Dr R Chadwick General Manager Adjudication ACCC GPO 3131 CANBERRA ACT 2612 23 August 20 1 0

Dear Sir,

Notification of third line forcinp conduct bv QNF.

I attach a Notification of third line forcing conduct on behalf of Queensland Newsagents Association ( QNF).

I also attach the lodgement fee of $100.

Yours t y, // Aank Spier

92 JERVOIS STREET DEAKIN ACT AUSTRALIA 2600 - 61-2-62812030 - FAX 61-2-6282 5183 M O B 0419 239 755 - ~pietconsultin~@netspeed.corn.au - ACN 093 621 455 QUEENSLAND OFFICE: 30 L I N D E N CRESCENT BUNDABERG QLD 4670 - PHIFAX 07-4155 6823

Form G Commonwealth of Australia

Trade Practices Act 1974 - subsection 93 (1) NOTIFICATION OF EXCLUSIVE DEALING

TO the Australian Competition and Consumer Commission: Notice is hereby given, in accordance with subsection 93 ( 1 ) of the Trade Practices Act 1974, of particulars of conduct or of proposed conduct of a kind referred to subsections 47 (2), (3), (4), ( 5 ) , (6), (7), (8) or (9) of that Act in which the person giving notice engages or proposes to engage.

PLEASE FOLLOW DIRECTIONS ON BACK OF THIS FORM

1. Applicant

(a) Name of person giving notice:

~94-%q3 (Refer to direction 2)

QUEENSLAND NEWSAGENTS FEDERATION.(QNF) ...................................................................................................

(b) Short description of business carried on by that person: (Refer to direction

TRADE ASSOCIATION REPRESENTING NEWSAGENTS IN .............................................................................................................. QUEENSLAND

(c) Address in Australia for service of documents on that person:

58-62 PINEAPPLE STREET, ZILLMERE QLD 4034.. ................................................................................................................................ .......................................................................................................................................... ................................................................................................

2. Notified arrangement

(a) Description of the goods or services in relation to the supply or acquisition of which this notice relates:

REPRESENTATIONAL AND TRADE ASSOCIATION SERVICES FOR NEWSAGENTS IN QLD .................................................................................................................................

Page 1 of 5

(b)Description of the conduct or proposed conduct:

NEWSAGENTS IN QLD ACQUIRE THE SERVICES OF QNF ON CONDITION THAT THEY ALSO ACQUIRE THE SERVICES OF THE AUSTRALIAN NEWSAGENTS FEDERATION((ANF) ................................................................................................... ..........................................................................................................................................

(Refer to direction 4)

3. Persons, or classes of persons, affected or likely to be affected by the notified conduct

(a) Class or classes of persons to which the conduct relates: (Refer to direction 5)

NEWSAGENTS IN QLD ................................................................................................................................. .......................................................................................................................................... SMALL BUSINESS TRADE ASSOCIATIONS ............................................................................................................

(b) Number of those persons:

(i) At present time:

APPROX

(ii) Estimated within the next year: (Refer to direction 6)

AS ABOVE ............................................................................................................

(c) Where number of persons stated in item 3 (b) (i) is less than 50, their names and addresses:

.......................................................................................................................................... NOT LESS THAT

Page 2 of 5

4. Public benefit claims

(a) Arguments in support of notification: (Refer to direction 7)

See attached ...................................................................................................................... submission.

..........................................................................................................................................

.............................................................................................................

(b) Facts and evidence relied upon in support of these claims:

See attached ....................................................................................................................... submission

5. Market definition

Provide a description of the market(s) in which the goods or services described at 2 (a) are supplied or acquired and other affected markets including: significant suppliers and acquirers; substitutes available for the relevant goods or services; any restriction on the supply or acquisition of the relevant goods or services (for example geographic or legal restrictions): (Refer to direction 8)

Trade association services in Qld ................................................................................................................................... Newsagents services in

...................................................................................................................... Queensland See more in attached submission ...........................................................................................

6. Public detriments

(a) Detriments to the public resulting or likely to result from the notification, in particular the likely effect of the notified conduct on the prices of the goods or services described at 2 (a) above and the prices of goods or services in other affected markets: (Refer to direction 9)

~ ~

See attached submission .......................................................................................................................

Page 3 of 5

(b) Facts and evidence relevant to these detriments: ........................................................................................................ ..........................................................................................................................

7. Further information (a) Name, postal address and contact telephone details of the person

authorised to provide additional information in relation to this notification:

Hank Spier

Spier Consulting P/L

4 Waller Cres, Campbell, ACT 2612 ..................................................................................................................................

