dinosaur harvey pleas for online tariffs , page-24

Looks like its going downward. Christmas won;t help. Stop loss 2.90



Finance
Traditional shop retailers `stuck in the past'
AARON MacDONALD
329 words
25 November 2010
The Advertiser
ADVTSR
1 - State
59
English
Copyright 2010 News Ltd. All Rights Reserved
GERRY Harvey's calls to slug online purchases with GST are symptomatic of an industry stuck in the past, consumer groups and online retailers say.

The Harvey Norman chairman used the company's annual general meeting this week to slam online retailers, saying local companies were at an ``unfair disadvantage'' in competing against goods bought from overseas websites. Currently Australians can buy online imports and not pay GST for products under $1000.

However, internet retail giant eBay has hit back, saying consumers will be punished if Mr Harvey's calls are heeded. Spokesman Dan Feiler said the move was ``an unfair attack on Australian consumers''.

Deborah Sharkey, managing director eBay Australia & New Zealand, said Australian-based sellers on eBay had experienced ``phenomenal growth'' in 2010.

``These sellers are reaping the rewards because they are competing online and meeting demand from Aussie buyers,'' she said.

``We can't understand why some retailers would seek to attack the consumer, when the answer is to simply get online.''

Consumer group Choice also disagreed with Mr Harvey's comments, calling it ``poor policy''.

According to spokesman Christopher Zinn, Australia's retailers were not struggling with tax rules, but with an old-fashioned approach to selling, new forms of competition and the appreciation of the Australian dollar, which is currently hovering just below parity.

``Unless there's overwhelming and immediate evidence of widespread detriment to competition in the retail sector, especially the impact on smaller shops, we think it's too early to consider change,'' Mr Zinn said.

The National Retail Association, however, has stood firmly behind Mr Harvey's rhetoric. Executive director Gary Black said the issue ``looms as one of the biggest threats that bricks-and-mortar Australian retailers have faced for decades.

``The $1000 tax-free threshold is unique to Australia, with countries such as the United States, United Kingdom, Canada and New Zealand all imposing varying amounts of tax.''