Reports
Hilmer Report 1993
National Competition Policy
Report by the Independent Committee of Inquiry
Length: 385 pages
Click here for full (PDF) report from the NCC's National Competition Policy web site (4MB file)
About this Review
Report recommended the implementaiton of a national competition policy.
The Inquiry found that there was 'strong and widespread community support' for the implementation of a national competition policy and the benefits such a policy could have for improging international competitiveness.
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Terms of reference
In October 1992 Prime Minister Keating established the National Competition Policy Review.
- Full terms of reference forthcoming
Key Recommendations
On Part IV
(1) the prohibition on price fixing should be strengthened 'by removing the distinction between goods and services, which potentially allows agreements relating to services to be authorised, thus sending an unambiguous signal about the undesirability of collusive price-fixing' (Report p xxiii)
[not implemented - authorisation in fact extended to capture all forms of PF]
(2) removing the per se prohibition on third line forcing and subjecting it to a competition test
[not implemented; the same recommendation by the Dawson Committee ten years later also not implemented]
(3) permitting authorisation of resale price maintenance where it offers net public benefits
[implemented]
(4) repealing specific prohibition on price discrimination (any anti-competitive conduct could be addressed by the misuse of market power provisions]
[implemented]
(5) remove 'unjustified distinctions between goods and services'
[implemented]
On national competition policy
See recommendations 9.1-9.4 regarding implementation of a national competition policy and the role of the NCC.
Exemptions and authorisation
The 'general conduct rules of a national competition policy should, in principle, apply to all business activity in Australia, with exemptions for any particular conduct only permitted when a clear public benefit has been demonstrated through an appropriate and transparent process.' [Report p xxiv] The primary method for granting such exemptions should be the authorisation process with some limited specific exemptins in the TPA (eg, export contracts and certain intellectual property issues) [Report p xxiv] .
Shield of Crown
Should be removed 'to ensure that the Act applies to State and Territory businesses to the same extent it applies to Commonwealth businesses.' [Report p xxvii]
Access
A new access to essential facilities regime should be implemented to operate by 'specific declaration' [Report page xxxii and Chapter 11 - from p 239]
[implemented]
National Competition Council
A new 'National Competition Council' should 'be established jointly by the Commonwealth, State and Territory Governments to play a key role in policy decisions relating to the additional policy elements ... the objective is to provide a high level and independent analytical and advisory body in which all governmentswould have confidence.'
[implemented - see NCC]
Australian Competition Commission
A new Australian Competition 'should be established to administer relevant aspects of the propsoed competition policy.' [Report p xxxvii]
[partial implementation; Trade Practices Commission re-named Australian Competition and Consumer Commission and given wider responsibilities in relation to competition regulation]
Australian Competition Tribunal
Trade Practices Tribunal should be re-named Australian Competition Tribunal [Report p xxxvii]
[implemented]
Key statements
On competition policy
'Competition policy is not about the pursuit of competition per se. Rather, it seeks to facilitate effective competition to promote efficiency and economic growth while accommodating situations where competition does not achieve efficiency or conflicts with other social objectives. These accommodations are reflected in the content and breadth of application of pro-competitive policies, as well as the sanctioning of anti-competitive arrangements on public benefit grounds.' (p xvi report)
Membership
Professor Frederick G Hilmer (Chairman)
Mark R Rayner
Geoffrey Q Taperell
Submissions and meetings
Nearly 150 written submissions were made.
Legislative changes
Legislation introducing many of the Hilmer Committee recommendations was introduced as follows:
National competition code