Harper says “effects test” not about creating a new test for competition; Horse sale nets Tinkler $34.5 million: Midday Roundup

Professor Ian Harper, the man charged with the leading the government’s “root and branch” competition review, has told a forum in Canberra today the introduction of an “effects test” into Australian competition law is not about creating a new form of competition test.

King & Wood Mallesons special counsel Melissa Monks, who is attending the Australian Food and Grocery Council 2014 Leaders Forum, told SmartCompany Harper told the forum a potential effects test will bring “section 46 into line with most other provisions that have purpose and effects tests and making the provision one focussed on protection of the competitive process than competitors”.

“He was very emphatic that the report is draft and that the committee is opening to changing their minds,” Monks added.

Big business groups have consistently lobbied against the introduction of the effects test, claiming it will discourage innovation, while small business leaders strongly support the move.

Horse sale nets Tinkler $34.5 million

The liquidation sale of horses from former billionaire Nathan Tinkler’s Patinack Farm has raised $34.5 million for retail magnate Gerry Harvey, reports Fairfax.

After raising more than $22 million on the first day of auctions last weekend, the four-day total means Tinkler is close to being able to repay Harvey his estimated $40 million debt.

The Patinack properties will go under the hammer from October 23 and Fairfaxsuggests Tinkler could raise approximately $90 million from the sale process.

Shares down on open

The Australian sharemarket has taken a hit this morning, following a sell off of European and the US shares overnight.

“US shares finally succumbed to a strong of poor economic indicators in overnight trading,” said CMC Markets chief strategist Michael McCarthy.

“The US outlook remains positive, but weaker than expected manufacturing and construction spending releases overnight were the trigger for a belated response to recent softer numbers. Shares in Europe also fell on news that German manufacturing is slipping into contraction.”

The S&P/ASX200 benchmark was down 37.1 points to 5297 points at 12.13pm AEST. On Wednesday, the Dow Jones closed 238.19 points lower, down 1.4% to 16804.7 points.