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Legislative Assembly for the ACT: 2003 Week 12 Hansard (18 November) . . Page.. 4270 ..

MR SMYTH (continuing):

Moreover, Mr Speaker, the amendment bill simply defines a declared fee as being the fee or charge that is determined by government policy. The bill does not speak in terms of an increase or decrease in such a fee or charge. Hence, it is quite possible for a fee or charge to be introduced, to be increased or to be decreased, depending on the policy imperatives underlying the decision.

Mr Speaker, it may, for example, be that the government determines that additional funds are required for a particular purpose related to the provision of a good or a service. A fee may be introduced to provide the necessary funds. Once sufficient funds have been obtained, the fee can then be removed.

Mr Speaker, there is one other aspect to this bill that I would like to emphasise. In his tabling speech, the Treasurer noted that the proposals contained in this amendment bill had not been developed in response to any action or decision taken by the ICRC. I believe it is important- Mr Speaker, to support that statement in the strongest possible terms. The role of the commission is that of an independent, expert agency that seeks to bring its expertise to bear on what, in many instances, are quite complex economic and regulatory matters. The commission is to be commended for the way in which it reports to the Assembly and the community on these complex matters.

In saying this, Mr Speaker, I wish to acknowledge the professionalism of the commission as it undertakes the range of matters that come before it. The amendments proposed in this bill do not represent any reflection on the nature and quality of reports made by and decisions taken by the commission.

Mr Speaker, as I have said earlier, the opposition will be supporting this bill.

MS DUNDAS (8.43): We understand this is a relatively simple change to the Independent Competition and Regulatory Commission Act to clarify the operation of the commission in regard to the determination of prices in regulated industries that are affected by government fees. The changes foreshadowed in this bill make clear that a statutory fee identified by the Treasurer that affects a regulated industry is passed onto the consumers of that service. The bill makes the role of the ICRC, in relation to price determinations, clear and ensures compatibility with government policy.

On first read of this legislation, I did have some concerns about how it would actually operate and what it was the government was trying to do. But on closer examination, and through further discussion with the relevant officials, those issues have been cleared up.

I think one of the particularly important issues in the bill is that it will increase the speed at which changes to government fees are transmitted through to the markets. An example is the water abstraction charge which has taken several months under the current regime to be translated into a new price path for ActewAGL. This process has been time consuming and generally unnecessary, to enable the increased costs of water to be transmitted to consumers. The flexibility of prices to adjust in regulated industries is essential for prior signals to be transmitted to the market, especially in areas of environmental management, such as the water abstraction charge.

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