03/07/2008 - 12:12

ACCC approves cartage system in WA

03/07/2008 - 12:12

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A Western Australian concrete cartage allocation system, intended to provide equal work opportunities for lorry-owner drivers in the state, has been granted authorisation by the Australian Competition and Consumer Commission.

ACCC approves cartage system in WA

A Western Australian concrete cartage allocation system, intended to provide equal work opportunities for lorry-owner drivers in the state, has been granted authorisation by the Australian Competition and Consumer Commission.

The ACCC granted the use of the system, known as the Equal Opportunity of Trips, to CEMEX Australia Pty Ltd.

The regulatory body said that while it considered the system would reduce competition, it was satisfied the procedure will likely result in continued industrial harmony and a reduction in transaction costs.

Below is the full ACCC announcement:

ACCC grants authorisation for WA concrete cartage allocation system

The Australian Competition and Consumer Commission has granted revocation and substitution* of authorisation** to CEMEX Australia Pty Ltd for the continued operation of its premixed concrete cartage allocation system.

The Equal Opportunity of Trips (EOT) System is a cartage allocation system amongst concrete carriers, which is intended to equalise work opportunities for lorry-owner drivers in Western Australia.

The ACCC considers that the EOT System produces some public detriment as a result of reduced competition.

The ACCC is satisfied that the continued operation of the EOT System is likely to result in the public benefit of continued industrial harmony and some reduction in transaction costs.

On balance, the ACCC concludes that the public benefits of the new system are likely to outweigh the public detriments.

Background

*Parties can seek to revoke an existing authorisation and substitute a new authorisation in its place. The ACCC's process for assessing applications for revocation and substitution is the same as for authorisation.

**Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.

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