Sydney, 16 April 2003: The Australian Bankers’ Association welcomes the release of the report into the competition provisions of the Trade Practices Act 1974 (TPA) and their administration.

David Bell, Chief Executive of the Australian Bankers’ Association (ABA), said ‘the report’s recommendations make sensible improvements to the TPA and its administration, enhancing benefits of competition law in Australia.’

The ABA particularly welcomes reforms in the area of joint ventures and authorisation of mergers. These reforms will assist in engendering business confidence, greater investment and employment growth. The specific recommendations we endorse are:

• Recommendations 9.1 and 9.2 that propose that there be exemption from section 45a for joint ventures that do not have the purpose or effect of lessening competition and that the Australian Competition and Consumer Commission (ACCC) issues guidelines outlining its approach to the assessment of joint ventures. As the Report and Government recognise, the existing exemption is too narrow for newer forms of pro-competitive joint ventures such as those found in e-commerce. Joint ventures such as those providing the EFTPOS system and BPay offer convenience and value added services to consumers and benefits across the economy. It is very important that uncertainty in the application of the TPA to joint ventures be resolved.
  
  
• Recommendations 2.1, 2.2 and 2.3 which improve the accessibility, transparency and accountability of ACCC decisions in mergers.  The proposal in recommendation 2.3 allows applications for authorisation of mergers to be made directly to the Australian Competition Tribunal with a statutory time limit of three months. The Government has announced that it will also amend the TPA to include a time limit of six months for consideration of non-merger authorisations, such as the recent application for authorisation of the new arrangements for EFTPOS.
  
  
• Recommendations 11.1, 11.2 and 11.3 which would improve the accountability of the ACCC in its administration of the TPA through the establishment of a Joint Parliamentary Committee to oversee administration, appointment of a consultative committee with an independent chairperson and the appointment of a complaints handling commissioner. The Government has postponed giving a specific response to the second and third recommendations until it has received the Uhrig report on corporate governance of statutory authorities.
  
  
• Recommendations 8.3 and 8.4 which would cease the outright prohibition on third line forcing and allow cross supplier price discounts provided they are not lessening of competition and would allow companies within the one group to package products and services.

The ABA is also supportive of recommendations in the report to ensure small businesses have equal bargaining power with large business in contract negotiations.

For further information: 

Heather Wellard
ABA PR
Phone:  02 8298 0411
Mobile: 0409 830 439

ENDS