Victorian Bills Explanatory Memoranda Victorian Bills Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
Grain Handling and Storage
Amendment Bill 2007
Introduction Print
EXPLANATORY MEMORANDUM
Background
The Grain Handling and Storage Act 1995 (the Act) effected the sale of the
Grain Elevators Board to GrainCorp Operations Limited (GrainCorp) and
provided a framework for regulation by the Essential Services Commission
(the Commission) of the grain handling terminals operated by GrainCorp at
the Port of Portland and the Port of Geelong. The grain handling terminal
operated by the Australian Bulk Alliance at the Port of Melbourne was
established later and is not regulated under the Act.
Amendments to the Act in 2003 changed the regulatory framework and the
role of the Commission. The price setting framework was replaced with a
negotiate/arbitrate framework where the Commission could determine access
prices to grain handling facilities only if notified that the parties could not
agree on terms and conditions of access. The setting of prescribed prices for
services at the ports of Portland and Geelong was discontinued.
One of the amendments to the Act in 2003 required the Commission to
conduct an inquiry by no later than 30 June 2006 as to whether grain
handling terminals should be regulated. From that inquiry the Commission
found that, although increased competition between facilities had reduced the
need for regulation, the significant degree of change in the grains industry
still warranted limited regulation in the short term in the form of
"undertakings". These undertakings would be given to the Commission by
providers and specify the terms and conditions of access to their services.
These undertakings would be implemented by means of an application to the
Commission for a general access determination under section 19 of the Act.
Following the review, the Commission also recommended that there be no
discrimination in the regulatory treatment of the facilities at the ports of
Melbourne, Geelong or Portland.
This Bill amends the Act to extend its operation to the grain handling
terminal at the Port of Melbourne and to facilitate the introduction of
"undertaking" based general access determinations.
561065 1 BILL LA INTRODUCTION 17/7/2007
Clause Notes
Clause 1 sets out the main purpose of the Bill.
Clause 2 provides for clauses 1, 2, 4 and 9(1) of the Bill to come into
operation on the day after the day that the Bill receives Royal
Assent. Clauses 3, 5, 6, 7, 8, 9(2), 10 and 11 of the Bill come
into operation on a day or days to be proclaimed, with a forced
commencement of 1 January 2008.
Clause 3 amends section 1 of the Act so that the purpose of the Act
includes regulating the handling and storage of grain for export
shipping at the Port of Melbourne, in addition to the Port of
Portland and the Port of Geelong.
Clause 4 amends section 3 of the Act to revise the definition of
Competition Principles Agreement and to insert a definition of
general access determination.
Clause 5 amends section 15(1)(b) of the Act to effectively provide that the
services of receiving, moving, inspecting, testing, stock control
(including marshalling, storage and management), weighing,
elevating and loading grain provided at the Port of Melbourne are
prescribed services for the purposes of Part 3 of the Essential
Services Commission Act 2001.
Clause 6 amends section 16(3) of the Act to provide that, in addition to the
Port of Portland and the Port of Geelong, the Essential Services
Commission (the Commission) must not determine for the
purposes of section 16(1) that all facilities used in the provision
of prescribed services at the Port of Melbourne have ceased to be
significant infrastructure facilities.
Clause 7 inserts a note at the foot of sections 17 and 18 of the Act.
Clause 8 inserts new section 18A into the Act.
New section 18A provides that sections 17 and 18 do not apply
while a general access determination is in force that applies to the
relevant prescribed services.
Clause 9 amends section 19 of the Act.
Subclause (1) inserts a new heading to section 19.
Subclause (2) repeals section 19(5).
2
Clause 10 inserts new sections 20 and 20A into the Act.
New section 20 enables the Commission to, of its own motion,
make a determination that revokes a general access determination
if it considers that a provider that provides prescribed services to
which a general access determination applies has not complied
with the general access determination.
New section 20A enables the Commission to monitor compliance
by a service provider with a general access determination.
Clause 11 amends section 21(2) of the Act, and inserts new subsection
(2AA) into section 21 of the Act, to prevent a person who
considers that his or her right of access to prescribed services has
been hindered by the provider of those services from applying to
the Commission for a determination under section 21(2) of the
Act while a general access determination is in force. A person
who considers that his or her right of access has been hindered by
a person other than the provider may still apply for a
determination under section 21(2) during that time.
Clause 12 amends section 23A(1)(b)(iii) of the Act to enable the
Commission to publish guidelines in relation to any matter in
connection with the exercise of its powers under new sections 20
and 20A (see also clause 10 of this Bill).
Clause 13 provides for the automatic repeal of this amending Bill on
1 January 2009. As suggested by the Scrutiny of Acts and
Regulations Committee, all amending Bills now contain an
automatic repeal provision, which will save the time and expense
of having to repeal amending Acts in statute law revision Bills.
The repeal of this Bill does not affect in any way the operation of
the amendments made by this Act (see section 15(1) of the
Interpretation of Legislation Act 1984).
3