Nick Xenophon (SA, Independent) Share this | Hansard source

by leave— In relation to the Australian Business Investment Partnership Bill 2009, I move amendments (1) to (3) on sheet 5794:

(1)    Clause 4, page 2 (after line 7), after the definition of ABIP Limited, insert:

ACCC means the Australian Competition and Consumer Commission established by section 6A of the Trade Practices Act 1974, and includes a member of the Commission or a Division of the Commission performing the functions of the Commission.

(2)    Clause 4, page 3 (after line 5), after the definition of loan, insert:

member of the Commission has the same meaning as in the Trade Practices Act 1974.

(3)    Page 10 (after line 30), after clause 16, insert:

16A ACCC’s functions

        (1)    The ACCC’s functions under this Act are set out in this section. In performing these functions the ACCC may exercise any of the powers it has under the Trade Practices Act 1974.

ACCC to prepare competition impact statement

        (2)    The ACCC must prepare a competition impact statement in accordance with this section.

        (3)    The statement must identify the potential costs and benefits to competition and consumers of exempting ABIP Limited and its activities from competition laws.

        (4)    The ACCC must give to the Minister a copy of the statement not later than 3 months after the commencement of this Act. As soon as practicable after the Minister is given the copy, the Minister must cause it to be laid before each House of the Parliament.

ACCC to monitor competition exemption

        (5)    The ACCC must prepare a competition exemption report in accordance with this section as soon as practicable after 30 June of each financial year:

             (a)    that commences on or after 1 July 2010; and

             (b)    in which a financing arrangement is entered into under section 8.

        (6)    The report must:

             (a)    identify the costs and benefits to competition and consumers of exempting ABIP Limited and its activities from competition laws; and

             (b)    express an opinion as to:

                   (i)    whether the benefits to competition and consumers of ABIP Limited and its activities during the preceding 12 months outweighed the costs to competition and consumers; and

                  (ii)    if under subparagraph (i) the opinion is expressed that those benefits outweighed those costs during the preceding 12 months—whether there have been any material changes in circumstances such that the costs or potential costs to competition and consumers of ABIP Limited and its activities now outweigh the benefits to competition and consumers.

        (7)    The ACCC must give to the Minister a copy of the report as soon as practicable after preparing it. As soon as practicable after the Minister is given the copy, the Minister must cause it to be laid before each House of the Parliament.

Identifying costs and benefits

        (8)    In identifying and reporting on the costs and benefits to competition and consumers, the ACCC must have particular regard to the matters set out in Part IV of the Trade Practices Act 1974.

Interpretation

        (9)    In this section:

exempting ABIP Limited and its activities from competition laws means specifying, and specifically authorising, the conduct referred to in subsection 16(1) for the purposes of subsection 51(1) of the Trade Practices Act 1974.

These amendments relate to the ACCC monitoring the exemption granted to ABIP and the ACCC being required to prepare a competition impact statement. I discussed this during my second reading contribution. I have had discussions with the government and I believe that the ACCC has an important role in monitoring the exemption and its impact on consumers and in identifying the costs and benefits for competition and consumers of exempting ABIP from competition laws. I am grateful to associate Professor Frank Zumbo from the University of New South Wales for his advice and suggestions.