Ms Hoare asked the Treasurer, upon notice, on 10 February 2004:

(1) Does he have responsibility for the regulation and monitoring of gas prices.

(2) Does he support competition within the gas market.

(3) Has the pricing for gas supply ever been examined under the Commonwealth's prices surveillance regime.

(4) Is he able to say whether non-competitive markets in gas supply where there is a monopoly provider are likely to have higher gas prices than in competitive markets.

(5) Is he aware that a manufacturing firm intent on moving to Morisset in the electoral division of Charlton has been discouraged from establishing a business due to the significantly higher gas prices because there is only one provider of gas.

(6) Would he consider whether the circumstances warrant the monitoring of gas prices in the Morisset area to ascertain whether they can be justified on the basis of cost plus a reasonable commercial rate of return.

(7) Will he establish an inquiry to monitor gas prices in the Morisset area; if not, why not.

Mr Costello (Treasurer) —The answer to the honourable member's question is as follows:

(1) No

(2) Yes

(3) No

(4) The Australian Government encourages competitive markets and appropriate regulatory frameworks where monopoly arrangements exist. As a result of National Competition Policy, the NSW Government implemented full retail contestability in January 2002. This provides the freedom for new gas suppliers to enter NSW markets.

(5) The regulation of gas pricing in Morriset is the responsibility of the NSW State Government.

(6) The regulation of gas prices is the responsibility of the State Government.

(7) No. See answer to Question (5).