The Queensland Competition Authority (QCA) is an independent

statutory authority A statutory body or statutory authority is a body set up by law (statute) that is authorised to implement certain legislation on behalf of the relevant country or state, sometimes by being empowered or delegated to set rules (for example re ...

that promotes competition as the basis for enhancing efficiency and growth in the

Queensland ) , nickname = Sunshine State , image_map = Queensland in Australia.svg , map_caption = Location of Queensland in Australia , subdivision_type = Country , subdivision_name = Australia , established_title = Before federation , establishe ...

economy. It was established by the

Government of Queensland The Queensland Government is the democratic administrative authority of the States and territories of Australia, Australian state of Queensland. The Government of Queensland, a parliamentary system, parliamentary constitutional monarchy was form ...

in 1997. The QCA is governed by a four-member board. The Minister responsible for administering the ''Queensland Competition Authority Act'' ''1997'' (the QCA Act) is the

Treasurer of Queensland The Treasurer of Queensland is the title held by the Cabinet minister who is responsible for the Queensland Treasury, and by extension, all financial matters of the Queensland Government. List of Queensland treasurers See also *Politics of ...

Functions

The QCA's primary role is to ensure

monopoly A monopoly (from Greek language, Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situati ...

businesses operating in Queensland, particularly in the provision of key infrastructure, do not abuse their

market power In economics, market power refers to the ability of a firm to influence the price at which it sells a product or service by manipulating either the supply or demand of the product or service to increase economic profit. In other words, market powe ...

through unfair pricing or restrictive access arrangements.

Responsibilities

The QCA's main responsibilities under the QCA Act are:

Monopoly prices oversight

The QCA uses pricing and other regulatory arrangements, based on sound economic and commercial principles, to encourage monopoly businesses to operate responsibly in the absence of normal competitive market forces. Prices oversight prevents government and non-government monopolies or near-monopolies from abusing their market power by charging excessive prices for their products or services – because they either have no competitors or existing ones are ineffective. The QCA may investigate the pricing practices of such monopolies or monitor their pricing practices, depending on the referral from the Queensland Treasurer. The QCA only performs these functions on request from the Treasurer. The monopoly prices oversight powers of the QCA enable consumers to enjoy market prices, while businesses still earn a reasonable investment return – thus ensuring a beneficial outcome for all.

Third party access

Essential

infrastructure Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and priv ...

that underpins economic activity should be accessible to all potential users. The QCA regulates third party access to essential infrastructure so as to support competition by enabling competitors (i.e. ‘third parties’) to access infrastructure that cannot be economically duplicated, such as electricity and gas distribution systems, water storage and distribution systems, rail tracks and ports. As an example, in the Queensland rail sector, they ensure track owned by Aurizon Holdings may also be used by other transport operators. This provides customers, such as coal miners, with options regarding the haulage of their product. By opening up access, competition is enhanced in related markets such as electricity and gas retailing and rail transport.

Competitive neutrality

The principle of competitive neutrality requires that government business activities competing in the market with non-government or private-business activities do not gain an unfair competitive advantage by virtue of being government-owned. Their potential advantage could result from being exempt from any of the following: * Commonwealth or state taxes and tax equivalent payments * debt guarantee fees * the procedural or regulatory requirements of the federal, state or local governments. The principle of competitive neutrality does not extend to competitive advantage arising from factors such as business size, skills, location or customer loyalty.

General issues

Apart from the specific responsibilities outlined above, the QCA has a range of general responsibilities. In particular, under section 10(e) of the QCA Act, Ministers can direct the QCA to investigate and report on matters relating to competition and industry.

Responsibilities outside the QCA Act

The responsibilities, in addition to those under the QCA Act, include: * setting retail electricity prices under the Electricity Act 1994 for regional Queensland * enforcing customer protections under the Electricity Industry Code and the Gas Industry Code * applying competitive neutrality principles to local government business activities under the Local Government Act 2009.

References

External links

* {{Authority control Competition regulators Government agencies of Queensland Government agencies established in 1997 1997 establishments in Australia Consumer organisations in Australia Regulatory authorities of Australia Economy of Queensland