ACCC supports Victorian Government consideration of reform options

The Australian Competition and Commission Chairman, Mr Graeme Samuel, today welcomed the issue of the Victorian Government's consultation paper Options for Reform of the Victorian Rail Regime.

"During the ACCC's assessment of the proposed acquisition of Freight Australia by Pacific National it became obvious to us that there were serious deficiencies in the access regime currently operating in Victoria", Mr Samuel said.

"The ACCC made its decision not to intervene in the acquisition, following the acceptance of court enforceable undertakings, on the basis that the undertakings addressed the specific section 50 concerns under the Trade Practices Act 1974.

"However, most market participants expressed a high level of concern to the ACCC about the level of competition in parts of the rail industry and especially the difficulties of gaining access to rail freight infrastructure.

"If we are to realise the benefits of competition in rail transport and fulfil the promise that this sector offers, then a workable access regime that allows entry on competitive terms is essential.  The ACCC believes that the Victorian Government's consideration of options to improve access arrangements for rail access is an important step in realising these benefits".