Standing Committee on Economics, Finance and Public Administration

Inquiry into aspects of the National Competition Policy Reform Package

Terms of reference

Background

The Commonwealth, State and Territory governments have agreed to implement national competition policy reforms through co-operative arrangements involving Commonwealth and State legislation, and three Intergovernmental Agreements.

The Commonwealth Parliament has passed the Competition Policy Reform Act, which is the principal legislative instrument for implementing these reforms. State and Territory Governments have enacted legislation to apply the Competition Code (a personalised version of Part IV of the Trade Practices Act) contained in that Act in their jurisdictions.

As required by the Competition Principles Agreement, the Commonwealth, State and Territory Governments published policy statements on the implementation of elements of that Agreement by June 1996.

The Committee's report will assist Governments to address concerns which have been expressed about the means of implementing aspects of the competition policy reforms.

Terms of Reference

1. The Committee is to consider appropriate means, including review processes, for applying the 'public interest' tests included in the Competition Principles Agreement.

These tests are a critical feature of this Agreement. They are described in Principle 1(3), which provides that:

Without limiting the matters that may be taken into account, where this Agreement calls:

(a) for the benefits of a particular policy or course of action to be balanced against the costs of the policy or course of action; or

(b) for the merits or appropriateness of a particular policy or course of action to be determined; or

(c) for an assessment of the most effective means of achieving a policy objective; the following matters shall, where relevant, be taken into account:

(d) government legislation and policies relating to ecologically sustainable development;

(e) social welfare and equity considerations, including community service obligations;

(f) government legislation and policies relating to matters such as occupational health and safety, industrial relations and access and equity;

(g) economic and regional development, including employment and investment growth;

(h) the interests of consumers generally or of a class of consumers;

(i) the competitiveness of Australian businesses; and

(j) the efficient allocation of resources.

2. The Committee will have particular regard to the impact of competition policy reform on the efficient delivery of community service obligations including an assessment of:

(a) existing government policies relating to community service obligations; and

(b) options for the delivery and funding of these services.

3. The Committee will also examine the implications of competition policy reform for the efficient delivery of services by local government, including arrangements that have been developed between State Governments and local government authorities for the implementation of the Competition Principles Agreement.

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