ACCC proposes to grant authorisation to the Construction Material Producers Association
The Australian Competition and Consumer Commission has issued a draft determination proposing to authorise* the Construction Material Producers Association to develop and publish two types of standard form contracts for its members to be able to use, ACCC Chairman, Mr Graeme Samuel, said today.
These standard form contracts are for the CMPA's members to use as a starting point when negotiating contracts with:
certain contractors for Victorian government authorities or private principals, for the supply of construction materials, and
owner drivers for the transport of construction materials.
"The ACCC is satisfied that the proposed arrangements are likely to result in a net benefit to the public," Mr Samuel said. "In particular, the ACCC considers that there is benefit to the public from the potential for greater certainty in legal relationships, cost savings and enhanced compliance with legislative requirements.
"The standard form contracts do not contain indications of the prices that should be used, the CMPA's members are not required to use the standard form contracts and other suppliers will continue to compete with the CMPA's members. The ACCC considers that these factors will limit any detriment to the public from these arrangements."
The CMPA also applied to the ACCC for interim authorisation** for the arrangements. In May 2007, interim authorisation was granted in relation to the owner drivers standard form contract. The ACCC has now decided to grant interim authorisation in relation to both types of standard form contracts, until the final decision is made.
The ACCC's draft determination will be available from the ACCC website.
The ACCC is seeking submissions from interested parties in relation to its draft determination. 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 fax on (02) 6243 1121 or by email to: adjudication@accc.gov.au.
* Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.
** Interim authorisation allows an applicant to engage the conduct proposed for authorisation as if authorisation had been granted, before the ACCC issues its final decision. The ACCC will only grant authorisation in special circumstances.
