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Industry Commission

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Industry Commission
NameIndustry Commission
Formation1990
Dissolved1998
TypeIndependent statutory inquiry
LocationCanberra, Australian Capital Territory
JurisdictionAustralia
Leader titleChairman
Leader nameFred Hilmer
Parent organizationDepartment of the Prime Minister and Cabinet

Industry Commission

The Industry Commission was an Australian independent statutory body established to review tariff policy, industrial restructuring, and competition policy in the 1990s. It operated alongside agencies such as the Productivity Commission and offered inquiries that influenced the policy positions of the Keating ministry, Hawke ministry, and state governments including New South Wales and Victoria. Its reports shaped debates involving corporations like BHP, Qantas, Telstra and trade negotiations with partners such as the World Trade Organization and the United States.

History

The commission was created amid economic reform initiatives associated with the Hawke ministry and later the Keating ministry, following antecedents like the Tariff Board and the Industries Assistance Commission. Its establishment reflected policy continuity from the Hilmer Report era and responses to global shifts after the 1987 stock market crash and the advent of the North American Free Trade Agreement. Early commissioners included figures from academia and public administration drawn from institutions such as the Australian National University and the University of New South Wales. Major historical turning points for the commission included inquiries triggered by the Asian Financial Crisis and structural changes in sectors affected by investment decisions by firms including Wesfarmers and CSR Limited.

Purpose and Functions

The commission's remit encompassed reviews of assistance to industry, assessments of productivity in sectors represented by firms like Commonwealth Bank and ANZ Bank and recommendations on regulation affecting carriers such as Qantas and Australia Post. It produced public inquiries, conducted cost–benefit analyses for infrastructure projects involving entities such as the Australian Rail Track Corporation and provided advice to ministers including the Treasurer of Australia and the Minister for Industry, Science and Resources. The commission evaluated measures related to trade liberalisation negotiated with partners like Japan and multilateral forums including the General Agreement on Tariffs and Trade.

Organizational Structure

Governance comprised a commissioner cadre, research divisions, and specialist inquiry panels, drawing staff from research centres such as the Bureau of Industry Economics and policy units tied to the Department of the Prime Minister and Cabinet. Leadership roles were filled by public figures with experience in bodies like the Reserve Bank of Australia and academic posts at the University of Melbourne. The commission collaborated with state statutory agencies such as the Victorian Competition and Efficiency Commission and consulted representatives from unions like the Australian Council of Trade Unions and employer groups including the Australian Chamber of Commerce and Industry.

Major Investigations and Reports

Notable inquiries addressed assistance to the manufacturing sector during reorganisations of companies like IAG and CSR Limited, the future of telecommunications prior to reforms affecting Telstra, and the deregulation of aviation markets involving Qantas and Virgin Australia. Reports examined tariffs impacting firms such as BlueScope and assessed competition law reform that intersected with recommendations from the Hilmer Report and later developments in the Trade Practices Act 1974. The commission produced influential documents on import competition that informed negotiations with trading partners like China and the European Union.

Impact on Industry and Policy

Its analyses underpinned deregulatory moves pursued by the Keating ministry and state administrations in Queensland and South Australia, influencing privatisation debates concerning entities like Telstra and Commonwealth Bank. The commission's evidence informed parliamentary committees including the Joint Committee on Public Accounts and Audit and guided policy shifts implemented by ministers such as the Minister for Trade. Industrial stakeholders, including corporations like Woolworths Group and peak bodies such as the Australian Industry Group, used the commission's reports to lobby for sectoral changes and to justify capital reallocation in industries ranging from steel manufacturing to aviation.

Criticism and Controversies

Critics from unions such as the Australian Council of Trade Unions and commentators in outlets like the Australian Financial Review argued the commission favoured market liberalisation that disadvantaged regional manufacturers and workers in states including Tasmania. Business lobbyists countered that recommendations sometimes underestimated adjustment costs faced by firms like Amcor and Incitec Pivot. Allegations of capture were levelled in public debates referencing interactions with firms such as BHP and consultancy practices connected to former commissioners with links to universities like the University of Sydney. Disputes surfaced over methodology in cost–benefit assessments and the treatment of social impacts in reports submitted to ministers in the Howard government transition.

Dissolution or Successor Bodies

In 1998 the Industry Commission merged with the Bureau of Transport Economics and the Bureau of Communications Economics to form the Productivity Commission, consolidating functions related to microeconomic analysis, regulatory reform and policy advice. Successor institutions inherited inquiry mandates and archives now referenced by researchers at entities such as the Australian National University and the Grattan Institute. Legacy debates continued in reviews of competition policy conducted by parliaments and tribunals like the Australian Competition Tribunal.

Category:Defunct Australian government agencies