The Government welcomes the release of the draft report from the Productivity Commission on the economic structure and performance of the Australian retail industry, and will carefully examine the issues discussed in the report.
The Government appreciates the pressures and challenges currently facing the retail sector.
As the Commission's report has highlighted, the low value threshold is not the main driver of issues within the Australian retail sector. However, it does find the changing nature of retail in Australia is part of a global structural shift driven by increasing trade exposure through the rise of online retail.
The Government is aware that increasing competition from online shopping has the potential to benefit Australian consumers through ensuring greater choice and lower prices. There are also new opportunities for traditional bricks and mortar retailers to expand and innovate through online retailing.
The report also identifies barriers to local retail productivity, including planning and zoning issues and shop opening hours.
The Government is aware of the high level of public interest that this inquiry has generated. More than 120 submissions were received by the Commission, reflecting a very positive and active level of engagement with this inquiry by Australian retailers, consumers and industry groups.
We would like to thank Commissioners Philip Weickhardt and Louise Sylvan, and their team for their work so far in examining what is a vital sector of our economy and some of the complex issues that this sector is facing.
The Gillard Government recognises the value of the retail sector as a major employer and contributor to the Australian economy. That's why we stood by the sector during the GFC and commissioned the Productivity Commission to provide a blueprint for the future of the sector over the next 20 years. We encourage the sector and consumers alike to provide their feedback on this draft report.
The Commission will now hold further consultations, prior to providing its final report to the Government by November 2011.