................................................................. Dated ... [ ] August 2010

Signed on behalf of the applicant

(Signature)

(Full Name)

......................................................................... SPIER CONSULTING P L (Organ isat ion)

........................................................................... PRINCIPAL.. (Position in Organisation)

Page 4 of 5

ATTACHMENT TO QNF NOTIFICATION OF THIRD LINE FORCING CONDUCT

QNF and ANF propose to enter into an arrangement whereby membership of QNF will give QNF members access to ANF national services and QNF State services.

ANF will no longer have direct Qld members. ANF will continue to have direct members in some other States.

In Victoria a similar arrangement already exits albeit different. That was notified to the ACCC in 2006 and was let stand by the ACCC.

At that time QNF and NANA notified identical arrangements but withdrew due to disagreements with ANF. I attach the submission that was part the earlier QNF Notification.

As a result of the failure of the 2006 arrangements there has been constant friction between ANF and QNF small business associations to the detriment of members. This has also weakened the effectiveness of the associations in representing newsagents.

ANF has come to the view that it is not in a position to effectively service its limited number of members in QLD and has entered into this arrangement to ensure seamless national and State services for Qld members. It may enter into a similar arrangement in NSW.

Newsagents in Qld do not have to join QNF but i f they choose to or choose to renew QNF membership they will also have immediate access to ANF services. There are other associations in Qld which newsagents can and do join, such as QRA and Golden Casket Agents Association. Conversely they can choose not to join any association.

QNF had many more members in Qld than ANF and a merger of membership seemed appropriate.

It is not proposed to raise QNF fees to members even though QNF will provide moneys to ANF based on the number of QNF members who will have access to ANF services.

What is proposed is vastly better for Qld newsagents than the current situation.

What will each Association provide Qld newsaqents?

Essentially QNF will be responsible for State matters and services and ANF national.

MEMBER SERVICES -Representational

The QNF will be responsible for the following member services: - 1. State & Local Government & other state based organisations representation1 Liaison 2. State specific industry policy. 3. Newsagents Market Fair - Qld 4. Qld States newsagent's conference 5. State newsagents Awards of Excellence 6. QNF Newsagents Face to face Training Course 7. Qld newsagents Branch and Regional meetings. 8. QNF & NSQ websites (including a link to the ANF website) 9. Qld Newsagents Magazine. 10. Newsagents Finance Advice 1 I. Newsagents Directory 12. Member Communications 13. New state based member services 14. Qld Newsagents Data Base

The ANF will be responsible for the following member services in active continuous consultation with the QNF: -

1. Industrial relations updates 2.OH&S 3. ACCC representation 4. Policy advocacy and parliamentary representation at federal level 5. Lottery information Nationally including trends and legislation changes 6. Providing weekly news and flash updates direct to QNF head office via electronic mail. 7. Promoting the QNF as the Queensland reprehensive body through National newsagent, N gage, ANF News, Website links. 8. Maintaining a national Newsagent data base. 9. Industrial relation Manual with National Employment Standards and Templates - 10. Grievance and Harassment policy Handbook

MEMBER SERVICES - Commercial,

Member Commercial Services is a service; benefit or product of a commercial nature designed to reduce or enhance operational overheads for newsagents or their association.

The QNF will be responsible for administering the following member services

Newsagency Sales Brokerage lnsurance brokerage Fuel cards (Nationally negotiated, administered by the QNF) Retail Radio RACQ Not in conjunction with the ANF Businesswise deal Any state based commercial member services

The ANF will be responsible for administering the following commercial services on behalf of Qld newsagents through the QNF:-

Superannuation scheme Fleet Discount - Tyres - Private Health care - Suncorp St George National Newsagent N gage discount - Online Training NRMA Businesswise National Motor assistance (additional cost) NRMA auto glass - national Nrma Electrics - National Caltex Fuel Discount and 45 day interest free period - Yes Optus - business health check Travel lodge hotels Oamps lnsurance Marsh lnsurance Newsagency Sales Brokerage in NSWl TASl WA MSM loss management Retail Leasing negotiation discount ATM Deals Seek advert discounts Plus any National benefit for members

Benefits and detriments

The applicant sees little in the way of detriments. In theory potential competition between two newsagents associations will cease but that competition was very limited, will probably vanish over time and the competition is somewhat artifical.

