TEL: 6. Oct. 92 12: 51 No. 011 P. 02/ 06
PRIME MINISTER 110/ 92
STATEMENT BY THE PRIME MINISTER, THE HON P J KEATING, MP
NATIONAL COMPETITION POLICY REVIEW
I have today established a major independent inquiry into competition policy in Australia
with specific emphasis on areas currently outside the Commonwealth Trade Practices Act.
The inquiry will be chaired by Professor Fred Hilmcr, Dean of the Australian Graduate
School of Management in the University of New South Wales; Mr Geoff Taperell, a
partner in the law firm of Baker McKenzie; and Mr Mark Rayner, Group Executive,
CRA Ltd.
This inquiry is an important step in continuing the vital task of micro economic reform in
Australia. It will examine a number of significant axmas of economic activity not now
subject to competition policy, such as many government instrumentalities and the
professions. I have asked the Review team to cover issues including:
the best means of providing consistent, nationally applicable competition rules to
allbusijLesses-in Australia regardless of ownership or corporate status
transitional mechanisms necessary to bring businesses currently outside the scope
of national competition rules within those rules.
potential improvements to the Commonwealth Trade Practices Act in the new
environment of conietition-law to be recommended by the Review; changes to
related legislation, for example in relation to prices or consumer interests; and the
legal environment in which the Trade Practices Act is applied.
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Clearly the review and its recommendations will have major implications for the States
and Territories as well as the Commonwealth. As a rcsult, I and my Department have
consulted closely with the Premiers and State officials as well as with the Attorney-
General,, the Treasurer, and other relevant Ministers. The terms of reference attached have
been developed in consultation with the States. The principles outlined in the terms of
reference provide a very solid basis for the Review and were agreed at an earlier stage by
the Premiers and Chief Ministers. The membership of the Review team has also been the
subject of close consultation.
I have asked Professor 1-ilmer and his colleagues to undertake as a matter of priority
discussions with States and Territories. I have today written to State and Territory leaders
suggesting that Professor Hiliner is available to see them as soon as practical.
I am aware that the Review has thc strong support of the Business Council of Australia
and I believe other busiess groups also support the concept of consistent national
competition rules applicable to all parties in a market. The Review will shortly call for
Submissions and I ask these groups, and other interested partics, to put forward their views
as soon as possible.
Thc review is to report to me in May 1993. Premiers, Chief Ministers and I[ will consider
its findings prior to public release.
CANBERRA 4 OCTrOBER 1992 TEL
TEL: 6. Oct. 92 12: 51 No. 011 P. 04/ Ub
REVIEW OF THE APPLICATION OF THE TRADE PRACTICES ACT 1974 TO
MATTERS CURRENTLY OUTSIDE ITS SCOPE
1. 1, Paul John Keatingo Prime Minister of the
Commonwealth of Australia, having regard to the agreement
between myself and the Premiers of the States of New South
Wales, Queensland, South Australia, Tasmania, Victoria and
Western Australia and the Chief Ministers of the Australian
Capital Territory and the Northern Territory that national
competition policy and law should give effect to the
following principles:
no participant in the market should be able to engage
in anti-competitive conduct against the public
interest; as far as possible, universal and uniformly applied
rules of market conduct should apply to all market
participants regardless of the form of business
ownership; conduct with anti-competitive potential said to be in
the public interest should be assessed by an
appropriate transparent assessment process, with
provision for review, to demionstrate the nature and
incidence of the public costs and benefits claimed;
any changes to the coverage or nature of competition
policy should be consistent with, and support, the
general thrust of reforms:
to develop an open, integrated domestic market for
goods and services by removing unnecessary barriers to
trade and competition; and
( ii) in recognition of the increasingly national
operation of markets, to reduce complexity and
eliminate administrative duplication;
appoint Professor Fred Hilmer to Chair the Committee of
Review of the Application of the Trade Practices Act 1974,
and Mr Geoff Taperell and Mr Mark Rayner as the other two
Committee members.
2. The Committee is to inquire into, and advise on
appropriate changes to legislation and other measures in
relation to:
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whether the scope of the Trade Practices Act 1974
should be expanded to deal effectively with anticompetitive
conduct of persons or enterprises in areas
of business currently outside the scope of the Act;
alternative means for addressing market behaviour and
structure currently outside the scope of the Trade
Practtces Act 1974; and
other matters directly related to the application of
the principles above.
3. in conducting the review the Committee should consider,
against the background of the nature of markets in Australia
and influences upon them:
whether the authorisation and exemption provisions of
the Trade Practices Act 1974 have sufficient scope,
flexibility and transparency;
the need for, and approaches to, the transition of
government regulatory arrangements -including any
associated revenue impact on States -to more
competitive and nationally consistent structures;
the best structure for regulation including price
regulation, in support of:
pro-competitive conduct by government business and
trading enterprises and in areas currently outside the
scope of the Trade Practices Act 1974; and
( ii) the interests of consumers and users of goods and
services; and
the past and present Justification for the current
exemptions from application of the TPA.
4. In performing its functions, the Committee is to:
take into account:
the principles stated in paragraphs 1( a) to ( d)
inclusive; ( ii) legislation other than the Trade Practices Act and
other arrangements that affect market behaviour and
structure; and TL: 6. Oct. 92 12: 51 No. 011 P. Ut)/ Uu
TEL 3
( 111) the fact that some government business and
trading enterprises may operate in industries having
aspects, including pricing, of natural monopoly; and
( iv) current moves to reform government trading
enterprises; and
overseas experience.
take written submissions; and
consult interested parties where necessary.
The Committee is to report to me by May 1993.
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