EXPLANATORY STATEMENT
Issued by authority of the Treasurer
Competition and Consumer Act 2010
Price monitoring direction to the Australian Competition and Consumer Commission
Section 95ZE of the Competition and Consumer Act 2010 provides that the Minister may give a written direction to the Australian Competition and Consumer Commission (ACCC) to monitor prices, costs and profits relating to the supply of goods or services by persons in a specified industry and to give the Minister a report on the monitoring.
Under this Direction, the ACCC will monitor the prices, costs and profits relating to the supply of regulated goods by corporations and the supply of goods by liable entities to assess the general effect of the carbon tax scheme in Australia. In this Direction, regulated goods means goods supplied in the natural gas, electricity and synthetic greenhouse gas industries. Liable entities means a corporation for which there is an entry in the Information Database (within the meaning of the Clean Energy Act 2011).
Under this Direction, the ACCC must also report to the Government on its monitoring activities within 28 days of the end of each quarter of each financial year.
This Direction is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
As the arrangements under this Direction largely mirrors the proposed price monitoring provisions contained in Schedule 2 of the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 (the Bill), appropriate consultation on these arrangements has already occurred as part of the public consultation on the Exposure Draft of the Bill from 15 October 2013 to 4 November 2013.
The provisions of the Bill were also examined by the Environment and Communications Legislation Committee Inquiry following referral by the Senate on 14 November 2013.
This Direction takes effect for the period 1 March 2014 to 30 June 2015. This Direction may be revoked following the passage of the Bill.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Price monitoring direction to the Australian Competition and Consumer Commission
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
Section 95ZE of the Competition and Consumer Act 2010 provides that the Minister may direct the ACCC to monitor prices, costs and profits relating to the supply of goods or services by persons in a specified industry and to give the Minister a report on the monitoring.
Under this Direction, the ACCC will monitor the prices, costs and profits relating to the supply of regulated goods by corporations and the supply of goods by liable entities to assess the general effect of the carbon tax scheme in Australia. In this Direction, regulated goods means goods supplied in the natural gas, electricity and synthetic greenhouse gas industries. Liable entities means a corporation for which there is an entry in the Information Database (within the meaning of the Clean Energy Act 2011).
Under this Direction, the ACCC must also report to the Government on its monitoring activities within 28 days of the end of each quarter of each financial year.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights and freedoms as price monitoring by the ACCC will affect corporations rather than individuals.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.