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Choice

Posted by: Michael Smith | 17 February, 2009 - 12:04 PM

Kevin Rudd campaigned on a fair go for consumers. Grocery prices, fuel prices, bank fees – they were all fair game.

The Choice organisation used to be a pretty good source of independent commentary about how the government was performing against its promises. Well today I wonder just how independent the Choice voice really is. When Choice pipes up about the government's performance, who is paying the piper?

Choice had been the independent consumer's voice in Australia for years.

Here are a few statements from Choice's website.

"No advertising, no bias ... just reliable, expert advice. CHOICE is fiercely independent: we do not receive ongoing funding from any commercial organisation."

Well up until the last year or so I believed those statements.

But late last year the Federal Government started cosying up to Choice. The old adage "keep you friends close but your enemies closer" springs to mind. Chris Bowen, the Assistant Treasurer released Choice's report on Good Practice in Consumer Protection Enforcement - link

It was no surprise that they were close – Bowen had arranged for Choice to take over the Government's disastrous Grocery Choice website in a deal reputedly worth $13 million to the hitherto independent organisation. - link

At the time of the announcement a director of Choice resigned over the issue. Robin Brown was the director of the Canberra-based Foundation for Effective Markets and Governance and chairman of Choice's policy advisory group. - link

He told ABC radio at the time "My view is that this was such a momentous decision for Choice, quite unprecedented in its 50-year history [in that it involved] a large amount of government money and a matter that was really quite political. I thought that there was a significant risk to Choice's reputation as an independent commentator on public policy on the way markets work ... and a risk to its bipartisan approach to politics."

The Federal Government has two major consumer protection agencies – the ACCC and the ASIC.

You'd think that between them they could enforce consumer law and register and maintain complaints. Well apparently not – today Chris Bowen the Assistant Treasurer is reportedly launching laws that will protect people from "unfair" contracts. The new Australian Consumer Law will apparently include provisions that will allow the consumer group Choice to immediately ask for an investigation into the fees. - link

You can't help but wonder about Choice and its relationship with the government.

Choice now receives millions of dollars in funding from Chris Bowen. How independent can their views now be?

Blog comments

And pigs can fly!
This reeks of grandstanding protectionism! Opposition: DO something about another farce and spending of our Tax dollars please!
Concerned,
Ria Lohuis

Ria Lohuis Tuesday 17 February, 2009 - 3:12 PM