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The ACCC will not oppose the proposed acquisition of Austrak by Vossloh Australia.
Vossloh and Austrak are suppliers of rail track components. Vossloh supplies rail fastening components and switch systems including turnouts, while Austrak supplies concrete sleepers and bearers.
“There is no horizontal overlap between the products manufactured and supplied by Vossloh and Austrak in Australia. There are vertical links, however, and this is what the ACCC’s investigation focussed on,” ACCC Commissioner Roger Featherston said.
The concrete sleepers that Austrak manufactures and supplies are manufactured to fit specific fastening systems (potentially including those manufactured by Vossloh). In addition, Austrak supplies concrete bearers to turnout manufacturers such as Vossloh for use in the production of turnouts.
“The ACCC considered whether the proposed acquisition could enable the combined Vossloh-Austrak to lessen competition in either turnouts or fastenings by foreclosing its rivals,” Mr Featherston said.
The ACCC’s inquiries indicate there are alternative manufacturers of sleepers and bearers in Australia and some imports.
“After speaking with a range of industry participants, we consider that existing manufacturers of sleepers and bearers could expand their offerings, including by increasing production or expanding their geographic presence,” Mr Featherston said.
In relation to fastening components, industry participants also indicated that there is a very strong competing supplier, whose products are approved for use in most rail tracks, and is likely to continue to constrain Vossloh post acquisition.
The ACCC also considered concerns raised about the possible disclosure of confidential turnout and fastening information to the combined Vossloh-Austrak, but did not consider that it would cause a substantial lessening of competition.
More information is available at Vossloh Australia Pty Ltd – proposed acquisition of Austrak Pty Ltd.
Background
Austrak is a wholly owned subsidiary of Laing O’Rourke, and is the largest concrete sleeper manufacturer and supplier to the rail industry in Australia.
Sleepers are rectangular supports that support the rails and uniformly transfer and distribute loads to the underlying ballast.
Fastening components are used to connect rails to railway sleepers. Turnouts enable trains to move from one track to another. Bearers are similar to sleepers, but lie underneath turnouts instead of straight track and are specifically designed for each turnout.
Austrak has concrete sleeper manufacturing facilities in four states (Qld, NSW, WA, Vic).
Vossloh is a subsidiary of Vossloh AG, a German rail technology company which manufactures and supplies rail infrastructure. In Australia, Vossloh supplies rail fastenings and switch systems, including turnouts which enable trains to move from one track to another.
Vossloh does not manufacture or supply sleepers in Australia. It supplies fastenings in Australia for use with slab track and does not currently supply fastenings for use in ballasted track (although it has the ability to do so).

The ACCC has decided not to oppose the proposed acquisition of Racing Internet Services Pty Ltd (Racenet) by Punters Paradise Pty Limited (Punters), a subsidiary of News Corp Australia Investments Pty Ltd.
Punters and Racenet are digital platforms that provide racing news and information to consumers through their websites, mobile apps and social media channels.
The parties also earn revenue for referring new customers to corporate bookmakers, by acting as betting affiliates.
“The ACCC found that there are numerous alternative sources of online racing news and information for consumers other than Punters and Racenet,” ACCC Commissioner Roger Featherston said.
The ACCC also found betting-affiliate services are just one of a number of channels used by corporate bookmakers to acquire new customers.
As a result, the ACCC concluded that it was unlikely that the proposed acquisition would result in a substantial lessening of competition in any market.
Further information is available at News Corp – proposed acquisition of Racing Internet Services Pty Ltd (Racenet).

The Australian Federal Police (AFP) has restrained more than $8.5m in jewellery, vehicles and properties in Melbourne, Sydney and the Gold Coast, as part of a proceeds of crime investigation into offshore funds allegedly being laundered in Australia by Chinese nationals.
The operation follows a 2016 request from the Chinese Ministry of Public Security (MPS) for AFP assistance to identify possible Chinese nationals involved in this illegal activity.
The AFP will allege two Chinese nationals travelled to Australia in 2015 to establish shell companies to transfer proceeds of crime and purchase residential and development property in Australia. Chinese authorities allege the money was raised in China through the defrauding of investors.
On 14-15 November 2018, AFP investigators seized the properties, vehicles and luxury items during simultaneous search warrants in the Melbourne suburbs of Lower Plenty, Hawthorn and Melbourne CBD. A further warrant was executed in the Sydney suburb of Waterloo/Zetland. Investigations into the individuals involved are ongoing.
AFP Acting National Manager Organised Crime, Commander Bruce Hill, highlighted the importance of international collaboration in stopping money laundering and its harmful impact on the Australian community.
“As people attempt to evade foreign governments and police agencies, the AFP is committed to working with our international counterparts to stop proceeds of crime being laundered in Australia,” Commander Hill said.
“This kind of activity – where significant criminal proceeds are moved into Australian assets – can erode the level playing field for Australian homebuyers and small business owners. This ripple effect impacts our whole community; it is far from a victimless crime.
“Our message to people thinking about laundering proceeds of crime in Australia is clear – your money and assets are not hidden from the AFP and our international partners. We will catch you.”
The $8.5 million in restrained assets are now subject to a Commonwealth restraining order made under the Proceeds of Crime Act 2002. These alleged proceeds of crime were related to the following offences:

