SmartCompany.com.au:
The final report of Western Australia’s franchise inquiry has recommended against the introduction of state laws for franchising.
The inquiry committee made nine recommendations in relation to a private member’s bill tabled by MP Peter Abetz last year to regulate the WA franchise.
Foremost among these recommendations was that the bill be opposed. However while this was the majority view, the inquiry committee’s deputy chairman recorded his disagreement with the view in a minority report appended to the findings of the inquiry. Bill proponent Abetz was co-opted to the inquiry committee, but in a non-voting role as an observer only.
The inquiry report reiterated that franchising is best regulated nationally, and that the 2010 changes to the Franchising Code of Conduct, along with changes to the enforcement powers of the Australian Competition and Consumer Commission, were material to its decision to oppose the WA bill.
Additionally, the report found that a proposed definition of good faith ¬– which was a major cornerstone of the bill – was unworkable and that good faith should be left undefined.