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TRADE PRACTICES REVISION BILL 1986

Order of the Day read for the adjourned debate on the motion of the Minister for Resources and Energy (Senator Evans)-That this Bill be now read a second time.

Debate resumed.

Question-put.

The Senate divided

AYES, 36

Senators- Aulich Black Bolkus Childs Chipp Coates Coleman Cook Cooney Crowley Devlin Elstob Evans Foreman Georges Gietzelt Giles Grimes Haines Jones McClelland McIntosh McKiernan Macklin Mason Morris Ray Richardson Robertson (Teller) Ryan Sanders Siddons Tate Vigor Walsh Zakharov

NOES, 27

Senators- Archer Baume, Michael Baume, Peter Bjelke-Petersen Boswell Brownhill Carrick, Sir John Collard Crichton-Browne Durack Guilfoyle, Dame Margaret Hamer Jessop Kilgariff Knowles MacGibbon Messner Newman Parer Puplick Reid Sheil (Teller) Short Teague Vanstone Watson Withers

And so it was resolved in the affirmative.

Bill read a second time.

The Senate, according to Order, resolved itself into Committee for the consideration of the Bill.

In the Committee

Clauses 1 to 16, by leave, taken together and agreed to.

Clause 17 read-

Senator Short moved an amendment, viz: Page 7, paragraph (b), after proposed new sub-section 46 (7), add the following new sub-section:

""(8) For the purposes of sub-section (7), an inference may be drawn from the conduct of a corporation only in the absence of any other reasonable explanation for the conduct.''.

Debate ensued.

Ordered-That further consideration of clause 17 and of the amendment moved thereto, be postponed.

Senator Haines, by leave, moved the following amendments together:

Page 7, after clause 17, insert the following new clause:

""17a. The Principal Act is amended by adding after section 46 the following section:

Unconscionable conduct

"46a. A corporation that is in a position substantially to control a market for goods or services shall not engage in unconscionable conduct in its dealings with its suppliers, agents or distributors.'.''.

Page 7, after new clause 17a, insert the following new clause:

""17b. Section 49 of the Principal Act is amended-

(a) by omitting sub-section (1) and substituting the following sub-section:

"(1) A corporation shall not, in trade or commerce, discriminate between purchasers or proposed purchasers of goods of like grade and quality in relation to-

(a) the prices charged or to be charged for the goods;

(b) any discounts, allowances, rebates or credits given or allowed or to be given or allowed in relation to the supply of the goods;

(c) the provision or proposed provision of services in respect of the goods; or

(d) the making of payments for services provided or to be provided in respect of the goods,

if the discrimination is of such magnitude or is of such a recurring or systematic character that it has or is likely to have the effect of lessening competition in a market for goods, being a market in which the corporation supplies, or those purchasers or proposed purchasers supply, goods.';

(b) by omitting from paragraph (2) (a) "to the purchasers; or' and substituting "or are to be supplied to the purchasers or proposed purchasers;';

(c) by inserting after paragraph (2) (b) the following word and paragraph:

"; or (c) the purchasers or proposed purchasers who do not or would not receive the benefit of the discrimination are or would be able to purchase goods of like grade and quality from a competitor of the supplier on terms in relation to the matters to which the discrimination relates no less favourable than the terms in relation to those matters available to the purchasers or proposed purchasers who receive or would receive the benefit of the discrimination.'; and

(d) by adding at the end thereof the following sub-section:

"(6) In this section, ""proposed purchaser'', in relation to goods, means a person who has entered into negotiations with respect to the purchase of the goods.'.''.

Debate ensued.

Question-That the amendments be agreed to-put and negatived.

Clauses 18 to 20, by leave, taken together and agreed to.

Clause 21 debated.

On the motion of Senator Haines the following amendment was debated and agreed to:

Page 10, proposed new sub-section 51a (2), lines 30 to 32, leave out the proposed sub-section, insert the following sub-section:

""(2) For the purposes of the application of sub-section (1) in relation to a proceeding concerning a representation made by a corporation with respect to any future matter, the corporation shall, unless it adduces evidence to the contrary, be deemed not to have had reasonable grounds for making the representation.''.

On the motion of Senator Haines the following further amendment was debated and agreed to:

Page 10, proposed new sub-section 51a (3), line 33, leave out ""shall not be taken'', insert ""shall be deemed not''.

Clause 21, as amended, further debated and agreed to.

Ordered-That the Chairman of Committees (Senator Hamer) report progress and ask leave to sit again.

The Acting Deputy-President (Senator MacGibbon) resumed the Chair; and Senator Hamer reported that the Committee had considered the Bill, made progress, and asked leave to sit again.

Ordered-That the Committee have leave to sit again at a later hour of the day.