Senate debates

Thursday, 16 August 2018

Questions without Notice

National Competition Council

2:26 pm

Photo of Brian BurstonBrian Burston (NSW, United Australia Party) Share this | | Hansard source

My question is to the Minister representing the Treasurer, Senator Cormann. I raise my concern that the only employee of the National Competition Council is a secondee from the ACCC. Isn't it the case that the only current matter before the council is explicitly opposed by the secondee's employer, the ACCC, in its formal submission to the National Competition Council?

2:27 pm

Photo of Mathias CormannMathias Cormann (WA, Liberal Party, Minister for Finance) Share this | | Hansard source

I thank Senator Burston for that question and for some notice of it. The National Competition Council is a Commonwealth statutory agency established by section 29A of the Competition and Consumer Act 2010. While the National Competition Council, which was first established in 1995, is an independent statutory entity to maintain the sustainability and efficiency of its operations, the NCC entered into an arrangement with the ACCC, with effect from 1 July 2014, whereby the ACCC provides the NCC with secretariat services. As part of these arrangements there are strict protocols in place to ensure the agencies operate separately and independently and to ensure the confidentiality and appropriateness of advice it provides in relation to its responsibilities under the Competition and Consumer Act 2010.

The NCC received a submission from the Port of Newcastle in July 2018 proposing the revocation of the port's declaration under the National Access Regime. The NCC will shortly begin a public consultation process in relation to the Port of Newcastle, including inviting submissions from interested parties before forming a preliminary view. As part of the consultation process the NCC will then publicly release its preliminary view and invite further submissions before making a recommendation to the Treasurer. The Treasurer will then make the final decision on whether to revoke the declaration of the Port of Newcastle under the National Access Regime.

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

Senator Burston, a supplementary question.

2:28 pm

Photo of Brian BurstonBrian Burston (NSW, United Australia Party) Share this | | Hansard source

Minister, isn't there a clear conflict between these two agencies which may impact upon the important regulatory decision?

Photo of Mathias CormannMathias Cormann (WA, Liberal Party, Minister for Finance) Share this | | Hansard source

The NCC is, as I said in answer to the primary question, an independent regulatory statutory agency established by section 29A of the Competition and Consumer Act 2010. It comprises a president and two councillors appointed by the Governor-General. The NCC's role in relation to the National Access Regime is to make recommendations to the Treasurer in relation to applications for declaration of services. It does not have a decision-making role; the decision-maker is the Treasurer.

While the NCC has had an arrangement since 2014 whereby it utilises staffing resources and corporate services from the ACCC, there are strict protocols in place to ensure that the agencies operate separately and independently and to protect confidential information. The arrangements also ensure that there is transparency in decision-making and perceived or actual conflicts of interest are avoided. In addition, the NCC engages in an extensive and transparent public consultation process before making any recommendations to the Treasurer in relation to the— (Time expired)