter seven Victoria: A case study of the pre and post deregulation experience Chapter Outline Pre-deregulation of shop trading hours: the Victorian experience Post-deregulation of shop trading hours: the Victorian experience Conclusion the Victorian experience Chapter Seven: Summary 115 chapter eight How difficult is it to reform shop trading hours? Chapter Outline Regulation of shop trading hours as a public policy issue Key interest groups in the deregulation of shop trading hours debate in Western Australia Views of Western Australian political parties Arguments in favour of the deregulation of shop trading hours in Western Australia Arguments against the deregulation of shop trading hours in Western Australia Are interest groups homogenous? The Consumer Interest An explanation for why change is difficult to achieve: the economic theory of regulation Experience in other jurisdictions Chapter Eight: Summary 130 The University of Western Australia iii
5 chapter nine The social and economic impacts of deregulating shop trading hours in Western Australia Chapter Outline Examining the impact of extended trading hours The impact of extended trading hours on consumers The impact of extended trading hours on retail employees The impact of deregulation of shop trading hours on community activities The impact of extended trading hours on small business The impact of deregulation on retail sales The impact of recent developments in the reform of shop trading hours in Western Australia Chapter Nine: Summary 171 chapter ten Conclusion 172 Bibliography 174 Contact Information 185 iv Shop Trading Hours in Western Australia: A Research Report
6 Information about consumer research at The University of Western Australia Law School The Consumer Research Unit undertakes independent research on consumer issues and builds on The University of Western Australia Law School s reputation for innovative research. With the continuing support of the Western Australian Department of Commerce, the Unit aims to improve the understanding of consumer markets and consumer protection frameworks, in part, by helping to prepare research proposals and tenders for externally funded research. The Consumer Research Unit contributes to consumer policy in Western Australia and other Australian jurisdictions and also bids for contracts to undertake legislative review projects. In addition, it provides courses and workshops in consumer law and policy for undergraduates, postgraduates and for continuing professional development. Information about the Author Assistant Professor Tracey Atkins teaches law at The University of Western Australia. She is the Unit Coordinator for Trusts and the Acting Unit Coordinator for Consumer Law and also teaches in Contract Law. Tracey has also taught law at the University of Notre Dame. Her research interests are in the area of consumer law, contract law, alternative dispute resolution, access to justice as well as the social and economic policy context of the law. Tracey is the co-author of the university textbook Current Issues in Consumer Law and Policy (Pearson Education Australia 2006). Tracey began her career working in Victorian Community Legal Centres and managed a number of centres as well as coordinating legal centre funding and program delivery while working at Victoria Legal Aid. Tracey holds an Arts degree and a Law degree (with First Class Honours). The University of Western Australia 01
7 Foreword It gives me great pleasure to present this Research Report examining shop trading hours in Western Australia. The regulation of shop trading hours is a matter of past, current, and no doubt, future debate in Western Australia. The Research Report represents an independent, impartial analysis of the history of shop trading hours regulation and the current regulatory frameworks in each Australian jurisdiction, with a particular emphasis on Western Australia. The debate about the hours that shops may be open, what they may sell and their ownership and staffing is not simply a legal issue. Like most areas of public policy, the regulation of shop trading involves an examination of complex, intersecting social and economic considerations. As such, the analysis undertaken for this Research Report has focused not simply on legal frameworks, but has also considered the issue of shop trading hours in a social and economic policy context. Acknowledgments In preparing this Research Report I have received extremely helpful support and advice from Winthrop Professor William Ford, the former Dean of The University of Western Australia Law School, Winthrop Professor Stuart Kay, Dean of The University of Western Australia Law School, Winthrop Professor Peter Handford and Winthrop Professor Holly Cullen. I record my appreciation of the time that they have given to me in preparing this Research Report. I would also like to acknowledge Dr Debbie Hindley for her earlier research in relation to the issue of shop trading hours in Western Australia undertaken for the Consumer Research Unit. The report has benefited from this earlier research and I express my gratitude to Dr Hindley for her work. I also appreciate the opportunity afforded to me by the Consumer Research Unit and The University of Western Australia to undertake a challenging and interesting area of legal and policy research. 02 Shop Trading Hours in Western Australia: A Research Report
