THE Australian Competition and Consumer Commission has granted an urgent interim authorisation permitting the co-operation and sharing of information by companies in the supply chain to ensure critical retail goods, including food supplies, are able to reach consumer and businesses in Western Australia and the Northern Territory.
The application follows storms and flooding in parts of South Australia which interrupted rail and road networks, limiting the supply of critical goods, including groceries, to WA and the NT.
The ACCC said it anticipates that it will take a number of weeks to clear the backlog of products caused by the supply chain disruptions.
The rail lines to WA re-opened this week after ARTC repaired the extensive flood damage.
ACCC deputy chair Mick Keogh said the interim authorisation allows supply-chain participants, such as rail and freight handlers and trucking companies, to co-operate to address the affects of the recent storms on the trans-Australian railway and the potential shortages of retail and critical products in WA and the NT.
Without the authorisation, such co-operation could constitute a breach of Australian Competition law.
The authorisation application was made by Linfox and applies to a number of other participants including Pacific National, One Rail and major grocery retailers. It also could apply to a broader range of participants including, retailers, wholesalers or other transport services suppliers who follow the notification procedure.
With the interim authorisation, the participants will be able to meet to identify which retail products are critically required in WA and NT and prioritise the supply by road, rail, sea or air freight into WA, including the developing of stockpiles if required. The interim authorisation also allows parties to work together to identify and ensure critical products from WA and the NT are supplied to other jurisdictions.
The authorised conduct applies to discussions and agreements made at meetings facilitated by government agencies and that the ACCC is invited to.
“There is a risk of critical shortages of retail products in WA being compounded by a possible rise of COVID-19 cases that might affect workers in the transport, logistics and retail industries,” Mr Keogh said.
“Allowing this authorisation will likely result in public benefits by giving those in the supply chain the opportunity to maximise consumer access to retail groceries, reduce community concerns, and reduce strain on retail supply chains.”
“This ACCC decision also helps limit critical shortages and supply chain issues elsewhere in Australia by granting interim authorisation to cooperate on ensuring exports can leave WA,” Mr Keogh said.
“The interim authorisation does not extend to any agreements in relation to the price of any goods or services but allows the participants to commence co-operating immediately while the ACCC completes its full assessment.”
“After receiving the applications for authorisation on Monday, we have worked very quickly to consider and approve this application,” Mr Keogh said.
