ACCC issues cartels publication for small business at COSBOA conference
A new ACCC guide Cartels—what small businesses need to know will help businesses avoid becoming victims of cartel conduct and know what to do if they are suspicious about cartels during their business dealings.
The guide was launched at the annual Council of Small Business Organisations of Australia (COSBOA) policy conference on 22 February by ACCC Commissioner, Mr John Martin.
The publication also provides information about:
the behaviour that constitutes a cartel
warning signs in the procurement process
what to do if you suspect a cartel
the penalties attached to cartel conduct.
Commissioner Martin said, ‘Cartels can affect all businesses large and small. With the assistance of businesses to detect cartel behaviour, the ACCC is better able to identify and prosecute those involved in cartels’.
The publication also outlines how the ACCC's Immunity Policy for Cartel Conduct may apply to those who may be involved in a cartel.
Cartels—what small businesses need to know is available from the ACCC website and by contacting the ACCC small business helpline on 1300 302 021.
Third airport price monitoring report issued
In its report the ACCC notes that the prices airlines pay Australia's major airports for aeronautical services such as use of runways and terminal facilities have continued to increase, with changes ranging from 2.6 per cent to 11 per cent.
ACCC Chairman, Mr Graeme Samuel, said:
Before this, aeronautical charges were subject to price caps and price surveillance. This year's report shows that prices have continued to increase in 2004–05 although to a lesser extent than those increases experienced over 2000–01 to 2002–03. Since price monitoring was introduced revenue from aeronautical services increased by between 37 per cent and 163 per cent.
The removal of price caps and price surveillance means airports are no longer required to notify the ACCC prior to increasing charges for aeronautical services.
The report shows that total aeronautical airport costs have increased between 2002–03 and 2004–05 for all airports, with greater security requirements at airports since 11 September 2001 adding to airport costs.
However, increased passenger numbers have seen airport costs on a per passenger basis generally decrease or slightly increase during this time and, combined with price rises, airport profitability has risen substantially over the period.
The airport price monitoring report reviews the prices charged by Adelaide, Brisbane, Canberra, Darwin, Melbourne, Perth and Sydney airports.
Third medical indemnity insurance monitoring report
On 16 February 2006 the Australian Government issued the ACCC’s report monitoring medical indemnity insurance premiums, Medical indemnity insurance—third monitoring report—December 2005.
This report was the third to be produced in response to the Prime Minister’s announcement in October 2002 that the ACCC would monitor medical indemnity premiums to assess whether they are actuarially and commercially justified.
The ACCC’s monitoring focused on how premiums were derived by the five medical indemnity insurers from an actuarial and commercial perspective.
The ACCC’s assessment of the actuarial justification of premiums considered the technical actuarial aspects of pricing. It examined the process adopted by medical indemnity providers to derive premium rates, the approach taken to construct those premiums, the level of detail used to support pricing assumptions and the breadth of issues taken into consideration (such as recent medical indemnity and tort law reforms).
The ACCC’s assessment of the commercial justification of premiums considered the ability of medical indemnity providers to meet their commercial obligations to key stakeholders. It examined the effect on premium rates of APRA’s minimum capital requirements that medical indemnity providers need to achieve to reach a fully capitalised position by 30 June 2008, as well as broader commercial obligations such as solvency targets and emerging surplus.
The third report found that premiums written in 2005–06 (2005 in the case of the insurer that operates by calendar year) were considered to be both actuarially and commercially justified for all five medical indemnity providers.
The report also provided new information on the actuarial and commercial justification of premium relativities between jurisdictions. The ACCC’s assessment of the actuarial justification of these premium relativities examined the extent and the level of detail of the analysis by insurers to confirm or modify existing relativities. It also looked at the extent to which insurers took into account tort law reform in setting their jurisdictional relativities. The ACCC’s assessment of the commercial justification of premium relativities between jurisdictions compared the actuary’s recommended relativities against the actual relativities adopted, and examined the quantification of cross subsidies (as well as the incorporation of board policy) in the relativities.
The report found that, based on the information available, jurisdictional relativities were justified.
