National Competition Policy Research Articles

Renewable Energy; Legal Hurdles?

This paper deals with the legal and associated issues which arise in the development and management of renewable energy resources. The forms of energy production examined are solar, wind, hydro, wave, tidal, geothermal and nuclear. The situation at common law in relation to issues arising in the exploitation of these various energy sources will be examined. This will be associated with a discussion of the impact of the regulatory processes imposed by the various levels of government, or by international treaties, and how these may be exploited by the various opposing groups to obstruct, delay and increase the cost of projects. The practical examples to be examined from this perspective include: Solar panels used to heat water or generate electricity directly by photovoltaic means; Wind generation of electricity; Hydro-electric power; Wave power harnessed for the generation of electricity on the coast and offshore; Tidal power harnessed for the generation of electricity in NW Australia; Geothermal power used to generate electricity; Nuclear power and related issues such as disposal of waste. Some broader structural issues will be considered as well such as the impact on the development of renewable energy of the National Competition Policy and privatisation of various parts of the energy industry such as the electricity industry and water utilities. The paper is in two parts. The first part analyses the current energy situation in relation to greenhouse concerns and possible response strategies. The second part analyses the relevant law.

Regulating Access to Essential Facilities

It introduced Competition is now six the Policy. years comprehensive since Those Australia's six reforms years State have which and left jointly Commonwealth few constituted sectors of Governments the the economy National introduced the comprehensive reforms which jointly constituted the National Competition Policy. Those six years have left few sectors of the economy unaffected, and have fundamentally changed the nature and philosophy of competition regulation. Traditional monopolies have been most affected by these changes. While other elements of the National Competition Policy reinforced existing structures in areas such as consumer protection and trade practices, market liberalisation in areas dominated by traditional monopolies was a new phenomenon. As in Europe and a number of other jurisdictions, removing legislative barriers to entry to those markets and regulating access to the essential facilities which delivered the services were the main mechanisms by which this was to be achieved. Australia's energy, transport and telecommunications markets now operate very differently from the way they did six years ago. The extent and nature of those changes are different in each case. At the same time, the regulations that made them possible are under review by the Productivity Commission, which is currently conducting investigations into both the generic and telecommunicationsspecific access regimes. The Commission released its drafts in March 2001 and will report its findings to the Treasurer at around the time this article goes to press. This paper outlines the access provisions which now operate in Australia, summarises our experience in implementing them over the last six years, and looks at some of the issues which have emerged as a result of this experience. In particular, issues relating to investment have been prominent in the public debate surrounding the Productivity Commission's inquiry.

THE INTER‐REGIONAL ECONOMIC IMPACT OF MICROECONOMIC REFORM

Economic Papers: A journal of applied economics and policyVolume 19, Issue 1 p. 44-53 THE INTER-REGIONAL ECONOMIC IMPACT OF MICROECONOMIC REFORM JOHN L. WHITEMAN, JOHN L. WHITEMAN Centre of Policy Studies, Monash University, Clayton. The research on which this paper reports was undertaken in conjunction with a research project on national competition policy and improvements in industry productivity; implications for the Australian states and territory sponsored by the Australian Research Council.Search for more papers by this author JOHN L. WHITEMAN, JOHN L. WHITEMAN Centre of Policy Studies, Monash University, Clayton. The research on which this paper reports was undertaken in conjunction with a research project on national competition policy and improvements in industry productivity; implications for the Australian states and territory sponsored by the Australian Research Council.Search for more papers by this author First published: 13 April 2010 https://doi.org/10.1111/j.1759-3441.2000.tb00951.xCitations: 4 AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Citing Literature Volume19, Issue1March 2000Pages 44-53 RelatedInformation

‘Unfinished Business’: Neoliberal Planning Reform in Australia

This paper reviews the recent and contemporary neoliberal reform agendas that have sought a reduced role for planning in Australia. Our aim is to describe these reform paths and to theorise their broader implications for urban governance in Australia. Our analysis focuses on two initiatives: first, the broad reform framework embodied in National Competition Policy that is now affecting planning regulation at the state level; and second, the new vision for a standardised development control system that has been put forward by the Property Council of Australia. As we will show, neoliberal reforms have the potential both to reduce the possibility for spatial regulation and also to undermine the other recent reform agendas that have sought a positive transformation of planning; namely, community democratic movements and environmentalism.

Regulating physiotherapy

Implementation of the principles of National Competition Policy have led to reviews of the regulation of health professionals in all states and territories of Australia. On October 13, 1998, the Victorian Physiotherapists Registration Act 1998 replaced the previous (1978) Act. This paper identifies the critical impact of National competition policy upon the 1998 Victorian Act and examines current review processes in other states and territories. Although Competition Policy is of national interest, legislative variation between states and territories is unlikely to be diminished by current reviews. Whilst the 1998 Victorian Act will foster greater competition between health care providers, and offer greater economic choice for consumers, it does so at the cost of reduced protection of the standards of patient care.

