weekly hansard - Queensland Parliament - Queensland Government

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23 Aug 2005 Queensland Competition Authority Amendment Bill 2591 that was commenced with the competition policy reforms of the nineties. Principally the amendments before the House today provide for three further enhancements that will ensure that the state’s critical infrastructure will be utilised in a manner that is most beneficial to the broader public good and provide for an efficient use of that state infrastructure. The key amendment, which has been addressed by the two members who have spoken already, relates to an amendment which gives effect to the original intention of the legislation in providing for access to infrastructure that has monopolistic tendencies, and that is that, in relation to one particular asset being a piece of infrastructure—the Dalrymple Bay coal terminal—the owner of that facility is now different from the operator. I think it is somewhat strange that we get people in this debate criticising the decision to provide private sector opportunity to participate in the provision of infrastructure and then immediately turn on their dial in a sort of chip wrapper effort at economic philosophy and then decry that circumstance as causing all these problems when, in fact, they are the champions of providing these sorts of opportunities. Once we have provided that opportunity for private sector involvement in the provision of infrastructure they immediately join the debate only to decry it as something that is ineffectual and causative of problems which, of course, it is not of itself. These amendments will obviously have application in the context of the Dalrymple Bay coal terminal but they are certainly not confined or aimed only at that. The provision of private sector opportunities within infrastructure will continue to be something that the government fosters, and properly so. In those circumstances these amendments to the competition legislation have a much broader application. The other amendments that are contained in this bill are also worth mentioning. They provide for a greater flow of information between regulated entities and the regulators, which can only enhance the information upon which regulatory decisions are made, and I think axiomatically improve the regulatory environment within which these assets operate. Finally, the third amendment relates to, in particular at this stage, providing for the Queensland Competition Authority to have a role in mediating, arbitrating and participating in the implementation of voluntary codes of conduct as an alternative to more heavy-handed, if you like, regulation of such assets. In that regard, these three amendments are important and provide for a continuation of an agenda that says that we are about enhancing productivity and prosperity in the state. There can be no question that the effort of the state government in providing the essential infrastructure for the state stands in stark contrast to that of the federal government. That is the daily grind and the daily grist of this parliament. Again the stark difference was apparent in question time today between the efforts that we are putting into our capital works budget and the provision of essential infrastructure now and into the future and the fact that the Commonwealth government has vacated the field. I commend the bill to the House. Mr KNUTH (Charters Towers—NPA) (2.44 pm): The Premier has stated— The first component of the bill amends the state’s third party access regime framework to ensure the state’s competition framework is keeping pace with the multitude of contractual relationships utilised by modern business. The state’s third party access regime establishes a legal right for competing firms to share certain infrastructure services. This enhances competition and benefits Queensland consumers. I feel that at this present moment this is an important issue. I had a meeting at Clermont with the Blair Athol mine manager and his concern was that they are actually decreasing production because they cannot get their coal out to Abbot Point and Dalrymple Bay quick enough. They are decreasing production but the mine is extending for another year. I do not believe that this is good for the local economy and local business. I believe that it is very important that that missing railway link between Goonyella and Newlands mine is built to take pressure off one particular harbour. As members would be aware, that region produces over $6 billion in gross revenue. I believe that is a very important issue. It also provides about $1 billion to the government in state revenue. I quote again— Under arrangements where an infrastructure owner contracts out the operation of infrastructure, the bill ensures: ... the state’s regulator is able to enforce access undertakings and manage access disputes directly against access providers, when they are not the owners of facilities, without having to rely on contractual provisions in agreements between an owner and an access provider. I believe that this is an important issue. Being a railway employee for 19 years I actually played a part in building many access lines and opening up new lines. Our fathers and forefathers built Queensland Rail. It is through their work and toil that it has been a wonderful service provider for rural and regional Queensland in the past. I still cannot see the logic that we have built a railway track, Queensland Rail employs Queensland Rail employees to maintain that track, to keep it up to scratch, and yet there are now other companies that can ride over Queensland Rail tracks. I just cannot see the logic in that. It is a state government asset; it is Queensland Rail. We built it and then we have these other companies that say they can compete and can haul coal and containerised freight cheaper than Queensland Rail. Meanwhile we are paying for the upkeep of this rail.
