Page 1931 - Week 07 - Wednesday, 16 June 1993
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Mr Deputy Speaker, the Government has decided to adopt the recommendations as set out in the report, notwithstanding that this will affect longstanding policies that have governed the petrol retailing industry in Canberra for many years. We believe that the adoption of the recommendations as set out in the report will encourage greater competition in the petrol industry, which will in turn lead to the lowering of petrol prices in the ACT to the benefit of consumers. These benefits will begin to emerge as the recommended changes begin to affect the industry.
In accepting the recommendations made by the working group, the Government has taken into account comments received from those groups and organisations which I previously named. Generally, the recommendations were well received, particularly for the deregulatory approach of the report. All except the Motor Trades Association support such an approach. However, two concerns were common to a number of submissions. The first concern was common to all industry submissions and the Prices Surveillance Authority; the second concern was common to the industry groups.
The first concern relates to the recommendation that independent operators be encouraged into the petrol retailing market by the Government giving such operators preferential treatment. That recommendation is contained at recommendation 11 of the working group's report. It states:
The following short term intervention measure be undertaken to encourage the introduction of independents into the Canberra market:
. Expressions of interest from independent operators should be invited in relation to the already-nominated sites at Gold Creek and Gilmore and additional sites, up to a total of 7 sites, to be nominated by persons or groups expressing interest.
. These sites should meet planning requirements as recommended by this report and should be offered at market value by direct grant or restricted auction.
. A maximum time frame of six months should be set for the receipt and assessment of expressions of interest and the grant of sites.
. The eligible grantees would have to be owner-operators and not own more than 3 sites already in the ACT.
The Government accepts the view of the working group that such operators should be encouraged into the market in an effort to increase competition which should lead to a reduction in the retail price of petrol. The report recommends that the Government encourage independent operators in an effort to stimulate the petrol retailing industry but that any intervention be restricted to the absolute minimum necessary. I recognise that this means that preferential treatment will be given to independent petrol retailers initially, but it is necessary to bring in more players and encourage competition. As well, there is no intention to exclude existing operators from the proposed changes. They will be able to take advantage of the recommended planning changes, and the working group will continue to talk to them about other strategies for lowering the price of petrol in the ACT.
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