8 Executive Summary This Research Report has been commissioned by the Consumer Research Unit at The University of Western Australia. The Research Report has been undertaken in the following stages: Stage 1: Literature review Stage 2: An analysis of the legal frameworks applicable to shop trading hours in Western Australia and other jurisdictions Stage 3: An analysis of the interests in, arguments for and against, and experiences of, deregulation of shop trading hours in Western Australia and other jurisdictions Stage 4: Preparation of Research Report The Research Report examines shop trading hours in Western Australia. More particularly, the Research Report considers the economic, social and legal perspectives relevant to shop trading hours including a consideration of consumer interests and other interests. The Research Report deliberately adopts a multidisciplinary approach and gives consideration to multiple relevant jurisdictions. The report is structured on a chapter basis. Each chapter deals with a key issue of interest relating to shop trading hours and collectively aim to create a clear, logical and progressive structure for the reader. Chapter one sets out the methodology of the Report. Chapter two outlines previous research on shop trading hours in Western Australia. Broadly, this research comprises: Surveys of Western Australian consumers attitudes toward extended shop trading hours; and Research and policy papers. A number of surveys have been undertaken to determine the attitudes of Western Australian consumers to extended shop trading hours. Generally, these surveys have been carried out by research/survey organisations and have been commissioned by agencies such as the Retail Traders Association, the Chamber of Commerce and Industry Western Australia and the Department of Premier and Cabinet. Consumer surveys have consistently indicated a high level of support for extended shop trading hours among Western Australian consumers. Based on the survey evidence examined, the level of support for extended shop trading hours has increased over time. The University of Western Australia 03
9 A number of research and policy papers have been written which provide discussion and analysis of shop trading regulation in Western Australia. The major arguments of these papers are set out in this chapter. Chapter three explores the history of the regulation of shop trading hours, particularly in Western Australia. This chapter sets out key events in the development of shop trading hours regulation in Western Australia including: Early developments in the regulation of shop trading in Western Australia The introduction of the Retail Trading Hours Act 1987 (WA) (the Act) The impact of National Competition Policy (NCP) on regulation of shop trading hours in Western Australia The 2005 Western Australian Referendum on Retail Trading Hours The failure of Western Australia to meet NCP legislative review commitments regarding shop trading hours Changes to shop trading hours since the 2005 Western Australian Referendum on Retail Trading Hours The chapter then explores the impact of NCP on regulation of shop trading hours in Western Australia, and Western Australian legislative reviews of shop trading hours as required by NCP, before going on to examine the 2005 Western Australian Referendum on Retail Trading Hours, including the results of the referendum, issues with the referenda questions, an alternative approach to referenda, the history of referenda generally, the shop trading referendum in South Australia, the failure of Western Australia to meet NCP legislative review commitments regarding shop trading hours and changes to shop trading hours since the 2005 Western Australian Referendum on Retail Trading Hours. Chapter four sets out the current regulation of shop trading hours in Western Australia. Current proposals for changes to shop trading hours are also discussed. This chapter provides an overview of the current regulation of shop trading hours in Western Australia. It examines: Application of the Act Categories of retail shops created by the Act General Retail Shops; Small Retail Shops; Special Retail Shops; and Filling Stations. Restrictions imposed on trading hours and types of goods sold in each of the categories of retail shops created by the Act Current proposals for changes to shop trading hours in Western Australia. Chapter five reviews and summarises the legislative/regulatory regime of other Australian states and territories including when and how those jurisdictions deregulated/liberalised shop trading hours restrictions. In particular, this chapter 04 Shop Trading Hours in Western Australia: A Research Report
10 examines how shop trading is regulated in each of the states and territories including the following key areas: Legislation regulating shop trading hours Operation of the legislation Restrictions on shop trading hours: Monday to Saturday trading; Sunday trading; Public holiday trading; Geographic restrictions (where applicable); and Restrictions on types of goods sold (where applicable). In Chapter six the regulation of shop trading hours in Western Australia is compared with the regulation of shop trading hours in other Australian jurisdictions. This chapter examines the following key areas of difference in the regulation of shop trading between the Australian states and territories including: Legislation regulating shop trading hours Operation of the legislation Restrictions on shop trading hours: Monday to Saturday trading; Sunday trading; Public holiday trading; Geographic restrictions (where applicable); and Restrictions on types of goods sold (where applicable). Chapter seven examines the deregulation of shop trading hours in Victoria which occurred in The chapter analyses the Victorian experience prior to the reform of shop trading hours including an examination of the public policy debate. This chapter also examines the Victorian experience post-deregulation of shop trading hours to identify the impact of the changes. The chapter concludes that the Victorian experience in deregulating shop trading hours has been largely positive and has resulted in benefits to consumers and growth in the retail sector (both in terms of sales and employment). On the whole, the fears expressed prior to deregulation in Victoria have not materialised. The evidence however, does suggest that deregulation has exposed certain retailers to greater competitive pressure (which may or may not be viewed as a negative outcome), notably small retailers and independent grocers, however the extent of this impact remains contested. Chapter eight seeks to answer the question, how difficult is it to reform shop trading hours? In doing so, it examines the following: Key interest groups in the deregulation of shop trading hours debate in Western Australia; Views of Western Australian political parties; The University of Western Australia 05