• Dealing in proceeds of crime, money or property worth any value up to $1,000,000 or more contrary to section 400.3 of the Criminal Code 1995 (Cth);
• Obtaining property or a financial advantage by deception contrary to section 134 of the Criminal Code 1995 (Cth); and
• Causing a loss to the Commonwealth (ATO) contrary to section 135.1 of the Criminal Code 1995 (Cth).

This is the third separate investigation since October 2018 involving Chinese nationals allegedly creating shell companies, laundering money and evading tax.  In October 2018 the AFP restrained three residential properties and two bank accounts relating to proceeds of crime with an estimated value of $2 million.
Collectively, these investigations have resulted in about $10.5 million in restrained assets.
The AFP has a long and productive relationship with the MPS and ongoing close collaboration under the Joint Agency Arrangement on economic crime cooperation. The AFP will continue to disrupt transnational money laundering groups and demonstrate that Australia is a hostile environment for criminals seeking to hide their illegally-obtained assets.

The cost of treating patients can be almost twice as high depending on the hospital, according to a new report from the Australian Institute of Health and Welfare (AIHW).
The report, Costs of acute admitted patients in public hospitals from 2012–13 to 2014–15, examines the costs associated with providing similar treatment to patients, across comparable public hospitals. These data are available for benchmarking the average costs of care across hospitals and over time.
The report shows that some hospitals spent up to $6,400 to deliver a notional ‘average’ service for acute admitted patients, which cost as little as $3,300 in other hospitals.
‘Across major public hospitals, the average cost to treat acute admitted patients was $4,680,’ said AIHW spokesperson Dr Adrian Webster.
Overall, the average cost of delivering care in major public hospitals decreased by 1% over the period 2012–13 to 2014–15.
‘Acute admitted patients include those who are admitted for the management of childbirth, surgery, or other diagnostic and therapeutic procedures,’ Dr Webster said
Four of the 5 major public hospitals with the lowest costs were located in Victoria: the Alfred, Monash Medical Centre, University Hospital Geelong, and St Vincent’s Hospital, with the remaining hospital—Nepean Hospital—located in New South Wales.
The 5 hospitals with the highest costs were located across Australia: Canberra (ACT), Royal Perth Wellington St Campus (WA), Sir Charles Gairdner Hospital (WA), Princess Alexandra Hospital (Qld), and Royal Adelaide Hospital (SA).
From 2012–13 to 2014–15, 7 major metropolitan public hospitals reduced their average cost of delivering care by at least 5%. Westmead Hospital saw the greatest decrease in costs, falling by 9%. This was followed by Prince Charles Hospital (Qld) and Flinders Hospital (SA) at 8% each.
‘On the other hand, 4 major metropolitan public hospitals increased their average cost of delivering care to acute admitted patients by at least 5%,’ Dr Webster said.
The average cost of care at Royal Perth Hospital (WA) grew the most, rising by 10%, followed by Royal Melbourne Hospital (Vic) (8%), and Royal Hobart Hospital (Tas) and Princess Alexandra Hospital (Qld) at 7% each.
‘To support fair comparisons of hospitals, the report does not include costs that are not comparable across hospitals nationally, such as property expenses,’ Dr Webster said.
The methods used in this report also account for key differences in the type of services provided to patients and the complexity of a patient’s condition. These data do not, however, include information about the quality of care or patient outcomes so are only an indirect measure of hospital efficiency.
‘By looking at average costs per patient, this report provides us with another way of understanding our hospital system and variability in health care expenditure,’ Dr Webster said.
‘The report also helps build a picture of costs over time, so we can develop a long term evidence base to inform policies aimed at improving the efficiency and sustainability of our health system.’
Today’s report is available on the AIHW’s MyHospitals website.

