Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Hansard source

I table the explanatory memorandum relating to the bill and move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

This Bill supports the Government's response to the ongoing conflict in the Middle East which is impacting fuel prices and affecting Australian businesses and consumers.

Schedule 1 to the Bill creates new powers for the Treasurer and the Australian Competition and Consumer Commission to permit coordinated action during a crisis. Under this Bill, the Minister can make an extraordinary circumstances declaration in circumstances that pose a risk to the Australian economy, businesses and consumers, but which may fall short of a declared National Emergency under the National Emergency Declaration Act. Once extraordinary circumstances have been declared, the ACCC will be able to exercise new, streamlined powers to enable coordinated responses to the crisis by businesses to complement the work of government in protecting the Australian public and economy from the impacts of the crisis.

These new powers are not just reactive; they are pre-emptive. They allow the Minister to make a declaration enlivening the ACCC's powers when there is a foreseeable harm, and allows decisive, cooperative action with the business community to prevent or mitigate that harm early. In the current situation, this could include businesses working together to minimise fuel usage to keep supply chain costs low for them and their customers; Instead of reacting to fuel shortages, we can allow businesses to find innovative and collaborative solutions to prevent shortages.

The ACCC already can grant authorisations, and has done during the current situation and past crises. But this process is burdensome and slow, making it too inflexible to respond to the changing situations Australia may face during exceptional global or domestic circumstances. This power will make it easier and faster for the ACCC and businesses to assist these vital efforts to respond to these circumstances, and future exceptional challenges the Australian economy faces.

Once this Bill passes, the Treasurer intends to declare an exceptional circumstances event to ensure Australia stays on top of the challenges arising from the current conflict in the Middle East. While Australia's fuel supply continues to operate effectively, this declaration will support the government's approach to. Keep Australia Moving under the National Fuel Security Plan. This will allow the ACCC to work with industry to complement the actions of the Commonwealth and State and Territory Governments in working to minimise any. future disruptions to fuel supply. By coordinating early, businesses can avoid risks to them· and their customers.]

Schedule 2 to the Bill increases the maximum penalties that can be imposed for breaches of the Oil Code of Conduct. Under this Bill, the regulations will be able to impose penalties on corporations in the oil industry up to the greater of $10 million, 3 times the value they derive from breaching the Code, or 10% of their last year of turnover. For persons other than corporations breaching the Code, penalties of up to $500,000 will be available for contraventions. The ACCC will also be able to issue penalty notices of 600 penalty units to corporations for suspected breaches and 12 penalty units for other persons. These changes mirror those introduced by the government in 2024 into the Competition and Consumer Act for breaches of the Food and Grocery Code. They also complement recent action taken by the government to increase other penalties under the CCA last week, and other action taken to address the supply and price of fuel in Australia. The Bill will further discourage fuel companies seeking to flaunt their obligations under the Oil Code of Conduct, including those taking advantage of the conflict in the Middle East.

Full details of the measures are contained in the Explanatory Memorandum.