Grain marketing and National Competition Policy: Reform or Reaction?

Grain marketing arrangements in Australia have been controversial for many years. Following an account of the historical background to grain marketing, this article concentrates on more recent debates. The most interesting technical economic argument concerns the validity of claims that statutory marketing authorities with export monopoly powers can obtain higher prices. The article also discusses how marketing in Australia has been affected by Commonwealth and State Government policies with respect to microeconomic reform and privatization. Although major changes appear to have been made in grain marketing and its institutions, there are inherent economic problems with the current approach to deregulation.

In Defence of Competition: The Successful Application of Competition Policy in NSW Rail

This paper argues that recent rail reform in NSW has been successful. NSW rail is now not only more cost effective, but also offers improved service and safety levels to its customers. As such the NSW rail reforms have been of benefit to the community as a whole, and have laid the groundwork for a resugence of the rail sector. Despite the criticism surrounding recent job losses, it is argued that the reforms have reinvigorated an industry that had been caught up in an ever decreasing vicious circle. The success of the 1996 reforms have been dependent upon a reform model that mixes factors such as vertical separation and independent regulation with government provision of targeted community service obligation payments. This paper argues that the most important ingredient for rail's future is the removal of the enormous bias in government tax and user charging policy against rail and towards road transport. In addition to keeping faith with the traditional National Competition Policy agenda, nothing is more important than that Australian governments address this continuing and debilitating bias against rail transport.

National competition policy: Legitimating economic rationalism

This article seeks to explore, from a social justice perspective, as an issue of concern to social work, the manner in which the National Competition Policy has legitimated economic rationalism and its impact upon the community. It is argued under the influence of classical liberalism and economic rationalism, as reflected in the National Competition Policy, the value of individuals is being determined in terms of their contribution to the economy. In so doing notions of fairness, social justice and achieving community wellbeing through the promotion of equality, freedom and autonomy for individuals has been abandoned as governments increasingly allow market forces to structure social relations. Instrumental to the manner in which social relations are being restructured is the role of language which has enabled social justice concepts to be presented in terms of individualism.

National Competition Policy in Action: The politics of agricultural deregulation and wine grape marketing in the Murrumbidgee Irrigation Area

National Competition Policy in Action: The politics of agricultural deregulation and wine grape marketing in the Murrumbidgee Irrigation Area

Restructuring the Australian State

Since the election of the Hawke Labor government in 1983 the Australian state has undergone a process of restructuring that has affected all levels of government We examine the key features of this process, including the restructuring of the public service, privatization and marketization, market liberalization and National Competition Policy We find that successive federal governments, both Labor and Coalition, have followed a model of change dominated by neo-liberal assumptions about the innate superiority of the private sector and the desirability of opening. Australian markets to the vagaries of a globalizing economic system Profitable public sector assets have been broken up and transferred to the private sector. While this process was marketed in terms of the efficiency benefits to be derived from vigorous competition, the privatized assets are already being reaggregated into what is likely to become an oligopolistic utilities market.

Health sector liability under the Trade Practices Act.

Following the implementation of the national competition policy and the consequent exposure of unincorporated businesses to trade practices regulation, the health sector has faced increasing exposure to fair trading and competition issues. This article examines the rights and the obligations of health sector participants under the consumer protection and the restrictive trade practices provisions of the Trade Practices Act 1974 (Cwlth). The article outlines the relevant provisions and identifies examples of conduct that has breached the Act or that has the potential to breach the Act. The author notes that the Act has been applied to the health sector in the same way as it has been applied to all other sectors of the economy.

The hilmer paradox: Evidence from the Australian retail grocery industry

Evidence of spatial competition and prices in the Australian grocery retail industry is presented from case studies in Sydney and Adelaide. The evidence is considered against the backdrop of the National Competition Policy Report (Hilmer Report) and deregulation of retail trading hours. It appears that in an industry as concentrated as the Australian grocery retail sector, the applicability of Hilmer Report principles may be fundamentally flawed.

Public Sector Reform, Intergovernmental Relations and the Future of Australian Federalism

Recent developments in the reform of intergovernmental relations have been influenced by contemporary models of public sector reform. Their systematic application to intergovernmental administration, in particular the manner in which jointly funded and managed programs are organised, may have profound and unanticipated effects on the federal system. When viewed in the context of a recent history of collaborative policymaking between political executives, the possibility that new forms of intergovernmental joint policy‐making and program management might become the norm poses serious challenges to federal traditions of dual government. Arm's length and collaborative forms of joint decision making are contrasted as ideal types, and then used to analyse two case studies in collaborative intergovernmental decision‐making — National Competition Policy and the National Training Agreement. It is concluded that the system‐wide implications are profound if they are part of a broader trend, but caution is expressed about the powers of inertia and resistance in traditional forms of federal politics.

