ACCC proposes to grant authorisation to WA concrete cartage allocation system
The Australian Competition and Consumer Commission has issued a draft determination proposing to authorise* a cartage allocation system operated by CEMEX Australia Pty Ltd** for its concrete carriers in Perth, Western Australia.
The allocation system, known as the Equal Opportunity of Trips System, is designed to ensure that each concrete carrier receives an equal allocation of work from CEMEX for cartage within the Perth metropolitan area.
The ACCC considers that the cartage allocation system is likely to result in the public benefits of continued industrial harmony and some reduced transaction costs.
CEMEX lodged an application for revocation and substitution*** to continue to operate the cartage allocation system. CEMEX also requested interim authorisation, which the ACCC granted on 21 February 2008.
The ACCC's draft determination will be available from the ACCC website.
The ACCC is seeking submission from interested parties in relation to its draft determination. 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 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.
** CEMEX Australia Pty Ltd was formerly known as Rinker Australia Pty Ltd (trading as Readymix).
***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.
