Explanatory Statement
Issued by the Authority of the Assistant Treasurer
Competition and Consumer Act 2010
Assistant Treasurer to the Australian Competition and Consumer Commission Direction 2012
Section 95ZF of the Competition and Consumer Act 2010 (the Act) provides that the Minister may give written directions to the Australian Competition and Consumer Commission (ACCC) to monitor prices, costs and profits relating to the supply of goods or services by specified persons and to give the Minister a report on the monitoring.
This Direction gives effect to the Government’s response to the Productivity Commission’s inquiry into the Economic Regulation of Airport Services. In that response, the Government announced that the ACCC is to monitor the prices, costs and profits relating to the supply of car parking services at the following four airports: Sydney Kingsford Smith Airport; Melbourne Tullamarine Airport; Brisbane Airport; and Perth Airport.
This Direction is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
This Direction takes effect from 1 July 2012.
Overview
The Competition and Consumer Act 2010 was enacted to address issues related to unfair practices, misleading or deceptive conduct, and consumer protection in the marketplace. It was introduced to establish a robust framework for maintaining fair competition and ensuring consumer rights are upheld across various industries. The Assistant Treasurer, through the Australian Competition and Consumer Commission (ACCC), has the authority to issue directions under Section 95ZF of the Act, empowering the ACCC to monitor specific sectors, such as the supply of goods and services. The 2012 Direction issued by the Assistant Treasurer mandates the ACCC to focus its monitoring efforts on the prices, costs, and profits of car parking services at four major Australian airports: Sydney Kingsford Smith Airport, Melbourne Tullamarine Airport, Brisbane Airport, and Perth Airport. This directive aims to provide the Minister with comprehensive reports on these economic aspects, thereby supporting informed policy decisions and ensuring transparency in the market.
Scope and Application
The Competition and Consumer Act 2010, through Section 95ZF, authorises the Minister to issue directions to the Australian Competition and Consumer Commission (ACCC) to oversee the prices, costs, and profits associated with the supply of goods or services by specified entities. This legislative provision applies to the supply of car parking services at four major Australian airports: Sydney Kingsford Smith Airport, Melbourne Tullamarine Airport, Brisbane Airport, and Perth Airport. The application of this Act is geographically limited to these specific airports within the Commonwealth jurisdiction, aiming to ensure fair market practices and prevent anti-competitive behaviour in the airport services sector. The Direction issued by the Assistant Treasurer, effective from 1 July 2012, mandates the ACCC to report on its monitoring activities, thereby extending the application of the Act through subordinate instruments to these particular services and locations. The Act does not specify exclusions or exemptions but focuses on the continuous monitoring and reporting to maintain market integrity and consumer protection in the designated airport services.
Key Provisions
The main operative sections of the legislation, specifically section 95ZF of the Competition and Consumer Act 2010, mandate that the Minister can issue written directions to the Australian Competition and Consumer Commission (ACCC) to oversee the prices, costs, and profits associated with the provision of goods or services by designated entities. This particular direction instructs the ACCC to focus on the monitoring of car parking services at four major Australian airports: Sydney Kingsford Smith Airport, Melbourne Tullamarine Airport, Brisbane Airport, and Perth Airport. This directive is in response to the Government's resolution to the Productivity Commission's investigation into the economic regulation of airport services.
The Act imposes several obligations on the ACCC once it receives the Minister’s direction. Firstly, the ACCC must diligently monitor the specified prices, costs, and profits related to car parking services at the designated airports. This involves collecting and analysing data to provide a comprehensive understanding of the economic aspects of these services. Additionally, the ACCC is required to submit a detailed report to the Minister that includes findings from the monitoring exercise. This report must be transparent, thorough, and based on the data collected, ensuring that it serves as a reliable source of information for the Government and the public.
Failure to comply with the obligations outlined in the Act can result in various consequences. Although the specific offences and penalties are not detailed within the explanatory statement, the Act itself provides a framework under which breaches can lead to civil or criminal penalties. These penalties may include fines or other sanctions, depending on the severity and nature of the breach. The maximum penalties, if applicable, would be determined in accordance with the provisions of the Competition and Consumer Act 2010. Non-compliance could also lead to legal action, further emphasizing the importance of adhering to the stipulated requirements.