Recent media reports that the ACCC is being stretched on the record numbers of merger applications it is being forced to consider, is deeply troubling and threatens the ACCC’s central role in merger regulation.

The ACCC must be given more resources to evaluate mergers expected in 2007.

“With close to 500 timely reviews of mergers that both protect competition and safeguard the interests of small businesses and consumers, the ACCC is being placed under enormous pressure to deliver and adequately consider merger applications under the Trade Practices Act.” Senator Joyce said.

“Without more staff and resources the ACCC’s central role in the expected avalanche of mergers will be threatened as more merging parties seek to bypass it altogether and go straight to the Australian Competition Tribunal. This bypassing of the ACCC in merger cases is now a real possibility under changes made late last year and must not be allowed to happen.

“The growing number of mergers is also of grave concern. Australia already has some of the highest levels of market concentration in the world and the record number of expected mergers will further increase the overcentralisation of key Australian markets.

“We are heading towards a nation of monopolies and duopolies where consumers will miss out on the benefits of competition and choice offered by a diverse and vibrant marketplace. We need more competition not less.

“Competition must be protected and the current race towards monopolies and duopolies must be carefully scrutinised on national interest grounds by a parliamentary committee.

“Only a transparent and open parliamentary review can get to the bottom of the loss of competition and choice being faced by consumers as a result of the growing overcentralisation of Australian markets.” Senator Joyce said.