NO.051

PRODUCTIVITY COMMISSION TO REVIEW THE NATIONAL GAS PIPELINES

ACCESS REGIME

The Treasurer, Peter Costello, and the Acting Minister for Industry,

Tourism and Resources, Joe Hockey, today announced that the Productivity Commission

is to undertake a review of the National Third Party Access Code for Natural

Gas Pipelines Systems. The Productivity Commission has been asked to report

within twelve months.

“The Regime has now been in operation for 5 years, and it

is appropriate to take stock of what it has achieved and whether its operation

can be enhanced,” Mr Costello said. “The review will also enable developments

flowing from the recent review of the more general National Access Regime to

be reflected in the gas sector’s regulation.”

The Gas Access Regime was developed jointly with the State and

Territory Governments to establish the rights and obligations of pipeline operators

and users in relation to third party access to natural gas transmission and

distribution pipelines. It applies to all pipelines that meet the coverage criteria.

“We have consulted with the States and Territories in formulating

the Terms of Reference for the review, as the outcomes from the review may require

implementation through State and Territory, as well as Commonwealth, legislation,”

Mr Hockey said.

“Furthermore, it is expected that the Ministerial Council

on Energy would prepare a response to the report, in recognition of this joint

responsibility.”

The Treasurer also announced the appointment of Dr Michael Folie

as an Associate Commissioner to the inquiry. Dr Folie is a senior businessman

with a background in the oil and mining industries. “Dr Folie will bring

extensive experience in providing high level policy analysis and advice to this

inquiry,” Mr Costello said.

The Productivity Commission will shortly release an issues paper

and invite expressions of interest from anyone wanting to participate in the

review. The Ministers encouraged all interested parties to make submissions

to the Commission.

People who want to register their interest in the inquiry or

obtain a copy of the terms of reference will find details on the Productivity

Commission website at: www.pc.gov.au

CANBERRA

13 June 2003

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