25 November 1998

ACCC to Mediate Following Newsagents Competition Ruling

The Minister for Financial Services and Regulation, the Hon Joe Hockey MP, today announced that the Australian Competition and Consumer Commission would mediate between groups following the Australian Competition Tribunal decision on newsagents' home delivery and sub-agency arrangements.

The ACCC will advise the Minister on the outcome of the mediation by 15 February 1999.

The Minister has had discussions with key industry representatives, including the Australian Newsagents Federation.

"The Government is aware that the existing system provides a low-cost, efficient and timely means of newspaper home delivery and the Prime Minister, Mr Howard, has repeated his commitment to the preservation of our high standard of home delivery service," the Minister said.

"We are working to see this commitment honored by bringing affected parties together in an attempt to facilitate the key parties coming to a mutually acceptable solution within an appropriate time. I am very glad the ACCC will play a key role in achieving this outcome."

The Australian Competition Tribunal's determination will cause no change to the existing system of home delivery until February 2001, however other aspects of the industry agreements, such as agreements for exclusive distribution of magazines, may be affected as early as July 1999.