The Australian Competition and Consumer Commission has issued a draft determination proposing to deny authorisation to Users of Dalrymple Bay Coal Terminal to extend the operation of their Queue Management System (QMS).
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
The QMS was first authorised in December 2005 to address the large ship queue which had arisen because demand for coal loading services at Dalrymple Bay was higher than the capacity of the Goonyella coal chain.
The ACCC denied an urgent interim authorisation request by the applicants on 10 December 2008, leading to the expiration of the previous QMS authorisation on 31 December 2008.
In denying interim authorisation the ACCC reiterated the significant doubts it had as to whether the QMS would continue to be in the public interest beyond 2008, without evidence of a long term solution being developed. The ACCC considers circumstances have not substantially changed since denying interim authorisation, aside from reduced forecasts of coal demand which reduces the need for the QMS and the demurrage savings the QMS may deliver.
"The ACCC remains of the view that ongoing operation of the QMS is likely to reduce the incentive to develop and implement a long term solution, with further delays having the potential to result in significant flow on effects in terms of lost export revenue," ACCC Chairman, Mr Graeme Samuel, said today.
"At this stage the industry has only put forward a set of broad principles which may underpin a long term solution, along with anticipated time frames for its development. The applicants have applied for a six month extension of the QMS to give them more time to develop this solution.
"The ACCC recognises that recently, some progress has been made and encourages all industry participants to work together to finalise details of a long term solution as soon as possible."
The ACCC's draft determination will be available from the ACCC website (follow the Public Registers and Authorisations and Notifications Registers links).
The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.
The ACCC is seeking submissions from interested parties in relation to its draft determination by Tuesday, 10 March 2009. Submissions can be made to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, GPO Box 3131, Canberra, ACT, 2601. Submissions can also be lodged by fax on (02) 6243 1121 or by email to: adjudication@accc.gov.au.
Media inquiries: Mr Brent Rebecca (02) 6243 1317 or 0408 995 408