FINALLY ACTION ON AVIATION COMPETITION, NOW LET THE ACCC DO ITS JOB

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SENATOR THE HON BRIDGET MCKENZIE SHADOW MINISTER FOR INFRASTRUCTURE, TRANSPORT AND REGIONAL DEVELOPMENT LEADER OF THE NATIONALS IN THE SENATE SENATOR FOR VICTORIA SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA 8 November 2023 Media Release FINALLY ACTION ON AVIATION COMPETITION, NOW LET THE ACCC DO ITS JOB The Albanese Government has been dragged kicking and screaming to reinstall ACCC monitoring of the aviation sector. In response to a Private Senators Bill tabled by Coalition Senators Bridget McKenzie and Dean Smith, the Senate has been informed the Government will today, finally, send a letter of direction to the ACCC to reinstate the monitoring, 23 days after it was announced it would. Since the Albanese Government backflipped on its decision to scrap the ACCC monitoring 3 weeks ago there has been crickets with no direction given by the Treasurer to the ACCC to hit go on the monitoring despite the ACCC Chair, Gina Cass-Gottlieb, telling a recent Senate committee it’s ready and waiting. Senator McKenzie said the Albanese Government chose to forgo competition monitoring into what is one of the most consolidated industries in Australia, which was admitted to in the Government’s Green Paper. “Only after the aviation Senate inquiry made the recommendation to reinstate the monitoring did the Government decide to backflip on its decision,” Senator McKenzie said. “But making an announcement is one thing and taking action is another and this is where the Government continues to fail. “The ACCC is on record that it is ready to re-establish the monitoring so there is no excuse for the Albanese Government to continue dragging their feet on the matter.” Senator Smith said Labor’s delay on restoring ACCC monitoring, at a time when Australians are struggling with a dramatic rise in the cost of living, has been unconscionable. “Air travel in Australia isn’t a luxury – it’s a necessity. There can be no justification stifling oversight in an industry which is uniquely central to economic and social life in Australia,” Senator Smith said. “While it’s clear that the Albanese Government prefers symbolism over substance, the Coalition had at least hoped that sending a small note to the ACCC was within the competence of Jim Chalmers. “Like the Year 12’s studying for their exams across Australia, my advice is for the Treasurer to put his phone on silent, focus on the task at hand, and ignore the calls and texts from friends – in his case, the government relations team at Qantas, whose messages Labor has found so impossible to ignore in the past.” Senator McKenzie said the ACCC monitoring needs to recommence immediately, especially given the Qantas group, including Jetstar, cancelled over 1,000 flights in September and a further 7,084 flights were delayed by more than 15 minutes, inconveniencing tens of thousands of Australians. “The fact flight cancellations and delays remain at excessive levels show the Albanese Government is not willing to tackle Qantas to fix the problems in the aviation sector. “The Government is more interested in blocking a Senate inquiry from asking questions to former Qantas chief executive Alan Joyce than it is in keeping airfares down for Australian families and business,” Senator McKenzie said. “Given Qantas’ appalling Annual General Meeting last week there’s much more work to do on the behalf of Australian travellers. “If the Minister continues to delay implanting recommendations from the aviation select inquiry the coalition will continue to do the work for her so Australians can have a more competitive, reliable, and safe aviation industry. “The Albanese Government needs to stop running a protection racket for one airline and start listening to the needs of the travelling public,” Senator McKenzie said.

Transcript – Doorstop Interview with Senator the Honourable Bridget McKenzie, Canberra

