SUBJECTS: Cartels, Financial Crisis, Julie Bishop, Plagiarism.
CHRIS BOWEN:
Thanks for coming out this afternoon ladies and gentlemen. Today I am releasing the Government's proposed cartel legislation. This was an important election commitment by the Government: to introduce the criminalisation of cartels and gaol terms for cartels, within 12 months of our election. The legislation, I am releasing today is a significant change on the draft released earlier this year.
People who operate a serious cartel in Australia will be subject to a maximum prison term of 10 years. This will mean that Australia has the equal highest prison term in the world, equal with the United States. In addition, the legislation will allow the ACCC to request the Federal Police to conduct telephone tapping in criminal cartel cases. This is an important measure - criminal cartel cases are difficult to prove, telephone tapping powers will give the ACCC the weapons they need to prove serious cartel cases.
And finally, we are removing the potential defence of dishonesty in criminal cartel cases. It should not be possible to mount a defence that you are not acting dishonestly when you are running cartel, and that defence will be removed from the legislation.
I am releasing this draft legislation today, it is with the State's for consultation, and we'll be introducing it before the end of the year.
Cartels are a serious matter. People who operate cartels are thieving from the community - it is corporate theft. And they should be dealt with accordingly: with very serious criminal penalties. I hope nobody goes to prison, but a prison term is necessary to send the necessary deterrents, the necessary messages, to those contemplating operating a cartel.
Of course, businesses doing the right thing have nothing to fear. Businesses who are, or are contemplating, operating a cartel have a lot to fear from this legislation.
I am happy to answer questions about that, or other matters.
JOURNALIST:
...how serious a problem are cartels in Australia?
CHRIS BOWEN:
Well, there have been a number of cases - as you'd be aware. I don't comment on individual cases - and there are a number of high profile cases, but in particular the ACCC investigates a lot of cases, a lot of complaints about cartels, but it is not always possible to bring an action.
I think cartels have been a serious problem, and just as importantly, as I say, this is about the messages you send. I hope nobody goes to prison. But I hope nobody operates a cartel, because this legislation sends a message not to operate a cartel in Australia.
JOURNALIST:
Minister with you toughening up the laws from the draft bill that was released earlier this year, how have you managed to delineate between the civil prosecutions and the criminal prosecutions?
CHRIS BOWEN:
That's a very good question, and it is something we've spent a lot of time on. Of course, I invited an expert panel of criminal, trade practices lawyers and academics to assist me in drafting this legislation. Now, the onus of proof in relation to joint-venture defences will be different between civil and criminal cases. In addition of course, the memorandum of understanding between the ACCC and the Director of Public Prosecutions outlines what the difference is in relation to the seriousness of offences, and which offences should be brought in a criminal matter, and which offences should be brought in a civil matter.
JOURNALIST:
I just wanted to ask about Julie Bishop and her defence of the latest plagiarism controversy?
CHRIS BOWEN:
Look I think the most serious and disturbing part of this latest development is that in a book on the Liberal party's future, the best the Liberal party could do is to plagiarise a speech of a New Zealand businessman from almost 10 years ago on workplace relations.
I mean, no wonder people are concerned that the Liberal party doesn't have any ideas when they plagiarising the speeches of businessmen from another country, 10 years ago. That's hardly a forward-looking vision for Australia.
It's also concerning that Ms Bishop hasn't taken responsibility for this. We all make mistakes; the important thing to do is take responsibility for your mistakes and not blame your staff.
JOURNALIST:
Most people would know that politicians have speech writers, would they be a bit surprised that they would have people writing articles for them as well?
CHRIS BOWEN:
Well, certainly, politicians are busy, and it's not always possible to write everything yourself. I think most of us try to write everything we can ourselves; but the important thing is to take responsibility for it. You don't say anything, you don't publish an article, you don't make a speech, unless you're happy with the words. And if the words come back to bite you, you have to take responsibility for it.
CHRIS BOWEN:
The difficulty in proving cartels is substantial and will always be substantial. Of course, it is a lot easier for the ACCC to prove cases in conjunction with the DPP, if they do have a whistleblower.
Now that has been a matter for some discussion between the ACCC and the DPP, and they have in the memorandum of understanding, and in other discussions, have reached a conclusion about how immunity should be dealt with. It is very important. Of course, there needs to be safeguards on immunity as well, and they are very important in order to ensure that the person who instigated the cartel is not necessarily able to get immunity, but those who are aware of it are able to get immunity from prosecution. So it is important.
These are very nuanced issues, and we have spent a lot of time working these issues through. The package we are releasing today does strike the right balance. There will be some that says it goes not far enough. There will be some who say it goes too far. But I am confident; it strikes the right balance on these issues.
JOURNALIST:
will it be possible to plead down from a criminal to a civil charge?
CHRIS BOWEN:
The ACCC and the DPP will determine what charges are brought, and it will be up to the courts as to what convictions are reached in relation to those charges, but a charge brought as a criminal case I would expect to be heard as a criminal case.
JOURNALIST:
And what was the thinking underlining the removal of the dishonest requirement?
CHRIS BOWEN:
What we didn't want to see was the position where people who had been operating a cartel could come forward with a defence that "well, this is just always the way it's been done around here. We weren't being dishonest, we were trying to protect our employees, we just thought it was a good way to do business to break up markets between us and our competitors, we won't meaning to rip anybody off".
I don't think that's a legitimate defence. I was also concerned that the only country which has dishonesty as a defence, Great Britain, has not had a good record in bringing successful prosecutions. Since they have had their legislation, they have only been able to bring one successful prosecution, largely - through my consultations with the authorities in Britain - because of the dishonesty defence, which caused me great concern.
JOURNALIST:
The ACCC hasn't had phone tapping powers before, what sort of safeguards will be in place to make sure they know how to use them properly?
CHRIS BOWEN:
Well, the ACCC will be able to ask the Federal Police to conduct the telephone tap, they won't be doing that themselves. The Federal Police will need to seek a warrant from a duly authorised judicial officer, and that will be time limited. Which is the case for other warrants as well. So there are those safeguards in place, and appropriately so.
JOURNALIST:
Minister another mortgage fund has frozen accounts - is the time to reconsider the guarantee?
CHRIS BOWEN:
Look the Government will respond flexibly to this very turbulent situation in global financial markets. It has never been our intention to guarantee market linked investments, there is an important distinction there. There are meetings occurring today between that sector and the relevant agencies. There will no doubt continue to be meetings, and we will continue to respond flexibly and decisively as we need to, to this very turbulent time.
JOURNALIST:
So you are leaving the door open to extending the guarantee?
CHRIS BOWEN:
No, the situation is that we don't believe that it has been our intention to guarantee market linked investments, because a market linked investment, obviously by its nature, involves some level of risk.
But what we have done is move decisively on Friday to deal with the issue and will continue to respond decisively and flexibly in relation to what are very regular developments in this very turbulent time.
JOURNALIST:
Should Australians be concerned about the plummeting of the dollar?
CHRIS BOWEN:
Well of course, some people would be very pleased about the situation about the dollar. Some other people would be less pleased. We have a floating dollar in Australia, we have had since 1983. That gives Australia considerable flexibility as it did during the Asian financial crisis when the dollar fell substantially at that time too.
Exporters will be very happy. There are of course other impacts on the Australian economy, but it is a matter for the market. The Reserve Bank handles these issues daily under their delegation, and respond accordingly
Any other questions? Thanks for your time.