The Morrison Government has today announced 32 recommendations to further protect telco consumers.
The recommendations are contained in Part A of the Consumer Safeguards Review which include strengthening the Australia’s Telecommunications Ombudsman. The findings also look to improve the handling of customer complaints and increase the transparency of complaints data to drive the telco industry toward improved customer service.
The three part review, announced in April 2018 examines how to better protect telco customers in a landscape that has seen massive change over the last two decades. Twenty years ago, approximately 35 per cent of Australian homes had a broadband connection. By 2020, 100 per cent of homes will be able to connect through the NBN.
Minister for Communications Mitch Fifield said the Morrison Government was putting consumers first.
“The consumer safeguards we have in place today are designed around the old telephone network. The ongoing relevance and usefulness of these protections is diminishing as Australia’s telecommunications environment and consumer use evolves” he said.
Today’s Part A Recommendations: Consumer Redress and Complaints Handling will strengthen the Telecommunications Industry Ombudsman (TIO) by improving its governance, operations and relationship with the telco regulator, the Australian Communications and Media Authority (ACMA).
The consultation paper for Part B: Reliability of Telecommunications Services was also released today and submissions are due by 21 December 2018. Part B of the Review is based on the fundamental principle that all Australians should be able to connect to, and stay connected to, a reliable fixed service.
“Broadband is now considered as essential as electricity or water. Consumers expect to get connected and stay connected, and if something goes wrong, it needs to be fixed and fixed quickly”.
Part C of the consumer safeguards review will look at choice and fairness in the retail relationship between the customer and their provider. The consultation paper will be released in early 2019.
The full report and recommendations from Part A (redress and complaints handling), and the Part B discussion paper (service reliability) are available at: www.communications.gov.au/consumer-safeguards-review

A new collaboration agreement between DST and the University of Queensland has been established to undertake advanced research in flight science and enabling technologies.

The $10 million agreement will see the consolidation of both parties’ test facilities to leverage the expertise of academic and industry researchers and international partners.
Professor Richard Morgan, the University of Queensland’s Director of the Centre for Hypersonics, has been appointed to provide expertise in the development and operation of advanced large-scale test facilities and facilitate closer collaboration under the agreement.
In 2017, Professor Morgan became the only non-US scientist to have received a hypersonic systems and technologies award from the American Institute of Aeronautics and Astronautics.
Australia is a world leader in high speed flight science with over 10 years of joint flight experimentation by DST, the University of Queensland and industry.
High-speed flight science is one of the priority areas to be developed under the Next Generation Technologies Fund, a program focussing on research and development in emerging and future technologies.

In a momentous day for Australia’s national shipbuilding endeavor, construction has commenced on the Navy’s new Offshore Patrol Vessels at Osborne in South Australia.
The Minister for Defence, the Hon Christopher Pyne MP, said the multi-billion dollar project will see 12 OPVs delivered.
The OPVs will have an important role protecting our borders and will provide greater range and endurance than the existing patrol boat fleet.
“The OPV project is expected to create up to 1000 direct and indirect jobs,” said Minister Pyne.
The first two vessels will be built at Osborne before Civmec starts constructing the next 10 at Henderson in Western Australia.
Minister Pyne said ASC Shipbuilding will use its expertise gained through the Air Warfare Destroyer program to build the first two OPVs.
“These new vessels are being built in Australian facilities, with Australian steel, and by Australian workers.”
“Only a year ago we announced Lürssen was the preferred tenderer.”
“It’s a fantastic achievement to start construction on time and on budget and I’d like to thank everyone involved in the project.”
The Government’s $90 billion dollar continuous naval shipbuilding program is the largest and most ambitious capital investment ever undertaken in Australia.
“This investment is about more than building ships, submarines and shipyards because it will establish an Australian sovereign capability.”
“The continuous shipbuilding program will act as a catalyst for industry growth which will secure thousands of Australian jobs for decades.”
“This is truly a national endeavour, with the Federal Government laying the foundations for an Australia-wide sovereign naval shipbuilding enterprise.”
The OPVs will be built using Australian steel, creating Australian jobs. The steel used today in construction is from the same batch cut by the Prime Minister in Henderson just a few weeks ago, demonstrating the Government’s commitment to the naval shipbuilding program and Australian jobs.
“Our commitment ends the boom-bust cycle which has afflicted the Australian naval shipbuilding and sustainment industry in the past.”
The Minister for Finance and the Public Service, Mathias Cormann said that ASC’s shipbuilding capacity has continued to grow from strength to strength since the Government initiated the Air Warfare Destroyer reform program in 2014.
“Over the past few years ASC has demonstrated its capacity to deliver high quality vessels for the Royal Australian Navy.
“ASC’s workforce has already delivered two state-of-the-art Air Warfare Destroyers, with a third due next year. They are also exceeding their performance benchmarks in support of our Collins Class submarine fleet.”
“We look forward to ASC continuing their strong work on the first two Offshore Patrol Vessels that begin construction today.”