The Australian Competition and Consumer Commission has issued a draft determination proposing to allow Holcim (Australia) Pty Ltd to continue to operate its concrete cartage allocation system.  The system assigns Holcim affiliated owner-driver concrete trucks to concrete delivery jobs from Holcim’s concrete production plants in the Perth metropolitan region.

The system ensures that no individual truck receives more or less work than Holcim’s Perth fleet average (within five per cent).

The ACCC has previously authorised the concrete cartage allocation system since 2003.

“The allocation system provides a transparent mechanism for allocating concrete delivery jobs to Holcim’s trucks.  The system has been in place and authorised for ten years and has improved the reliability and efficiency of Holcim’s pre-mixed concrete services,” ACCC Deputy Chair Dr. Michael Schaper said.

The ACCC proposes to grant authorisation until 31 March 2019.

The ACCC will seek submissions in relation to this draft determination before making its final decision. Upon lodgement of the current application, Holcim also requested interim authorisation to enable it to continue to operate the allocation system while the ACCC considers the substantive application.  Interim authorisation was granted on 27 June 2013 and will remain in place until it is revoked or the date the ACCC’s final determination comes into effect.

Authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.