INTERVIEW, ABC NEWCASTLE WITH NICK GILL

NICK GILL
So how is this impacting people in Hunter? Sharon Claydon, Federal Member for Newcastle, has written a letter to the ACCC, and Sharon joins us now. Good afternoon, Sharon. How are you today?

SHARON CLAYDON, FEDERAL MEMBER FOR NEWCASTLE
Terrific. Thank you, and afternoon to you and all your listeners.

NICK GILL
Now, first of all, you've written a letter to the ACCC in light of what has been happening. Can you please let us know the details of that letter and what you plan to happen?

SHARON CLAYDON, FEDERAL MEMBER FOR NEWCASTLE
Yeah, well, I've been watching petrol pricing in our city for very closely since the outbreak of the war, and I've had a lot of feedback, of course, from my constituents telling me about petrol prices. So I wrote to the ACCC chair, and really that letter asked the ACCC to maintain a strong oversight of petrol pricing and to make sure that they're monitoring regional centers like Newcastle, and to ensure that the price increases reflect genuine cost pressures. And if they don't, then to take action if retailers are seen to be exploiting motorists in any way, shape or form, we have, you know, the aim of that is, of course, to ensure transparency and fairness for consumers. We have, in fact, massively increased the penalty rates in the anti competition space so they can look at fines of up to $50 million for engaging in behaviours that are in breach of that act. And indeed, I know the government is looking at drafting laws to increase those penalties again now so you know if you are found to be behaving, to be engaging rather in anti competitive behaviour or some unfair behaviour towards consumers, then look out, because there are some very big penalties that will be coming your way. And obviously this doesn't happen without you hearing from people who are seeing things around your community. What sort of stuff have you heard from your constituents about what's happening with fuel prices? Well, they've just seen, you know, big gaps in the pricing of fuel as they move around. But you cannot get much fuel in Newcastle for under $2.20 a litre at present. So, and that's significantly higher than the national average, and that's what really started to sharpen my focus about well, what is happening here? We know what the you know. If you're looking at unleaded petrol prices, for example, the national average is about $1.98 today, yet in Newcastle, that would be $2.20 so we're seeing significant gaps between national average and what's happening in our region, and that really kind of raises concerns, both for my constituents and me, that some retailers, you know, they are charging significantly above what looks like market value right now, and that is behaviour that we can't tolerate.

NICK GILL
And what are the bounds in which the responsibility of the fuel companies lie like, what is the actual responsibility to pass on these price changes fairly?

SHARON CLAYDON, FEDERAL MEMBER FOR NEWCASTLE
Well they they cannot be sort of engaging in price gouging behaviour. You know? This is the message that we have consistently passed on is that, you know, there are a couple of things we really want to remind from a consumer point of view, we want to encourage people not to panic. I filled up my car just earlier today, and I've got to say, I was really pleased people were just going about their normal behaviour, just getting the petrol they needed. Moving on. There was no sign that people were filling up jerry cans or behaving erratically. So we know that supply is going to continue to arrive, and we want people to be assured about that. But the other message that goes to your question, the government just couldn't be any clearer, this is an international crisis, not a commercial opportunity. So if we see petrol stations or companies seeking to profit from this crisis, then we're going to come down with the full weight of the law.

NICK GILL
Can you outline what you've asked of the ACCC to actually do in this situation?

SHARON CLAYDON, FEDERAL MEMBER FOR NEWCASTLE
Indeed. Well, I've said firstly, maintain their strong oversight of petrol pricing. I know they are reporting daily around their watches all around the country, but I really want them to assure me that they are focused on regional centers, in my case, Newcastle, but we know the regions are feeling the impact differently. I really congratulate ample who has come out and committed to prioritizing redirected fuel to regions that are experiencing shortages. That is the kind of behaviour we want to see. And. And we want to see those fuel companies also making sure that it goes out into the wholesale market that supports those independent distributors and farmers.

NICK GILL
And so we're speaking to the Federal Member for Newcastle, Sharon Claydon, about fuel prices at the moment, you speak about those penalties, up to the $50 million fines in the short term. Can the ACCC do anything to try and turn this around quickly, or is this kind of a review process that happens afterwards, and then, in retrospect, they've got these fines that are passed on?

SHARON CLAYDON, FEDERAL MEMBER FOR NEWCASTLE
Well, it's absolutely in fuel companies interest to act in the national interest, and not just their own self. You know, commercial interests and regulators will act if they exploit the situation. So I don't think fuel companies will want to be seen to be, you know, not acting in the international interest and copying fines as well. So I think that they will, they know there is very, very close monitoring of their behaviour happening in every single city, state and territory and regions in Australia now, so they are well and truly on notice. And as I said, you know, this is not an in this is an international crisis, not a commercial opportunity. So the government is absolutely clear on that the ACCC has strong powers, and indeed, the government will soon introduce penalties of up to $100 million for false or misleading conduct and cartel behaviour. That sends a very, very strong message to all players. And the government, in the interim, is holding regular meetings, like weekly and sometimes daily, with all of the stakeholder groupings. So we are talking to the fuel companies. We are talking to the trucking companies. We're talking to the National Farmers Federation, all the industry players, and making sure that we are we know exactly what is happening to their fuel supplies at any given time.

NICK GILL
Look last one for me, forgive me for I guess, just trusting that corporations will act in the national interest, I guess, in light of the last question that I just asked short term, you know, these companies already know that these penalties are in place and that they may rise and stuff like that, but they haven't made the decision that has stuck with the national average. So will this letter and maybe these daily or weekly meetings that they're having going to see the price at the pump actually change in the very short term.

SHARON CLAYDON, FEDERAL MEMBER FOR NEWCASTLE
Well, we absolutely hope to ensure that consumers are not paying a single cent more than they need to. You know, there are absolutely costs to getting fuel to the pump. There's no doubt about that, and people have legitimate commercial interest to recover those costs. What we are making sure is that there is no exploitation of an international crisis and and as I said, from our point of view, the fuel stocks are there. The ships continue to arrive. So we haven't seen an interruption of the arrival of fuel into Australia. We've got very good strategic reserves here in Australia. We've increased those dramatically in the last five years. So people need not panic, but it is making sure that fuel companies and all of the distributors, everybody that's got a sort of finger in this pie is not seeking to take advantage of an international crisis, and that is the role of our consumer watchdog, the ACCC. It's certainly my my job as the member for Newcastle is taking that feedback from my community, making sure they understand the price rises that we're seeing here, noting, as I have that this is above the national average now, so making them acutely aware of the need to monitor regions like ours where we're seeing those increases look like there might be some kind of behaviour happening that is, you know, pushing our prices up above market value. So that's what the role of government and the ACCC is to make sure that exploitation doesn't occur, and if they are found to be engaging in that kind of behaviour, throwing the full force of those penalties at the

NICK GILL
Well, fingers crossed that your letter does the work that we hope it does. Federal member for Newcastle, Sharon Claydon, we appreciate your time this afternoon. Thank you.