ACCC grants interim approval of concrete carrier allocation system

The Australian Competition and Consumer Commission has decided to grant interim authorisation* to Readymix** to extend the operation of its cartage allocation system for concrete carriers in Western Australia.

The authorisation previously granted to these arrangements in 2003, is due to expire on 24 February 2008. Readymix lodged an application for revocation and substitution*** to continue the operation of their cartage allocation system, and also requested interim authorisation.

The ACCC considered that if interim authorisation were denied, this would require the development and implementation of a new system for the distribution of concrete cartage work, and that this was likely to cause disruption to the commercial operations of Readymix, and their independent contractors.

Interim authorisation allows Readymix to continue to engage in the conduct, while the ACCC considers the merits of the substantive application.

The Equal Opportunity of Trips system is intended to ensure that each concrete carrier receives an equal share of work from Readymix, within a specified margin (currently +/- 10%) of the Western Australian metropolitan fleet average.

The ACCC is now seeking comments from interested parties before issuing a draft determination on this matter.

Further information regarding the application and granting of interim authorisation will be available by following the Public Registers and Authorisations Register links on the ACCC's website.

Background

*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.

**Readymix Concrete is the trading name of Rinker Australia Pty Ltd

***Parties can seek to revoke an existing authorisation and substitute a new authorisation in its place. The ACCC's process for assessing applications for revocation and substitution is the same as for authorisation.