Trade Practices (Primary Products Exemptions) Regulations (Amendment)

Overview

The Trade Practices (Primary Products Exemptions) Regulations (Amendment) 1987, enacted under section 172 of the Trade Practices Act 1974, was introduced to address the need for the Processed Apple and Pear Committee to extend its exemption from certain provisions of the Trade Practices Act beyond 30 September 1987. This regulation was made in response to an application from the Committee, a sub-committee of the Standing Committee on Agriculture and a primary producer marketing body. The primary objective of the regulation was to allow the Committee to finalise its negotiations for the 1987/88 season’s recommended prices for apples and pears. The regulation extends the exemption until 31 December 1987 or until the Trade Practices Commission determines authorisation application number 90468, whichever occurs first. The regulation was made in consultation with the Minister for Primary Industry and Energy, following the guidelines adopted by the Government for considering applications for exemption from certain provisions of the Trade Practices Act.

Scope and Application

The Trade Practices (Primary Products Exemptions) Regulations (Amendment) Statutory Rules 1987 No. 216, made under section 172 of the Trade Practices Act 1974, extend the exemption for the Processed Apple and Pear Committee from certain provisions of the Act, specifically section 45, which deals with contracts, arrangements, or understandings that restrict dealing or affect competition. This amendment responds to an application by the Committee, a sub-committee of the Standing Committee on Agriculture, to prolong the exemption beyond 30 September 1987. The regulation allows the Committee to continue its activities until 31 December 1987 or until the Trade Practices Commission determines an authorisation application, whichever is earlier. The exemption is contingent on the outcome of authorisation application number 90468, where the Committee has sought authorisation for conduct covered by the exemption. If the authorisation is refused, the Committee recognises that the exemption would no longer be justified without new compelling information. The regulation adheres to the guidelines for considering exemption applications, ensuring that any exemption is necessary for promoting stability in the production or marketing of primary products and involves the least reduction in competition necessary to achieve these objectives.

Key Provisions

The Trade Practices (Primary Products Exemptions) Regulations (Amendment) Statutory Rules 1987 No. 216 amends the Trade Practices (Primary Products Exemptions) Regulations under section 172 of the Trade Practices Act 1974 (the Act). This regulation extends the exemption period for the Processed Apple and Pear Committee, a sub-committee of the Standing Committee on Agriculture, until 31 December 1987 or until the Trade Practices Commission determines authorisation application number 90468, whichever comes first. This extension allows the Committee to finalise negotiations for the 1987/88 season's recommended prices for apples and pears, excluding those intended for canning. This amendment responds to an application from the Committee seeking to extend the exemption beyond 30 September 1987, to allow them to conclude their negotiations. The regulations impose obligations on the Processed Apple and Pear Committee and other primary producer marketing bodies seeking exemptions from certain provisions of the Trade Practices Act. These obligations include making applications to the Attorney-General for exemptions and cooperating with the Attorney-General’s Department and the Department of Primary Industry and Energy in the preparation of a joint report. The report must consider the views of interested parties and allow the applicant to respond to opposing views. Guidelines for these exemptions require that they be necessary for promoting stability in the production or marketing of primary products or for purposes connected with export marketing. Exemptions must also be capable of achieving these objectives with the least reduction in competition necessary. Exemptions would typically operate for a maximum of five years but would be subject to renewal, where appropriate. The exemption would be limited to certain sections of the Act dealing with agreements and exclusive dealing, excluding some specific subsections. Exemptions would not be considered if proceedings under the Act had already been commenced in relation to the conduct sought to be exempted. Failure to comply with the requirements of the Trade Practices (Primary Products Exemptions) Regulations (Amendment) Statutory Rules 1987 No. 216 could result in civil or criminal penalties under the Trade Practices Act 1974. The maximum penalties for breaches of the Act can include substantial fines for corporations and individuals. Specifically, corporations can face fines of up to $1.1 million for serious breaches and $550,000 for other breaches, while individuals can face fines of up to $110,000 and $55,000 respectively. Additionally, breaches of certain sections of the Act may also result in imprisonment for individuals, with the severity of the penalty depending on the nature and circumstances of the offence. The Trade Practices Commission has the authority to impose these penalties, and it is expected to determine the authorisation application number 90468 soon, which could affect the need for continued exemption under regulation 11.