❓ Mr. Wyatt questions the Premier's comments regarding BHP and Rio Tinto's iron ore pricing strategies and potential regulatory scrutiny. The Premier clarifies his statements, emphasizing parallel marketing strategies rather than collusion, and highlights the stringency of international competition policy.
AnsweredQoN 793Legislative Assembly
QuestionView source ↗
IRON ORE EXPORT VOLUMES — PREMIER'S COMMENTS
793. Mr B.S. WYATT to the Premier:
I refer to the Premier's comments yesterday under
parliamentary privilege that BHP and Rio Tinto were seemingly acting in a ''concert
way'' over iron ore prices and to his backtracking today in which he is
trying to con people into believing that he did not mean to suggest that. If we
are to believe that the Premier did not mean to suggest that those companies
were acting in a concerted way, why did he also say yesterday, ''I tell
you what. If I was sitting around a board table in one of those companies, I'd
be pretty nervous about what the World Trade Organization and the European
regulators would be thinking of this''?
793. Mr B.S. WYATT to the Premier:
I refer to the Premier's comments yesterday under
parliamentary privilege that BHP and Rio Tinto were seemingly acting in a ''concert
way'' over iron ore prices and to his backtracking today in which he is
trying to con people into believing that he did not mean to suggest that. If we
are to believe that the Premier did not mean to suggest that those companies
were acting in a concerted way, why did he also say yesterday, ''I tell
you what. If I was sitting around a board table in one of those companies, I'd
be pretty nervous about what the World Trade Organization and the European
regulators would be thinking of this''?
AnswerView source ↗
Yes, I would be.
Mr B.S. Wyatt interjected.
The SPEAKER : Member for
Victoria Park, you have asked your question; let the Premier answer it.
Mr C.J. BARNETT : I have got
four words out so far. The marketing sales strategy is in concert.
Mr B.S. Wyatt interjected.
The SPEAKER : Member for
Victoria Park!
Mr C.J. BARNETT : I am not
suggesting collusive behaviour; I am not suggesting improper behaviour.
Mr M. McGowan : Yes, you are.
Mr C.J. BARNETT : No, I am
not. They have virtually identical marketing strategies. It is in parallel.
Mrs M.H. Roberts interjected.
The SPEAKER : Member for
Midland!
Mr C.J. BARNETT : I am attempting
to be very forthcoming in my answers, but I do not think members opposite have
much experience in international regulation.
Several members interjected.
Mr C.J. BARNETT : There is no point, Mr Speaker.
The SPEAKER : Members! Member for Midland, I call you
to order for the first time.
Mr P.B. Watson interjected.
The SPEAKER : Member for Albany, I call you to order
for the second time.
Mr C.J. BARNETT : Back in 2009, the two companies had
what on the surface would seem to be a reasonably logical proposal to simply
share infrastructure in the Pilbara. Governments have been saying that we
should be sharing rail lines, powerlines and the rest of it. In terms of
lowering the cost of production and improving competitiveness, a sharing of
infrastructure in the Pilbara sounds pretty sensible. As soon as that got to
the European Union, it was clear that the European Union regulators were not
going to allow that in terms of their market, so the standard, if you like, or
the rigor, of international competition policy is far more stringent than
applies within Australia—the European Union, the American regulators,
and the like. That is why I make the comment that people sitting around the
boardroom need to be very conscious of regulators. They went into a tizz in 2009
because they thought they were doing something pretty straightforward but the
approach of the global regulators was very different and probably very
different than would have applied in Australia. Do a little bit of homework on
international commodity trade and members opposite will come to a different
conclusion.
Mr B.S. Wyatt interjected.
The SPEAKER : Member for
Victoria Park, you have asked your question; let the Premier answer it.
Mr C.J. BARNETT : I have got
four words out so far. The marketing sales strategy is in concert.
Mr B.S. Wyatt interjected.
The SPEAKER : Member for
Victoria Park!
Mr C.J. BARNETT : I am not
suggesting collusive behaviour; I am not suggesting improper behaviour.
Mr M. McGowan : Yes, you are.
Mr C.J. BARNETT : No, I am
not. They have virtually identical marketing strategies. It is in parallel.
Mrs M.H. Roberts interjected.
The SPEAKER : Member for
Midland!
Mr C.J. BARNETT : I am attempting
to be very forthcoming in my answers, but I do not think members opposite have
much experience in international regulation.
Several members interjected.
Mr C.J. BARNETT : There is no point, Mr Speaker.
The SPEAKER : Members! Member for Midland, I call you
to order for the first time.
Mr P.B. Watson interjected.
The SPEAKER : Member for Albany, I call you to order
for the second time.
Mr C.J. BARNETT : Back in 2009, the two companies had
what on the surface would seem to be a reasonably logical proposal to simply
share infrastructure in the Pilbara. Governments have been saying that we
should be sharing rail lines, powerlines and the rest of it. In terms of
lowering the cost of production and improving competitiveness, a sharing of
infrastructure in the Pilbara sounds pretty sensible. As soon as that got to
the European Union, it was clear that the European Union regulators were not
going to allow that in terms of their market, so the standard, if you like, or
the rigor, of international competition policy is far more stringent than
applies within Australia—the European Union, the American regulators,
and the like. That is why I make the comment that people sitting around the
boardroom need to be very conscious of regulators. They went into a tizz in 2009
because they thought they were doing something pretty straightforward but the
approach of the global regulators was very different and probably very
different than would have applied in Australia. Do a little bit of homework on
international commodity trade and members opposite will come to a different
conclusion.
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