EXPLANATORY STATEMENT
Issued by authority of the Treasurer
Competition and Consumer Act 2010
Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Amendment Direction 2020
Section 95K of the Competition and Consumer Act (the Act) provides that the Minister may, by notice in writing, extend the completion period for an inquiry into a specified matter or matters.
The Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Amendment Direction 2020 (the Amending Direction) is made under subsection 95K(3) of the Act and extends the final reporting date for the price inquiry into water markets in the Murray-Darling Basin.
On 8 August 2019, the Treasurer provided a direction to the Australian Competition and Consumer Commission (ACCC) under subsection 95H(1) of the Act, requiring the ACCC to hold an inquiry into markets for tradeable water rights relating to water in the Murray-Darling Basin and to provide a final report to the Treasurer by no later than 30 November 2020.
The amendments at Schedule 1 to the Amending Direction make changes to the time for reporting on this inquiry. The ACCC must now complete the inquiry and provide a report to the Treasurer by no later than 26 February 2021.
In accordance with section 17 of the Legislation Act 2003, the ACCC have been consulted on the terms of the Amending Direction.
The Amending Direction is a legislative instrument for the purposes of the Legislation Act 2003. However, the Amending Direction is not subject to disallowance or sunsetting.
The Amending Direction commences the day after the instrument is registered.
A statement of Compatibility with Human Rights is at Attachment A.
ATTACHMENT A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Amendment Direction 2020
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 95K of the Competition and Consumer Act (the Act) provides that the Minister may extend the completion period for an inquiry into a specified matter or matters.
The Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Amendment Direction 2020 is made under subsection 95K(3) of the Act and extends the final reporting date for the price inquiry into water markets in the Murray-Darling Basin.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Overview
The Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Amendment Direction 2020, enacted by the Australian government, aims to address the need for a more comprehensive and thorough investigation into the pricing mechanisms of water markets within the Murray-Darling Basin. This legislative instrument was introduced to extend the deadline for the final report of an ongoing inquiry mandated by the Competition and Consumer Act 2010. The Act was initially designed to regulate anti-competitive behaviour and ensure fair trading practices, and this amendment specifically targets the pricing of water rights within this framework. The enacting body, in this case, is the Australian government, acting through the Treasurer who issued the initial direction under section 95H(1) of the Act. The policy objective is to ensure that the Australian Competition and Consumer Commission (ACCC) has sufficient time to conduct a detailed and thorough inquiry into the complex pricing structures of water markets, thereby providing more informed and effective recommendations to address potential issues in this critical sector.
Scope and Application
The Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Amendment Direction 2020 applies to the Australian Competition and Consumer Commission (ACCC) and its conduct in relation to a specific price inquiry into water markets in the Murray-Darling Basin. This Direction is a legislative instrument made under section 95K of the Competition and Consumer Act 2010, extending the completion period for the inquiry. Initially required to report by 30 November 2020, the ACCC is now mandated to submit its final report by 26 February 2021. The geographic reach of this Amendment Direction is focused on the Murray-Darling Basin, a significant water resource area in Australia. The Direction does not specify any exclusions, exemptions, or thresholds, but it is subject to consultation requirements as per the Legislation Act 2003. Notably, while the Direction is a legislative instrument, it is not subject to disallowance or sunsetting provisions. It commences on the day following its registration.
Key Provisions
The main operative sections of the Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Amendment Direction 2020 (the Amending Direction) involve extending the reporting period for the price inquiry into water markets in the Murray-Darling Basin. This is done under section 95K of the Competition and Consumer Act 2010 (the Act). Initially, the Australian Competition and Consumer Commission (ACCC) was directed to complete this inquiry and submit a final report by 30 November 2020, as per a direction given by the Treasurer on 8 August 2019. However, the Amending Direction, made under subsection 95K(3) of the Act, changes this timeline. The ACCC is now required to finish the inquiry and submit the report by no later than 26 February 2021. This change is specified in Schedule 1 of the Amending Direction.
The Amending Direction imposes specific obligations on the ACCC. It mandates the ACCC to extend its efforts to complete the inquiry into water markets in the Murray-Darling Basin and ensure that a final report is delivered to the Treasurer by the new deadline. This extension not only gives the ACCC more time to thoroughly investigate the matter but also ensures that all relevant data and analyses are included in the final report. The ACCC must also comply with consultation requirements as stipulated under section 17 of the Legislation Act 2003. Furthermore, while the Amending Direction is a legislative instrument for the purposes of the Legislation Act 2003, it is not subject to disallowance or sunsetting.
Any failure to comply with the obligations and timelines set forth in the Amending Direction could potentially lead to civil or administrative consequences. However, the text does not explicitly detail specific offences, penalties, or consequences for breach. It is important to note that the Amending Direction is designed to ensure the completion of the inquiry within the extended period and does not introduce new offences or penalties beyond what is already outlined in the Competition and Consumer Act. The Amending Direction commences the day after it is registered, and the ACCC must adhere to the new reporting date to avoid any potential repercussions from non-compliance.