-
Our Ref C20081269 Contact Officer: Rohan Connor Contact Phone:
02 6243 1354
20 February 2008
Australian
Commission
GPO Box 31 31 Canberra ACT 2601
23 Marcus Clarke Street Canberra ACT 2601
tel: (02) 6243 11 11 fax: (02) 6243 11 99
Dear
Rinker Australia Pty Ltd application for revocation and
substitution A91082 - interested party consultation, interim
authorisation
The Australian Competition and Consumer Commission (ACCC) has
received an application for re-authorisation from Rinker Australia
Pty Ltd, trading as Readymix Concrete (Readymix). The ACCC invites
you to comment on the application. A summary of the authorisation
process including how to make a submission to the ACCC is
attached.
Readymix has sought re-authorisation of a cartage allocation
system amongst independent concrete carriers in Western Australia.
The Equal Opportunity of Trips system works by allocating a number
of points per load and distance. On a rolling 12 month basis, the
system ensures that a carrier's aggregate points are within a
specified margin (currently k 10%) of the Western Australian
metropolitan fleet average.
The authorisation previously granted to these arrangements in
2003 is due to expire on 24 February 2008.
A full copy of the application for authorisation is available on
the ACCC's website . Alternatively, you can contact Rohan Connor on
(02) 6243 1354 to obtain a hard copy of the application and
submission.
Interim authorisation
Readymix requested interim authorisation to continue to operate
its cartage allocation system in Western Australia while the ACCC
considers and evaluates the merits of the application.
The ACCC has granted Readymix interim authorisation on the basis
that there were benefits in allowing the cartage allocation system
to continue in its current form while the substantive application
is assessed. The ACCC notes that granting interim authorisation
will prevent disruption to the commercial operations of both
Readyrnix and independent contractors during the assessment
period.
-
The ACCC may review its decision on interim authorisation at any
time. The ACCC's decision in relation to interim authorisation
should not be taken to be indicative of whether or not final
authorisation will be granted by the ACCC.
Request for submissions on the application for authorisation
The ACCC invites you to make a submission on the likely public
benefits and effect on competition, or any other public detriment,
from the proposed arrangements.
In support of its application, Readyrnix claims that the cartage
allocation system, known as Equal Opportunity of Trips (EOT)
system, has resulted in public benefits that include:
improved efficiency of operations by providing an incentive for
carriers to cart full loads
improved efficiency of operations through lowered transaction
costs, and those of 'lorry-owner drivers' (LODs), by negotiating
under the arrangement
improved industrial harmony
environmental benefits of decreased washing of agitators,
reduction in traffic on roads
improved public safety by removing incentives for drivers to
perform their duties in an unsafe manner, such as 'first come first
served' allocation system.
In granting authorisation to the present cartage allocation
system in 2003, the ACCC noted the following potentially
anticompetitive detriments:
restriction on the ability of Readyrnix to allocate work in a
discretionary, efficiency maximising manner;
restriction on the ability of concrete carriers to 'opt-out' of
the EOT system
a reduction in concrete carrier's ability and incentive to
provide differentiated services, for example in areas such as
customer service, in order to obtain additional cartage work.
To assist the ACCC in its consideration of the current
application it would be helpful to obtain your comments on
Readymix's claims as well as the anti-competitive detriments (if
any) that have resulted from the introduction of the EOT system.
Please note, the ACCC recommends that you consider Readymix's
submission before making a submission.
The ACCC seeks your comments on the application for
authorisation by Thursday, 13 March 2008. The ACCC asks for
submissions to be in writing so they can be made publicly
available. All submissions will be placed on the ACCC's public
register subject to any request for exclusion (see attached
guidelines). Applicant
-
Timetable
The ACCC will progress its assessment of the application in a
timely manner. An indicative timetable is set out below for your
information.
If you wish to lodge a submission please address it to:
8 February 2008
21 February 2008
13 March 2008
27 March 2008
ApriVMay 2008
MayIJune 2008
JuneIJuly 2008
The General Manager Adjudication Branch Australian Competition
& Consumer Commission GPO Box 3131 Canberra ACT 2601
Lodgement of application and supporting submission.
Public consultation process begins.
Closing date for submissions from interested parties.
Applicant responds to issues raised in the public consultation
process.
Draft determination.
Public consultation on draft determination including any
conference if called.
Final determination.
Submissions can also be lodged by email to
ad~udication~accc.~v.au or faxed to (02) 6243 121 1.
Please advise if you do not wish to make a submission at this
time, but would like to be informed of the progress of the
application at the draft and final determination stages.
Please provide a preferred contact email address for future
correspondence.
You may forward this letter to any other party who may wish to
make a submission to the ACCC regarding the application.
-
This letter has been placed on the ACCC's public register. If
you wish to discuss any aspect of this matter, please do not
hesitate to contact Rohan Connor on (02) 6243 1354 or Hew Atkin on
(02) 6243 1 3 63.
Yours sincerely
(-.$ DaVidHatkld A/g General Manager Adjudication Branch
-
Rinker Australia Pty Ltd application for revocation and
substitution A91082 - list of interested parties
BGC Australia Pty Ltd
Boral Limited
Hanson Australia Pty Ltd
WA Premix
Go Crete Pty Ltd
Transport Workers' Union (WA)
Australian Government Department of Education, Employment and
Workplace Relations
Concrete Institute of Australia (WA)
Cement Concrete & Aggregates Australia
Australian Trucking Association
Cement Australia
Blue Circle Southern Cement
Mater Builders Association (WA)
State of Western Australia Department of Consumer and Employment
Protection
Relevant concrete carriers currently operating under the EOT
system