Third Party Access under an Integrated Structure Third Party Access - PowerPoint PPT Presentation

Third Party Access under an Integrated Structure Third Party Access under an Integrated Structure Mr Paul Bilyk Mr Paul Bilyk Queensland Competition Authority Queensland Competition Authority 1 August 2003 1 August 2003

QR Structure QR Structure � Government owned enterprise Government owned enterprise � � Single Board and Chief Executive Single Board and Chief Executive � � Six separate business groups, eg Six separate business groups, eg � network access - coal and freight services - passenger services - infrastructure services - workshops - technical services - QCA

Why vertically integrated? Why vertically integrated? � Access regime Access regime � � Internal restructuring Internal restructuring � � Avoid unnecessary costs Avoid unnecessary costs � � Retains operational efficiencies Retains operational efficiencies � QCA

QCA Act access regime QCA Act access regime � QR obliged to negotiate access QR obliged to negotiate access � � Negotiate/arbitrate model Negotiate/arbitrate model � � Prohibit preventing/hindering access Prohibit preventing/hindering access � � Approved access undertaking Approved access undertaking � QCA

Role of access undertaking Role of access undertaking � Limits scope of disputes Limits scope of disputes � � ‘ ‘Safe harbour Safe harbour’ ’ for preventing/hindering access for preventing/hindering access � QCA

Authority’ ’s concerns s concerns Authority � Internal restructuring Internal restructuring � � Public reporting Public reporting � � Information ring Information ring- -fencing fencing � � Detailed obligations and rights Detailed obligations and rights � QCA

Internal restructuring Internal restructuring � Train control transferred to below rail Train control transferred to below rail � � Stations and marshalling yards Stations and marshalling yards � – allocate assets to below rail – assess management arrangements � Review mechanism for restructuring Review mechanism for restructuring � QCA

Public accountability Public accountability � Accounting Accounting � – costing manual – below rail financial statements – independent auditor � Network performance indicators Network performance indicators � QCA

Information ring- -fencing fencing Information ring � Limit extent of confidential information flows Limit extent of confidential information flows � � Limits on personnel movements between below and Limits on personnel movements between below and � above rail above rail � Remedy for breach Remedy for breach � – Liquidated damages – Reverse onus of proof QCA

Detailed access obligations Detailed access obligations � Limit scope for disputes and preferential self dealing Limit scope for disputes and preferential self dealing � � Complexity to balance network rights and access Complexity to balance network rights and access � seekers’ ’ concerns concerns seekers QCA

Effectiveness of access regime Effectiveness of access regime � Undertaking and access agreements have improved Undertaking and access agreements have improved � certainty certainty � Too early to tell without new entrant Too early to tell without new entrant � QCA