Explanatory Statement
Select Legislative Instrument 2007 No.
Issued by the Authority of the Parliament Secretary to the Treasurer
Trade Practices Act 1974
Parliamentary Secretary to the Treasurer to the Australian Competition and Consumer Commission Direction No. 29 2007
Section 95ZF of the Trade Practices Act 1974 (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.
Direction No. 29 gives effect to the Government’s response to the Productivity Commission’s Review of Price Regulation of Airport Services. In that response, the Government announced that the ACCC to monitor the prices, costs and profits of the following five airports: Sydney Kingsford Smith Airport; Melbourne Tullamarine Airport; Brisbane Airport; Adelaide Airport; and Perth Airport.
Direction No. 29 is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Direction No. 29 commences on 1 July 2007.
Overview
The Trade Practices Act 1974, enacted by the Australian Parliament, was introduced to address the need for regulation of anti-competitive behaviour and to protect consumers and businesses from misleading and deceptive conduct in trade and commerce. The Act was designed to create a competitive market environment, ensuring fair trading practices and consumer protection. In response to the Productivity Commission's Review of Price Regulation of Airport Services, the Australian Government issued Direction No. 29, which is a legislative instrument under the Legislative Instruments Act 2003. Direction No. 29 mandates the Australian Competition and Consumer Commission (ACCC) to monitor the prices, costs and profits of five major airports: Sydney Kingsford Smith Airport, Melbourne Tullamarine Airport, Brisbane Airport, Adelaide Airport, and Perth Airport. This direction aims to provide the Minister with a report on the monitoring activities, thereby facilitating informed decision-making in the regulation of airport services. Direction No. 29 commenced on 1 July 2007, establishing the framework for the ACCC's oversight of airport pricing and profitability.
Scope and Application
The Trade Practices Act 1974, through the Parliamentary Secretary to the Treasurer’s Direction No. 29, mandates the Australian Competition and Consumer Commission (ACCC) to monitor the prices, costs and profits of goods and services supplied by specified entities within the Australian aviation industry. This legislative directive applies specifically to the five major airports: Sydney Kingsford Smith Airport, Melbourne Tullamarine Airport, Brisbane Airport, Adelaide Airport, and Perth Airport. This oversight mechanism is intended to provide a detailed report to the Minister, enabling informed decision-making based on transparent economic data. The scope of this legislation is confined to the entities specified and does not extend to other entities within the aviation sector or other industries. The geographic reach of this direction is national, focusing exclusively on the major airports within Australia, ensuring that the monitoring is pertinent to the overarching economic landscape of the country. The direction is effective from 1 July 2007, and while it is a legislative instrument under the Legislative Instruments Act 2003, there are no explicit exclusions, exemptions, or thresholds mentioned within the text provided.
Key Provisions
Section 95ZF of the Trade Practices Act 1974 (the Act) allows the Minister to instruct the Australian Competition and Consumer Commission (ACCC) to oversee and report on the prices, costs and profits of specified entities involved in the supply of goods or services. Direction No. 29, issued under this section, mandates the ACCC to monitor the operations of five major Australian airports: Sydney Kingsford Smith Airport, Melbourne Tullamarine Airport, Brisbane Airport, Adelaide Airport, and Perth Airport. This monitoring is part of the government's response to the Productivity Commission’s review of price regulation in airport services, aiming to ensure that the pricing mechanisms within these airports are fair and competitive.
The obligations placed on the ACCC under Direction No. 29 are significant. The ACCC is required to conduct detailed analyses of the airports' pricing structures, costs incurred, and profits generated. This includes gathering comprehensive data, performing economic assessments, and preparing detailed reports for the Minister. The ACCC must ensure that the monitoring is thorough and provides a clear picture of the financial health and operational efficiencies of these major airports. Furthermore, the ACCC must present these findings in a manner that is accessible and understandable to the Minister and, by extension, the public.
Failure to comply with the requirements of Direction No. 29 could lead to serious consequences. While the explanatory statement does not explicitly detail the penalties for non-compliance, it is reasonable to infer that breaches of legislative directions under the Trade Practices Act 1974 could attract significant penalties. Under section 131 of the Act, non-compliance with directions issued by the Minister could potentially lead to civil or criminal sanctions. For instance, breaches of the Act can result in fines for corporations, which could be substantial depending on the severity and impact of the breach. Additionally, individuals responsible for ensuring compliance could face personal penalties, including fines and imprisonment. Given the critical nature of the monitoring task, it is likely that the penalties are designed to ensure strict adherence to the directive.