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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-06-22 Daily Xml
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INDEPENDENT SERVICE STATIONS

The Hon. J.S. LEE (15:22): I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question about independent service stations in South Australia.

Leave granted.

The Hon. J.S. LEE: In the March/April edition of the official magazine of the Motor Trade Association, it was reported that there have been 'recent displays of potential anti-competitive behaviour by major multinational service station operators across regional South Australia'. The independent service stations have raised concerns that they could be priced out of the market. John Chapman, Executive Director of MTA-SA, stated that:

What originally appeared like an isolated incident in Port Wakefield now appears to be a systematic strategy by the large operators right across regional South Australia to price the independent stations out of the market.

My questions are:

1. In addition to raising the issues with the Australian Competition and Consumer Commission, what support will the state government provide to address the concerns from independent service stations?

2. As reducing competition could mean that consumers will see higher petrol prices in the future, how does the state government propose to monitor potential anti-competitive prices creeping across South Australia?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for Gambling) (15:24): I thank the honourable member for her important questions—and they are important questions, too. Competition across our service station sector is an important issue; it affects the price of petrol and, of course, that affects the cost of our daily living. However, it is not a matter that comes under the responsibility of the consumer portfolio. It has some bearing on the Attorney-General's area of responsibility in terms of corporations, but I think that it is largely the responsibility of the federal government and the ACCC, which is in charge of ensuring that a marketplace remains free and open for competition. I am happy to write to the ACCC and raise that issue and encourage it to take the appropriate action.

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