Table 26: Assessment of regulatory options against assessment criteria Government Government Regulation Regulation Criteria Key Issues Co-Regulation Self-Regulation (Australian (State and Territory Government) Governments) Collective ● ● ● ● interest is Industry’s prime interest financial return linked to National collective Collective interest is Balancing collective interests Balancing collective interests maintaining interest across various managed through could be difficult, would be very difficult, advantage and minimising stakeholders is managed government particularly given market particularly given market power capital development costs. through government stakeholder power and information and information asymmetry decision-making processes. asymmetry issues. issues. Consumers want cheap fuel processes. Challenges potentially The regulatory framework would that maintains vehicle arise, under the Mutual be controlled by industry and may operability. Recognition Act 1992, if be designed to benefit states and territories incumbents at the expense of Broader society wants implement differing possible new entrants, consumers welfare optimising fuel standards. and the broader society. standards that support economic, health and environmental outcomes.
Table 26: Assessment of regulatory options against assessment criteria Criteria Key Issues Government Regulation (Australian Government) Government Regulation (State and Territory Governments) Co-Regulation Self-Regulation Collective interest Industry’s prime interest is financial return linked to maintaining advantage and minimising capital development costs. Consumers want cheap fuel that maintains vehicle operability. Broader society wants welfare optimising fuel standards that support economic, health and environmental outcomes. ● National collective interest across various stakeholders is managed through government decision-making processes. ● Collective interest is managed through government stakeholder processes. Challenges potentially arise, under the Mutual Recognition Act 1992, if states and territories implement differing standards. ● Balancing collective interests could be difficult, particularly given market power and information asymmetry issues. ● Balancing collective interests would be very difficult, particularly given market power and information asymmetry issues. The regulatory framework would be controlled by industry and may be designed to benefit incumbents at the expense of possible new entrants, consumers and the broader society.