In relation to public benefits the applicants sees these as substantial Whilst largely confined to newsagents they will flow through to better and more effective service to consumers,

The current situation is inefficient, it adds to costs for newsagents and leads to issues of viability of small businesses who are at the best struggling.

In a Federal system for associations to be effective they must organise on Federal lines and concentrate on the respective levels of government.

Members will not be well sewed if the national body is not strong. Further State bodies to which the bulk of members belong have not been fully effective on the national scene.

For the ANF to be effective it must represent as many newsagents as possible and must have access to funding. The notified arrangement will do that.

Overtime the third line forcing conduct may no longer be needed as the associations become fully integrated.

Qld newsagents will get extra benefits at no extra costs, in fact a few who are members of both QNF and ANF will pay less as they will no longer pay the ANF fees.

QNF August 2010

Form G

Commonwealth of Australia

Trade Praclices Act 1974 ---- Sub-seclion 93(1)

EXCLUSIVE DEALING NOTIFICATION

To the Australian Competition and Consumer Commission:

Notice is hereby given, in accordance with sub-section 93(1) of the Trade Pracrices Act 1974, of particulars of conduct or of proposed conduct of a kind referred to in sub-section 47(2), (3) (4), (5). (6) or (7). or paragraph 47 (8) (a), (b) or (c) or (9) (a), (b), (c) or (d) of that Act in which the person giving notice engages or proposes to engage.

... 1 . (a) Name of person giving notice

Queensland Newsagents' Federation Ltd (QNF), trading as Australian Newsagents' Federation -

....................................................................................................................... Queensland

(b) Short description of business carried on by that person .............................................................................................................................. QNF is the industry body established to represent newsagents in its territory

.......................................................................................................................................... (c) Address in Australia for service of documents on that person

.............................................................................................................................. Mr K Murphy Queensland Newsagents' ~ederation Ltd 58 - 62 Pineapple Street ' '

ZILLMERE QLD 3068 ............ 2. (a) Description of the goods or services in relation to the supply or acquisition of which this notice relates

.............................................................................................................................. QNF provides association services to members. For further details see

...................................... Attachment A .......................................................................................................................................... (b) Description of the conduct or proposed conduct

.............................................................................................................................. (i) QNF will require its members to be also a member of the national association - the Australian Newsagents' Federation (ANF).

(ii) I f a newsagent ceases to become a member of ANF the newsagent will also cease to be a member of QNF.

(iii) QNF will provide services to newsagents (such as those set out in Attachment B) on the condition that newsagents will acquire services (see Attachment B) from ANF.

(iv) QNF will refuse to supply services to newsagents (such as those set out in Attachment B) i f the newsagent does not also acquire services (see

.................................................... Attachment B) from ANF .......................................................................................................................................... 3. (a) Class or classes of persons to which the conduct relates

Newsagents operating in Queensland and in any town within 100 km of the southern border of Queensland or any other newsagency in New South Wales as agreed with the Newsagents' Association of NSW & ACT Ltd ........................................................................................................................ .........................................................

(b) Number of those persons-- (i) At present time

...................................................................................................................................... (ii) Estimated within the next year.

Approx 750 ................................................................................................................ (c) Where number of persons stated in item 3 (b) (i) is less than 50, their names and addresses

.............................................................................................................................. ........................................ not applicable

4. Names and address of person authorised by the person giving this notice to provide additional information in relation to this notice. ............................................................................................................................... ..................

Mr Hank Spier Spier Consulting 92 Jervois Street DEAKIN ACT 2600

Dated .... 10 JLJLY 2006 .........

. Signed bylon behpf of the applicant giving notice

................................................................................ (Signatur d' Hank Spier ............................................................................... (Full Name)

............................................................................... Legal representative

Attachment A

BACKGROUND

ABOUT QNF

QNF represent approximately three quarters of newsagents in the stale.

The types of services provided are set out in Attachment B. Broadly the QNF assists members with:

o industry benchmarking; o provision of rnarketltrade fairs; o guidance with new technology; and o generally have alignment with a specialist industry brokerage for the sale

transfer of newsagencies to ensure industry arrangements are understood.

The proposed arrangements referred to in Attachment B will set out the respective roles of the industry National association and that of Stale associalions.

During the period of the proposed arrangements QNF will act as and perform the duties of the ANF branch in Queensland and will represent the interests of the ANF and the newsagents of Queensland.

ABOUT THE ANF

The Australian Newsagents' Federation (ANF) is the peak industry body established to represent newsagents across the nation. Its fulltime ofice, based in Sydney, commenced in 1996.

