TRADE MEASUREMENT ADVISORY COMMITTEE TRADE MEASUREMENT REVIEW OF THE UNIFORM TRADE MEASUREMENT LEGISLATION PROPOSAL FOR AMENDMENT AND REQUEST FOR COMMENTS AMENDMENT OF SECTION 19(b) OF THE TRADE MEASUREMENT (PRE-PACKED ARTICLES) REGULATION 1991 October 2000

TRADE MEASUREMENT ADVISORY COMMITTEE

REVIEW OF THE UNIFORM TRADE MEASUREMENT LEGISLATION

PROPOSAL FOR AMENDMENT AND REQUEST FOR COMMENTS

AMENDMENT OF SECTION 19(b) OF THE

TRADE MEASUREMENT (PRE-PACKED ARTICLES) REGULATION 1991

Introduction

Under a formal agreement signed in 1990 between the Commonwealth, the States and the Territories (except Western Australia), all jurisdictions, with the exception of Western Australia, enacted model uniform trade measurement legislation.

In 1995 a Trade Measurement Advisory Committee ("TMAC") was formed by the Ministerial Council on Consumer Affairs ("MCCA") and one of its functions was the ongoing review of trade measurement legislation nationally.

TMAC has recommended that the trade measurement legislation be amended to improve trade measurement administration and MCCA has requested that Queensland proceed with drafting the recommended amendments to the Queensland Trade Measurement Act 1990 ("the Act"). In the interests of uniformity these amendments will be used as a model by the other participating States and Territories to amend their own legislation.

Note: The numbering of the Act and Regulations in this document refers to the Queensland legislation. It may differ from that of other States and Territories.

This paper addresses one of the proposed amendments and is forwarded to your organisation for comment because of your involvement in the relevant industry. Only those amendments that relate to the operation of your organisation have been forwarded to you for comment.

This paper addresses the proposal to amend section 19(b) of the Trade Measurement (Pre-packed Articles) Regulation 1991:

"Amendment of Section 19(b) of the Trade Measurement (Pre-packed Articles) Regulation 1991" - Section 19(b) of the Trade Measurement (Pre-packed Articles) Regulation 1991 be amended by deleting the existing words and replacing them with:

"(b) the total net mass of all the eggs in the package".

This would also require the deletion of the reference to eggs in section 18(1)(a) of the Regulation.

However, should you wish to comment on the other amendments to the legislation, please contact this Office so that a copy of the relevant consultation papers can be forwarded to you.

Other Amendments

The other amendments for which Issues Papers have been prepared are:

1. "Amendment to Section 28 of the Trade Measurement (Pre-packed Articles) Regulation 1991" - Section 28 of the Trade Measurement (Pre-packed Articles) Regulation 1991 should be amended by repealing the Table and requiring the products listed in sub-regulation (1) to be unit priced only when packed in random mass packs.

Section 28 should also be amended to remove the references to `fruit' and `vegetables'.

2. "Amendment of the Trade Measurement Act 1990 - Firewood" - The provisions of the Trade Measurement Act 1990 should be amended to make it a requirement to "stack" firewood for sales by volume. Definitions of "stacked" and "firewood" are also seen as a requirement. (This does not preclude firewood being sold by reference to mass or per load.)

3. "A new section 15(1)(c) be added to the Act which states that the administering authority `may provide for certification periods to be set'.

"Section 15(2) of the Act be re-written so that it relates to the new section 15(1)(c) and states that the administering authority `may provide for the certification of a measuring instrument as often as is necessary or desirable in relation to specified classes of instruments'".

4. "The Average Quantity System" - The Average Quantity System to be introduced into legislation and current shortweight provisions be repealed. This includes repealing "mass when packed" and "mass at standard condition" provisions.

5. "Amendment of the Trade Measurement Act 1990 and the Trade Measurement (Weighbridges) Regulation 1991 - Certificates of Suitability" - The Trade Measurement Act 1990 and the Trade Measurement (Weighbridges) Regulation 1991 should be amended to remove the separate requirement for certificates of suitability for public weighbridges and a requirement which incorporates the certificate of suitability as part of the licence be made.

6. "Amendment of Section 23(1) of the Trade Measurement (Weighbridges) Regulation 1991" - Section 23(1) of the Trade Measurement (Weighbridges) Regulation 1991 should be amended to make the provision of tare mass books optional.

7. "Amendment of Section 23(2), (3) and (4) of the Trade Measurement (Weighbridges) Regulation 1991" - Section 23(2), (3) and (4) of the Trade Measurement (Weighbridges) Regulation 1991 should be amended to allow for the electronic printing and storage of measurement tickets.

8. "Amendment of Section 25 of the Trade Measurement Act 1990" - Section 25 of the Trade Measurement Act 1990 should be repealed to remove the "Special provisions for sale of meat".