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TOPICS: ACCC AVIATION MONITORING/AGRICULTURE CHINA TRADE/SENATE IR BILLS/OPTUS OUTAGE 8 NOVEMBER 2023 E&OE… BRIDGET MCKENZIE We’re able to confirm that the Treasurer of Australia has finally signed a directive to the ACCC to actually reinstate the monitoring of the aviation industry. Remembering this was recommendation four out of the Senate inquiry that actually sought to reinstate the cancellation and delays monitoring. The only stakeholder who gave evidence that they didn’t want it reinstated was the Qantas group. The only body that lobbied the Albanese Labor Government to not reinstate the ACCC monitoring was the Qantas group. But it has been pressure from the Senate, from the Opposition, that has actually seen, finally, not just the press release that arrived 23 days ago, but the Treasurer be pressured into today signing off on this particular directive. We know that we’ve got one of the most consolidated aviation industries in the world. 95.1% held by two groups, and this Government continues to run a protection racket for the Qantas group, whose appalling behavior was exposed again in its AGM last week. For its staff, for its loyal customers, and its shareholders, have borne the brunt of the reputational damage. And yet you do not find a change in behavior from this Government in seeking to protect this corporate. The ACCC holds a very critical role in our economy, the friend of the Australian consumer and the enemy of big corporates. We know that the ACCC has got a lot of work to do in addressing anti-competitive behavior. And this is the first step. If Catherine King won’t do her job as Transport Minister, we’ll do it for her. This won’t be the first Private Senators Bill to make this Government take action. Whether it be consumer protections, whether it be divestiture powers, whether it be a whole another raft of competition laws that need to be actioned so that Australian travellers have access to an affordable aviation sector that is also reliable. It’ll be the Liberal and the National Party who seek to get the job done. Senator Smith. DEAN SMITH Better late than never is how the Coalition would describe today’s decision to finally put pen to paper. The ACCC direction has been given by Dr Chalmers, but remember it is the 8th of November. The media statement that the Government launched when it said it would recommit to the ACCC monitoring regime was dated the 18th of October. There’s a very legitimate question here. Why did it have to take this long? Secondly, the devil is always in the detail. Dr Chalmers and Dr Leigh, as the Treasurer and the Competition Minister, need to explain why is the first monitoring report to be issued in March 2024? What is the reason? What is the excuse for a 12 month aviation monitoring black hole? I can’t explain it. And indeed the ACCC won’t be able to explain it. At Senate Estimates just recently the ACCC Chair answered, in response to questions from me, that the ACCC was ready to go, the people were in place and there would be no need for any gap in the reporting. So, Dr Chalmers, Dr Leigh, we welcome finally the decision to direct the ACCC. The cop is back on the beat. But why is there a 12 month aviation reporting black hole? Because the ACCC said there did not need to be any gap in the monitoring regime. This is an important step in restoring consumer confidence in Australia’s aviation industry. It’s been a powerful demonstration. How the Senate inquiry into the Qatar and Qantas matters, how a Private Senators Bill brought to the Australian Senate by Senator McKenzie and myself, can force the Government to do what they don’t want to do. So as Senator McKenzie and I said in the Senate chamber today, if it takes Private Senators Bills, if it takes Senate inquiries to get the Government to do what it should be doing in the interests of Australian aviation consumers, then we will bring forward other Private Senators Bills. And the next on the list will be competition law reforms that protect consumers. That give consumers a better say over flight cancellations, flight delays and poor service. BRIDGET MCKENZIE Any questions? JOURNALIST One on ag. BRIDGET MCKENZIE Why not what? JOURNALIST One on ag. So, we’ve just had the Prime Minister return from his trip to China and we’re expecting movement on wine and some other products. Why should Australian businesses go back to China if they could face punitive tariffs? BRIDGET MCKENZIE I think we’ve seen from China changing their behavior, which is a good thing. Let’s not forget who slapped those prohibitive trade restrictions on Australian agriculture in response to legitimate concerns raised by Australia, post COVID. That was the Chinese Government. Returning to normal shouldn’t be cause for celebration. I mean, this is actually what should be happening. Australian producers have found, and sought, and are currently delivering to a diversity of markets now as a result of those trade sanctions by China. And I’m sure that they will continue to do so. I think the issue has highlighted the importance of having a diversity of markets and, as when we were in Government, we sought to assist industry to do that. And that’s actually the right economic strategy for primary producers to be seeking. Can I just, I just wanted to touch on the ACCC. The length that this Government has gone to to restrict competition in aviation. They ruled aviation out of their competition review. They halted the cancellation and delay reporting. They also refused to approve and subsequently review the Qatar Airways decision, that would have allowed for more competition in our aviation sector. Why is this Government continuing to protect the Qantas group from greater competition? If we’ve ever needed the ACCC to be the strong, independent and free body that it is, it is now. The ACCC needs to be protected from political sabotage.…