Apart from the inconsistency with the current government’s deregulatory and rationalisation thrust, there are some serious flaws in the access regulatory proposal.
The Harper review noted, without dispelling the concern expressed in submissions and consultations, that an industry-specific regulator might be susceptible to “capture” by the regulated industry.
In addition to the risk of industry capture, Harper is opening the door to appointees from state governments with parochial agendas controlling the new economic regulator as they influenced energy regulation for some years.
In circumstances where many billions of dollars of investment are being deployed and some of Australia’s most powerful business interests are looking for a slice of the action, the idea of establishing a new inexperienced and untested regulatory institution is inviting disaster.
Splitting off the access regulatory function of the ACCC is not the only change the Harper panel has in mind.
Even though it acknowledges that “the ACCC is a well-regarded and effective body,“ it proposes to replace the current Commission with “a Board, comprising a number of members akin to the current commissioners, who would work full-time in the operations of the ACCC, and a number of independent non-executive members with business, consumer and academic expertise, who would not be involved in the day-to-day functions of the ACCC”.
Having spent 13 years at the ACCC, and five as a non-executive director of the UK Office of Fair Trading, it is my strong view that non-executive board members simply cannot function with the level of knowledge and engagement required in a law enforcement or regulatory decision-making body.
The role of non-executive Board members is to establish clear organisational goals, challenge the executive in their achievement and secure good governance. So much of the work of a law enforcement and regulatory body demands full-time engagement in fast moving, complex and confidential matters. It is bad thinking to split the ACCC, it would be destructive to abolish the Commission.
Allan Asher does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.
This article was originally published on The Conversation. Read the original article.
