The Australian Competition and Consumer Commission proposes to extend an arrangement between agricultural and animal chemical manufacturers to charge a levy on the purchase by farmers of these chemicals to fund a container collection scheme in a draft decision issued today.
"There is already an authorisation* in place for a scheme administered by Agsafe Limited to collect and dispose of unwanted empty agricultural and veterinary chemical containers", ACCC Chairman, Mr Graeme Samuel, said today. "This draft determination would extend immunity to allow the parties to the arrangement to continue imposing the levy and collection of the chemical containers".
The program is a component of the Industry Waste Reduction Agreement (IWRA) which aims to reduce waste at source, and reduce the weight of packaging that is going to landfill throughout Australia. Avcare Ltd (Avcare), the Veterinary Manufacturers and Distributors Association (the VMDA), the National Farmers' Federation (the NFF) and the Australian Local Government Association (the ALGA) developed the drumMUSTER program to provide an environmentally responsible way of collecting and disposing of rigid steel and plastic containers which contain agricultural and animal chemicals.
"The ACCC believes that a scheme that protects the environment is likely to benefit the public. This scheme is likely to do that by reducing the number of non-returnable chemical containers into the environment, and provide an environmentally responsible way of collecting and disposing of rigid steel and plastic containers".
A levy of four cents per litre or kilogram on eligible crop production and on-farm animal health products sold in non-returnable chemical containers over one litre or kilogram in content is imposed by the manufacturers, and paid for by farmers. Without authorisation, the agreement may have raised concerns under the competition provisions of the Trade Practices Act 1974.
"The ACCC accepts that the imposition of the levy does constitute a detriment; but the ACCC considers that the impact to farmers is negligible given that the average percentage incurred by farmers on products is less than 1% of the purchase price".
The ACCC invites interested parties to comment on its draft decision and will consider any comments received before issuing a final determination. Submissions should be made in writing and addressed to: 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.
Submissions should reach the ACCC no later than close of business of 29 August 2003. The draft decision will be available on the ACCC's website.
* The Trade Practices Act 1974 prohibits certain forms of anti-competitive agreements, including agreements between competitors that limit their ability to deal with whom they choose or on the terms they choose (including price). Authorisation provides immunity from court action under the Act arising from such agreements but can only be granted where the ACCC is satisfied that the public benefit flowing from the conduct outweighs any public detriment.