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Schedule 2—Encouraging competition in the food and grocery industries

Schedule 2 Encouraging competition in the food and grocery industries

   

Co mpetition and Consumer Act 2010

1  After section 46

Insert:

46AA   Misuse of market power—Productivity Commission inquiry into a divestiture regime

             (1)  By the day after this section commences, the Productivity Minister must, under Part 3 of the Productivity Commission Act 1998 , refer to the Productivity Commission for inquiry the following matters:

                     (a)  the effectiveness of the amendments to this Act made by Schedule 1 to the Protecting Australian Diary Act 2019 ;

                     (b)  whether a legislative regime that requires divestiture by corporations would encourage greater competition in the food and grocery industries;

                     (c)  if Part XICA (the Electricity Industry) of this Act is enacted—whether the legislative regime for divestiture orders provided by that Part would be appropriate to apply to the food and grocery industries to encourage greater competition.

             (2)  In referring the matter to the Productivity Commission for inquiry, the Productivity Minister must:

                     (a)  under paragraph 11(1)(a) of the Productivity Commission Act 1998 , require the Productivity Commission to hold hearings for the purposes of the inquiry; and

                     (b)  under paragraph 11(1)(b) of that Act, specify the period ending on 1 January 2021 as the period within which the Productivity Commission must submit its report on the inquiry; and

                     (c)  under paragraph 11(1)(d) of that Act, require the Productivity Commission to make recommendations in relation to the matter referred to in subsection (1).

Note:          Under section 12 of the Productivity Commission Act 1998 , the Productivity Minister must cause a copy of the Productivity Commission’s report to be tabled in each House of the Parliament.

             (3)  The Productivity Minister must not withdraw the reference before the Productivity Minister has received the report.

             (4)  For the purposes of paragraph 6(1)(a) of the Productivity Commission Act 1998 , the matter mentioned in subsection (1) is taken to be a matter relating to industry, industry development and productivity.

             (5)  In this section, Productivity Minister means the Minister administering the Productivity Commission Act 1998 .

2  At the end of section 51AE

Add:

             (3)  For the purposes of this Part, the regulations must:

                     (a)  prescribe an industry code that relates to the food and grocery industry; and

                     (b)  declare that code to be a mandatory industry code.

             (4)  The Minister must take all reasonable steps to ensure that regulations are made for the purposes of subsection (3) within 6 months after this subsection commences.