The Australian Competition and Consumer Commission has suggested reforming the legislation that currently allows agreements between shipping lines blanket exemptions from some of the anti-competitive prohibitions contained in the Trade Practices Act 1974.
In a submission to the Productivity Commission's Review of Part X of the Act, the ACCC suggests that the specialised treatment of the international liner cargo shipping industry be revoked.
"In its current form, Part X places a great deal of faith in anti-competitive arrangements between shipping lines being, on balance, a positive for Australia", ACCC Chairman, Mr Graeme Samuel, said today. "It is therefore important that the Productivity Commission carefully consider whether - looking forward - such faith carries with it significant risks or is justified.
"The potential for poor outcomes for Australian exporters and importers using the services provided by the liner agreements - lower quality, reduced services and higher prices - is apparent. What is not so clear is whether the collusive liner agreements provide benefits which outweigh those detriments. Essentially, what the ACCC is proposing is that the net public benefit of particular agreements between shipping lines be established prior to them being exempted from Australia's competition law.
"In looking at the arrangements in Europe and the United States, it is clear that the tide is turning against shipping lines being granted automatic exemptions from competition law irrespective of the impact on competition. It is therefore timely that Australia reflects upon its own arrangements".
The ACCC's submission will be available at the Productivity Commission's website at: www.pc.gov.au