11 Arguments in favour of the deregulation of shop trading hours in Western Australia; Arguments against the deregulation of shop trading hours in Western Australia; Are interest groups homogenous? What is the consumer interest? An explanation for why change is difficult to achieve: The economic theory of regulation; Experience in other jurisdictions. In chapter nine the likely social and economic impacts of deregulation of shop trading hours in Western Australia are examined, including: The impact of extended trading hours on consumers: Does the Retail Trading Hours Act 1987 (WA) restrict when and where consumers can shop? Changes in social and demographic factors; and Consumer support for extended shop trading hours. The impact of extended trading hours on retail employees: Job security and working conditions of retail employees; Working hours of retail employees; Can employees be forced to work longer hours? and Can small business owners be forced to work longer hours? The impact of extended trading hours on community activities: Participation in sporting activities; Participation in church or religious activities; and Shopping as a social/leisure activity. The impact of extended trading hours on businesses including small businesses: Protection of small business; Small business closures; Market dominance by large retailers; No increase in shopping hours; and No price advantage to consumers. The impact of deregulation on retail sales Experience of other states. The impact of recent developments in the reform of shop trading hours in Western Australia: Extended weeknight trading until 9.00pm in the metropolitan area; Expansion of Special Trading Precincts; Sunday trading for bulky goods. The Research Report concludes that the regulation of shop trading hours is a complex, and contested, area of public policy. Complexity not only arises from 06 Shop Trading Hours in Western Australia: A Research Report
12 the current nature of regulatory arrangements but also, the number of interest groups involved in the shop trading hours debate and the issues of concern for these groups. If complexity is a key feature of the shop trading hours debate, then perhaps the only more certain aspect of the debate is its contested nature. Political parties, interest and representative groups and consumers themselves bring contrasting views to the debate. As a general rule, any area of complex and contested public policy is unlikely to be amenable to easy resolution and a proper policy approach to shop trading hours is no exception to the rule. In such cases of complexity and contest there is a powerful argument that independent, impartial evidence-based analysis can provide a positive tool to guide solutions. The Report, through a comprehensive and impartial examination of the history of shop trading hours in Western Australia, an examination of the current regulatory arrangements in each Australian jurisdiction and an analysis of the social, political and economic context of shop trading hours suggests that the long-term consumer interest is served by the deregulation of shop trading hours. This is principally for the following three reasons: 1. Consumers show a clear preference for the ability to shop outside of those hours historically allowed by government regulation. In each jurisdiction that has undertaken shop trading hours reform, roughly equally divided consumer sentiment for deregulation pre-reform changes to overwhelming support postreform. Indeed, in those few examples that exist, most notably the Australian Capital Territory, attempts to reintroduce shop trading hours regulation following previous deregulation met with overwhelming consumer opposition. In this way too, consumer preference, rather than government preference (or the preference of any one group of retailers) determines market offering a situation that leads to the greatest economic efficiency and optimal price, choice and quality for consumers. Similarly, removal of restrictions reduces regulatory burdens, complexity and cost for business and enhances productivity. 2. The literature reveals that the majority of arguments put forward by opponents of shop trading hours deregulation do not eventuate following shop trading hours reform. In fact, on some of the key indicators, evidence suggests the opposite of that predicted occurs. 3. Shop trading hours deregulation best accords with an approach that respects economic and personal freedom, including the freedom to choose without unnecessary government restraint or distortion. In a deregulated environment, consumers are free to choose when and where to shop and, of course, not to The University of Western Australia 07
13 shop and instead undertake any other activity of their choice including attending Church or participating in sport or other leisure activities. Businesses are free to choose when to open, how to operate and what to sell, and again, not to open if they choose. Current employees and potential employees benefit from increased employment opportunities and enhanced freedom to work in a way that suits modern lifestyles. 08 Shop Trading Hours in Western Australia: A Research Report
