Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Instrument 2019
The Australian Competition and Consumer Commission makes the following notifiable instrument.
Dated this 17 day of January 2020.
Rayne de Gruchy
Chief Operating Officer
Contents
Part 1—Preliminary
1 Name
2 Commencement
3 Authority
4 Definitions
Part 2—Price inquiry into water markets in the Murray‑Darling Basin
5 Notice of holding of inquiry
6 Commencement of inquiry
Part 1—Preliminary
1 Name
This instrument is the Competition and Consumer (Price Inquiry – Water Markets in the Murray-Darling Basin) Instrument 2019.
2 Commencement
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this instrument. | The day after this instrument is registered. | |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under section 95L of the Competition and Consumer Act 2010.
4 Definitions
Note: Expressions have the same meaning in this instrument as in the Competition and Consumer Act 2010 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.
In this instrument:
Act means the Competition and Consumer Act 2010.
Commission means the Australian Competition and Consumer Commission.
exempt supply has the meaning given by subsection 95A(1) of the Act.
goods has the meaning given by subsection 95A(1) of the Act.
infrastructure service has the meaning given by subsections 12.47(5A) of the Basin Plan 2012.
inquiry has the meaning given by subsection 95A(1) of the Act.
Murray-Darling Basin has the meaning given by the Water Act 2007.
Murray-Darling Basin water markets inquiry means the inquiry designated by the Competition and Consumer (Price Inquiry—Water Markets in the Murray‑Darling Basin) Direction 2019.
services has the meaning given by subsection 95A(1) of the Act.
supply has the meaning given by subsection 95A(1) of the Act.
trade has the meaning given by subsection 1.07(2) and (3) of the Basin Plan 2012.
tradeable water rights has the meaning given by the Water Act 2007.
water market intermediary has the meaning given by subsection 1.07(1) of the Basin Plan 2012.
Part 2—Price inquiry into water markets in the Murray‑Darling Basin
5 Notice of holding of inquiry
(1) The Commission is to hold an inquiry into markets for tradeable water rights relating to water in the Murray‑Darling Basin, pursuant to the Competition and Consumer (Price Inquiry – Water Markets in the Murray Darling Basin) Direction 2019.
(2) The inquiry is not to extend to any of the following:
(a) seeking to identify the social and economic impact of water trading on communities in the Murray-Darling Basin;
(b) considering the effectiveness of water buy-backs for environmental purposes;
(c) the supply of a good or service that is an exempt supply.
Note: The matters referred to in paragraphs (a) and (b) fall within the scope of other inquiries.
(3) The inquiry is to be held in relation to goods and services of the following description:
(a) tradeable water rights; and
(b) services facilitating the trade of tradeable water rights, including those offered by water market intermediaries; and
(c) infrastructure services in relation to tradeable water rights.
(4) The inquiry is not to be held in relation to the supply of goods and services by a particular person or persons.
6 Commencement of inquiry
The commencement date of the inquiry is 9 August 2019.
Overview
The Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Instrument 2019 was enacted to provide a framework for the Australian Competition and Consumer Commission (ACCC) to conduct a price inquiry into the markets for tradeable water rights in the Murray-Darling Basin. This legislative instrument was introduced to address specific concerns about the pricing mechanisms and practices within the water markets, ensuring that these markets operate efficiently and fairly. The instrument was made under section 95L of the Competition and Consumer Act 2010, and its primary policy objective is to inform the development of policies and regulations aimed at improving the transparency and fairness of water trading in the Murray-Darling Basin, without delving into broader social and environmental impacts. The instrument explicitly excludes certain areas such as the social and economic impact of water trading and the effectiveness of water buy-backs for environmental purposes, focusing instead on the economic aspects of water trading.
Scope and Application
The Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Instrument 2019 applies to the Australian Competition and Consumer Commission, which is responsible for conducting a specified inquiry into markets for tradeable water rights relating to water in the Murray-Darling Basin. This inquiry is mandated by the Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Direction 2019 and is subject to the definitions provided in the Competition and Consumer Act 2010. The scope of this inquiry is limited to tradeable water rights and services facilitating their trade, including those offered by water market intermediaries, and infrastructure services in relation to these rights. It explicitly excludes the identification of social and economic impacts of water trading on communities in the Murray-Darling Basin and the consideration of the effectiveness of water buy-backs for environmental purposes. The instrument applies to the Murray-Darling Basin as defined by the Water Act 2007 and is national in reach within Australia. The instrument's provisions commence on the day after it is registered, with the inquiry itself starting on 9 August 2019. The application of this instrument may be extended or further defined through subordinate instruments, which would detail specific procedures and requirements for the inquiry.
Key Provisions
The key provisions of the Competition and Consumer (Price Inquiry – Water Markets in the Murray-Darling Basin) Instrument 2019 outline the scope and commencement of an inquiry into water markets in the Murray-Darling Basin. Section 5 mandates that the Australian Competition and Consumer Commission (ACCC) hold an inquiry into the markets for tradeable water rights in the Murray-Darling Basin, as directed by the Competition and Consumer (Price Inquiry – Water Markets in the Murray-Darling Basin) Direction 2019. This inquiry is specifically targeted at examining tradeable water rights, services facilitating their trade, and infrastructure services related to these rights, excluding the social and economic impacts on communities or the effectiveness of water buy-backs for environmental purposes.
The obligations imposed by the Act on the ACCC include conducting a thorough and comprehensive investigation into the specified aspects of water markets. The ACCC is tasked with ensuring that the inquiry adheres strictly to its designated scope, avoiding any extraneous matters that do not pertain to the tradeable water rights or the associated services and infrastructure. The Act stipulates that the inquiry should not delve into broader social and economic impacts or the environmental effectiveness of water buy-backs, as these are subjects of other inquiries.
Any breach of the provisions or failure to comply with the obligations set out in the Act may lead to civil or criminal consequences. However, the specific nature of these consequences and the penalties associated with non-compliance are not detailed within the instrument itself. The Act mandates that the inquiry commence on 9 August 2019, as specified in section 6, and this commencement date is non-negotiable. The ACCC must ensure that the inquiry is initiated on this date to adhere to the legislative requirements. The Act does not explicitly detail the penalties for non-compliance, but any breaches could potentially result in legal action, fines, or other sanctions under the broader Competition and Consumer Act 2010.