Merchants push for internet taxation

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Right. So Soloman Lew from Premier  Invest wants to tax online sales. God knows how much he has made over the years from importing merchandise. But apparrently we can't have ordinary people benefiting like that can we:

SYDNEY (Dow Jones)--Retail magnate Solomon Lew slammed the Australian government's inquiry into online shopping Sunday, saying the move doesn't constitute "decisive policy action" and that there is an "urgent need" to address taxation on online purchases of less than A$1,000.

The recent strength of the Australian dollar, the rise in international outlets shipping to Australia and a mixed start to the holiday shopping season has prompted retailers to call on the government for action on the issue of taxing online shopping. The government responded by announcing a Productivity Commission review this weekend, but Lew said Sunday that is an insufficient response.

Hope the Productivity Commision tells him to f*** off.

We love Costco

Woolies and Coles have been given a hard time lately, being blamed for rising food prices. Senator Joyce wants laws  to prevent predatory price discounts. This seems dubious to me at best. The net result of such actions would be less competition and higher prices. The answer is more competition not less which is why the entry of Costco to the Australian market is so welcome.

Since the US retail giant opened its first Australian store in August in Docklands, shoppers have been "going berserk" and buying goods in large quantities.

Marketing experts have even come up with a name for the phenomenon, labelling it "Costco-sis".

The discount warehouse sells everything from tyres and spectacles to diamond rings, computers, televisions, toys and furniture.

It also has a big range of fresh and frozen foods, as well as local and imported liquors.

 I can tell you the people of Sydney can't wait for Costco to open here.

Emerson reforming grocery sector

The Rudd governments sole free marketeer received a promotion in the re-shuffle. Craig Emerson now has the Competition and Consumer Affairs portfolio. He intends to further open up the sector to competition:

''(There is a) lot of good policy work to do here as part of the overall economic reform agenda of the Rudd government and I'm very grateful for the opportunity,'' Dr Emerson told ABC television.

Through the government's efforts to promote competition, people become "mean and lean'' in the marketplace which creates prosperity, he said.

"The history of Australia has shown that where industries are ... protected by high tariff barriers, they tend to become inefficient. Where they are open to competition, then it brings out the best in them.'......

When asked about community concerns surrounding the fuel and grocery markets, Dr Emerson said he could guarantee as much competition in those two sectors as possible.

The government was pushing ahead with reforms including planning and approval processes for supermarkets - an outcome of the Australian Competition and Consumer Commission's inquiry into grocery prices.

A while ago he had this to say:

But now mysticism and superstition are making a comeback. Their revival began in the '80s with attacks on economic rationalism. Rational economic thinking was condemned in favour of economic irrationalism: ongoing protectionism, deficit financing by printing money, maintaining airlines and banks in public ownership and expanding the role of the state in the commercial world through clever devices such as WA Inc and the Tricontinental merchant bank..

Unfortunately I suspect his career will hit a brick wall with Rudd as PM.