14 Chapter One Introduction Chapter Outline This chapter will outline the methodology of the report including: Research Report Process Scope of the Research Report Structure of the Research Report Methodology 1.2 Research Report Process Stage 1: Literature Review Stage 2: An analysis of the legal frameworks applicable to shop trading hours in Western Australia and other jurisdictions Stage 3: An analysis of the interests in, arguments for and against, and experiences of, deregulation of shop trading hours in Western Australia and other jurisdictions Stage 4: Preparation of Draft Research Report Stage 4: Preparation of Final Research Report 1.3 Scope of the Research Report The Research Report examines shop-trading hours in Western Australia. More particularly, the Research Report considers the economic, social and legal perspectives relevant to shop trading hours including a consideration of consumer interests and other interests. The Research Report deliberately adopts a multidisciplinary approach and gives consideration to multiple relevant jurisdictions. 1.4 Structure of the Research Report The report is structured on a chapter basis. Each chapter deals with a key issue of research interest relating to shop trading hours and collectively aim to create a clear, logical and progressive structure for the reader. Chapter One: Introduction Chapter Two: A review of previous research undertaken on shop trading hours in Western Australia Chapter Three: The history of the regulation of shop trading hours in Western Australia Chapter Four: The current regulation of shop trading hours in Western Australia Chapter Five: Regulation of shop trading hours in other Australian jurisdictions Chapter Six: How does regulation of shop trading hours in Western Australia compare to the regulation of shop trading hours in other Australian jurisdictions? The University of Western Australia 09
15 Chapter Seven: Victoria A case study of the pre and post deregulation experience Chapter Eight: How difficult is it to reform shop trading hours? Chapter Nine: The social and economic impacts of deregulating shop trading hours in Western Australia Chapter Ten: Conclusion 1.5 Methodology The methodology utilised to prepare the Research Report has incorporated an extensive literature review, including: Australian and international books and articles; Websites, media commentary and reports of government and consultants inquiries into shop trading hours. A complete Bibliography appears at the end of the Research Report. This report uses Melbourne University Law Review, Australian Guide to Legal Citation (Melbourne University Law Review, 2nd ed, 2002). 10 Shop Trading Hours in Western Australia: A Research Report
16 Chapter Two A review of previous research undertaken on shop trading hours in Western Australia 2.1 Chapter Outline This chapter will outline previous research on shop trading hours in Western Australia. Broadly, this research comprises: Surveys of Western Australian consumers attitudes toward extended shop trading hours; and Research and policy papers Surveys of Western Australian consumers attitudes toward extended shop trading hours A number of surveys have been undertaken to determine the attitudes of Western Australian consumers to extended shop trading hours. Generally, these surveys have been carried out by research/survey organisations and have been commissioned by agencies such as the Retail Traders Association and the Chamber of Commerce Western Australia. Consumer surveys have consistently indicated a high level of support for extended shop trading hours among Western Australian consumers. Based on the survey evidence examined, the level of support for extended shop trading hours has increased over time. The details and key findings of the major surveys of Western Australian consumers attitudes toward extended shop trading hours are outlined below. Year 1994 Survey conducted by Donovan Research Survey commissioned by Retail Traders Association Key findings The survey examined the attitude of Western Australian consumers toward extended trading hours. The survey found that, by a small majority, consumers were supportive of extended shop trading. The survey found 43% of consumers surveyed were in favour of extended trading hours 33% of consumers surveyed were against extended trading hours 23% of consumers surveyed were ambivalent. 1 Continued over 1 Retail Trading Hours Review Committee, Review of Retail Trading Hours Public Consultation Paper (2003) 17 The University of Western Australia 11
17 Year November 1998 Survey conducted by Roy Morgan Research Centre Survey commissioned by Retail Traders Association Key findings The survey examined the attitudes of Perth residents to Sunday trading. The survey found that Perth residents were supportive of Sunday trading. The survey found: Sunday Trading 73% of Perth residents supported Sunday trading 67% of Perth residents believe that the shops they usually visit should be able to open on Sundays if they choose to do so Support for Sunday trading was highest amongst young people 80% of people aged indicated that they would be more likely to shop on Sunday if shops were open 79% of people aged 25 to 34 indicated that they would be more likely to shop on Sunday if shops were open Perth residents indicated that the main reasons for choosing to shop on Sundays were: more personal free/spare time emergency purchases/might need something unable to shop at other times due to work commitments. 2 Continued over 2 Shopping Centre Council of Australia, Submission to the Western Australian Review of Retail Trading Hours (16 April 2003), 4 12 Shop Trading Hours in Western Australia: A Research Report
18 Year 1994 Survey conducted by Australian Community Research Survey commissioned by Retail Traders Association Key findings This survey was undertaken to assess whether the attitudes of Western Australian consumers to shop trading hours had changed since their earlier survey undertaken in The survey found that consumer support for extended trading hours had increased since The survey found Extended trading hours 62% of consumers surveyed were in favour of extended trading hours 33% of consumers surveyed were against extended trading hours 5% of consumers surveyed were ambivalent. 3 2 Extended trading hours until 9.00pm on weeknights 71% of consumers surveyed were in favour of extended trading hours 4 37% of consumers surveyed indicated that they would shop for groceries between 6.00pm and 9.00pm on weeknights if supermarkets were open 5% of consumers surveyed indicated that they would change where they did their major grocery shopping if all supermarkets were able to open in the evening. 5 Sunday trading 64% of consumers surveyed were in favour of Sunday trading 6 Consumers asked to imagine that shopping centres were open 7 days a week, indicated that their preferred day for shopping for personal items was Saturday (29%) followed by Sunday (20%). 7 Continued over 3 Retail Trading Hours Review Committee, above n 1, 17 4 Ibid 5 Chamber of Commerce and Industry Western Australia, Submission to the Review of Retail Trading Hours Policy in Western Australia: The Case for Deregulation and Consumer Choice (2003) 6 6 Retail Trading Hours Review Committee, above n 1, 17 7 Chamber of Commerce and Industry Western Australia, above n 5, 6 The University of Western Australia 13
