Repeal day is a-coming!
The Australian government has set aside the 19th March to remove outdated, burdensome legislation and government regulations.
Sounds good, right?
Well unfortunately this looks like a bit of a stunt, which isn’t surprising given the inspiration for this special day of legislative action came straight from US congress.
There are undoubtedly a lot of old laws on the books.
The minister in charge of this drive, Josh Frydenberg, lists a few in his press release. They include:
- an act from 1904 governing State Naval Divisions, when the Royal Australian Navy was formed in 1913;
- a War Service Homes regulation, which changed the rate of interest charged to any purchaser or borrower from four pounds to three pounds fifteen shillings, when Australia switched to decimal currency in 1966;
- four acts from the 1950s that allowed for the construction of the Snowy Mountains Hydro Scheme, which was completed in 1974; and
- the Weights and Measures Acts 1964 which set standards for calibrating imperial measuring equipment, including for pints and gallons, when Australia transitioned to the metric system in 1970s.
There’s no argument that these laws are not now useless, but what isn’t clear is how this is supposed to free up businesses from regulation.
It’s not as if it will free a whole bunch of managers from calibrating their measurement of pints after repeal day rolls on.
Australian retail needs less regulation
If the Government wants to cut regulations to save $1 billion dollars a year (a figure pulled from the same press release), they could look elsewhere.
Taxi operators and pharmacies are restricted by competition laws which determine how they operate and where they can open stores.
Even universities suffer from excess regulation, creating armies of auditors and bureaucrats.
But one of the industries most stifled by regulation is Australian retail.
In an absurd hangover from another time, state Governments wag their finger at Australian retailers telling them when they can and can’t open. Woolworths laid it out in a submission to the WA government:
‘A Woolworths petrol station can sell film and flash bulbs on Sundays before 11am, but it’s illegal to sell a memory card for a digital camera at this time; can sell cigarettes before 8am on Mondays, but it’s illegal to sell nicotine patches at this time; can sell pantyhose after 9pm on Thursdays, but it’s illegal to sell underpants at this time; can sell needles before 8am on Tuesdays, but it is illegal to sell wool at this time.’
Retail is one of the biggest employers in Australia. If the government is looking to stimulate the Australian economy by cutting regulation with repeal day, then the Australian retail sector is the place to look.
Callum Denness
Contributing Editor, Money Morning
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