The franchising sector has been let down by the Government’s inadequate response to the inquiries into the sector, according to Shadow Small Business Minister Steven Ciobo.

The Opposition MP’s comments come after the Minister for Small Business, Dr Craig Emerson last week delivered his long-awaited response to Senate Committee recommendations.

“Minister Emerson has failed to implement the two main recommendations of the inquiry, which were good faith and the financial penalties for breaches of the Franchise Code of Conduct,” Ciobo said.

“Instead of that, Minister Emerson will hold yet another inquiry with yet another panel to report back on the need for further changes to the Franchising Code. That panel is scheduled to report back in January 2010 – around 14 months since the very first inquiry. And remember this was a Labor election commitment.”

Ciobo added that the Australian Competition and Consumer CommissionÕs ability to name and shame dodgy franchisors already exists.

“As it is the ACCC can already go after rogue franchisors, but it doesnÕt do so because it doesnÕt have the resources to,” he said. “As it stands Minister Emerson hasnÕt allocated any further resources to the ACCC for this purpose, so effectively thereÕs no change.”

Ciobo said the response which had taken the Labor Government almost a year, had come as a massive disappointment to the franchising sector which is worth around $130 billion annually to the economy and employs more than 400,000 people.