19 Year February, 2003 Survey conducted by AC Nielsen Survey commissioned by Chamber of Commerce and Industry Western Australia Key findings This survey was undertaken to assess the attitudes of metropolitan and regional Western Australian consumers to extended shop trading hours. The survey found strong support for extended weeknight shop trading until 9.00pm and for Sunday trading throughout the state. A slim majority of consumers indicated support for full deregulation of shop trading hours. The survey found Attitudes of Perth residents toward extended weeknight shop trading 74% of Perth residents approved of allowing all shops to open until 9.00pm on weeknights 8 65% of Perth residents approved of allowing Sunday trading for all shops 9 54% of Perth residents approved of full deregulation of shop trading hours (allowing all shops to open at any time they choose, seven days a week). 10 Attitudes of regional residents toward extended weeknight shop trading 69% of regional residents approved of allowing all shops to open until 9.00pm on weeknights 11 63% of regional residents approved of allowing Sunday trading for all shops 12 56% of regional residents approved of full deregulation of shop trading hours (allowing all shops to open at any time they choose, seven days a week). 13 The survey found little variation in opinions between the Perth metropolitan area and regional areas. Continued over 8 AC Nielsen, Western Australia Retail Consumer Survey: Chamber of Commerce and Industry Western Australia (2003) 11 9 Ibid 10 Ibid 11 Ibid Ibid 13 Ibid 14 Shop Trading Hours in Western Australia: A Research Report
20 Year August, 2008 Survey conducted by Survey commissioned by Key findings Luscombe and Associates Western Australian Department of Premier and Cabinet This survey was undertaken to assess the attitudes of Western Australian consumers to current shop trading arrangements, extended shop trading hours and to test options for reform including weeknight trading until 7.00pm, Sunday trading in outer metropolitan centres and deregulating shop trading hours in the Perth Tourism Precinct. 2 The survey found strong support for extended weeknight shop trading until 7.00pm, Sunday trading and for full deregulation of shop trading hours in the Perth Tourism Precinct. These figures appear inconsistent with later survey responses, particularly that 81% of consumers surveyed agreed that some changes to shop opening hours are a good idea to help Perth keep up with the changes in people s working hours 14 and only 28% of consumers surveyed agreed that There shouldn t be any changes to shop trading hours. 15 Changes to current shop trading hours 49.8% of consumers surveyed said that they would like to see changes to the hours that shops are open 48.8% of consumers surveyed said that they did not have any changes that they would like to see 1.4% of consumers surveyed were unsure Support for change was strongest amongst year olds (62.3%). 16 Extended weeknight shop trading until 7.00pm 77.6% of consumers surveyed approved of allowing extended weeknight trading until 7.00pm 20.4% of consumers surveyed disapproved of allowing extended weeknight trading until 7.00pm 2% of consumers surveyed were unsure Support for change was strongest amongst year olds (84.6%). Main reasons consumers approved of weeknight shop trading until 7.00pm (multiple responses possible): Convenient for working people after work (50.1%) Flexibility, choice, convenience, less pressure on Saturdays (22%) Let shop keepers choose, opportunities for business (9.9%). Continued over The University of Western Australia 15
21 Key findings continued Main reasons consumers disapproved of weeknight shop trading until 7.00pm (multiple responses possible): Hours are adequate (9.9%) Staff have to work too long, they have families too (6.2%) Disadvantages small business, concern that Coles and Woolworths will dominate (2.6%) Disruption of family life, parents should be home (2.4%). 17 Sunday trading (between 11.00am and 5.00pm) in the outer metropolitan hubs of Joondalup, Midland, Rockingham and Armadale 57% of consumers surveyed approved of allowing these outer metropolitan hubs to open on Sundays 37% of consumers surveyed disapproved of allowing these outer metropolitan hubs to open on Sundays 6% of consumers surveyed were unsure Of those that disapproved, 9% said that they wanted all shops (or the shops near them) to be open. These people were not opposed to Sunday trading in general. Full deregulation of shop trading in the Perth Tourism Precinct 64.6% of consumers surveyed approved of full deregulation of shop trading in the Perth Tourism Precinct 27% of consumers surveyed disapproved of full deregulation of shop trading in the Perth Tourism Precinct 8.4% of consumers surveyed were unsure Support for full deregulation of shop trading in the Perth Tourism Precinct was strongest amongst year olds (68%). 19 Continued over 16 Ibid 4 17 Ibid 8 18 Ibid 9 19 Ibid Shop Trading Hours in Western Australia: A Research Report
