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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-10-15 Daily Xml
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STATUTES AMENDMENT AND REPEAL (TRADE MEASUREMENT) BILL

Second Reading

Adjourned debate on second reading.

(Continued from 13 October 2009. Page 3476.)

The Hon. R.P. WORTLEY (15:28): I rise today to contribute some remarks in relation to the bill, which is intended to give legal effect to COAG's 2007 decision to reform trade measurements and introduce a national trade measurements system.

This is no small matter. I am advised that the trade measurement system in this country provides an essential foundation for transactions valued at more than $400 billion a year. About three quarters of these dealings are between businesses, often for millions of dollars, with the balance being retail transactions that can be as simple as the purchase of a dozen 700 gram eggs from a corner shop. Clearly, whatever the magnitude of the dealings, certainly a measurement is essential. For purchasers it is a matter of receiving the goods they have bought in reliance on a price per metre, litre or kilogram; and, for vendors, even small errors in weight, length or volume can be significant. The use of inaccurate scales can result in considerable accumulated loss over time so certainty and integrity in measurement is clearly of benefit to both parties to a transaction.

Trade measurement may be defined as the measurement of area, weight, length, volume or count to determine the price in a transaction. As an example, the petrol pump measures the volume of petrol delivered and calculates its total price. A 'trade measurement system', therefore, is the phrase used to describe the infrastructure required to ensure that the petrol pump (or other trade measuring instrument) is accurate so that both vendor and purchaser can be confident that a fair result has been arrived at.

Section 51 of the Commonwealth Constitution confers on the commonwealth the power to make laws with regard to, among other things, weights and measures. The National Measurement Act presently allows for the defining of measurement standards and units, patent approval of instruments for legal purposes or in trade, and tracing of measurement. However, it does not encompass inspection and enforcement matters (save for utility meters) or the regulation of trade measurement. Those powers have, to date, resided with the state and territory governments, meaning that nationwide we have had eight systems of trade measurement.

The situation is clearly in need of streamlining and, to this end, the bill before us today will repeal the Trade Measurement Act 1993 and the Trade Measurement Administration Act 1993. It incorporates certain transitional provisions and makes a small consequential amendment to the Natural Resources Management Act 2004. Since the commonwealth has power by virtue of section 51, no referral of powers is required.

As for the advantages of the new regime, just consider those present inconsistencies and differences in trade measurement between the states and territories. In some instances, multiple licences are required for cross-border verification operations. Enforcement regimes differ, which results in road bumps on the highway of economic activity—unnecessary, often complex and frequently costly road bumps.

This new national system will mean a more seamless economic system, free of the overlaps, duplication and inconsistencies that so clearly impede trade and commerce when the state statutes interact. Members should be assured that not only will the new system continue to make certain the reliability of trade measuring systems such as scales and pumps but it also contemplates the introduction of new technologies.

In addition, uniform practices will be established for each class of measurement instrument so that traders will no longer have to deal with that inconsistency of practice across states. As before, the majority of verifications of trade measurement systems will be performed by the private sector with licences issued on the basis of competence.

To assist licensees and traders, the federal government will develop nationally-recognised qualifications for verifiers. Not only will this provide certainty for those involved in transactions but it will also provide national standards for skills training and development in the workforce. Commonwealth inspectors will perform an inspection function so as to ensure that licence holders and traders alike maintain the accuracy of their trade measuring instruments.

Meanwhile, the National Measurement Institute will continue to provide the technical infrastructure to support trade measurement and will administer the new system. While the National Measurement Amendment Act 2008 came into operation on 1 July 2009, the National Measurement Institute will commence administration of the system on 1 July 2010. The bill before us today facilitates this process and looks towards the implementation of necessary and welcome reforms. I commend the bill.

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy) (15:34): I have checked and I have agreement to put this bill into committee but not to progress, and for any other matters to be dealt with at clause 1. Thank you for your confidence and trust, Mr Acting President.

By way of concluding remarks, I wish to thank those members who have made contributions to the second reading debate, although I am disappointed that the opposition has indicated that it will not be supporting this bill. I find it difficult to understand that position, given that this bill is really a very common-sense piece of legislation. It is really about national consistency in relation to trade measurement. Currently, the responsibility around trade measurement rests with individual states and territories, so we have a number of states doing different things. This is about streamlining and making more efficient a system that is important to business right throughout the nation, and it also affects our international trade. This a very sensible and logical step to be taking. This bill would enable the repeal of the relevant South Australian legislation, which would then enable the commonwealth legislation to take effect.

I urge all members to support the bill. It is a very sensible step to be taking. The Hon. Terry Stephens asked some questions, and I am not sure whether there are answers to all of them. We are certainly checking those out and, where I can provide answers, I will do so during the committee stage. I thank all members.

Bill read a second time.

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