Senate hears of opposition to Do Not Call Register for business

A Senate inquiry into extending the Do Not Call Register to include business numbers has heard that the plan would result in costs to business of between $71 million and $108 million in the first year of operation, and potentially cripple normal business-to-business calls.

The figures are contained in a submission from the Australian Direct Marketing Association, which commissioned Access Economics to examine the potential costs of extending the DNCR to cover business numbers.

ADMA chief Rob Edwards, who is opposed to the extension, appeared before the Senate’s inquiry on Friday and says many of the other business group attendees – including representatives Fairfax Media and the Australian Information Industry Association – spoke out against the plan.

“I think the Government would have to say there was an overwhelming push back from people at the hearing,” he told SmartCompany this morning.

Central to ADMA’s opposition is the issue of cost. Access Economics estimates total compliance costs (which will be incurred when businesses are forced to check or “wash” their customer lists against the DNCR) will be $71-$108 million in the first year of operation, and then $47-$87 million in each subsequent year.

Access Research also claims that concerns about the cost to businesses from unwanted calls has been overestimated. It claims that these calls cost Australian business $34.4 million and $47.1 million each year, based on the average length of these calls, their frequency and the number of businesses in Australia.

However, the research by Access has been heavily criticised by the Department of Broadband, Communications and the Digital Economy, who used figures from research undertaken by The Australia Institute in late-2008 to claim the costs are $1.58 billion.

ADMA has fired back, saying those calculations are based on calculations that include Australia’s entire population of 21 million, rather than the 1.1 million private and government business organisations that exist in Australia.

Edwards expects the Senate inquiry to deliver its report to the Government on February 24. He says his organisation will continue to fight the plan and will be seeking a meeting with communications minster Stephen Conroy.

“We won’t let the matter rest. The Government would be foolish not to take notice of the opposition to this fatally flawed plan.”