22 Year July 2010 Survey conducted by Patterson Market Research Survey commissioned by CCIWA Key findings This survey was undertaken to assess the support of Western Australian consumers for late night trading from Monday to Friday and Sunday trading and to explore the shopping experiences of respondents who had shopped in the extended trading period. The survey found strong support for extended weeknight shop trading and Sunday trading. The survey found: 67 per cent of consumers surveyed support extended shop trading in the Perth metropolitan area (compared to 60 per cent in February 2009) per cent of consumers surveyed supported Sunday trading (compared to 63 per cent in February 2009) per cent of consumers surveyed had shopped in the extended trading period 22 Of those consumers who had shopped in the extended trading period 78 per cent of consumers shopped for food and groceries Patterson Market Research, Late Night Trading on Flashpoll Omnibus Survey Report (July 2010) 2 21 Ibid 3 22 Ibid 4 23 Ibid 5 The University of Western Australia 17
23 2.3 Research and policy papers A number of research and policy papers have been written which provide discussion and analysis of shop trading regulation in Western Australia. The details and key findings/arguments of the major papers are outlined below. Year 1996 Author E.R. Kelly Title Inquiry into Retail Trading Hours in Western Australia Overview A public inquiry into shop trading hours in Western Australia was undertaken by Commissioner Eric R. Kelly, former Chief Industrial Commissioner in Western Australia. The report required the Commissioner to: examine the history of earlier shop trading acts, call for submissions from the Western Australian public and carry out a comparative analysis of trading hours in other Australian jurisdictions, the USA, Canada, Scotland and Sweden. Kelly s report Inquiry into Retail Trading Hours in Western Australia was provided to the Western Australian Government in The report found that the laws regulating shop trading hours in Western Australia were in need of reform: It appeared to me that such a law could only be justified it if demonstrably saved the community from some serious and clearly perceived harm, or conferred upon it some almost universally approved benefit. At the end of the Inquiry I am satisfied that the present law in Western Australia serves none of these purposes. It gives an advantage to some retailers over others; it protects some retailers from competition from other retailers. It creates obstacles to competition in an area in which the community is best served by competition. It makes judgements about what the community wants in a sphere of activity in which the community itself should be left to demonstrate by its patronage what it wants. It ensures a proliferation of small marginally profitable businesses and gives little encouragement to small business to do anything but remain small. 24 The report went on to conclude that immediate deregulation of shop trading hours in Western Australia was required: the restrictions on trading hours in force in this State constitute such an unnecessary impediment and that the dismantling of the legislation imposing those restrictions should be commenced now. 25 The report outlined a strategy for deregulating trading hours with a transitional period of six years including the establishment of a Retail Trade Tribunal charged with the duty to remove trading hours restrictions. 24 E.R. Kelly, Retail Trading Hours in Western Australia: A Report Prepared for the Minister for Industrial Relations and Employment and Training (Government of Western Australia: April 1986) ibid Shop Trading Hours in Western Australia: A Research Report
24 Year August 1998 Author Tony Dimasi prepared for Shopping Centre Council of Australia Title Western Australia Retail Trading Hours Review: Analysis of Economic & Consumer Issues Overview This report presents an analysis of economic and consumer issues relating to deregulation of retail trading hours in Western Australia. Key findings The composition and performance of the retail sector in Western Australia is similar to other Australian states (in particular Perth is very comparable to Melbourne). Since deregulation in Victoria (December 1996) there has been: Strong growth in the retail market (retail sales per capita have grown at a significantly faster rate than the rest of Australia). Growth in retail employment immediately following trading hours deregulation. No significant impact on the Melbourne CBD as a result of trading hours deregulation Little impact on strip shopping centres, vacancy rates remain generally unchanged. 26 In Perth it was predicted that the introduction of Sunday trading would result in around 2,000 new jobs in the retail sector. The introduction of trading on seven of the 10 public holidays (excluding Good Friday, ANZAC Day and Christmas Day) would increase this figure to 2,200 new jobs. 27 Deregulation of shop trading hours in Perth would result in Greater consumer choice; [m]ore efficient use of resources; [t]he adoption of superior business practices to enable businesses to properly serve their customers; and [s] ubstantial overall benefits to the Western Australian economy to improve business activity Year 2003 Author Retail Trading Hours Review Committee Title Review of Retail Trading Hours Public Consultation Paper Overview This paper contains an overview of the current retail trading restrictions (as at 2003) and the social and economic effects of reform and impacts on small business. It presents a number of options for reform including: Retain the current arrangements Reinstate standard opening hours Completely remove trading hours restrictions Ease current restrictions. The consultation called for written submissions from the public on the public interest and competition arguments for either retaining or removing shop trading restrictions. Some of the key submissions to this review are outlined below. 26 Tony Dimasi, Western Australia Retail Trading Hours Review: Analysis of Economic & Consumer Issues (August 1998) iii 27 Ibid iii 28 Ibid iv The University of Western Australia 19
