Hilmer Review

Hilmer Review
Name	Hilmer Review
Author	National Competition Policy Review Committee
Country	Australia
Language	English
Subject	Competition law and policy
Published	1993

Hilmer Review The Hilmer Review was a landmark Australian report on competition policy led by Fred Hilmer that proposed comprehensive reforms to enhance competition across public and private sectors. It influenced legislation, regulatory bodies, and policy debates involving figures and institutions across Australia and internationally. The Review engaged with stakeholders including corporations, universities, courts, and intergovernmental organizations, shaping subsequent measures in markets, utilities, and professional services.

Background and Purpose

The Review was commissioned amid debates involving the Keating government, the Australian Competition and Consumer Commission, and state and territory premiers about reforming trade practices and regulatory frameworks. Chaired by Fred Hilmer, its remit intersected with inquiries linked to the Productivity Commission, the Reserve Bank of Australia, and public inquiries such as commissions led by David Murray and Peter Costello. The purpose drew on comparative work from the Organisation for Economic Co-operation and Development, the World Bank, the International Monetary Fund, and reform precedents in the United Kingdom, United States, New Zealand, and Canada.

Key Recommendations

The Review recommended structural and legal changes invoking instruments familiar from reports like the Harper Report and institutions such as the Australian Law Reform Commission. It proposed a single national competition law modelled in part on frameworks used by the Federal Trade Commission and European Commission competition directorates, and urged removal of statutory immunities resembling exemptions held by entities like the Commonwealth Bank of Australia and certain state-owned enterprises such as Snowy Hydro and Qantas. Recommendations included corporatisation steps akin to those adopted for Telstra and governance reforms paralleled in the Australian Securities and Investments Commission establishment.

Implementation and Policy Impact

Implementation involved federal and state parliaments, the Council of Australian Governments, and regulatory agencies including the Australian Competition and Consumer Commission and state fair trading offices. Legislative outcomes interacted with statutes such as the Trade Practices Act 1974 and subsequent amendments that informed the work of bodies like the High Court of Australia and administrative tribunals including the Administrative Appeals Tribunal. The changes affected public utilities regulated under commissions similar to the Australian Energy Regulator and industries represented by peak bodies like the Business Council of Australia and the Australian Industry Group.

Economic and Competition Analysis

Economic analysis cited in the Review drew on research from universities such as Australian National University, University of Melbourne, University of Sydney, and think tanks including the Grattan Institute and Lowy Institute. It referenced empirical methods used in studies of market concentration like those by Harvard University and Stanford University, and models from scholars connected to Chicago School approaches and critiques from Cambridge-affiliated economists. The Review evaluated impacts on sectors exemplified by cases involving Commonwealth Bank of Australia, ANZ, Woolworths Group, Coles Group, and infrastructure projects like National Broadband Network debates.

Criticism and Controversy

Critics from organizations such as the Australian Council of Trade Unions and academics at University of New South Wales argued that some recommendations risked undermining public service delivery, echoing tensions seen in debates over privatization involving entities like Sydney Water and Australian Postal Corporation. Legal challenges and commentary arose referencing jurisprudence from the High Court of Australia and comparative disputes in the European Court of Justice and United States Supreme Court. Media outlets including the Australian Financial Review, the Sydney Morning Herald, and the ABC (Australian Broadcasting Corporation) amplified controversies tied to corporate responses from groups like the Australian Retailers Association and the Australian Banking Association.

Legacy and Long-term Effects

Long-term effects included influence on subsequent policy reviews chaired by figures such as Martin Parkinson and structural reforms overseen by agencies like the Productivity Commission and the Australian Competition and Consumer Commission. The Review’s recommendations informed debates about privatization and regulation of firms including Qantas, Australia Post, and Australian Rail Track Corporation, and resonated in international policy dialogue at forums like the Asia-Pacific Economic Cooperation and the World Trade Organization. Its legacy persists in academic curricula at institutions such as Monash University and policy centers including the Grattan Institute and the Hudson Institute.

Category:Australian public policy