The Australian Competition and Consumer Commission proposes to allow a refrigerant gas recovery program to be extended to cover synthetic greenhouse gases (HFC and PFC refrigerants) following a draft determination issued today. "There is already an authorisation in place for a scheme administered by Refrigerant Reclaim Australia to recover and destroy used ozone-depleting gases", ACCC Chairman, Professor Allan Fels, said today. "This draft determination would extend immunity to allow Refrigerant Reclaim Australia to broaden the scheme to include synthetic greenhouse gases.
"The scheme will assist in ensuring that certain environmentally harmful gases are not released into the atmosphere, but the effect upon the price of ordinary consumer products will be negligible. For example it will add around 20 cents to refrigerators and air conditioners.
"The ACCC believes that a scheme which improves the environment benefits the public. This scheme is likely to do that by reducing the release of ozone depleting substances and reducing synthetic greenhouse gases emissions, which will reduce damage to the earth's ozone layer and contribute to efforts to reduce global warming. In this authorisation, the ACCC recognises the environmental benefits resulting from the scheme".
Under the authorised scheme, importers and manufacturers can enter into an agreement to add a $1 levy to the cost of each kilogram of refrigerant gas sold. Without authorisation, the agreement may have raised concerns under the competition provisions of the Trade Practices Act 1974. The levy funds will be used to encourage and facilitate the recovery and recycling of reprocessable gases. They are also used to encourage the storage and pay for the safe destruction of unreprocessable gases. The aim of the scheme is to help protect the environment. A rebate is paid to both refrigeration contractors and refrigeration wholesalers who recover and return refrigerant. The scheme is also a way for industry to comply with its legal responsibilities under existing Western Australian environment protection law.
The ACCC granted interim authorisation to Refrigerant Reclaim Australia in November 2002. This allowed Refrigerant Reclaim Australia to extend the scheme while the ACCC considers the merits of the substantive application. The draft determination does not compel any party to take part in the proposed arrangements but will provide immunity against prosecution under the Act for those who choose to. Participation in the scheme is voluntary.
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 14 March 2003. The draft decision will be available on the ACCC's website.