The Australian Competition and Consumer Commission has authorised the Federal Chamber of Automotive Industries, on behalf of its members, to negotiate model terms and conditions with port facilities managers and automotive stevedores for the use of their facilities at Australian ports.
FCAI members include Australia's four domestic passenger motor vehicle manufacturers and all major international brands importing vehicles into Australia.
"Authorising the FCAI to directly negotiate model terms and conditions with port facilities managers and automotive stevedores should provide FCAI members with an opportunity to have a greater say in contract terms and conditions, provide greater transparency in respect of contractual arrangements and improve flows of information between the parties," ACCC Chairman, Mr Graeme Samuel, said today.
Currently, charges for the use of these facilities are passed on indirectly to car importers and exporters through shipping lines.
Authorising these arrangements does not compel any party to participate in the proposed negotiation process. Port facilities managers and automotive stevedores are free to continue with their existing arrangements for the provision of these services if they wish.
"The ACCC has denied authorisation for the FCAI to negotiate model terms and conditions with shipping lines, pre-delivery inspection service providers and land transport service providers because it is concerned that in these markets, where there are a number of competing buyers and sellers, the combined bargaining power of FCAI members could be used to force service providers to accept terms and conditions which they may not otherwise," Mr Samuel said.
"This could distort market outcomes, both in terms of price and quality of service, resulting in inefficiencies in resource allocation."
The ACCC has also denied authorisation for the FCAI to coordinate and disseminate its members' views and liaise with relevant stakeholders regarding the development and design of new and existing port facilities for the import and export of motor vehicles.
Up to a point, the FCAI can represent its members' views on these issues without the need for authorisation. The ACCC invited the FCAI to identify any specific conduct in respect of it representing its members' views which would require authorisation, however, it did not do so. The ACCC anticipates that the FCAI will continue to liaise with stakeholders on behalf of its members irrespective of whether authorisation is granted.
More information regarding the application and a copy of the determination are available by following the Authorising anti-competitive conduct and Authorisations links on the ACCC's website.