Mr ENTSCH (9:47 AM) —I move:

That the bill be now read a second time.

The Petroleum Retail Legislation Repeal Bill 1998 is a key element of the government's strategy for the deregulation of the petroleum products industry. All sectors of the community benefit from the deregulation package, from the small service station operator who benefits from the real protections of the strengthened Oilcode, to the consumer who benefits through greater competition at the pump, to the refinery worker whose oil company is better able to meet the competitive threat of imports.

Repeal of the Petroleum Retail Marketing Sites Act 1980 and the Petroleum Retail Marketing Franchise Act 1980 will remove the artificial barriers to competition created by government regulation. By removing the impediments to competition, downward pressure will be placed on petrol prices, particularly in country areas. Greater competition should, over time, reduce the disparity in petrol prices between the city and the country, benefiting consumers, farmers and rural businesses alike.

In removing the barriers to competition, the government has taken heed of the issues that saw the acts introduced in the first place and addressed them with meaningful measures that preserve the full force of competition. In pursuing those necessary reforms, the government has been mindful of its commitment to maintaining small business protection in the sector and has strengthened it, providing real and meaningful protections for small service station operators.

Since coming into office, we have strengthened small business protections against unconscionable conduct, redrawing the relationship between large and small firms so that it is more fair and equitable. Placing the strengthened Oilcode in regulation under part IVB of the Trade Practices Act 1974 means that smaller participants in the industry will have legally enforceable protection from exploitation by larger firms.

The new Oilcode will ensure that operators have a thorough understanding of their rights and obligations to their suppliers. It will also provide a mechanism where disputes can be settled expeditiously at low cost and to all parties' mutual satisfaction. The principles of the new Oilcode were developed through many months of hard negotiation by industry participants, facilitated by the government through the appointment of the Hon. Andrew Rogers QC to chair negotiations.

In light of our commitment to regulatory efficiency, we have given the industry players the opportunity to determine the regulatory framework within which they operate. Clearly, a negotiated outcome would serve the industry best and create an environment of cooperation within retail networks. While some issues could not be resolved by mutual agreement of the industry participants, the government welcomed the debate on these issues and drew upon the negotiations in resolving the outstanding matters.

The result is a set of draft principles that cover the major issues impacting on petroleum retailing, addressing them in a way that recognises the needs of all industry participants. Apart from the very real progress that was made on finalising the Oilcode, the government was heartened by the cooperation and good spirit shown during the negotiations and by the recognition of all the parties that some agreement must be reached for the petroleum retail sector to be sustainable.

To further facilitate agreement amongst the industry, the government intends to release a draft Oilcode in mid-December for consideration by interested parties. The government will also refer this bill to a Senate legislation committee. Issues of concern to smaller operators, such as open access to terminals, can be considered by the Senate committee. The deregulation of the petroleum products market is but one element of a strategy to address the issues facing the downstream petroleum products sector in Australia.

The government has already implemented a number of reforms to make the petroleum market more competitive. Prices surveillance and the setting of a maximum wholesale price have been discontinued, as they had the perverse effect of discouraging permanent discounting below the maximum. In return, all four oil majors now provide open access to their terminals. This means customers for bulk fuel supply are able to directly access terminals for supply, permitting independent operators, large customers and groups such as farmers cooperatives to access cheaper fuel. Mediation and arbitration is available to resolve disputes.

The oil majors are committed to support an independent price monitoring system for 100 country towns, which will be monitored by the Australian Automobile Association. A cooperative effort is needed from all of those with an interest in the industry's future, to work together to better enable this important sector of the economy to meet the challenges of the 21st century.

The government is playing its part in this, having announced that an industry action agenda will be developed to address the issues facing the downstream petroleum products sector in a holistic way. The deregulation package, of which the repeal of the sites and franchise acts is but a part, is a down payment on the government commitment to all participants in this industry, that the government will respond to the issues the industry faces.

The cooperation within the industry that has led to the finalisation of the principles of the strengthened Oilcode reinforces the government's belief that participants can look beyond their own interest and towards the future and an improved operating environment for all. The industry action agenda builds upon this and will deliver Australia an efficient and sustainable petroleum products sector for many years to come. It is further demonstration that the Liberal and National parties are the only groups with the commitment to deliver real reforms in the petroleum sector.

Over the last 30 years, there have been a number of inquiries into the petroleum industry. The only two governments which have implemented measures in response to those inquiries are the Fraser government, which in 1980 introduced the Fife reforms, and the Howard government, which has delivered this package of reforms.

On the other hand, the Australian Labor Party, over 13 years in government, comprehensively failed to do anything to introduce similar reforms—reforms which are about making the Australian petroleum products industry work for all Australians, be they producers, retailers or consumers of petroleum products; reforms which repeal legislation that has outlived its usefulness, while still addressing the issues that made the legislation necessary in the first place; reforms which deliver upon the government's election commitment to reform the petroleum market, but do so in a way that remains sensitive to the needs of smaller players in the industry, who often are not in a position to adequately protect themselves.

This bill, and the other aspects of the deregulation package, are about fairness—fairness to the oil companies to be able to meet the challenges of the market, fairness to the small service station operator when dealing with their oil company, and fairness to the consumer, who will reap the dividends of greater competition.

I commend this bill to the House. I present the explanatory memorandum to the bill.

Debate (on motion by Mr Horne) adjourned.