Authorisation for Motor Trades Association and GPs

11 May 2007

The ACCC has issued a draft determination proposing to authorise the Motor Trades Association of Australia (MTAA) ‘real times guide’ to smash repairers and providers of motor vehicle insurance. In 2005, the Productivity Commission inquiry into the close ties between the insurance and smash repair industries urged the relinquishment of the quoting practice known as ‘funny time, funny money’ whereby insurers agree to smash repairers extending the number of hours quoted for smash repair work to compensate for an apparently low hourly rate. ACCC Chairman, Graeme Samuel considers that the guide will be ‘a useful tool for the formation of quotes based on real world factors, which may provide for greater transparency in the quoting process’. The ACCC is seeking submissions on this proposal (See ACCC news release, 11 April 2007.)

The ACCC has also issued a draft determination proposing to authorise certain GPs to agree on the fees they charge to patients and to collectively negotiate hospital agreements. In 2002, authorisation was granted by the ACCC to the Royal Australian College of General Practitioners (RACGP) for GPs intra-practice price-setting arrangements. The RACGP is seeking to renew the authorisation and extend it to allow GPs to collectively negotiate on the terms and conditions of their service contracts with public hospitals as visiting medical officers. In December 2006, the ACCC gave interim authorisation only to the intra-practice price setting element of the application. The ACCC is now proposing to grant interim authorisation to all the arrangements because they will probably result in efficiency gains in negotiations with hospitals and create a net benefit to the public.(See ACCC news release, 11 April 2007.)

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