ACCC allows a levy on sales of bricks and concrete masonry products

The Australian Competition and Consumer Commission has issued a determination granting authorisation* for manufacturers of clay bricks and concrete masonry products to impose levies on the sales of their product.

"The ACCC has decided to allow the Australian Brick & Blocklaying Training Foundation, the Clay Brick and Paver Institute, the Concrete Masonry Association of Australia and their members to impose a levy on sales of clay bricks at a rate of $2 per thousand bricks, and on sales of concrete masonry products at a rate of 10 cents per square metre", ACCC Chairman, Mr Graeme Samuel, said today.

"The funds will be used to promote bricklaying to young people and to provide subsidies to employers of apprentices, in order to address a shortage of skilled bricklayers.

"The applicants advise that the levies are likely to add $16 – 20 to the cost of building an average brick house. However, reduced delays in construction that result from shortages of skilled bricklayers will produce savings for home buyers.

"The national scheme seeks to address rising costs and delays in the construction industry due to a shortage of skilled bricklayers.

"The scheme will use the funds to promote bricklaying to young people as a desirable vocation and to support the employment of more apprentices. The new authorisation creates a 'national scheme', based on a Victorian model which produced encouraging results".

The national scheme is to replace similar existing schemes in most jurisdictions. The ACCC has granted authorisation for three years.

More information regarding the application and a copy of the determination are available by following the Authorising anti-competitive conduct and Authorisations links on the ACCC's website.

Background

*The ACCC has the function, through the authorisation process, of adjudicating on certain anti-competitive practices that would otherwise breach the Trade Practices Act 1974. Authorisation provides immunity from court action, and is granted where the ACCC is satisfied that the practice delivers a net public benefit.