Franchise law reform campaigner Tony Piccolo starts fourth year of push for state-based laws with Facebook appeal

South Australian Labor MP has started the fourth year of his push for state-based laws to crack down on so-called rouge franchisors by launching a Facebook page where disaffected franchisees and former franchisees can share their “war stories”.

While the page is yet to receive a post, Piccolo is keen to remind his critics – most notably the Franchise Council of Australia – that his campaign for franchise law reform is far from over.

Last year, Piccolo successfully lobbied his Labor party Caucus colleagues to support his private member’s bill which introduced a separate franchise regulatory regime for South Australia, overlaying the existing Federal laws, which are encapsulated by the Franchising Code of Conduct.

The laws would enshrine an obligation for franchisors and franchisees to act in “good faith” in legislation and would introduce pecuniary penalties for breaches of franchise laws.

While the Franchise Council and several prominent franchisors in South Australia have warned that having separate franchising laws in South Australia would turn franchisors and franchisees away from the state, the South Australian Labor Government is now in the process of drafting a bill, which Piccolo says will be released for community consultation in the next month.

“There is quite a bit interest in getting this bill passed in South Australia.”

As part of the process of bringing the bill to the Parliament, Piccolo is also part of a new Parliamentary inquiry into the sector, which follows an earlier inquiry conducted in 2008.

“What we are now doing is bringing ourselves up-to-date from that initial report as to what has happened in the sector since then, because there has been some change at the federal level.”

As well as driving forward the South Australian law, Piccolo says he’s also consulting the Parliamentarians in Western Australia and Queensland who are also pushing for franchise reform.

In Western Australia, Liberal MP Peter Abetz sparked heated debate when he launched a similar private members bill to that of Piccolo.

After strong opposition from the Franchise Council, the West Australian Government decided not to adopt the bill and instead sent it to a Parliamentary inquiry for further scrutiny.

Submissions to that inquiry are due in late January.

In Queensland, opposition MP David Gibson is also considering introducing a private member’s bill that would introduce separate franchise laws in that state.

However, Gibson’s focus appears to be on introducing a cheaper dispute resolution process for franchisees, and Piccolo says he believes that when the bill is released it will “not go as far” as the bills in South Australia and WA.

But while the Federal Government says it does not want to change franchise laws until at least 2013, Piccolo says he remains determine to push ahead with new laws for his state.

“This is my fourth year that I have been doing this. It will happen. You can mark my words – this year is going to be a good year.”