ONE of Australia’s biggest ports is one step closer to sale following negotiations between the Victorian Government and the ACCC, reported HeraldSun.
The new owner of the Port of Melbourne will face regular reviews, must release capacity levels and could face having their contract reviewed under newly announced monopoly safeguards.
The latest move by Treasurer Tim Pallas comes as the ACCC chairman Rod Sims appeared before a parliamentary inquiry to discuss the current bill legislating the 50 year lease.
Mr Sims told the joint parliamentary committee the changes would alleviate some concerns over the market powers of the port in the future.
Despite supporting the changes Mr Sims said the ACCC would still prefer to have a controversial clause on a compensation deal for a second port removed.
“These changes do improve the regime quite a bit.”
“We would prefer to have no compensation deal there is no doubt about that,” he said.
Mr Sims said the ACCC’s main concern in privatisation was that in the bid to boost the sale price of assets governments were not locked into substandard long term outcomes.
Mr Pallas said maximising the long term benefits of the port was beneficial to Victoria’s economy.
“We have listened to and sought to positively address the matters discussed with the ACCC, and the measures announced will provide even more protection for competitive outcomes.”
The port sale is expected to net between $6- $7 billion which will be funnelled into the Andrews Government’s level crossing removal program.
Opposition port spokesman Michael O’Brien welcomed the changes but said they would need to assess before commuting to supporting the legislation.
He has previously said they supported the sale but also raised concerns over compensation owed if a second port was built in the next 50 years.
The inquiry is probing the lease legislation before it is returned to the Legislative Council for a vote before the end of year.
It is expected the Port of Melbourne will be sold in early 2016.
