Australian Competition &. Consumer Commission

GPO Box 3131 Canberra ACT 2601

23 Marcus Clarke Street Canberra ACT 2601

Our Ref: Contact Officer:

C2010!924 Gareth Jamieson

tel: (02) 6243 1111 fax: (02) 6243 1199

Contact Phone: (02) 6243 4980

of . r~Jj www.accc.gov.au

6 January 2011 5a" Y f"'tv-j--bor (- f\ tQ/ 1l..- 'Ste-d (4/+: (!,J •

Dear

Australian Paint Manufacturers Federation amended application for authorisation A91251 - interested party consultation

The Australian Competition and Consumer Commission (the ACCC) has received an application for authorisation from the Australian Paint Manufacturers Federation (APMF). The ACCC invites you to comment on the application. Attached is a summary of the authorisation process including how to make a submission to the ACCC.

The ACCC received the APMF's original application for authorisation on 12 October 2010. The APMF seeks authorisation for a 12 month trial of a waste paint collection scheme in Victoria under which the APMF will agree with certain manufacturers and suppliers of Architectural and Decorative (A&D) paint to impose a levy on the wholesale sale of A&D Paint (Levy).

The Levy will be used to fund a waste paint collection scheme trial which will operate to improve the collection, treatment and proper disposal of post consumer A&D Paint in Victoria. Paint manufacturers participating in the waste paint collection scheme trial will include the Levy in the wholesale price of each litre of A&D paint they supply and remit the amount collected to the APMF for the purposes of funding the trial.

The APMF has indicated that, following the concl usion of the 12 month trial of the waste paint collection scheme in Victoria, it proposes to roll out the scheme nationally, on a progressive basis.

In the application for authorisation provided to the ACCC on 12 October 2010, the APMF sought authorisation for paint manufacturers participating in the waste paint collection scheme trial to impose a 5 cents per litre levy on the wholesale sale of A&D paint supplied into retail and trade channels in Victoria only. The ACCC conducted an initial round of consultation with interested parties on the basis of this form of the Levy.

On 17 December 2010, the APMF notified the ACCC that in order to respond to competition issues identified by an interested party and to best manage the complexities

of major retailer distribution systems, the APMF proposes to use a national levy of 2 cents per litre on the sale of A&D paint in Australia to fund the trial waste paint collection scheme in Victoria, rather than a 5 cents per litre levy applied only in Victoria as was proposed in the original application for authorisation and outlined above.

On 23 December 2010, the APMF provided a further response to the ACCC, outlining the benefits it considers will result from the use of a national levy to fund a Victorian waste paint collection scheme trial.

Due to the amendment to the APMF's application for authorisation and the change from a Victorian to a national Levy, the ACCC is conducting a second round of interested party consultation both with parties that were consulted in relation to the APMF's original application for authorisation and with additional parties.

A full copy of the original application for authorisation is available on the ACCC's website www .accc.gov.au/AuthorisationsRegister as are copies of the APMF correspondence referred to above which seek to amend the application. Alternatively, you can contact Gareth Jamieson on (02) 6243 4980 to obtain a hard copy of the application, submission or correspondence.

Request for submission

The ACCC invites you to make a submission on the likely public benefits and effect on competition, or any other public detriment, from the proposed national levy arrangements.

If you intend to provide a submission in relation to the APMF's amended application for authorisation, please do so by 28 January 2010.

Alternatively, if you would like to provide comments orally, please contact Gareth Jamieson on (02) 6243 4980 to organise a suitable time.

Submissions, including oral submissions, will be placed on the ACCC's public register subject to any request for exclusion (guidelines are attached).

Timetable

The ACCC will progress its assessment of the amended application in a timely manner. An indicative timetable is set out below for your information.

12 October 2010 Lodgement of application and supporting submission.

21 October 2010 Public consultation process begins.

17 December 2010 APMF responds to issues raised in public consultation process and amends application, proposing a national rather than Victorian Levy.

2

January 2010 Second round of public consultation begins

28 January 2010 Closing date for submissions from interested parties.

February 2010 Applicant responds to issues raised in the second round of the public consultation process.

February 2010 Draft detennination.

February-March 2010

Public consultation on draft detennination including any conference if called.

March 2010 Final detennination.

Please advise if you do not wish to make a submission at this time, but would like to be infonned of the progress of the application at the draft and final detennination stages. If you are able to please provide a nominated contact email address for future correspondence.

You can also forward this letter to any other party who may wish to make a submission to the ACCC regarding the application.

This letter has been placed on the ACCC's public register. If you wish to discuss any aspect of this matter, please do not hesitate to contact Gareth Jamieson on (02) 6243 4980 or gareth.jamieson@accc.gov.au.

Yours sincerely

G-~)~

fu/" David Hatfield Acting General Manager Adjudication Branch

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