National Competition Policy

You are also asked to comment on the implications that the requirements for firewood sales may have in terms of the National Competition Policy review of legislation. Under the Competition Principles Agreement signed by the States, Territories and the Commonwealth, it was agreed that existing legislation and proposed legislation would be reviewed in terms of its impact on competition in the relevant market. The Agreement provides that:

"The guiding principle is that legislation ... should not restrict competition unless it can be demonstrated that:

(a) the benefits of the restriction to the community as a whole outweigh the costs; and

(b) the objectives of the legislation can only be achieved by restricting competition".

The review that is to be conducted should:

"(a)clarify the objectives of the legislation;

(b) identify the nature of the restriction on competition;

(c) analyse the likely effect of the restriction on competition and on the economy generally;

(d) address and balance the costs and benefits of the restriction; and

(e) consider alternative means for achieving the same result including non-legislative approaches".

The specific issues that you are asked to address are set out in the body of this Issues Paper.

HOW TO MAKE COMMENTS AND SUBMISSIONS You are invited to make comments and submissions on the issues raised in this Issues Paper. You are also invited to contact the MCCA Secretariat to request information on the other amendments proposed to be made to the trade measurement legislation. Written comments and submissions should be sent to: Neil Power Executive Officer Ministerial Council on Consumer Affairs Consumer Affairs Division Department of the Treasury Parkes Place PARKES ACT 2600 Facsimile transmissions can be sent to (02) 6263 2960. Email can be sent to npower@treasury.gov.au Oral submissions can be made by telephoning Malcolm Bartlett on (07) 3836 0409. Closing date for submissions is 30 November 2000.

CONFIDENTIALITY

Unless there is an indication from you that you wish your submission to remain confidential, your submission may be subject to release under the Freedom of Information Act 1992 (Qld).

Background

Section 19 of the Trade Measurement (Pre-packed Articles) Regulation 1991 provides:

"Eggs

"19. The measurement marking of a pre-packed article containing eggs must be made -

(a) by reference to the number of eggs in the package; and

(b) by reference to the minimum mass of each egg."

Currently, most cartons of eggs are marked with the number of eggs and the minimum weight of each egg. For example:

"12 extra large eggs - each egg min 59 grams".

An individual egg is not considered to be a "pre-packed" article. The main concern with current legislation is that the weight of individual eggs are sometimes less than the stated minimum weight marked on the pack. As an individual egg is not a pre-packed article, action cannot be taken under the trade measurement legislation when an individual egg weighs less than the stated minimum weight.

Sections 36 and 37 of the Trade Measurement (Pre-packed Articles) Regulation 1991 allows a permissible actual deficiency in weight of 5% and no permissible average deficiency in weight when measured over a sample of between 6 and 12 packs. This means that, in the example given, the average net mass of 12 cartons of eggs must be at least 708 grams (12 x 59g) and the deficiencies in the individual net mass of any of the 12 packs must not exceed 35.4 grams (5%).

Proposal for Amendment

The proposed amendment will change this situation so that the total weight of all the eggs in each carton must be marked on the carton rather than the minimum individual weight of each egg. This will mean that producers will not breach the legislation if individual eggs weigh less than a certain stated amount. Problems will only occur if the total weight of the entire carton varies from the permissible deficiencies under section 36 and 37 of the Trade Measurement (Pre-packed Articles) Regulation 1991.

The primary objective of trade measurement legislation is to promote fair trading and accuracy in the relevant market place. Trade measurement authorities are responsible for ensuring that traders and consumers are confident that goods are sold in a fair and equitable manner.

National Competition Policy guidelines provide that the benefit to the restriction to the community should outweigh the costs and that the objectives of the legislation cannot be achieved by any other means.

Traders will benefit from this amendment and the amendment should not result in any restriction on competition. Consumers should not be disadvantaged by the proposed amendment because the total weight stated on the pack will be accurate. Whilst there may be some variation in the size of eggs included in the pack, the variation will be small given that egg cartons are designed to carry a particular size of egg and large variations should not occur.

You are asked to comment on the amendment. In particular your comments in relation to the following questions are welcomed:

1. Should section 19(b) of the Trade Measurement (Pre-packed Articles) Regulation 1991 be amended as described? Why do you think so?

2. Will the amendment as described have any impact on you whether you are a trader or a consumer?

3. If it is considered that the amendment will impact on you, can you describe the potential costs to you either as a trader or a consumer?

4. Are there any potential restrictions involved in the proposed amendment?

5. If there are considered to be any restrictions, will these restrictions involve any cost or disadvantage to you as either a trader or consumer?

6. Will the proposed amendment have any impact on competition in the market place in which you either trade or purchase eggs? If so, what impact will it have?

7. If you are a trader, do the labelling requirements impose significant restrictions on how you wish to do business?

8. Do the requirements significantly add to business costs? If so, what are the costs?

9. Do the requirements create barriers to new entrants? For example, small local suppliers of eggs.

10. If you are a consumer, would the change to size regulation impact on your purchasing requirements? Would you value more flexibility in your selection of eggs?

11. Are there any other issues that you consider relevant?

If you are interested in participating in follow up consultation on these issues, please provide us with a telephone number where you can be contacted during office hours.