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2. Introduction

In April 1995, all Australian Governments endorsed a package of legislative and administrative arrangements that underpin National Competition Policy ("NCP"). The key objective of NCP is to develop a more open and integrated Australian market that limits anti-competitive conduct. A central element of NCP is the review and where necessary reform, of all legislation that restricts competition by June 2002.

Trade measurement legislation plays an essential role in the economy of facilitating market transactions by clarifying for business and consumers the measurement of goods offered for sale. However, in doing this, some elements of trade measurement legislation have the potential to restrict competition.

Each Australian State and Territory, with the exception of Western Australia, has implemented uniform trade measurement legislation. As the legislation is uniform, it was agreed by each jurisdiction that a national NCP review of the uniform trade measurement legislation should be conducted.

In November 1998 the Standing Committee of Officials of Consumer Affairs ("SCOCA") endorsed a proposal to conduct the NCP review in stages. Stage 1 involved the engagement of a consultant to conduct a scoping study to determine which restrictions on competition contained in the uniform trade measurement legislation required a public benefit test ("PBT"). Stage 2 would then involve the carrying out of a PBT on the identified restriction/s. This staged approach was taken to separate the minor restrictions on competition that would require a brief assessment from those substantial restrictions that would require a full public benefit test.

A Review Committee was formed to oversee the NCP review and its membership was drawn from each State and Territory participating in the review. Representatives from the National Standards Commission, Commonwealth Department of Industry, Science and Resources and Queensland Treasury participated in the review as observers.

The outcome of the Stage 1 scoping study¹ was that no further investigation was required of most of the trade measurement restrictions to competition. Most of the restrictions were generally justifiable and imposed few if any costs while potentially generating widespread and significant benefits. Key findings were:

• The restrictions on the sale of spirits and beer appeared to have little if any adverse impact on competition but provide benefit to consumers.
• The restrictions on pre-packaged goods can generally be justified as they help inform consumers while appearing to impose few costs.
• The restrictions on the unit pricing of pre-packed goods sold in non-rigid containers and the sale of non-prepacked meat warranted further investigation unless they were removed or relaxed.
• The other restrictions on competition² were considered to be sound, imposing few costs while potentially generating widespread and significant benefits.

The Review Committee prepared a report that responded to the scoping study and made recommendations³. The first recommendation was that the Review Committee supported the key outcome of the scoping study that most of the restrictions on competition contained in the legislation were generally justifiable. The Review Committee noted the outcome that a PBT should be conducted on the unit pricing of pre-packed goods sold in non-rigid containers. However, in its recommendation the Review Committee did not consider it necessary to conduct a PBT on this restriction as the restriction is being relaxed and the necessary legislative amendments are in train.

The Review Committee noted the consultant's recommendation that a PBT should be conducted on the restriction on the sale of non-prepacked meat. However, in its recommendation the Review Committee disagreed with the consultant's proposal to conduct the PBT and instead it was recommended that the Committee conduct the PBT. This report is a record of the findings of the PBT on this restriction.

1 Economic Insights Pty Ltd, "Scoping Study into the Restrictions on Competition of Trade Measurement Legislation - Final Report" 17 May 2000.

2 These restrictions relate to the oversight of measurement standards, the prohibitions of end-and-end weighing at public weighbridges and the licensing of service organisations and public weighbridges.

3 Entitled "Review Committee Report on National Competition Policy Review of Uniform Trade Measurement Legislation - Stage 1 Consultants' Scoping Study and Review Committee Responses and Recommendations" December 2001.

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