Explanatory Statement
Issued by the Authority of the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs
Trade Practices Act 1974
Assistant Treasurer and Minister for Competition Policy and Consumer Affairs to the Australian Competition and Consumer Commission Direction No. 31 2008
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. 31 gives effect to the Government’s decision that the ACCC monitor the prices, costs and profits relating to the supply of car parking services at the following five airports: Sydney Kingsford Smith Airport; Melbourne Tullamarine Airport; Brisbane Airport; Adelaide Airport; and Perth Airport.
Direction No. 31 is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Direction No. 31 takes effect from 7 April 2008.
Overview
The Trade Practices Act 1974, enacted by the Australian Parliament, is a foundational piece of legislation aimed at promoting fair competition and protecting consumers by prohibiting anti-competitive practices and regulating certain types of conduct. A specific legislative instrument, Direction No. 31 issued under Section 95ZF of the Act, was introduced to address concerns about potentially excessive pricing and profit margins in the car parking services provided at major Australian airports, namely Sydney Kingsford Smith Airport, Melbourne Tullamarine Airport, Brisbane Airport, Adelaide Airport, and Perth Airport. The direction, issued by the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, mandates the Australian Competition and Consumer Commission to conduct a thorough monitoring of the prices, costs, and profits associated with these services to ensure that they are reasonable and justifiable. The policy objective of this direction is to safeguard consumers from undue financial burden and to maintain competitive and fair market conditions in the provision of car parking services at these key airports.
Scope and Application
The Trade Practices Act 1974 applies broadly across Australia, impacting a wide range of entities and industries by regulating anti-competitive conduct and ensuring fair trade practices. Specifically, Section 95ZF of the Act empowers the Minister to direct the Australian Competition and Consumer Commission (ACCC) to monitor economic activities such as prices, costs, and profits within designated sectors, thereby facilitating informed policy decisions. In this context, Direction No. 31 issued under Section 95ZF instructs the ACCC to closely monitor the car parking services at five major Australian airports: Sydney Kingsford Smith Airport, Melbourne Tullamarine Airport, Brisbane Airport, Adelaide Airport, and Perth Airport. This directive commenced on 7 April 2008, and it is crafted as a legislative instrument under the Legislative Instruments Act 2003, indicating its formal and binding nature. The geographic reach of this directive is national, affecting airport operators and potentially consumers across these specified locations. The application of this Act does not exclude any particular entities or transactions explicitly within the scope of the direction, but it is tailored to ensure transparency and accountability in the pricing mechanisms of car parking services at major airports.
Key Provisions
Section 95ZF of the Trade Practices Act 1974 (the Act) empowers the Minister to direct the Australian Competition and Consumer Commission (ACCC) to undertake specific monitoring activities. Under this section, the Minister can issue written directions to the ACCC to observe and report on the prices, costs, and profits associated with the supply of goods or services by designated entities. This provision is intended to ensure that market practices are transparent and that consumers and businesses are not unfairly disadvantaged. Direction No. 31, issued under this authority, specifically targets the monitoring of car parking services at five major Australian airports: Sydney Kingsford Smith Airport, Melbourne Tullamarine Airport, Brisbane Airport, Adelaide Airport, and Perth Airport. The directive mandates the ACCC to systematically collect and analyse data on these services, providing a comprehensive report to the Minister.
The obligations imposed by Direction No. 31 on the ACCC are significant. The Commission must diligently monitor the prices, costs, and profits of car parking services at the specified airports. This involves collecting data from various sources, ensuring the accuracy and reliability of the information gathered, and compiling a detailed report that includes any findings, trends, and recommendations. The ACCC is also required to submit this report to the Minister within a specified timeframe, ensuring that the Minister has up-to-date information to inform policy decisions and regulatory actions.
Breaches of the obligations outlined in Direction No. 31 may lead to various consequences. While the explanatory statement does not detail specific offences, it is implied that failure to comply with the Minister’s directions could be seen as non-compliance with the Act. Such non-compliance may attract civil or criminal penalties under the Trade Practices Act 1974. For corporations, penalties can include substantial fines, which may be up to a significant amount as stipulated in the Act. Individual officers of the ACCC who fail to fulfil their duties may also face personal penalties. These consequences underscore the importance of adhering to the directive and fulfilling the assigned monitoring responsibilities.