Draft legislation to criminalise serious cartel conduct was released today for public comment by the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, Chris Bowen.
The Minister released the exposure draft Trade Practices Amendment (Cartel Conduct and Other Measures) Bill 2008, as well as a discussion paper. This forms part of the Government's election commitment to introduce legislation on cartel conduct into the Parliament within the first 12 months of coming to office.
"The Rudd Government has moved swiftly on cartel conduct and following this community consultation intends to introduce the legislation into the Parliament this year, in line with its election commitment," Mr Bowen said.
"The Government intends to criminalise serious cartel conduct to send a very clear message to the business people who engage in such behaviour: cartel activity is theft; it's a form of stealing from consumers.
"While these reforms are a vital step in promoting competitive markets they also provide important protection for small businesses and consumers who are often the ones who bear the cost of cartel conduct."
Under the draft legislation those found guilty of serious cartel conduct will face up to 5 years imprisonment and/or fines of up to $220,000 for individuals and $10 million for corporations.
"Once these reforms are in place, Australia will be in line with countries like the United States, United Kingdom, Germany, Ireland and Canada, all of whom have moved to criminalise cartel conduct," Mr Bowen said.
"The previous government failed to implement these reforms despite them being promised by Mr Costello in February 2005 and first mooted by the Dawson review as far back as 2003."
The Minister also released the terms of a draft Memorandum of Understanding (MOU) between the Australian Competition & Consumer Commission and the Director of Public Prosecutions that details the responsibilities of each agency in the criminal investigation and prosecution of serious cartel conduct cases.
The discussion paper outlines the key elements of the Bill, including the proposed new criminal offences and revised civil prohibitions, amendments relating to the investigation and prosecution of the new offences, and associated amendments.
The discussion paper also seeks community input on two specific issues:
- how to distinguish the criminal prohibitions from civil prohibitions; and
- the level of penalty for the new criminal prohibitions, and the investigative tools (such as telephone interception powers) to apply to such penalties.
"These are important public interest issues, and I encourage all stakeholders to put forward their views."
Copies of the legislation and discussion paper can be obtained from the Treasury website: www.treasury.gov.au. The Bill has not been finalised by the Government, and is released for consultation purposes only. The Bill may be amended following consultation.
The closing date for submissions is close of business 29 February 2008. Submissions may be lodged electronically, by post or facsimile.
Submissions may appear on the Treasury website (subject to any claims for confidentiality).
11 January 2008
Media Contact: James Cullen - 0409 719 879