The Australian Senate Select Committee on Scrutiny of New Taxes has been inquiring into a range of carbon tax pricing mechanisms.
Frontier (Australia) appeared in front of the committee on 1 September 2011 and put forward its analysis of the carbon price package released by the Australian Government in the publication Strong Growth, Low Pollution (July 2011). Frontier’s submission comments on recent developments, including:
For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com.au or call +61 (0)3 9620 4488.
Today, the Federal Court of Australia dismissed claims by the Australian Energy Regulator (AER) that Stanwell Corporation Limited, a Queensland generator, had breached the ‘good faith’ provisions in the National Electricity Rules. The AER had alleged that Stanwell did not make several of its offers to generate electricity on 22 and 23 February 2008 in 'good faith' contrary to the Rules. The proceedings arose from the AER's report into sustained high electricity prices in Queensland on 22 and 23 February 2008. The AER had sought civil penalties, a compliance program, and costs.
Frontier Economics (Australia) advised Stanwell’s solicitors, Minter Ellison.
For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com.au or call on +61 (0)3 9620 4488.
The Federal Court of Australia today found that Queensland builders had engaged in price fixing by requesting and exchanging cover prices when tendering for government building projects.
A builder requested a cover price when it had decided it did not wish to win a particular project. To do this, it would call a second (competing) builder who was submitting a tender to ask for a ‘cover price’. The cover price quoted would be above the price at which the second builder intended to bid. The first builder would then submit the cover price in the knowledge that it would not win the tender. The Australian Competition and Consumer Commission (ACCC) argued that this behaviour between competitors fixed, controlled or maintained prices. The Court agreed.
Frontier (Australia) advised the ACCC and gave evidence at the trial.
For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com.au or call +61 (0)3 9620 4488.
An international air freight cartel, involving airlines from New Zealand, Japan, the UAE, Malaysia, Korea, Thailand, Singapore and Australia, has been the subject of proceedings in courts around the world. The New Zealand Commerce Commission also issued proceedings concerning the operation of the cartel in New Zealand. However, some of the airlines claimed that the jurisdiction of the New Zealand courts did not apply to in-bound cargo because the markets in which airlines competed in the provision of in-bound air cargo services were located wholly outside New Zealand.
Before hearing the substantive trial, the High Court decided that there should be a preliminary trial on the issue of market definition. The trial was conducted on the basis of agreed facts, and the only witnesses were economic experts. The Court deemed the market for in-bound freight to be partly in New Zealand. This means that New Zealand courts do have jurisdiction over the air freight cartel relating to both in-bound and out-bound freight. The High Court of New Zealand today handed down its decision in the first half of the air freight cartel case.
Frontier (Australia) was retained by the Commerce Commission and gave evidence at the trial.
For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com.au or call +61 (0)3 9620 4488.
The Federal Court today issued its decision in the case of Sportsbet Pty Ltd v State of Victoria. The court found that aspects of the Gambling Regulations Act of the State of Victoria acted as a burden on commerce and trade within Australia, and that they entrenched the competitive advantage held by Tabcorp, the incumbent provider of fixed-odds betting services, over new entrants such as Sportsbet.
Sportsbet had been prohibited from offering fixed-odds betting to patrons through computer terminals at a hotel, on the grounds that current gambling regulations granted exclusive rights to Tabcorp to offer fixed-odds betting at physical premises in the state of Victoria. Sportsbet, which is registered in the Northern Territories, claimed, inter alia, that the current regulations constituted a protectionist measure that discriminated against interstate businesses.
Frontier (Australia) was retained by the solicitors for Sportsbet and Philip Williams, Frontier’s chairman, gave evidence during the proceedings.
For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com.au or call on +61 (0)3 9620 4488.
