The Australian Competition and Consumer Commission has issued a draft notice proposing to revoke a notification* lodged by Racing and Wagering Western Australia.
Under the notification, RWWA proposes to licence thoroughbred racehorse trainers in Western Australia on condition that the trainers obtain workers compensation insurance from a nominated insurer.
RWWA told the ACCC that under the proposal it could obtain a volume discount on workers compensation premiums for thoroughbred racehorse trainers if it negotiated with only one insurer.
"The type of conduct proposed by RWWA prevents thoroughbred racehorse trainers in WA from shopping around to choose the workers compensation insurance provider that best suits their needs and raises significant concern," ACCC Chairman, Mr Graeme Samuel, said.
"The trainers who do not obtain workers compensation insurance from the nominated provider will not be granted a licence to operate as a trainer in WA.
"While the ACCC acknowledges that RWWA has the potential to negotiate a volume discount with a nominated insurer, the ACCC is concerned that by eliminating competition between insurance providers, any discount RWWA may be able to negotiate will be eroded in the long term."
The ACCC is seeking submissions from RWWA and interested parties on the issues raised in the draft notice to assist the ACCC decide whether or not a final notice revoking the notification should be issued.
Copies of the draft notice will be available on the ACCC's website. 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 email to adjudication@accc.gov.au.