Draft objection to Racing and Wagering Western Australia insurance proposal
The Australian Competition and Consumer Commission has issued a draft notice proposing to revoke a notification* lodged by Racing and Wagering Western Australia.
Under the notification, RWWA proposes to licence thoroughbred racehorse trainers in Western Australia on condition that the trainers obtain workers compensation insurance from a nominated insurer.
RWWA told the ACCC that under the proposal it could obtain a volume discount on workers compensation premiums for thoroughbred racehorse trainers if it negotiated with only one insurer.
"The type of conduct proposed by RWWA prevents thoroughbred racehorse trainers in WA from shopping around to choose the workers compensation insurance provider that best suits their needs and raises significant concern," ACCC Chairman, Mr Graeme Samuel, said.
"The trainers who do not obtain workers compensation insurance from the nominated provider will not be granted a licence to operate as a trainer in WA.
"While the ACCC acknowledges that RWWA has the potential to negotiate a volume discount with a nominated insurer, the ACCC is concerned that by eliminating competition between insurance providers, any discount RWWA may be able to negotiate will be eroded in the long term."
The ACCC is seeking submissions from RWWA and interested parties on the issues raised in the draft notice to assist the ACCC decide whether or not a final notice revoking the notification should be issued.
Copies of the draft notice will be available on the ACCC's website. Submissions can be made to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, GPO Box 3131, Canberra, ACT 2601. Submissions can also be lodged by email to adjudication@accc.gov.au.
*Businesses may obtain protection in relation to conduct that might be at risk of breaching the exclusive dealing provisions of the Trade Practices Act 1974 by lodging a notification with the ACCC. Once lodged, protection for the notified conduct commences automatically, or in the case of third line forcing, after 14 days. The ACCC may revoke a third line forcing notification if its is satisfied that the likely benefit to the public from the conduct will not outweigh the likely detriment to the public from the conduct. Prior to issuing a notice to revoke a notification, the ACCC must issue a draft notice setting out its reasons for proposing to revoke the notification.
