Cabinet stalls decision on effects test; Rupert Myer to step down from Myer’s board: Midday Roundup

Prime Minister Tony Abbott has delayed making a final decision on whether or not to introduce an effects test into Australian competition law in order to prevent a potential cabinet split.

The proposed effects test is opposed by Treasurer Joe Hockey among others in cabinet, according to The Daily Telegraph.

Small business minister Bruce Billson has been calling for the introduction of the effects test for some time, arguing it will give greater protections to small businesses.

The effects test was one of the recommendations in the Harper competition review and would allow the courts to determine if there has been a misuse of market power when the actions of a big company have the “likely effect” of reducing competition.

While small business has been vocal about the need for strengthened protections – particularly for suppliers – large corporates are against the proposed changes.

Rupert Myer steps down from Myer’s board

Rupert Myer, the last descendant of the Myer family to hold a position on the retail giant’s board of directors, will step down in November.

Myer is the grandson of Myer’s founder Sidney Myer and has served a total of nine years on the board, having become a director in 2006 and its deputy chairman in 2012.

He is also a member of the BRW Rich List, sharing in the Myer family’s estimated wealth of $2.05 billion, and was made an officer of the Order of Australia this year for his philanthropic work and support for the visual and performing arts.

Myer’s retirement was announced to shareholders yesterday alongside the retailer’s new “renewal” strategy.

Myer told the board he would not seek re-election for a fourth term at the company’s next AGM, set for November, and will retire at the end of the meeting.

Myer chairman Paul McClintock thanked Myer for his valuable contribution to the board and for being a “close and trusted source of counsel” to him and management.

“All at Myer wish Rupert the very best with his broad portfolio of roles in business, the arts and philanthropy,” McClintock said.

Shares down on open

Aussie shares are trading lower this morning off the back of a poor showing from Wall Street.

Ric Spooner, chief market analyst for CMC Markets, said investors will be watching the market closely following the fall of the US dollar.

“The next key milestone for share market nerves will be whether or not the ASX 200 index can stay above last week’s low of 4928,” Spooner said.

“At this stage the selloff of the last three days could easily turn out to be no more than a correction of last week’s rally.”

The S&P/ASX200 benchmark was down 1.26%, falling 63.5 points to 5032.9 points at 11:39am AEST. On Tuesday, the Dow Jones closed down 2.84%, falling 469.68 points to 16,058.35 points.