2592 Queensland Competition Authority Amendment Bill 23 Aug 2005 I wish to provide an example. My partner and I buy a cattle property. We fence it, put in dams, provide the infrastructure, pay the rates and so on. Another company comes along and puts its cattle on our property, does not pay for the upkeep and does not pay for the fences. All of a sudden it says that it is competing against us and it sells its cattle cheaper than our cattle. Well, of course they will be able to compete because they are not paying for the upkeep or the expenses. This is exactly the same as what is happening in relation to Queensland Rail at this present moment. Mr NEIL ROBERTS (Nudgee—ALP) (2.49 pm): Through the budget process and support for effective and socially responsible implementation of national competition policy, the Queensland Labor government has demonstrated its economic credentials and its commitment to the continued economic development of the state. The results speak for themselves. For the 10th successive year our economy will outperform the nation. Economic growth in 2004-05 is estimated to be 4.25 per cent—more than double the two per cent estimated for the rest of the country. Unemployment is at record lows and is expected to average around five per cent for the next two years. Consumer spending is forecast to be strong over the next two years, as is public and private sector capital investment. All of these factors result in a higher standard of living for Queenslanders. It is an interesting footnote in our history that some of the most significant and lasting economic reforms have been implemented by Labor governments, particularly at the national level. Freeing up our financial markets, floating the dollar, active trade engagement with Asia and the implementation of national competition policy reforms are a few of the more significant. I have to confess that in 1995 when the agreement was reached between the states and territories and the Commonwealth to implement national competition policy I, along with many, was unconvinced that it was going to deliver the economic benefits promoted by its proponents. The Hilmer report was the subject of significant public debate prior to the formal adoption of national competition policy in 1995. Like many on both sides of this House, I raised a number of criticisms and concerns particularly about the way in which national competition policy was being implemented. I think it is fair to say that there was an ideological agenda being pursued by some which resulted in undesirable outcomes in some instances. However, I am pleased to record that the Queensland government, under the leadership of our Premier, was instrumental in ensuring that national competition policy was and is now implemented in a more socially responsible way. In particular, it introduced a fairer public benefits test which takes account of the impact national competition policy might have on employment and other social factors. After 10 years of its implementation and the opportunity to observe the outcomes, I now firmly believe that national competition policy has been the major contributor to our state’s and our nation’s much-improved economic performance. I am also convinced that it is essential that we remain committed to the continued implementation of the policy. As in 1995, there is now a need to continue the debate about further economic reforms in this country and about the appropriateness of any proposed reforms. With the increasing globalisation of the markets in which we operate there is a need for continuous improvement in the way in which we manage our state’s and our nation’s infrastructure. As a state and a nation we are relatively small fry in international economic terms. For example, we produce about one per cent of world output, compared with the 30 per cent produced by the United States. In order for us to maintain and improve our standard of living we must engage in trade with other nations and also encourage appropriate investment in productive assets. For that to happen our major infrastructure, including our ports, roads and railways, must operate efficiently and effectively and we must have the appropriate structure and procedures in place to achieve this. This will help contain costs and facilitate the delivery of resources and products to where they need to be. It is for that reason that bills of this nature, although relatively procedural in nature, are an important step in the continuing process of reform. This bill has as its major aim to facilitate a better regulatory outcome for our major pieces of infrastructure. It will enable the independent regulator of competition in Queensland—the Queensland Competition Authority—to more effectively perform its role, particularly in instances where major pieces of infrastructure are leased by third parties. As the independent regulator of competition in the state, the QCA plays a very important role in the development of our resources by overseeing government monopoly business activities, third party access arrangements, the competitive neutrality complaints process and the regulation of gas and electricity distribution businesses. This bill proposes to address three areas which are important to this process. Firstly, the current state based access regime does not allow the QCA to directly enforce access undertakings against and manage disputes in cases where a facility is leased by an operator—that is, where the operator is not the owner of the asset. Currently, undertakings may only be enforced indirectly via contractual arrangements between the owner and the lessee. Changes proposed under this bill will enhance the QCA’s enforcement capabilities and will give it the discretion to take action against access providers who are not the actual owners of the assets concerned.
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PROOF ISSN 1322-0330 WEEKLY HANSARD
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Table of Contents — Tuesday, 23 A
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2536 Papers 23 Aug 2005 PAPERS PAPE
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2538 Ministerial Statement 23 Aug 2
Page 9 and 10: 2540 Ministerial Statement 23 Aug 2
Page 19 and 20: 2550 Scrutiny of Legislation Commit
Page 21 and 22: 2552 Private Members’ Statements
Page 23 and 24: 2554 Questions Without Notice 23 Au
Page 33 and 34: 2564 Members’ Ethics and Parliame
Page 35 and 36: 2566 Matters of Public Interest 23
Page 45 and 46: 2576 Constitutional and Other Legis
Page 47 and 48: 2578 Transport Legislation Amendmen
Page 49 and 50: 2580 Transport Legislation Amendmen
Page 51 and 52: 2582 Housing Legislation Amendment
Page 53 and 54: 2584 Education (Queensland College
Page 55 and 56: 2586 Succession Amendment Bill 23 A
Page 57 and 58: 2588 Succession Amendment Bill 23 A
Page 59: 2590 Queensland Competition Authori
Page 63 and 64: 2594 Queensland Competition Authori
Page 69 and 70: 2600 Racing Venues Development Amen
Page 81 and 82: 2612 Plumbing and Drainage and Othe
Page 99 and 100: 2630 Child Safety Legislation Amend
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2642 Adjournment 23 Aug 2005 One pa
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2644 Adjournment 23 Aug 2005 years.
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2646 Adjournment 23 Aug 2005 Finall
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