Thirty of Australia's leading companies have had their Public Compliance Commitments accepted by the Australian Competition and Consumer Commission, ACCC Chairman, Professor Allan Fels, said today.
"The companies making these commitments have annual turnovers in excess of $100 million and include Australia's largest retailers, major food manufacturers, telecommunications companies and a transport company.
"The companies' Chief Executive Officers have committed their companies to complying with the Price Exploitation Guidelines and the Price Exploitation provisions of the Trade Practices Act 1974.
"The most recent commitments have been signed by:
- Mr Ziggy Switkowski, Chief Executive Officer, Telstra Corporation Limited;
- Mr Chris Anderson, Chief Executive, Cable and Wireless Optus Limited;
- Mr David Ross, Chief Executive Officer – Asia Pacific, Lend Lease Corporation Limited;
- Mr Ian D Dresner, Joint Managing Director, Rebel Sport Ltd; and
- Mr John Pollaers, Managing Director, United Distillers and Vintners.
"The commitments are part of the ACCC's strategy to ensure that prices do not increase unreasonably as a result of the New Tax System changes. They are one element of the ACCC's range of strategies to promote compliance with the law prohibiting price exploitation that include price checking, education, awareness and enforcement activities.
"The ACCC now has detailed pricing methodology from these major companies. This will help to ensure that consumers receive the full benefits from falls in Wholesales Sales Tax and other cost savings under the New Tax System.
"Another important part of the companies' PCC is that the companies will provide the ACCC with cost-saving information at least every six months so that the ACCC can monitor savings achieved during the transition to the New Tax System.
"Registration of PCCs does not constitute endorsement of any specific price changes made by firms, nor does it preclude the ACCC from taking enforcement action under the price exploitation provisions of the Trade Practices Act if the circumstances warrant.
"The ACCC has reviewed Telstra's post-GST pricing following an average price rise of 8.5 per cent, which included 10 per cent price rises. Having regard to the information obtained, the ACCC does not intend to take any action in relation to these price changes. Telecommunications charges will continue to be monitored".
Access to the public register is available via the ACCC Internet website http://www.accc.gov.au. Requests to inspect the register can also be made in person at any of the ACCC offices in each State and Territory.