Page 1266 - Week 05 - Thursday, 25 June 1992
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The working group is collecting information on these matters currently and will subject these claims to appropriate scrutiny. We expect that, where there are ways to reduce costs and make it easier to operate in the ACT in terms of government policies and regulations, the working group will be identifying these matters and making recommendations to government on them. But in the immediate term the Government feels obliged to take action. The Government believes that we should not abandon the consumer to the vagaries of the present market, which is clearly not serving the interests of the whole Canberra community. We believe that we have to take positive measures to engender competition in the market, and we ask all members of the Assembly to join us in this endeavour.
It may be that some of the problems in the Canberra market are the result of government policies in the past, but does that mean that we should throw up our hands and do nothing? The Government says no to that proposition and says that we should use legislative means to intervene in the market if it is necessary in the interests of a fair go for Canberra consumers. Madam Speaker, we do not want to set prices in the ACT. We would prefer that this legislation was never used. But we believe that the time has come for this Assembly to take steps to ensure that the law enables intervention where it is necessary.
Madam Speaker, the Bill is fairly simple in structure. It would enable the Minister responsible for consumer affairs to gazette maximum prices for fuel on the recommendation of the Director of Consumer Affairs. The director would also be empowered, on a confidential basis, to obtain relevant information from the industry to enable him or her to make appropriate reports to the Minister. The Bill allows the setting of maxima; it does not empower the setting of recommended prices or margins, because that would lessen competition by price and discourage trading at lower prices.
Madam Speaker, every motorist in Canberra will be doing his or her own monitoring of prices at the petrol pump during the coming weeks, and I encourage Canberra motorists to be prepared to shop around for the best deal and to support operators who are prepared to be competitive. I am confident that Canberra motorists will support the Government in introducing this Bill.
We have heard regular complaints from the oil industry at the level of the multinational oil companies, who say that price control is ineffective, who say that consumers are best served by competitive market forces. Those companies will now have the winter recess to prove their assertions and deliver real competition to the Canberra motorist. If that happens, this Bill may never need to be enacted or may never be enforced when enacted. The companies have been talking about competition for too long without delivering it. They now have a final chance to prove their assertions of competition.
I should add, finally, that this Bill is not aimed against the individual retailers; we are setting our sights clearly on the oil majors, the group that Mr Humphries acknowledged on ABC radio this morning seemed to be engaging in cartel-like practices not in the interests of Canberra consumers. They have the winter recess of this Assembly to get their house in order. Madam Speaker, I present the explanatory memorandum.
Debate (on motion by Mr Humphries) adjourned.
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