TODAY Today
Aim is level playing field
Competition Bill targets economic 'quantum step':
Balakrishnan
Tor Ching Li
[email protected]
AGAINST the backdrop of the recent reconfiguration in the media
industry, a spirited two-hour debate was held in Parliament
yesterday over the second reading of the Competition Bill.
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Mooted with the aim of levelling the playing field for businesses,
the Bill when passed will be implemented in phases starting in
January next year.
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The intention of the Bill is "to move the economy up one quantum
step" by promoting the efficient functioning of local markets, said
Dr Vivian Balakrishnan, Acting Minister for Community Development,
Youth and Sports and Senior Minister of State for Trade and
Industry.
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The Act's exclusion of certain sectors of the economy, however,
raised concerns among MPs, who also questioned the independence of
a Competition Commission.
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The Bill excludes sectors such as the media, telecommunications,
energy, post and transport, all of which have their own regulatory
authorities and laws. This could create "uneven standards" on
competition policies, said MP Leong Horn Kee (Bishan-Toa Payoh
GRC).
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But Dr Balakrishnan said such clear and precise legislation would
need to evolve.
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"It would create more confusion to tell, for example, energy
generators that they would be subject to both the Energy Market
Authority and the Competition Commission," he said.
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MPs Inderjit Singh (Ang Mo Kio GRC), Sin Boon Ann (Tampines GRC)
and Ang Mong Seng (Hong Kah GRC) raised the issue of the
impartiality of a Competition Commission, which will be established
as a new statutory body in Phase One of the Bill's implementation,
following its ratification in Parliament in January.
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Mr Sin said: "Because the Government is also in business, it may on
occasions be seen to be the poacher. This is evident in the
extensive and deep engagements that our Government-Linked Companies
(GLCs) have within the Singapore economy."
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Mr Inderjit called on the Government to "keep the integrity of the
commission by not having too many civil servants who, whether
directly or indirectly, will have some connection with the GLCs
under regulation".
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Dr Balakrishnan assured the House that the Bill would apply to all
commercial and economic activities, "regardless of whether the
undertaking is owned by a foreign entity, a Singapore entity, the
Government or a statutory body".
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MP Steve Chia voiced
disappointment that the Bill did not cover the political sphere,
where "monopolistic power and anti-competitive behaviour is
evident".
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But Dr Balakrishnan disputed this, saying the exclusion of
Government and statutory bodies was in line with the original
intent of the Bill to regulate the conduct of market
players.
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He also stressed that the exclusion of certain sectors was not
meant to protect them from competition, rather, these were sectors
"in transition from a monopolistic to a more competitive
environment", which warranted sectoral regulators with industry
knowledge and expertise.
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When the Bill is passed and the commission set up in January next
year, the commission will spend the next year consulting with
stakeholders on provisions for anti-competitive agreements,
decisions and practices.
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Regulations in these areas and others such as the appeal process
and definitions of abuse of dominance will come into effect in
phase two, scheduled to begin on Jan 1, 2006. By 2007, the
remaining provisions relating to mergers and acquisitions will go
into force.
