ACCC allows industry levy on bricks and masonry products
The Australian Competition and Consumer Commission has allowed the continuation of an industry agreement that imposes a levy on the sale of clay bricks and concrete masonry products.
The levies fund a national program designed to alleviate shortages of skilled bricklayers. The program creates apprenticeship opportunities for school leavers and mature age entrants and provides subsidies for bricklayers directly employing apprentices.
The program also provides support for host employers of apprentices through group training companies which helps reduce the charge out rate of apprentice bricklayers.
The ACCC's decision will enable the Australian Brick & Blocklaying Training Foundation, Think Brick Australia and the Concrete Masonry Association of Australia to continue to impose a levy of $2 per 1,000 clay bricks and 10 cents per square metre on concrete masonry walling products sold in NSW, Victoria, Queensland, SA, WA, Tasmania and ACT.
Based on information provided by the ABBTF, the levies would add $16 to the cost of an average-sized house, given that around 8,000 bricks are used.
Information available to the ACCC indicates that there has been a steady increase in apprenticeship commencements since the first version of the scheme was authorised in 1998.
The ACCC has granted authorisation to the levy arrangements for another five years.
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.
