Bills Digest no. 41 2005–06
Telecommunications (Carrier Licence Charges) Amendment
(Industry Plans and Consumer Codes) Bill
2005
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Passage History
Telecommunications (Carrier Licence Charges) Amendment
(Industry Plans and Consumer Codes) Bill
2005
Date
Introduced: 7
September 2005
House: House of
Representatives
Portfolio: Communications, Information Technology and the
Arts
Commencement: Sections 1 to 3 will commence on
the day that the Act receives Royal Assent. Schedule 1 will
commence the day after the Act receives Royal Assent. Schedule 2
commences retrospectively on 30 June 1998.
The purpose of the
Telecommunications (Carrier Licence Charges) Amendment
(Industry Plans and Consumer Codes) Bill 2005 ( Bill
) is to allow for the costs incurred by industry bodies in
developing consumer-related industry codes of practice in the
telecommunications industry to be recouped from all licensed
telecommunication carriers.
The Bill is part of a suite of legislation introduced to
facilitate the sale of the Government s remaining share in
Telstra.
Part 6 of the Telecommunications Act 1997 provides for
the development of industry codes for the telecommunication
industry by bodies and associations representing sections of the
industry.
Industry codes may be registered with the Australian
Communications and Media Authority ( ACMA). Compliance with
industry codes is voluntary, unless a direction is given by the
ACMA for industry participants to comply with the code.
In the absence of an industry code, or where a code is
deficient, the ACMA may develop an industry standard. Compliance
with an industry standard is mandatory.
Schedule 3 of the Telecommunications Legislation Amendment
(Future Proofing and Other Measures) Bill 2005
inserts new provisions into the Telecommunications Act
1997 to provide for industry groups to apply to the ACMA for
reimbursement for the cost of developing industry codes. For
further background please refer to the Bills Digest for the
Telecommunications Legislation Amendment (Future Proofing and
Other Measures) Bill 2005.
The Bill amends the Telecommunications (Carrier Licence
Charges) Act 1997 ( Carrier Licence Charges Act ) to
provide for ACMA to recoup payments to the industry body from
licensed telecommunications carriers, through the fees and charges
set out in the Act.
The Senate Environment, Communications, Information Technology
and the Arts References Committee s recent report into the
performance of the telecommunications regulatory regime heard
criticism from a number of witnesses as to the problems associated
with the development and enforcement of industry codes for the
telecommunications industry, specifically the consumer protection
aspects of codes. Those criticisms included:(1)
-
that the regulatory regime relied far too heavily on
self-regulation
-
the process for code development stretch and exhaust the limited
resources of relevant consumer organisations
-
that the Australian Communications Authority (now the ACMA) and
the Department of Communications, Information Technology and the
Arts have been too reluctant to step in when the self regulatory
process have failed
-
that the codes are too complex and prescriptive and take too
long to develop, and
-
the low sign up rate to the codes by industry participants.
The Bill does not deal with nor purport to deal with most of the
criticisms made by industry and consumer groups in representations
made to the Senate Inquiry mentioned above.
An outcome of the Bill will be to impose costs on carriers which
currently do not contribute to the cost of consumer code
development. The Explanatory Memorandum notes that these bodies
nonetheless reap the benefits of self-regulation .(2) By
their nature, however, consumer codes tend not to provide benefits
to industry but rather impose responsibilities and obligations
towards consumers. All industry participants will therefore be
required to pay for a process for which they may not have the
resources to contribute and which will, in all likelihood, result
in additional regulatory obligations.
The Bill does not provide for charges to be collected for the
purpose of funding the development of industry codes that are not
consumer-related. The industry will continue to fund the
development of these.
Item 1 provides that a written determination of
the amount of the application charge for a telecommunications
carrier licence will be a legislative instrument under the
Legislative Instruments Act 2003.
Item 2 provides that a written determination of
the annual charge for a telecommunications carrier licence will be
a legislative instrument under the Legislative Instruments Act
2003.
Section 15 of the Carrier Licence Charges Act limits
the total charges to be imposed on carrier licences. The total
charges imposed on a carrier licence must not exceed the sum of
amounts set out in the written determinations listed in section
15.
Item 3 adds to the list of amounts set out in
written determinations in section 15 of the Carrier Licence
Charges Act the amount determined by the ACMA, and set out in
a written determination, to reimburse industry bodies for the costs
of developing consumer-related industry codes.
Item 5 deletes from the list in section 15 of
the Carrier Licence Charges Act the amounts which are the
proportion of the Commonwealth s costs for the previous financial
year attributable to administering industry development plans. The
requirement on carriers to have industry development plans is being
abolished by the Telecommunications Legislation Amendment
(Competition and Consumer Issues) Bill
2005.
Item 6 provides that an instrument for the
purposes of limiting the total charges imposed on carrier licensees
will be a legislative instrument under the Legislative
Instruments Act 2003.
Items 7, 8 and 9 make minor amendments.
Item 10 sets out the conditions for when the
amendments in the Bill necessary to effect the deletion proposed in
item 5 (namely items 4, 5, 6, 8 and 9 of the Bill) will apply.
Essentially the amendments can apply in any financial year after
the first financial year in which the Bill is past (see
item 10(2)(b)).
The legislation amends the Carrier Licence Charges Act
to so that ACMA may recoup from telecommunications carrier
licensees the costs incurred by industry bodies and associations
for developing industry codes.
At a time when the delivery of telecommunications services is in
the spotlight this legislation does not seek to address any of the
recent criticisms which have been levelled at the process of
developing industry codes for the telecommunications industry.
Endnotes
-
Senate Environment, Communications, Information Technology and
the Arts References Committee, The Performance of the Australian
Telecommunications Regulatory Regime, August 2005, pp 143-145,
URL:
http://www.aph.gov.au/Senate/committee/ecita_ctte/trr/report/report.pdf.
-
Explanatory Memorandum, p. 3.
Ann Palmer and Jonathan Chowns
8 September 2005
Bills Digest Service
Information and Research Services
This paper has been prepared to support the work of the
Australian Parliament using information available at the time of
production. The views expressed do not reflect an official position
of the Information and Research Service, nor do they constitute
professional legal opinion.
IRS staff are available to discuss the paper's
contents with Senators and Members and their staff but not with
members of the public.
ISSN 1328-8091
© Commonwealth of Australia 2005
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Published by the Parliamentary Library, 2005.
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