NO.097

Joint Media Release

Minister for Industry, Science and Resources

16 October 2000

00/468

Treasurer Peter Costello and the Minister for Industry, Science and Resources, Senator

Nick Minchin, today gave in-principle support for an independent review of the operation

of the National Third Party Access Code for Natural Gas Pipelines Systems.

The announcement was made in response to infrastructure industry concerns over the

impact of recent regulatory decisions on future investment in natural gas pipelines.

Mr Costello and Senator Minchin agreed it would be appropriate to commission an

independent review of the operation of the national gas access Code, following the

completion of regulators’ final decisions in the first round of Access Arrangements

and the outcome of the recently announced Review of Part IIIA of the Trade Practices

Act 1974 and of Clause 6 of the Competition Principles Agreement, to be conducted by

the Productivity Commission.

“As announced by the Assistant Treasurer on 10 October, the Productivity

Commission has been asked to report to the Government within 12 months. Therefore by the

time the first round of Access Arrangements and the Review of Part IIIA have been

completed, the Code will have been in operation for over three years and it would be

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

enhanced.” Mr Costello said.

“Gas market participants will be in a better position to contribute their

experiences to a review of the Code following the completion of regulator’s final

decisions in the first round of Access Arrangements. In addition, the outcome of the

Review of Part IIIA may have relevance to determining the scope of the review of the

national gas access Code.”

“We will be consulting with the States and Territories in relation to the details

of the review of the operation of the Code as any proposed changes which may result from

the review would need to be implemented through State and Territory legislation,”

Senator Minchin said.

“All relevant gas market participants will be consulted on the development of the

terms of reference and the scope and conduct of the review of the operation of the

Code.”

The Ministers note that, in the meantime, the National Gas Pipelines Advisory Committee

provide an established process for interested parties to bring forward for consideration

specific Code change proposals to address particular identified problems in the operation

of the Code. The Ministers encourage the industry to make full use of this process.

Contact: Niki Savva, Treasurer’s office, 02 6277 7340

Jennifer Eddy, Senator Minchin’s office, 02 6277 7580

Chrys Papadopoulos, Industry, Science and Resources, 02 6213 7924

CMR545-00