Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I thank Senators Coonan and Wortley for taking part in the debate on the Trade Practices Amendment (Cartel Conduct and Other Measures) Bill 2008. It was a very useful background of some of the cartel conduct in trade practices history.

For over a decade, the Organisation for Economic Cooperation and Development has recognised that hardcore cartels are one of the most serious and harmful forms of anticompetitive conduct. In 1998 the OECD recommended that members ensure that their competition laws halt and deter hardcore cartels. In 2005 the OECD proposed that countries should consider introducing and imposing sanctions against individuals, including criminal sanctions. The introduction of the Trade Practices Amendment (Cartel Conduct and Other Measures) Bill 2008 into the parliament demonstrates this government’s commitment to preventing and deterring serious cartel conduct. The bill brings Australia into line with over 15 OECD nations that provide criminal sanctions for such conduct. The government has listened carefully to the concerns of interested parties in developing the legislation. While the bill is modelled on international proposals, the elements it contains will ensure its effective operation within the Australian context. The government will monitor its operation to ensure that it meets its objectives.

On 4 December 2008, the bill was referred to the Senate Standing Committee on Economics for inquiry and report. The committee produced its report on 26 February 2009. The committee as a whole recommended that the bill be passed by the Senate. I note that the government has moved additional minor amendments to clarify the meaning of ‘contract’ under the bill. The committee also recommended that, following passage of the bill, the ACCC issue guidelines on those factors that are, in all the circumstances, most likely to lead it to refer a matter to the DPP as a possible criminal offence. I note that the ACCC is awaiting the passage of this legislation to enable it to provide such guidance. I thank members of the committee for their efforts in reporting on this important piece of legislation. In particular, I want to refer to class competition orders, a matter raised by a Senator Xenophon in the minority report. I can state for the record that we are happy to consider this on a future occasion.

The bill demonstrates the government’s ongoing commitment to strengthening laws promoting competition. Strong, lawful competition is a key means of ensuring that consumers get the best product or service for the lowest price possible. The bill delivers on our commitment to move legislation to criminalise serious cartel conduct. The bill delivers for business, consumers and the economy because the sanctions it introduces will meaningfully deter such conduct.

Question agreed to.

Bill read a second time.