The ANF's role is: to promote and protect the common interests of all persons and companies in

Australia engaged in the business or trade of newsagents or newsvendors; to represent members with government and agencies; To represent members with publishers and other suppliers for newsagency industry

considerations; to constantly seek out and implement commercial services for newsagent members

so that they can maximise their return on their investment; to promote the industry image by attending to required releases and statements, as

well as industry and public relations; to liaise with industry associates on national, regional and local issues; to administer and promote national 'N' identification; to publish a national magazine to effectively communicate to newsagents and

industry partners.

STRUCTURE The Australian Newsagents' Federation (ANF) is governed by a Constitution which

has been adopted by its members in General Meeting. The current Constitution was adopted on 26 February 2003 with amendments voted on by members on 25 July 2003.

The ANF is comprised of a representative from each State who form the ANF Board of Directors. The Directors, whilst elected by members of their StatetTerritory, are bound to represent the best interests of all newsagents around Australia.

Membership of the ANF is open to any Australian newsagent who meets the definition of "newsagent" as approved by the ANF Board. That definition is:

'A newsagent is a person or entity conducting a retail business primarily offering a comprehensive range of newspapers and magazines From a clearly identified newsagency business and/or a distribution business offering home and territorial delivery oTa comprehensive range of newspapers and magazines.'

At all times, such person or entity must hold current contracts with all ANF recognised publishers/distributors that have offered contracts in the relevant marketplace, provided such persons/entities are not excluded if they have not been offered all contracts.'

The ANF recognised publishers/distributors are ACP Publishing, News Limited, Fairfax Publications, Gordon and Gotch, Rural Press, Western Australian Newspapers, Australian Provincial Newspapers (APN) and Retail Distribution Services (RDS).

While a national organisation, the ANF ensures issues that are important to members at a local level are dealt with at that level. State/Territory Branches are under the guidance of a Committee, which is elected by members in that StateITerritory. Further, to embrace the right of every member to 'have their say,' Directors of the ANF from each State/Territory are elected by the members in that StateJTerritory. And, when it comes b general meetings, each and every member is entitled to attend and vote or can express their wishes by way of proxy given to a person of their choosing.

There are also state newsagents associations. For the purposes of this notification the relevant state associations are:

o Newsagents Association of NSW and ACT Ltd o Victorian Aulhorised Newsagents Association Ltd; and o Queensland Newsagents Federation Lld.

Under the proposed agreement between ANF and each state association there will be a single membership form and a single membership fee. The division of the fee will be on agreed basis between ANF and each of the state associations. It is intended that there be commonality of membership to deliver the specialist package of industry association benefits.

Not all newsagents are members of the associations. Some are members of other small business associations and or industry marketing groups that provide similar services and some elect not to be part of any representative grouping.

THE BENEFITS OF MEMBERSHIP OF ANF The ANF brings benefits to its members that can be categorised under three major headings:

" Representation and Advice " Marketing and Communication " Provision of Commercial Services

Representation and Advice There are many issues that affect both the day-to-day and long-term operations of a newsagent. These range from the Trade Practices Act to supply of product through to industrial relations maUers. In its role as the voice of the industry, the AN F regularly makes representation to the Government, the Australian Competition and Consumer Commission, publishers, distributors and other suppliers seeking the best possible outcomes for its members. ANF staff are always available to advise and help members achieve the maximum From their business. ANF runs regular nationwide training courses for new entrants to the industry to ease the initial transition and ensure that standards within the industry are maintained.

The ANF's accredited training course has been developed in conjunction with industry partners.

ANF also offers a coaching service delivered by News to Business - the industry provider of systems and knowledge to generate profit and maximise efficiency. News to Business have been achieving great results for Newsagents around Australia over the last five years

Marketing and Communication The 'N' trademark is owned by the ANF and is licensed to newsagents for their use. This strongly known and very visible symbol forms the basis of the marketing thrust by which the consumer readily recognises a business that specialises in a wide range of publications and offers traditional newsagency services. The ANF utilises the IN' image and other methods to communicate externally with the publiclindustry partners, and effects an ongoing communication/information channel to its members.

Provision of Commercial Services The ANF is not just a representation body. The organisation recognises the need to provide members with tools that will increase their bottom line. In this regard, it has developed, and continues to develop, business opportunities which allow members to gain more sales and profit. The commercial services provided by the ANF make a tangible difference for those members who take them up, effectively increasing the wealth of members. Services include Bill Express, Western Union money transfer service, Australian Taxation Office - forms distribution, newsagents' superannuation scheme, insurance brokers finance broking services.

