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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-04-29 Daily Xml
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MARITIME SERVICES (ACCESS) (MISCELLANEOUS) AMENDMENT BILL

Introduction and First Reading

Received from the House of Assembly and read a first time.

Second Reading

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (19:57): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

In February 2006 COAG signed the Competition and Infrastructure Reform Agreement (CIRA) to provide a simpler and consistent national system of economic regulation for nationally-significant infrastructure including ports, railways and other export related infrastructure. The agreed reforms aim to reduce regulatory uncertainty and compliance costs for owners, users and investors in significant infrastructure and to support the efficient use of national infrastructure.

The agreement commits South Australia to review the regulation of ports and to make certain amendments to the State access regime by providing consistent regulatory principles aimed at ensuring efficient and timely investment in infrastructure and effective competition in the provision of port services (CIRA, Clause 2).

In 2007 the Government directed the Essential Services Commission of South Australia to extend the scope of the review of the Maritime Service (Access) Act 2000 to include provision of advice on:

any amendments to the ports access regime that would be needed to comply with certain parts of clause 2 of the CIRA;

any other changes to the access regime that may improve its overall effectiveness.

This review identified a number of areas where the Maritime Service (Access) Act 2000 could be modified to provide both greater consistency with the CIRA and greater certainty to regulated operators and customers.

Amendments to achieve greater national consistency

The Bill provides for the adoption of regulatory principles consistent with those to be employed in all third party access regimes nationally. These principles include:

An objects clause to promote economic efficiency and effective competition;

Six month time limits for conciliation by the Commission and arbitration decisions made by the arbitrator to provide greater certainty to business and to reduce the time and costs associated with settling access disputes; and

Pricing principles to be taken into account by an arbitrator.

Other improvements to the access regime

The regulatory period for the access regime and price regulation has been extended from 3 to 5 years. This will reduce regulatory costs and uncertainty to the port operators, provide a suitable timeframe to examine outcomes over a period and provide consistency with the regulation of other infrastructure businesses.

The Bill also makes improvements to the negotiation and arbitration processes set out in Part 3 of the Act. These amendments aim to improve the clarity and efficiency of these processes and to reduce the regulatory impact on business.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of Maritime Services (Access) Act 2000

4—Amendment of section 3—Objects

This amendment broadens the objects of the Act to provide for the facilitation of competitive markets in the provision of maritime services through the promotion of the economically efficient use and operation of, and investment in, those services.

5—Amendment of section 4—Interpretation

This amendment deletes the definition of initial period of price regulation. The deletion of the defined term is consequential and reflects the repeal of section 7.

6—Amendment of section 6—Certain maritime industries to be regulated industries

The amendments to this section are two-fold. They 'tidy' the section by repealing subsections that are spent (see also clause 7) and insert new subsections that are consistent with the amendments proposed to section 43 by clause 12. Proposed subsection (2) provides that the Commission may make a price determination under Part 3 of the Essential Services Commission Act 2002 relating to essential maritime services. This power is currently provided for by a regulation made under the Essential Services Commission Act 2002. That regulation will be otiose following the enactment of this measure. Proposed subsection (3) provides that such a price determination must specify an expiry date that is not later than the date on which the prescribed period in which the determination takes effect ends.

7—Repeal of section 7

This clause repeals section 7. The operation of this section is spent.

8—Amendment of section 18—Power to refer dispute to arbitration

This clause provides that the Commission may refer the dispute to arbitration if the dispute is not resolved within 6 months after the referral of the dispute to the Commission under section 16.

9—Insertion of section 30A

This clause inserts new section 30A

30A—Time limit for arbitration

Proposed section 30A provides that an award must be made within the period of 6 months from the date on which the dispute is referred to arbitration (the standard period).

However, if after the commencement of the standard period the arbitrator exercises a power under this Part in relation to the provision of information or documents, any period between the date of the exercise of the power and the date of compliance is not to be taken into account when determining the end date of the standard period.

10—Amendment of section 32—Principles to be taken into account by arbitrator

This clause adds to the principles to be taken into account by the arbitrator by including reference to the following pricing principles relating to the price of access to a service:

(a) that access prices should allow multi-part pricing and price discrimination when it aids efficiency;

(b) that access prices should not allow a vertically integrated operator to set terms and conditions that would discriminate in favour of its downstream operations, except to the extent that the cost of providing access to others would be higher;

(c) that access prices should provide incentives to reduce costs or otherwise improve productivity.

11—Amendment of section 40—Appeal from award on question of law

This clause inserts new subsection (4), which provides that unless the Court specifically decides to suspend the operation of an award until the determination of an appeal, an appeal does not suspend the operation of an award.

12—Amendment of section 43—Review and expiry of Part

This clause amends section 43 to increase the period between each review conducted by the Commission under the section. The period between reviews is increased from 3 years to 5 years. This clause ensures that the next review will be conducted within the last year of the period ending 30 October 2012.

13—Amendment of section 46—Transitional provision

This clause deletes the note that follows subsection (3) of section 46 and inserts a new subsection that provides for the continuation of the price determination in force immediately before the commencement of that subsection until 30 October 2012.

Debate adjourned on motion of Hon. D.W. Ridgway.

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