Competition over Competition Policy for International Trade and Intellectual Property

ABSTRACTIncreasingly, international trade law demands that national competition policy play a role making domestic markets more accessible to foreign traders. But can international competition policy also control transnational business practices? New international intellectual property power is providing a reason why such control is needed. This article gauges the competition over the nature of competition policy in a global era.

Rail freight efficiency and competitiveness in Australia

In 1994/95, the Australian rail freight task was approximately 100 billion tonne kilometres (btkm). This freight task included some 37 btkm for the haulage of iron ore in Western Australia, 28 btkm for coal haulage in Queensland and New South Wales and about 16 btkm for interstate rail freight. This paper mainly concerns how improvements can be made to the efficiency and competitiveness of interstate rail freight services through the upgrading of sections of mainline track that currently have severe speed‐weight restrictions. Recent improvements in rail freight efficiency are discussed, with emphasis on two indicators: average unit revenues (cents per net tonne km), and average energy efficiency (net tonne km per MJ). Rail freight efficiency is high for the Western Australia iron‐ore operations, Queensland coal operations and Adelaide‐Perth general freight operations. However, between Australia's three largest cities of Melbourne, Sydney and Brisbane, some 36% of the mainline track fails to meet basic fast freight train standards with a ruling grade of 1 in 66 and no curve radius less than 800 m. The contraints on efficient rail freight operations imposed by severe terrain, and how the effects of terrain may be reduced by improved track alignment, are discussed. Some economically warranted rail track investment measures are outlined, including those identified for a National Transport Planning Taskforce. These measures have the potential to reduce liquid fuel use by over 250 million litres a year. Factors affecting competitive neutrality between road and rail freight that are outside of the present scope of Australia's National Competition Policy are broadly considered. These factors include the extensive upgrading of the National Highway System with full Federal funding, and low levels of road cost recovery from heavy trucks operating over long distances.

Pricing and Access under National Competition Policy: The Case of the Natural Gas Pipeline Sector

This paper reviews the development of open access and deregulation of trunk pipeline natural gas transportation in Australia and the United States. It investigates Australian policy developments in the setting of reference tariffs for firm service, but argues that the institutional arrangements for granting third party access, and the pricing of that access on a spot or interruptible basis, are at least as important as tariffs for firm service. The paper concludes that, in the absence of an established pipeline network, pipelines may have little incentive to price their excess capacity efficiently. In this case, attempts to promote an efficient allocative outcome through privatisation and open access in Australia are unlikely to be as successful as they have been in North America.

Access to ‘Essential Facilities’ Under Part IIIA of the Trade Practices Act: Implementing the Legislative Regime

This article reviews the operative provisions of Part IIIA and examines their implementation to date. The article begins by tracing the development of the ‘essential facilities doctrine’ (a judicial response to the essential facilities problem) in the United States. With that discussion as background, Australia’s decision to enact a separate regime to govern access to essential facilities is then explained. This is followed by a detailed consideration of the legislative requirements of Part IIIA, together with an analysis of recent access proceedings. The article ends on a positive note, concluding that, with some streamlining of regulatory function, the access regime is set to fulfil its intended role in National Competition Policy.

National Competition Policy*

National competition policy is having a major effect on Australian industry. The Hilmer committee recommendations on infrastructure access, competitive neutrality, restructuring of public enterprises and legislative review have been accepted by all Australian governments. The underlying economic principles, however, are not necessarily reflected in the reforms. The process of negotiated infrastructure access established under national competition policy may lead to monopoly rather than competitive pricing. Structural reforms of government business enterprises have ignored the benefits of integration and the relevant market characteristics. Legislative review has resulted in considerable political controversy. In some cases, competition policy can be improved by simple amendments to legislation while in other cases a clearer understanding of the relevant trade‐offs may improve the reform process.

Access Pricing under Rate‐of‐Return Regulation

Third‐party access to major infrastructure facilities is a key component of National Competition Policy. In many situations, both through state regimes and access undertakings under the new part IIIA of the Trade Practices Act, access will be governed by explicit or implicit rate‐of‐return procedures. Infrastructure assets will be valued and translated into an allowable return for the owners. However, setting allowed returns is only the first part of the regulatory process. This paper uses a simple model to evaluate the ‘second‐best’ access prices under rate‐of‐return regulation. We show that optimal access prices will depend on the degree of downstream competition. With imperfect price competition and fixed numbers of firms downstream, optimal access prices will ‘mimic’ downstream competition and reduce downstream profits. With free entry downstream, optimal access pricing should determine an optimal level of downstream participation. We also show that the access provider’s incentives to introduce optimal access prices will depend on the degree of vertical integration.

Role of the Auditor‐General: The ICAA View

The Institute of Chartered Accountants in Australia has made the following submission to the Victorian government's review committee appointed to examine the Audit Act in the context of the national competition policy. This and the submission by the Australian Society of Certified Practising Accountants which follows are published with the permission of the accounting bodies.