Information package raises awareness of cartel conduct
An information package to raise awareness of the signs of possible cartel behaviour affecting government procurement was launched today by Australian Competition and Consumer Commission Chairman, Mr Graeme Samuel.
"The ACCC seeks to work with government agencies at all levels which are involved in the procurement process to raise awareness of possible cartel conduct and increase the likelihood that it will be detected", he said.
"Experience domestically and abroad has shown that government procurement is susceptible to cartel conduct. The package will help identify suspect tender practices and allow agencies to report them to the ACCC.
"Cartels have a significant effect on the economy. They damage the public as consumers and taxpayers. Any increase in prices paid for a good or service by the government arising from a cartel results in less gain for the public dollar which, in turn, can result in less public services or a tax rise to meet the need for government services".
The package will assist government agencies to identify and report suspicious tender practices. In particular, it provides information about:
the behaviour that constitutes a cartel
warning signs in the procurement process
what to do if the agency suspects a cartel, and
the penalties attached to cartel conduct.
"The package is part of the ACCC's focus on cracking cartel behaviour and is preparatory to changes to the Trade Practices Act which will lead to higher civil penalties and criminal sanctions, including the possibility of jail terms for company executives".
The package will be available from the ACCC website and on request from the ACCC Infocentre on 1300 302 502. The ACCC also intends to publish a similar package specifically targeted at corporations engaged in large scale procurement.
The package forms one of the initiatives announced by ACCC Chairman, Mr Graeme Samuel, during the international Cracking Cartels Conference in Sydney in November 2004 in furthering the fight against cartel activities. Other initiatives included the review of the ACCC leniency policy and the establishment of a dedicated ACCC cartels team.
