Media release, 4 December 1997
PARLIAMENTARY SCRUTINY OF ACCC USE OF LAWYERS IN AUSTRALIS MEDIA CASE
Australia's major competition watchdog, the Australian Competition and
Consumer Commission's, use of lawyers in the Australis Media case will
be examined next week by the House of Representatives Financial Institutions
and Public Administration Committee at a public hearing in Canberra on
Thursday 4 December 1997.
According to the Committee Chairman, Mr David Hawker MP, " at the Committee's
hearing with the ACCC on 20 November 1997 the ACCC confirmed that some
of its legal advice over the Australis/Foxtel merger was paid for by Optus
and admitted that a similar approach has been used in some other cases."
"The basis of the Committee's concern with this matter is the principle
that, while the ACCC will inevitably stress that it 'take sides' in mergers
that it believes are not in the 'public interest', the ACCC has an obligation
to be not only independent but also to be perceived to be independent
of commercial interests in its operations which impact substantially on
commercial enterprises in almost every sector" Mr Hawker said.
"Professor Fels was unprepared for the detailed line of questioning
put by the Committee on this issue and he agreed to 'have a real hard
look at this matter'. The ACCC sought to stress that there was nothing
illegal in what they had done and they had used this approach several
times before."
Mr Hawker said "some of the matters that the Committee would address
at the hearing next week include:
- the general question of whether it is appropriate for the ACCC (an
independent statutory authority) to receive financial support (in whatever
form) from a beneficiary of a case;
- the nature of the ACCC's legal assistance and the circumstances in
which it was provided in the Foxtel/Australis case;
- details of other cases where the ACCC has used a similar approach
in the acceptance of legal assistance;
- the ACCC acceptance of responsibility for the strategic directions
used in its Australis/Foxtel legal case; and
- the nature of any objections raised by other parties about legal assistance
used to supplement the Australian Government Solicitors' resources in
that case."
Appearing before the Committee will be the Australian Government Solicitor
and the ACCC.
"It is indisputable that the Australian Competition and Consumer Commission,
must be independent, accountable and transparent, and be seen to be independent,
accountable and transparent" said Mr Hawker. "If there are more appropriate
ways in which the ACCC should be performing its role to achieve those
objectives and facilitate competition and ultimately consumers, the Committee
wants this identified and the appropriate procedural and legislative changes
made."
Ends // 28 November 1997 Further information:
David Hawker MP (Chairman) (03) 5572 1100 (Electorate) // (02) 6277 4100
(Parl House)
Bev Forbes (Inquiry Secretary) (02) 6277 4587
Draft Program - Public hearing
Review of the Australian Competition and Consumer Commission annual
report 1996-97
Thursday 4 December 1997, 10.00am - 1.00pm
House of Representatives Committee Room 2R2
Parliament House
CANBERRA
10.00am Australian Government Solicitor
10.45am Australian Competition and Consumer Commission
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