Ross Cameron
Parliamentary Secretary to Treasurer
7 October 2003 - 25 October 2004
NO.007
REVIEW OF SECTION 2D OF THE TRADE PRACTICES ACT 1974: LOCAL GOVERNMENT EXEMPTIONS
The Parliamentary Secretary to the Treasurer today announced the Commonwealth Government's response to the Productivity Commission review of section 2D of the Trade Practices Act 1974 (the Act).
Under the National Competition Policy agreements, the Commonwealth, States and Territories agreed to review regulations that have the potential to restrict competition. This Commission inquiry was undertaken in accordance with that process of legislation review.
Section 2D of the Act currently exempts the licensing decisions and internal transactions of local government from Part IV (the competition provisions) of the Act. The Commission found that, on balance, section 2D provides a net benefit to the community, but that greater benefits would be obtained by directly limiting the application of Part IV to the business activities of local government, consistent with the original intention of the NCP reforms. The Commission has therefore recommended, and the Government accepts, that section 2D be repealed and replaced with a section stating explicitly that Part IV of the Act only applies to the business activities of local government. This is consistent with the exemption currently provided to Commonwealth, State and Territory governments.
The Government released and tabled the Productivity Commission report on 12 December 2002, and then consulted with the States and Territories on the report's recommendation. The Government will now finalise, in accordance with the 1995 Intergovernmental Conduct Code Agreement, its consultation with the States and Territories.
Copies of the report may be downloaded from the Productivity Commission's website at: http://www.pc.gov.au.
CANBERRA
8 December 2003
Contact: Rachel Merton - BH (02) 9689 2833
