The Australian Competition and Consumer Commission proposes to allow the Federal Chamber of Automotive Industries to negotiate model terms and conditions on behalf of its members with port facility managers and automotive stevedores for the use of their facilities at Australian ports.
The FCAI's membership comprises Australia's four domestic passenger motor vehicle manufacturers and all major international brands importing vehicles into Australia.
"Allowing the FCAI to negotiate model terms on behalf of its members should assist in facilitating direct negotiations with port facility managers and automotive stevedores, affording FCAI members greater input into contract terms and conditions, providing greater transparency in respect of contractual arrangements and improving flows of information between the parties," ACCC Chairman, Mr Graeme Samuel, said.
Currently, charges to car importers and exporters for use of these facilities are passed on indirectly through shipping lines.
"The FCAI also sought authorisation to negotiate model terms with shipping lines, pre-delivery inspection and land transport service providers, however the ACCC proposes to deny authorisation to these arrangements," Mr Samuel said.
"The ACCC was concerned that in these markets, where there are a number of competing buyers and sellers, the aggregation of the bargaining power of FCAI members could be used to force service providers to accept terms and conditions which they may not otherwise.
"This could distort market outcomes, both in terms of price and quality of service, resulting in inefficiencies in resource allocation."
The FCAI also sought authorisation 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, industry associations, such as the FCAI, can represent and assist their members in matters such as making common representations regarding the development of facilities, liaising with stakeholders and disseminating and collecting members' views on these issues without the need for authorisation. Accordingly, the ACCC declined to grant authorisation to this part of the FCAI's application.
The ACCC is currently seeking submissions on its draft determination. Submissions can be sent to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, PO Box 1199, Dickson, ACT 2602.
Alternatively, submissions may be faxed to (02) 6243 1211 or emailed to adjudication@accc.gov.au
More information regarding the applications and a copy of the determination are available by following the Authorising anti-competitive conduct and Authorisations links on the ACCC's website.