Despite the success of National Competition policy to date, more needs to be done, the Australian Competition and Consumer Commission Chairman, Mr Graeme Samuel, said today.
The ACCC's views on measures that could be undertaken to enhance and protect competition are set out in its submission in response to the Productivity Commission's draft report into National Competition Policy Reforms, issued today.
"The ACCC welcomes this opportunity to present its views on National Competition Policy and to suggest measures to maintain and extend the gains from economic reform.
"Despite more than a decade of reforms there is a need to ensure that both the electricity and telecommunications industry structures facilitate competitive behaviour by participants. Based upon the ACCC's experience these are industries which require urgent attention to maintain and extend the benefits of past structural reforms.
"Increasing merger activity within the electricity industry has the potential to undermine the original Council of Australian Government's reform objectives for the industry and is placing at risk the gains that it has generated. This submission provides additional information on merger activity over the past five years and further analysis of the implications of further re-aggregation. The ACCC encourages the Productivity Commission to closely review this material in finalising its recommendations.
"The ACCC believes that the cost and benefits of reforms to Telstra's structure should be assessed to ensure an appropriate industry structure that fosters and protects competition in this important part of the economy.
"At a minimum operational separation of Telstra's business units is necessary. These special measures are required to ensure that this important industry operates effectively and competitively.
"The ACCC supports calls for a review into the consumer protection policy framework and believes some change rather than substantial reform is necessary to ensure that businesses compete fairly against each other and ensure consumers are protected from unfair and unsafe practices.
“In trade practices issues, the ACCC proposes that corporations trading with government should not be able to claim 'shield of the crown' immunity from prosecution under the Trade Practices Act because of that relationship. Competitive conduct by all firms, regardless of whom they trade is an important part of National Competition Policy".