TNAG-2314-FCO40-3358-Air-services-between-Hong-Kong-and-Australia-1991 — Page 78

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FM CANBERRA

HKC 181/25

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любит

Mr Machyfor

Pts Rumm fill and reftel.

Mr Sazby

Does this

7

034152

MDLIAN 5211

relate to

HK/ Australia ASA?

Mr Rigban

TO ROUTINE FCO

TELNO 613

OF 260445Z AUGUST 91

INFO ROUTINE HONG KONG

I think not.

го?

27

pw©

CS

Thanks

298

Mw

YOUR TELNO 495: UK/AUSTRALIA AIR SERVICES: TRANS-TASMAN ROUTE.

1. THE TRADE PRACTICES COMMISSION IS AN INDEPENDENT STATUTORY AUTHORITY WHICH ADMINISTERS THE SECTIONS OF THE TRADE PRACTICES

ACT COVERING ANTI-COMPETITIVE PRACTICES AND UNFAIR TRADING

PRACTICES. ITS OBJECTIVE IS TO SECURE COMPLIANCE WITH THE ACT.

2. ENFORCEMENT IS THE PRIMARY TOOL AVAILABLE TO THE COMMISSION

IN SEEKING TO MEET THE ACT'S OBJECTIVES AND THE COMMISSION HAS FOLLOWED THIS COURSE IN A NUMBER OF RECENT CASES. BUT, ΤΟ ENFORCE THE LAW, THE COMMISSION IS REQUIRED TO OBTAIN AN APPROPRIATE COURT ORDER AND THIS HAS THE EFFECT OF CONSTRAINING THE COMMISSION'S POWERS, FIRSTLY BECAUSE OF THE STRAIN ON THE COMMISSION'S LIMITED RESOURCES AND SECONDLY BECAUSE OF

LIMITATIONS ON THE CAPACITY OF THE COURTS TO DEAL EFFECTIVELY

AND PROMPTLY WITH THE SORT OF ECONOMIC ISSUES COVERED BY THE

TRADE PRACTICES ACT. A FURTHER PROBLEM IS THAT THE MAXIMUM

PENALTY FOR COMPANY BREACHES OF THE ACT IS CURRENTLY ONLY AUS DOLLARS 250,000 (ALTHOUGH LEGISLATION IS BEING PRESENTED TO PARLIAMENT TO INCREASE THE MAXIMUM TO AUS DOLLARS 10 MILLION).

THE COMMISSION THEREFORE USES LITIGATION AS A LAST RESORT ONLY AFTER LOOKING AT ALTERNATIVE MARKET SOLUTIONS, EG THROUGH DIRECT CONTACT WITH COMPANIES CONCERNED.

3. THE COMMISSION HAS TOLD US THAT IT HAS COMPLETED ITS INVESTIGATION OF THE IMPLICATIONS FOR COMPETITION OF QANTAS AND AIR NEW ZEALAND'S

CAPACITY ARRANGEMENTS ON THE TRANS-TASMAN ROUTE AND IS IN THE

PROCESS OF SEEKING ADVICE FROM LEGAL COUNSEL ON HOW TO PROCEED. THIS STAGE IS LIKELY TO TAKE A FEW WEEKS. THEREAFTER, THE COMMISSION'S REPORT WILL BE SUBMITTED TO THE COMMISSIONERS FOR A

DECISION. WE SHALL KEEP YOU INFORMED OF DEVELOPMENTS.

BARDER

YYYY

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