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How much regulation is too much regulation?

Greens MLA Jo Clay… wants to ban fossil-fuel companies from advertising in ACT sporting venues.

“Real choice, the freedom for individuals to choose, comes when balanced information is available,” writes political columnist MICHAEL MOORE.

Too much red tape and regulation has echoed as a clarion call from big businesses over many years. But how much regulation is too much?

Michael Moore.

Greens MLA, Jo Clay, has introduced the Environment Protection (Fossil Fuel Company Advertising) Amendment Bill 2024 to ban fossil-fuel companies from advertising in ACT sporting venues. 

The intention is to restrict their ability to use sport to enhance the reputation of fossil-fuel companies, and build on similar bans in cities such as Sydney, Amsterdam and Stockholm. 

Ms Clay wants the ACT to be the first to introduce jurisdiction-level restrictions. She has the support of Belinda Noble, the founder of Comms Declare, who argues the ACT as “the first state-level jurisdiction to act will further cement the ACT’s status as a global clean-energy leader”.

Is this a step too far? Labor thinks so. Although the Assembly voted unanimously in June 2021 to join in signing a fossil-fuel non-proliferation treaty, Labor will not support this latest move. 

As Ms Clay told the Assembly, this type of restriction on advertising is mentioned in that treaty. And, on climate change, “Labor needs to be pushed all the way”.

Regulation of this kind is not new. In her tabling speech in the Assembly Ms Clay drew attention to tobacco policy. Early regulation to restrict tobacco use started with a combination of taxation and restricting marketing practices. 

In that case, a fund was established in jurisdictions around Australia that supported health promotion bodies such as VicHealth. Success in reducing tobacco use in Australia has been outstanding.

When such regulation is introduced, there are invariably clarion calls from industry about interfering with their freedom. However, regulation does have an important place in protecting vulnerable sections of our community and for introducing policies that are in the community interest.

ANU and Princeton political philosopher Prof Philip Pettit explored the importance of regulation by explaining the real drivers of freedom. Freedom is not about non-interference, he argued, but rather about preventing domination.

Real choice, the freedom for individuals to choose, comes when balanced information is available. For years the tobacco companies dominated newspaper and television advertising space with “smoking is cool” messages. One option for governments to balance the information would have been to spend as much money advertising about the dangers of smoking. This would have created a level playing field. Non-domination!

There is an alternative for governments. Instead of spending huge amounts of taxpayers’ money on advertising. That alternative is to provide a level playing field by restrictive regulation. This means that no view “dominates”, and people are genuinely free to choose.

Regarding advertising of unhealthy products, this approach could be applied to advertising of junk food to children, the over-the-top advertising of the alcohol industry and, even more so, the gambling industry. These industries are dependent on such marketing.

To avoid regulation, they regularly offer a compromise to government. “Health washing” is an attempt to make it look like you are doing something to counter the harms created by your product

For example, pregnancy warning labels on alcohol beverages. The original voluntary code by industry produced just such a warning. It took me two and half minutes to find my first example. Similarly, with gambling – messages for problem gamblers that look good but are next to useless in impact.

Will the Labor and Liberal parties consider that fossil-fuel industries are using sports to “greenwash” their industry? They should ask about the extent to which the fossil-fuel industry dominates the thinking of those who attend or watch sporting events.

Former Australian Wallabies captain, and now senator, David Pocock believes that the Australian fossil fuel industry undermines our relationship with Pacific neighbours. He argues that Australia must stop approving new fossil-fuel projects that are “an existential threat for those nations”. 

His personal experience in sport had a significant influence on his thinking: “I remember being a rugby player talking to some of my Fijian-Australian teammates, who talk about their home village having to find higher ground for cropping because the land’s becoming too salty, becoming saline”.

Effective regulation by governments is not only acceptable. It is a responsibility. A litmus test for extent to regulate, to introduce red tape, ought to be the degree to which it prevents domination. 

Michael Moore is a former member of the ACT Legislative Assembly and an independent minister for health. He has been a political columnist with “CityNews” since 2006.

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Michael Moore

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