Document ID: chunk:federal_register_of_legislation:F2020L01103:reg:6
Version: federal_register_of_legislation:F2020L01103
Segment Type: reg
Provision Reference: reg 6
Character Range: 4280–6819

6  Directions on matters to be taken into consideration in the inquiry
  Under subsection 95J(6) of the Act, the Commission is directed to take into consideration all of the following matters in holding the inquiry:
 (a) the relative power held by different suppliers in the markets for the supply of perishable agricultural goods, with particular regard to:
 (i) the concentration of power in the markets amongst and between suppliers of perishable agricultural goods at each level of the domestic supply chain; and
 (ii) the bargaining power of the suppliers in the markets, whether an imbalance in power exists between suppliers at different levels of the domestic supply chain, and whether that imbalance leads to a harmful outcome for participants in the markets (including through the behaviour of suppliers or through the pricing and other terms and conditions suppliers offer to other suppliers); and
 (iii) the nature of the relationships between the various suppliers in the markets; and
 (iv) the allocation of risk between the suppliers in the markets; and
 (v) the operation of the Act, or an instrument made under the Act, on the matters covered by subparagraphs (i), (ii), (iii) and (iv); and
 (b) the practices and behaviours of suppliers in the markets for the supply of perishable agricultural goods and the effect those practices and behaviours may have on consumers and the broader economy; and
 (c) the effectiveness of the Competition and Consumer (Industry Codes—Dairy) Regulations 2019, with particular regard to:
 (i) whether the regulations adequately address issues arising from different levels of power in the markets between suppliers (throughout the supply chain) of goods and services described in paragraph 5(2)(c); and
 (ii) whether the regulations adequately address issues arising in each of the markets covered by the regulations; and
 (iii) costs of producing dairy milk in each relevant geographical region in Australia, the productivity of producing milk in each of those regions, and the extent to which those matters are properly taken into account by other suppliers in the markets; and
 (iv) level of supply of dairy milk and whether current supply levels adversely affect the bargaining power of suppliers; and
 (v) the interaction of the Competition and Consumer (Industry Codes—Dairy) Regulations 2019 and other regulations made for the purposes of subsection 51AE(1) of the Act on suppliers and the supply of dairy products; and
 (d) the Commonwealth policy mentioned in paragraph 5(1)(f).