The Treasurer today announced the release of the Productivity Commission's
final report on the Review of the National Access Regime and also announced
the Government's interim response to the report.
The National Access Regime allows third parties to seek access to the services
of certain essential infrastructure facilities on reasonable terms and conditions,
provided that commercial negotiations are unsuccessful. The services provided
by essential infrastructure facilities, such as natural gas pipelines, the electricity
grid and rail track, play a key role in Australia's economic and social development.
The Government considers that access regulation of essential infrastructure
in Australia provides broader public benefits. This includes the promotion of
competition in upstream and downstream markets which is essential for economic
growth and job creation and can contribute significantly to efficiency and innovation.
The Commission's report recommends retaining the Regime but proposes changes
aimed at improving the Regime's operation. In its interim response, the Government
endorses the thrust of the majority of the Commission's 33 recommendations.
The Government agrees that scope exists for improvements to the Regime. This
includes, for example, making changes to clarify the Regime's objectives and
scope, encourage efficient investment in new infrastructure, strengthen incentives
for commercial negotiation and improve the certainty and transparency of regulatory
processes.
The changes being proposed by Government provide a balance between ensuring
a means for business to gain access to infrastructure while providing incentives
for new investment in essential infrastructure. The changes are also designed
to provide access seekers and investors with confidence and certainty about
the regulatory framework so they are able to make well informed decisions.
Effective implementation of these proposals is important to achieve the Government's
targeted benefits. Given that a few recommendations create the prospect of changes
to clause 6 of the Competition Principles Agreement (CPA) - to which all State
and Territory governments are participants - the Government will write to Premiers
and Chief Ministers, asking them to consider the Report's recommendations and
the Commonwealth's interim response. Following these consultations, a final
Government response will be released.
The Government's interim response to the report is available at http://www.treasurer.gov.au.
This review fulfils the Commonwealth's CPA obligation (clause 5 of the CPA) to review the legislation which establishes the National Access Regime, to determine whether any restrictions on competition should be retained in the net public interest.