James Bidgood (Dawson, Australian Labor Party) Share this | Hansard source

I rise to speak in favour of the National Measurement Amendment Bill 2008. The National Measurement Amendment Bill 2008 amends the National Measurement Act 1960 to introduce a national system of trade measurement based on the current trade measurement systems of the states and territories. The National Measurement Institute within the Department of Innovation, Industry, Science and Research has responsibility for implementing the national system of trade measurement and for the ongoing operation of the new system, which is due to commence on 1 July 2010. The funding provided for the transition to a national system of trade measurement in its first year of operation is $28.65 million in 2008-09, with ongoing annual funding of $23.65 million from 2010-11.

Trade measurement involves the exchange of goods at a price determined by volume or weight or other types of measurement. A robust system of trade measurement underpins confidence in the trading transactions in our economy. The new national trade measurement system will replace state and territory systems. The bill incorporates key features of the existing state and territory laws, which are based on model legislation. We take for granted that a litre of milk is a litre of milk, that a kilo of sugar is a kilo of sugar, that a scale is always correct and that a stated portion is a stated portion. We do so because we trust our system of measurements. We trust the system because governments have laws to ensure that the description matches the product therein. Whether we buy a tonne of topsoil from the local landscaping business or a 50-gram Mars bar, we rightfully expect that what is on the label is what we actually receive. When we fill up our car and pay for 30 litres of fuel, we expect that we have received 30 litres of fuel. We cannot afford to have uncertainty in this regard, and with this bill the government is ensuring even greater certainty and confidence in our measurements regime.

This is something that the federal and state governments through COAG have highlighted as an issue of great importance. I want to stress that this is of true great importance. Under the current system, each state and territory governs their own measurement legislation. The Australian government is introducing this bill to provide a single law for the entire nation. This is something that we constantly hear as we go around the country talking to our constituents. I know that many of the constituents of Dawson are transient people from other parts of Australia, and I am asked, for example, ‘Why are the laws different in WA than they are in Queensland?’ So this idea of a single law for the entire nation has a lot of value, because it is about continuity. Continuity is efficiency, and efficiency is cost saving. And cost-saving efficiency equals productivity, which ultimately adds to the bottom line of this nation’s economy. So when we consider this, we need to consider that requiring businesses operating across state borders to comply with different state and territory laws increases compliance costs and is totally unnecessary.

In my electorate of Dawson, having a system in place that provides for accurate, nationwide measurements is of absolute critical importance for the exports of coking coal, for raw and refined sugar, and for meat. If there were anything other than absolute certainty in the measurements, it would erode confidence and our sterling reputation in the market. The new national trade measurement system will benefit businesses by reducing cost. Firms that trade across borders will only need to implement one set of practices to meet trade measurement requirements. So it is logical.

Accurate measurements give confidence to buyers and sellers that measurements are accurate and this reduces transaction cost in each trade. This regulatory system brings extra confidence to trade and commerce in Australia. Imagine how onerous it would be if traders had to prove to every customer that they had weighed each purchase accurately. Similarly, imagine how difficult it would be for a packing house to prove to each purchaser that their bag of flour was filled with the stated amount without the confidence that good measurement laws provide?

The bill inserts general trade measurement provisions into the act, which will provide the legislative framework for the national trade measurement system. This includes six key points: (1) provisions to ensure the accuracy and reliability of trade measuring instruments such as scales, fuel dispensers and weighbridges; (2) provisions to ensure prepacked articles contain the stated quantities; (3) the appointment of trade measurement inspectors and their powers—replicating the current powers of state and territory trade measurement inspectors; (4) licensing provisions for the verifiers of measuring instruments and the operation of public weighbridges; (5) provision for private sector firms or individuals to be licensed to verify trade measuring instruments; and, finally, (6) transitional provisions to ensure a seamless transfer from the states and territories to a national system.

There are, of course, offence provisions in the bill. The offence provisions in the bill will apply in a wide variety of circumstances. The bill provides for different categories of offences in relation to particular conduct, for a range of responses depending on the circumstances of a particular suspected offence, and for three tiers of penalties. The new national system will continue to ensure the accuracy and reliability of traditional trade measuring instruments such as scales, fuel dispensers and weighbridges. However, it provides the flexibility for new technologies to be introduced as businesses or consumers require additional assurance.

In conclusion, the bill puts in place a law that replaces the current fragmented situation in which each state and territory has a separate system, with a single national system. No clearer can the need for this be seen than in the electorate of Dawson, because in the electorate of Dawson we know how important it is to have a unified Australian system for coal, sugar and even within our tourism market as well. By introducing this law, the Rudd Labor government is proving it is serious about creating a seamless national economy unhampered by unnecessary duplication, overlap and differences in regulation. In particular, we are proving that we are determined to remove those inconsistencies that create unnecessarily complex and costly burdens on business. I commend the bill to the House.

Debate interrupted.

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