The former chairman of the Australian Competition & Consumer
Commission says a parliamentary inquiry into iron ore industry could damage
Australia's global reputation as a place to invest.
Graeme Samuel, who led the ACCC between 2003 and 2011, believes
politicians need to stay away from what could be "political theatre"
and leave it to regulators like the ACCC to do a
proper investigation.
Mr Samuel is also worried about external perceptions that the Federal
Government could be swayed by vested interests such as those being promoted by
the Fortescue Metals chairman Andrew Forrest.
"Competition regulators are best served to be able to investigate
allegations of market manipulation which is what's been suggested here and
they're the ones that should be dealing with it - not parliaments or
politicians," Mr Samuel told AM.
"I think the problem with politicians getting involved is that we
get into a political theatre with parliamentary inquiries and we tend to get a
confusion then between what is in the public interest and what is in a
political interest or serving political purposes.
"That's why you have independent competition regulators like the
ACCC, like the European Commission, like the US Department of Justice and other
major agencies throughout the world."
Mr Samuel was speaking after the Prime Minister Tony Abbott declared he
would support an inquiry into the iron ore industry after an intense campaign
led my Mr Forrest.
But Mr Samuel says a parliamentary inquiry has the potential to raise
questions about Australian business and how international investors might view
government regulation fuelled by vested interests.
"Since the 1990s and the Hilmer competition policy reforms,
Australia has been able to properly claim itself as being the leader in free
markets, the leader in developing free markets in this country and in resisting
the pleadings of vested interests to interfere in free markets," Mr Samuel
said.
"What we seem to have here is particular vested interest that want
government, who want parliament to intervene in what seems to be a free market.
"Fortunately we had successive treasurers in Paul Keating and
Peter Costello who saw through these manipulations and said no, the public
interest has to prevail.
"And, let's face it, it's served us so well for various
international economic crises, including most recently, the global financial
crisis."
The ACCC recently cleared Andrew Forrest of suggesting cartel activity
in March when he declared that Fortescue should work with BHP Billiton and Rio
Tinto to put a cap on iron ore production to keep prices low.
The current ACCC chairman Rod Sims said Mr Forrest's were "off the
cuff" and did not constitute cartel behaviour.
But Graeme Samuel says that decision strengthens the role of regulators
like the ACCC to investigate concerns about market manipulation in the iron ore
industry.
"It's not for me to question how the ACCC or what it did in
relation to its investigations. But you do have the chairman of the ACCC, Rod
Sims, coming out publicly and saying that on the analysis of the ACCC there was
not evidence of predatory pricing or of collusive behaviour.
"If there are still concerns the ACCC has all the powers under its
act to subpoena witnesses, to subpoena documentation and to be able to conduct
a thorough independent investigation".
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