EXPLANATORY STATEMENT
Issued by Authority of the Minister for Infrastructure, Transport, Regional
Development and Local Government
Subject - Trade Practices Act 1974
PURPOSE OF THE DETERMINATION
Subsections 10.02A (I) of the Trade Practices Act 1974 (“the Act”) provide that the Minister may declare inland terminals for the purposes of the Part X (International Liner Shipping) of the Act.
OUTLINE
Background
The Minister for Infrastructure, Transport, Regional Development and Local Government administers Part X of the Act.
Part X provides limited conditional exemptions from the competition rules of the Act (Section 45 and 47), provisions which would otherwise prevent restrictive trade practices. Subject to registration under Part X, international liner shipping companies may collaborate as conferences to coordinate joint services, share capacity and agree on freight rates. Liner shipping comprises scheduled services for non-bulk cargo, mostly carried in containers.
Section 10.02A (1) of the Act provides that the Minister may, by legislative instrument, declare that a specified facility is an inland terminal for the purposes of this Part. To qualify the facility must be in Australia, but outside a designated port area.
The purpose of the Section 10.02A is to allow shipping lines operating under registered liner shipping "conference" agreements to extend their Part X exemptions from port terminals to selected inland terminals. The main purpose being to improve the movement of containers away from ports to inland distribution centres, relieving truck congestion in and around our major ports. It gives no particular rights to the terminals themselves.
The Instrument was introduced with amendments to Part X of the Act made by the Trade Practices Amendment (International Liner Cargo Shipping) Act 2000. The 2000 amendment reduced the extent of exemptions for shipping conferences (such as agreeing on freight rates) to a terminal to terminal basis from a door to door basis.
Description of instrument
Under Section 10.02A (1) of the Act, this Instrument revokes the previous Instrument (No. Part Xl 0.02A 1/2000 approved in December 2000) and declares that each of the facilities listed in the attached Schedule 1 is an 'inland terminal' for the purposes of Part X of the Act.
Name of instrument
The Determination is entitled the Instrument of Declaration of Inland Terminals under Section 10.02A (1) of the Trade Practices Act 1974 - Instrument No. Part X 10.02A 1/2008.
Commencement
The Instrument commences on the day after which it is registered with the Federal Register of Legislative Instruments.
CONSULTATION
The nominated list was provided by a peak shipping industry body which represent international liner shipping firms operating on Australian trade routes. The Department of Infrastructure, Transport, Regional Development and Local Government has also consulted further with the two peak shipper bodies (representing the customers of the shipping lines) and the Australian Competition and Consumer Commission (ACCC).
Comments provided by these stakeholders were considered by the Minister in assessing the proposed list of inland terminals as part of his obligations regarding Section 10.02A.
FINANCIAL IMPACT STATEMENT
The Regulations have no effect on Commonwealth expenditure and negligible effect on Commonwealth revenue.
REGULATION IMPACT ASSESSMENT
A Best Practice Regulation - Preliminary Assessment has been completed and the impact of the Regulations on industry has been assessed as low.