Page 3454 - Week 11 - Thursday, 19 September 2013
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option presented was to introduce a basic national standard. This would permit only undiscounted fuel prices on signs, although fuel discount schemes may be included. The final option proposed was the development of a detailed national standard. This could include requirements that all fuel retailers must maintain a fuel price board, displaying in equal prominence the undiscounted prices of a specified minimum number of fuels.
A large number of submissions were received on the consultation paper from petrol stations, industry representatives, motoring associations and the general public. In addition, during that period a working group of commonwealth, state and territory officials met with key stakeholders, including industry groups, motoring associations and consumer groups. The outcomes of this consultation are being used to inform the final decision of ministers.
In July, ministers met to discuss the final paper and agree a way forward. There will be further discussions at a subsequent meeting later this year, and it is expected that there will be agreement to implement a national standard incorporating aspects of options 2 and 3.
An important aspect of this consultation has been research on how fuel prices can be best presented so that consumers, who are initially confused by the current information displays, can learn and adapt to how information is displayed. Therefore, there is no point in rushing to implement a solution today if the solution is fundamentally flawed because it fails to achieve the objective of providing greater clarity for consumers.
I mentioned that the forum has proposed the use of an information standard to prescribe the information requirement for fuel price boards. An information standard is a written notice made under the Australian Consumer Law. The Australian Consumer Law, which commenced in 2011, is a national regulatory framework that incorporates national laws guaranteeing consumer rights when buying goods and services, a national product safety law and enforcement system and new penalties, enforcement powers and consumer redress points. The Australian Consumer Law applies nationally, in all states and territories, and to all businesses.
The advantage of regulating fuel price boards through the Australian Consumer Law is that it provides a consistent national framework. It provides certainty to consumers and industry across Australia. The use of the ACL also provides the regulator with the options of strong enforcement mechanisms under the law to ensure that petrol stations are complying with their obligations.
The national trend towards a smaller number of large petrol station chains is well known and, given these operators are operating nationally, it is important that regulators are able to work together, using consistent powers, to ensure compliance. Proceeding in a piecemeal fashion, without the benefit of operating within the framework of the ACL, will prevent the regulator from exercising the full suite of its powers to achieve the best outcome for consumers.
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