Australia tightens rules on shipping services

By GREG ANSLEY

CANBERRA - Australia will not try to break the shipping line conferences that carry most of the nation's freight to Asia, Europe and North America.

But in a decision announced last week, the Federal Government said it would tighten rules governing anti-competitive behaviour, extend them to inward conference lines, and introduce a national interest test.

The decision follows an inquiry by the Productivity Commission, the Government's key industry adviser, into exemptions for international liner cargo conferences under Part X of the Trade Practices Act. Liner cargo ships carry about 48 per cent by value of Australia's seaborne exports, and about 74 per cent of its imports. Conferences account for more than half of this trade.

The commission found that Part X provided adequate regulation and had not hindered efficiency or competitive forces in liner shipping, and had both supported the negotiating position of Australian shippers and helped provide them with reliable service.

But Transport Minister John Anderson said increased powers would be given to the Government and the Australian Competition and Consumer Commission to investigate unreasonable anti-competitive behaviour.

These included a new national interest test to protect shippers in cases of alleged misuse of market power, tighter enforcement provisions, and "as far as practicable," removed the blanket exemption for inward shipping conferences and applied the same rules as those governing outward conferences.

Mr Anderson also confirmed that carriers would be provided with the clout to counter the market power of Australian stevedores.

Carriers would be able to negotiate a conference rate with stevedores to enable them to use countervailing market power in negotiations with the two companies dominating the ports.