Attachment B

PROPOSED ARRANGEMENTS

ANF proposes to enter into arrangements with newsagents associations in each of New South Wales (and the ACT), Victoria and Queensland whereby each entity will provide a particular range of services. The term of the agreement will be for three years although that term may be automatically extended for a further three years unless either party gives twelve months notice of termination.

Broadly ANF will provide services relating to issues where the scope is broader than one state and states will provide services that are essentially intra state.

Set out below is an extract from the proposed agreement between ANF and QNF. This agreement will be broadly replicated in respect of NSW and Victoria. Essentially the proposed agreement will set out the respective roles of national and state associations.

I .I ANF - Q shall be the sole provider of the following Member Services to

Newsagenls in the Territory:

1 . I . I Industrial Awards and Industrial Relations as they relate to members.

1.1.2 Occupational Health and Safety.

1.1.3 Tenancy advice.

1 .I .4 Publisher and magazine distributor representation on state specific

issues not likely to have cross border implications. Where it emerges

that such an issue may have cross border implicalions, ANF - Q and

ANF agree to actively consult with each other.

1.1.5 Non-publisher and non-magazine distributor supplier representation on

state specific issues not likely to have cross border implications. Where

it emerges that such an issue may have cross border implications, ANF

- Q and agree to actively consult with the ANF.

1.1.6 State Lotteries representation wilhin the stale oTQueensland

1.1.7 State and Local Government Representation/Liaison.

1.1.8 State specific induslry policy.

1.1.9 Lobbying of state politicians and other state based organizations on

issues specific to Queensland.

1.1.10 Newsagent Market Fair.

1.1.1 1 State newsagents conference.

1.1.12 Stale newsagent Awards of Excellence.

1.1.13 Administration and conducting (using accredited trainers) the

Certificate Level 1V Retail Management Course for incoming

newsagents on behalf of the ANF

1.1.14 lnilial point of enquiry for newsagents.

1 . I . 15 Regional committees of newsagents and associated regional meetings.

Notification and invitation for representation by ANF to be advised at

planning stage to allow input on National issues.

1.1.16 ANF - Q Web Site.

1.1.17 Queensland 'Newsagents' magazine

1.2ANF shall be the sole provider of the following Member Services to

Newsagents in the Territory:

1.2.1 National industry policy.

1.2.2 Representation of Newsagent interests to nationally based publishers

and magazine distributors on issues not isolated to the Territon..

1.2.3 Representation of Newsagent interests to nationally based suppliers on

issues not isolated to the Territory.

1.2.4 Representation of Newsagent interests to nationally based industry and

product calegory associations on issues not isolated Lo the Territory.

1.2.5 National industry supplier endorsed Certificate IV Retail Management

for incoming newsagents.

1.2.6 Industry accreditation and standards requirements including

Information Technology slandards. ANF - Q to be invited Lo

participate in project management of this service

1.2.7 Federal Government RepresentationJLiaison.

1.2.8 Lobbying on National Issues.

1.2.9 National Newsagent or the Year Awards.

1.2.10 National Newsagent Conference/Convention.

1.2.1 1 National Newsagenl Magazine.

1.2.12 National Newsagent Touring Conference/Training Day.

1.2.1 3 Major shopping centre newsagent tenancy strategic advice, advocacy

and landlord liaison.

1.2.14 ANF Web Site

n . . .. .,. - ."*_< ,--- -..,.--. -- --^. - -...---vNp" .C_=X-w--.--. - - -. --- . , ..-

M S Gregson General Manager Adjudication Branch Australian Competition and Consumer Commission PO Box 1 199 DICKSON ACT 2622

Dear Mr Gregson

Thirdline forcing notification lodged by Newsagents' Associations (N92560 - N92563) - your reference C2006/1371

I refer to your letter of 8 September 2006 in relation to the abovementioned notifications. You sought fbrther information regarding membership fees, the proposed agreements between the parties and their intentions in relation to authorisation of the agreements. I have sought instructions from my clients and they have advised in the following terms.

Membership fees - There will be only one membership fee payable. Fees have not increased to take account of the proposed arrangements although there has been some periodic review of fees by individual associations. In the case of newsagents who were members of both state and national associations total fees have decreased. In the case of newsagents who were a member of only one association total fees have increased. It is too early to say if total revenue received from fees paid by newsagents under the new arrangements will be higher or lower (or the same) as under the previous arrangements. It is likely also that the position will vary from state to state.

