Harper Competition Review 2015 The Harper Competition Review undertook a stocktake of competition policy with the aim of improving the Australian economy through recommending reforms to competition policies, laws and institutions. Key findings related to Key recommendations Australian Government freight and supply chains response Roads are the least Introduce cost-reflective road pricing using new The Australian Government reformed of infrastructure technologies, subject to independent oversight, supported the road pricing sectors, with little change to with revenues used for road construction, recommendations as a long institutional arrangements maintenance and safety; term reform option and will around provision and continue working through funding over the past COAG to investigate such Use a cross-jurisdictional approach to road 20 years; pricing so that overall road user charges do not options. rise, with adjustments to state and territory grants Lack of suitable road pricing to account for changes in revenue; In relation to the models leads to inefficient recommendation on coastal investment decisions and trading and aviation Remove cabotage restrictions on coastal creates distortion on the shipping. Also remove cabotage restrictions on cabotage, it was noted that choices users make the Government had aviation services for specific geographic areas between different modes, developed plans for coastal such as island territories and poorly served particularly between rail and routes, unless it can be demonstrated that the shipping reform but did not road freight; intend to change aviation benefits to the community outweigh the costs and Pricing should be overseen cabotage arrangements. policy objectives cannot be achieved in any other by an independent regulator way; and should not be an In relation to liner shipping additional impost on road Block exemptions for minimum standard liner agreements, the Australian users; Government remained shipping agreements should be granted by the open to the Australian Competition and Consumer Reform of coastal shipping Commission (ACCC). recommendation and and aviation cabotage agreed to work with the regulation should be a ACCC and stakeholders on priority; the issue. Part X of the Competition and Consumer Act 2010 (CCA), which regulates international liner shipping and provides for exemption from competition Australia’s laws, should be repealed. Infrastructure Australia: Infrastructure Australia Plan 2016 The Infrastructure Australia Plan 2016 (the Plan) is a reform document that develops a vision and roadmap to address current infrastructure gaps and position the nation for future infrastructure development.
Harper Competition Review 2015 The Harper Competition Review undertook a stocktake of competition policy with the aim of improving the Australian economy through recommending reforms to competition policies, laws and institutions. Key findings related to freight and supply chains Key recommendations Australian Government response Roads are the least reformed of infrastructure sectors, with little change to institutional arrangements around provision and funding over the past 20 years; Lack of suitable road pricing models leads to inefficient investment decisions and creates distortion on the choices users make between different modes, particularly between rail and road freight; Pricing should be overseen by an independent regulator and should not be an additional impost on road users; Reform of coastal shipping and aviation cabotage regulation should be a priority; Part X of the Competition and Consumer Act 2010 (CCA), which regulates international liner shipping and provides for exemption from Australia’s competition laws, should be repealed. Introduce cost-reflective road pricing using new technologies, subject to independent oversight, with revenues used for road construction, maintenance and safety; Use a cross-jurisdictional approach to road pricing so that overall road user charges do not rise, with adjustments to state and territory grants to account for changes in revenue; Remove cabotage restrictions on coastal shipping. Also remove cabotage restrictions on aviation services for specific geographic areas such as island territories and poorly served routes, unless it can be demonstrated that the benefits to the community outweigh the costs and policy objectives cannot be achieved in any other way; Block exemptions for minimum standard liner shipping agreements should be granted by the Australian Competition and Consumer Commission (ACCC). The Australian Government supported the road pricing recommendations as a long term reform option and will continue working through COAG to investigate such options. In relation to the recommendation on coastal trading and aviation cabotage, it was noted that the Government had developed plans for coastal shipping reform but did not intend to change aviation cabotage arrangements. In relation to liner shipping agreements, the Australian Government remained open to the recommendation and agreed to work with the ACCC and stakeholders on the issue. Infrastructure Australia: Infrastructure Australia Plan 2016 The Infrastructure Australia Plan 2016 (the Plan) is a reform document that develops a vision and roadmap to address current infrastructure gaps and position the nation for future infrastructure development.
Supporting_Paper_No6_Policy_Reviews.docx