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.32 2008
Section 95ZE 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 persons in a specified industry and to give the Minister a report on the monitoring.
Direction No.32 gives effect to the Government’s decision that the ACCC monitor the prices, costs and profits relating to the supply of unleaded petroleum products in the petroleum industry. The ACCC must also report to the Government on its monitoring activities every year for a period of three years from the date of the Direction.
Direction No.32 is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Direction No.32 took effect from 17 December 2007.
Overview
The Trade Practices Act 1974, enacted by the Australian Parliament, serves as a foundational piece of legislation aimed at promoting fair competition and protecting consumers within Australia. It establishes mechanisms to prevent anti-competitive practices and ensures that businesses engage in fair dealings. Section 95ZE of the Act empowers the Minister to direct the Australian Competition and Consumer Commission (ACCC) to undertake specific monitoring activities in designated industries, including the oversight of prices, costs, and profits. This legislative framework was introduced to address gaps in market transparency and to safeguard consumer interests by ensuring that market participants do not engage in exploitative or anti-competitive behaviour. The explanatory statement indicates that Direction No.32, issued under this authority, mandates the ACCC to monitor the petroleum industry, specifically focusing on unleaded petroleum products, and to report its findings to the government annually for three years. This directive exemplifies the policy objective of enhancing market oversight and providing critical data to inform policy decisions in the energy sector.
Scope and Application
The Trade Practices Act 1974, as extended through Direction No.32 issued by the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, mandates the Australian Competition and Consumer Commission (ACCC) to monitor and report on the prices, costs, and profits associated with the supply of unleaded petroleum products within the petroleum industry. This legislative instrument applies specifically to entities involved in the supply of these products, aiming to ensure transparency and fairness within this sector. The geographic reach of this directive encompasses the entire Commonwealth, providing a national framework for monitoring and reporting activities. The ACCC is tasked with conducting this monitoring and providing annual reports to the Minister over a period of three years, beginning from the date of the Direction's implementation, which was 17 December 2007. While the Act does not specify exclusions or exemptions within this context, the legislative instrument itself operates under the provisions of the Legislative Instruments Act 2003, ensuring its legal standing and enforceability.
Key Provisions
The Trade Practices Act 1974 (the Act) contains a provision, section 95ZE, which empowers the Minister to issue written directions to the Australian Competition and Consumer Commission (ACCC) to monitor and report on prices, costs, and profits within a specified industry (s 95ZE). This provision was utilised by the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs to issue Direction No.32, which specifically targets the petroleum industry with a focus on unleaded petroleum products. The ACCC has been directed to monitor these aspects and to submit annual reports to the Government for a period of three years from the date of the Direction.
Under Direction No.32, the ACCC has several obligations. Firstly, it must systematically monitor the prices, costs, and profits related to the supply of unleaded petroleum products. This involves collecting data, conducting analyses, and assessing the trends and factors influencing these economic parameters within the industry. Secondly, the ACCC is required to prepare and submit an annual report to the Government, detailing its findings, observations, and any significant developments or issues identified during the monitoring period. These reports are intended to provide the Government with insights into the competitive dynamics and economic health of the petroleum industry.
Failure to comply with the provisions and requirements outlined in Direction No.32 could lead to various consequences. While the Explanatory Statement does not specify particular offences, non-compliance by the ACCC with its reporting obligations could be viewed as a breach of ministerial directions. This could potentially result in administrative, civil, or even criminal penalties, depending on the severity and intent behind the non-compliance. The Act itself does not detail specific penalties for such breaches, but they could include fines or other sanctions as determined by relevant authorities. It is essential for the ACCC to adhere to the requirements of the Direction to avoid any adverse repercussions.