Proposed agreements - Parties are currently reviewing the specific terms of the arrangements as the agreements as drafted raise issues for firther consideration by the parties, aside from competition law matters. At this stage I cannot provide a time frame for when the agreements will be completed. However when they have been finalised a copy of each will be provided to the Commission.

92 Jervois Street DEAKIN ACT AUSTRALIA 2600 telephone 61 2 6281 2030 fax 61 2 6282 51 83 Mob 041 9 624 993 e-mail spierconsultinq@netspeed.com.au

Authorisation of the agreements - It is possible that the parties will apply for limited and focussed authorisation. A decision in that regard will be made when agreements have been finalised.

Please contact me if you require hrther information.

Yours sincerely

H R Spier October 2006

RESPONSE BY NEWSAGENTS TO ACCC OUESTIONS IN RELATION TO NOTIFICATIONS.

ACCC QUESTION 1

Whaf percentage of newsagents in NSW (and the ACT) are members of NANA and/or ANF? What percentage of newsagents in Victoria are members of VANA and/or ANF? What percentage of newsagents in Queensland are members of QNF and/or ANF?

I have not been able to get precise figures on the break ups in Queensland, Victoria and NSW.

However I am informed that in each jurisdiction about 75% of newsagents are members of the State bodies and about 10% are also members of the ANF. Approximately 5% are ANF members only.

Some newsagents are members of other small business associations such as COSBOA and ACCI and not of any industry specific association.

ACCC QUESTION 2

What is the fee to be paid by newsagents to become members ofboth the ANF and either NANA, VANA or QNF? Is thisfee diflerent to the amount previously paid by newsagents to become u member of the ANF and NANA, VANA or QNF sepurately? g s o , what is the amount ofthe dgerence?

RESPONSE.

The proposed fees structures for 2006-2007 of ANF and ANF-Q are as follows,

ANF- Business valued to $200,00- $440.00 pa

Business valued to $700,00-$605.00 pa Business valued over $701, 004880, 00 pa Delivery only businesses- $300.00 pa Small and Remote- $165.00

ANF-Q Business valued to $200.00- $ 396.00 pa Business valued to S700.00- $550.00 Business valued to $999.00- $836.00 Business valued over $1 million - $ 836.00

Current ANF fees for a member in Queensland are between $400.00- $800.00 pa depending up on size.

Current QNF fees are between $396.00 and $836.00 depending on size.

ACCC QUESTION 3-

What proportion of the fee paid by newsagents will be received by the ANF? Whar proportion of the fee paid by newsagents will be received by NANA, VANA or QNF? How were these relative proportions decided?

RESPONSE

In 2006-2007 if payment is made to, say, ANF-Q, ANF will receive $125.00 per member pa.

If payment is made to ANF, ANF Q will receive the portion of the membership fees that relates to the provision of ANF-Q services to the member in Queensland.

These proportions will be decided by annual consultations.

ACCC OUESTION 4

What benejits arise from forcing newsagents to be a member of both fhe ANF and NANA, VANA or QNF? I note that you have provided information as to the benefits of ANF membership, but these do not appear to arise from the third line force.

RESPONSE.

- Australia is a Federal system. To date ANF and the State bodies have fragmented the representational aspects newsagency associations. T h s has been counte~~roductive and inefficient.

It is felt that for associations to be effective they must organise on federal lines and each concentrate on the respective levels of Government.

It is the ANF and VANA, NANA and QNF view that member's interests are split between representational services and commercial services. The State bodies offer both but the national body can best offer only the former.

Members will not be well served if the national body is not a strong body as has been the case in recent years. Further the State bodies to which the bulk of members belong have not been fully effective on the national scene.

A national voice is essential and most trade associations have that. Their structure or hnding may vary but many adopt the Federal system with membership of the State body linked to membership of the Federal body. Funding structures do vary with some including a national component in State fees. That was an option here but the past structure means that the existing ANF and ANF Q structure remains for the time being. That may change over time.

For ANF to be effective it must have funding and it must have membership. This arrangement which is the subject of the Notification does that.

As indicated in the Notification ANF membership brings many benefits but they will not eventuate without the third line forcing conduct. That again may change over time but in this transition period in the industry and its structures it is considered necessary.

Finally, the ACCC and its predecessors has had a long history with the newsagents industry. I expect that on national issues the ACCC would rather deal with a properly resourced ANF than with fragmented State associations.

HANK SPIER For ANF-Q, VANA, NANA, ANF

17 August 2006