25 Year 16 April 2003 Author Shopping Centre Council of Australia Title Submission to the Western Australian Review of Retail Trading Hours Overview This paper was submitted in response to the public consultation process as part of the 2003 Review of Retail Trading Hours in Western Australia. The paper puts forward the policy position of the Retail Traders Association. It argues that: Extension of weeknight trading and the introduction of Sunday trading are required to give consumers greater choice and flexibility as to when they shop. Consumer surveys indicate strong consumer support for reform. Ì Ì there is no contemporary justification for intervention by governments in relation to the times within which a retailer operates. 29 Lack of Sunday shop trading is a tourism disadvantage. The experience of Melbourne and Sydney CBDs following reform of shop trading hours demonstrates that extended shop trading is unlikely to have a negative impact on shop trading in the Perth CBD. The reform of shop trading hours in unlikely to have a negative impact on participation in sport, recreation and community activities. Year April 2003 Author Retail Traders Association Title Review of Retail Trading Hours: Submission in Response to the Public Consultation Paper Overview This paper was submitted in response to the public consultation process as part of the 2003 Review of Retail Trading Hours in Western Australia. The paper puts forward the policy position of the Retail Traders Association. It argues that: Consumer surveys indicate that consumers support more flexible trading hours arrangements. The current shop trading legislation prevents retailers from freely competing with each other. In this way the current regulation of shop trading in Western Australia is both anticompetitive and anti-consumer. There no evidence of market failure to justify the anticompetitive nature of the legislation. National Competition Policy (NCP) requires governments to review all legislation restricting competition. Where restrictions on competition are not in the public interest the legislation is required to be reformed. NCP compliance will require that the anti-competitive and anti-consumer effects of the Retail Trading Hours Act 1987 (WA) be removed to allow Western Australia to meet its NCP obligations. Failure to meet these obligations may result in Western Australia not receiving its full entitlements in Commonwealth competition payments. Deregulation of shop trading hours is likely to lead to an increase in retail employment. In the year following deregulation in Victoria retail employment increased by 0.6% despite a national decrease in retail employment by 2.4% during the same period. Evidence suggests that small business growth is currently being impeded by the operation of the Act. 29 Shopping Centre Council of Australia, above n 2, 1 20 Shop Trading Hours in Western Australia: A Research Report
26 Year March 2003 Author Access Economics Title The Impact of Deregulating Retail Trading Hours: Submission to the Western Australian Review of Retail Trading Hours Commissioned by The Shopping Centre Council of Australia Overview The Shopping Centre Council of Australia commissioned Access Economics to examine the effects of deregulated trading hours in other States and Territories of Australia. This report was included with the Shopping Centre Council of Australia submission to the Review of Retail Trading Hours (see above). The report empirically tests the experience of States and Territories that have deregulated trading hours. The report concludes that there is no evidence of adverse retail price or employment effects, overall, from retail trading hours deregulation and some evidence of benefits in both areas. 30 Further, there are both public interest and pro-competition reasons why shop trading hours in Western Australia should be deregulated, specifically that [d]eregulation will generate sizeable consumer benefits; [i]t will intensify retail competition; [i]t is likely, if anything, to increase retail employment Year October 2003 Author City of Bunbury Title Survey reports Overview 1. City of Bunbury: Retail Trading Hours: Business Survey Report This survey was conducted to measure business operators views on deregulated and extended trading hours within Bunbury. 296 respondents 68.9% of respondents did not believe that it would be beneficial to operate their business outside current standard retail trading hours 67.6% of respondents did not support any change to current retail trading hours. 24.7% of respondents supported extended retail trading hours Reasons for not supporting extended trading hours: family (54.4%), personal health and well being (44.6%), social life (42.2%) and sporting commitments City of Bunbury Retail Trading Hours: Community Group/ Organisation Survey Report This survey was conducted to measure Community Groups/ Organisations views on deregulated and extended trading hours within Bunbury. 54 surveys were returned Community groups represented: Religious 18.5%, Community Support 16.65%, Sporting 14.8%. Health, Education/Training and Miscellaneous groups 12.95% each 44.5% of respondents believed that introducing extended/ deregulated trading hours would adversely affect community groups 40.7% of respondents believed that introducing extended/ deregulated trading hours would not adversely affect community groups However 91.7% of respondents believed that community group membership would decline as a result of changes to retail trading hours Access Economics, The Impact of Deregulating Retail Trading Hours: Submission to the Western Australian Review of Retail Trading Hours: Report prepared for the Shopping Centre Council of Australia (2003) Ibid City of Bunbury, Retail Trading Hours: Survey Reports (2003) Ibid This response is difficult to reconcile with the previous responses above. The University of Western Australia 21
