ACCC proposes to allow discount funerals for WA pensioners
The Australian Competition and Consumer Commission today issued a draft decision proposing to allow the Western Australian Funeral Directors Association, and other individual funeral directors, to supply fixed-price discount pre-paid funerals to eligible members of Retirees WA.
RWA administers a pre-paid funeral fund scheme in Western Australia which is available for aged, invalid, and widowed pensioners in Western Australia, as well as certain superannuants. The purpose of the funeral fund is to allow the elderly the benefit of prior planning of a funeral service, at a reduced cost. The ACCC originally authorised these arrangements in October 2001.
"The ACCC considers that these arrangements allow participating funeral directors to provide basic funeral services to a section of the community, some of which are financially disadvantaged, at a lower price," ACCC Chairman, Mr Graeme Samuel, said today.
"The ACCC would usually be concerned with agreements between competitors to offer services at a common fixed price, but our market inquiries suggest that these agreements set prices that are lower than the current market rate.
"The ACCC also took account of the fact that the arrangements cover a very small segment of funerals in WA, that fund members can opt out of the scheme at any time should they be able to negotiate a better deal individually and that there will continue to be a high degree of non-price competition between funeral directors."
The ACCC will now seek further submissions from the applicant and interested parties in relation to this draft determination prior to making a final decision.
A copy of the ACCC's draft decision will be available at www.accc.gov.au.
Submissions can be made to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, PO Box 1199, Dickson, ACT, 2602. Submissions can also be lodged by email to adjudication@accc.gov.au or facsimile to (02) 6243 1211.
The applicant and interested parties may also request that a conference be held to make oral submissions on the draft determination.
The ACCC can grant immunity from the application of the competition provisions of the Trade Practices Act 1974 if it is satisfied that the benefit to the public from the conduct outweighs any public detriment. The ACCC conducts a public consultation process to assist it to determine whether a proposed arrangement results in a net public benefit.
