Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I thank the honourable member for Ballarat for her question. Cartels are the undermining of the market economy to rip consumers off. This government is serious about promoting competition to ensure that consumers receive the benefits of the market economy. On 11 January, I released draft legislation to introduce jail terms for cartel conduct in Australia. The legislation provides for jail terms of up to five years for serious cartel conduct. I also released a memorandum of understanding between the ACCC and the Director of Public Prosecutions about how prosecutions under this new regime would operate. In addition, I released a discussion paper dealing with the more controversial and vexed issues in relation to this matter—most particularly, whether dishonesty should be included as a necessary element for the ACCC to prove in serious cartel cases and whether the Federal Police should be given telephone tapping powers on behalf of the ACCC in investigating serious cartel cases. Interested parties have now made their submissions to the government and we are working through the issues before determining how the draft legislation could be best improved.

Nobody said this reform would be easy or that it would be without its challenges, but these issues should be worked through in an open and transparent manner, and they are not a reason for sitting on your hands and doing nothing. In opposition, we indicated it would be our aim to pass this legislation within 12 months of taking office and we are working towards that commitment.

I was asked by the honourable member for Ballarat why this reform is urgent. This reform is urgent because the previous government failed to act. This reform is urgent because it is consumers and small businesses who suffer from cartel conduct. This reform is urgent because it was recommended to the previous government in 2003 by the Dawson committee of inquiry. The former Treasurer, the member for Higgins, indicated in February 2005 that the previous government accepted the recommendations. This reform is urgent because the previous government reneged on its commitment and the previous Treasurer went back on his word, and they did not introduce this legislation. That is why this reform is urgent.

The honourable member for Ballarat also asked me how the current policy relates to international best practice. I can report to the House that Australia is one out. Almost every OECD country—and countries we normally compare ourselves with—have acted on this necessary reform. The United Kingdom has jail terms of five years. The United States has jail term of 10 years. Norway, Taiwan, Brazil, Israel, Canada and France all have jail terms for serious cartel conduct. The Slovak Republic has jail terms for serious cartel conduct. I am sorry that our esteemed colleagues from Estonia have left the gallery. They could have confirmed for the House that Estonia has jail terms for serious cartel conduct. If you operate a cartel in Kenya, you go to prison for three years.

This reform escaped Peter Costello’s Australia. They were asleep at the wheel and they neglected this important pro-competition reform. This reform is urgent because the previous government received 15 warnings from their own regulator, the ACCC, that this reform was necessary. It sounds familiar, does it not? I table these 15 warnings at the request of the Leader of the Opposition—15 warnings from their own regulator, the ACCC, saying this reform was urgent and necessary to ensure that consumers are not being ripped off. The member for Higgins sat on his hands and let it rot, and refused to act. No wonder the chairman of the ACCC welcomed the new government’s steps to introduce this measure. He said he was:

... absolutely delighted. I think this is a significant step forward for the prosecution of competition policy as far as Australia’s concerned. This is my high point for 2008. It is fantastic. I have been waiting for this for a very long time.

It is a pity he had to wait so long. It is a pity he had to wait for the member for Higgins to lose office before a government came into office which actually cares about competition and consumers in this country. It is a pity Australian consumers had to wait for so long to have the benefit of a government which cares about them and cares about competition. We will continue to implement these reforms—reforms the previous government and the previous Treasurer did not have the wit to do.

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