27 Year 24 January 2005 Author ACIL Tasman Title Extension of Retail Trading Hours in Western Australia: An Assessment of the Economic and Social Benefits of Trading Hours Commissioned by Choice and Convenience for All Overview This report was commissioned by Choice and Convenience for All. Choice and Convenience for All was an alliance between the Retail Traders Association of Western Australia, Shopping Centre Council of Australia, Australian Consumers Association (now Choice) and the Chamber of Commerce and Industry of Western Australia. Choice and Convenience for All stated that they were committed to ensuring that Western Australia benefits from extended trading hours as proposed in the upcoming state referendum 34 and played a leading role in supporting the Yes campaign for the extension of retail trading hours. The report argues that: The current regime for regulating shop trading hours is anticompetitive and discriminatory. Deregulation of shop trading hours is required to provide greater consumer choice and convenience and to meet the changing needs of families. The experience of states that have deregulated shop trading hours demonstrates that the following benefits to consumers are likely to accrue: Increased retail sales; Higher retail employment and flexible working arrangements; Lower retails prices; Benefits for Western Australian suppliers; New investment in the retail sector in Western Australia; Positive benefits to tourism; and Attracting skilled migration. Year June 2007 Author PriceWaterhouseCoopers Title The economic contribution of small to medium-sized grocery retails to the Australian economy, with a particular focus on Western Australia Commissioned by National Association of Retail Grocers of Australia Overview This report was commissioned by the National Association for Retail Grocers of Australia (NARGA). The report aims to assess the economic contribution of small and medium-sized businesses (SMEs) 35 in the supermarket and grocery retail industry to the Australian economy. The report has a specific focus on Western Australia where SMEs have a 32% share of grocery turnover (compared to the national average of 20%). Continued over 34 National Library of Australia, Archive at choiceandconvenienceforall.com.au/index.html accessed 20/01/ Also referred to as independent retailers. 22 Shop Trading Hours in Western Australia: A Research Report
28 Key findings There are 6,183 supermarket and grocery retailers in Australia. 73% of these are independent grocery retailers who hold close to 20% market share (based on turnover). Western Australia has the highest proportion of independent grocery stores in Australia. Western Australian grocery SMEs have a 32% of share of total grocery turnover and 81% of stores. In Western Australia SMEs account for 54% of total supermarket and grocery employment (slightly below the national average), equivalent to 23,859 employees or 18,133 FTEs. Due the dominance of the major grocery retailers in the Australian market SMEs have an important role in maintaining competition in the supermarket and grocery retail industry. Economic contribution to local economies by SMEs can be 2-3 times greater than that of major grocery retailers (MGRs) in part because they source a greater proportion of their goods and services locally. SMEs generally reinvest a larger share of revenues or profits back into local and State economy than MGRs. SMEs enhance competition and consumer choice. SMEs help to sustain local environments by helping maintain town centres through their High Street presence. SMEs can have a positive impact on the environment as their High Street locations enable consumers to walk to the shops (reducing traffic congestion, car parking shortfalls and pollution) PriceWaterhouseCoopers, The Economic Contribution of Small to Medium-sized Grocery Retailers to the Australian Economy, with a Particular Focus on Western Australia (June 2007) iii-ix The University of Western Australia 23
29 Year September 2007 Author Chamber of Commerce and Industry Western Australia Title Retail Trading Hours in Western Australia: A Case for Reform Overview This report provides a study of the current regulation of shop trading hours in Western Australian and compares this to the experience of other states. The report argues that: The extension of shop trading hours will provide a range of economic benefits which will benefit the retail sector and related sectors such as construction, tourism, wholesale trade, and hospitality. Evidence from the deregulation experience of other states demonstrates that key economic benefits include: increased retail sales following deregulation; an increase in employment opportunities and greater job flexibility in the retail sector; lower retail prices, particularly lower grocery prices as a result of increased competition; higher levels of investment in the retail sector, particularly by small retail businesses where the current legislation limits the capacity for small businesses to expand and take on additional staff; benefits to the tourism industry; and greater opportunities for Western Australian suppliers. The report argues that many of the arguments against deregulation have not been substantiated. In states where deregulation has occurred small retail business numbers have increased. In Western Australia and South Australia (where trading hours remain restricted) growth in small businesses has been limited. Year February 2008 Author City of Bunbury Title Survey reports Overview 1. Retail Trading Hours: Community Survey Report The Community Survey Report was undertaken to determine the level of community support for seven day trading in Bunbury. Findings 948 residents completed the survey 71.4% of those surveyed supported a change to Bunbury s retail trading hours 21.9% of those surveyed supported no change. The preferred trading option: Trading on Sundays and public holidays 52 weeks a year (excluding Christmas Day, Easter Sunday and ANZAC Day). Continued over 24 Shop Trading Hours in Western Australia: A Research Report
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