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1. Write on article on one area of industry regulation (whether by government or industry self-regulation) 2. Provide a brief description of the regulatory framework 3. The goals of the regulatory bodies involved. 4. The key industry players (sta Essay Example

  • Category:
    Business
  • Document type:
    Article
  • Level:
    Masters
  • Page:
    2
  • Words:
    913

GOVERNMENT INTERVENTION 5

Government Intervention in Australia

(Student Name)

Australian Air Express Industry

Introduction

Australian Air Express is a Domestic airfreight company that deals with logistics. It is based in Melbourne, Australia. It is only deals with freight services within the region using leased national Jet systems, Qantas and other land vehicles. It is a joint venture’ company that was established in 1992 as domestic freight company; between Australia’s largest airline, Qantas and Australia post, which is a government-owned post provider. In addition, its flights are complex and vary. They also operate using different call signs and different numbers. It is therefore, a unique air Express that, offers freight services. In this regard, this paper aims at discussing government intervention in Australian company, its regulatory framework, goals involved in the regulatory bodies, its key industry players and their respective powers, which influence decision-making. Further, the paper will discuss the ideology and theories, which guide its approach and effectiveness of the regulatory framework.

Regulatory frameworks are laws and regulations that draw the legal requirements to be met. In addition, they are complemented by standards, directives, guidelines and policies. In Australian air Express, the regulatory frameworks are designed to provide a clear guideline on the information and data requirements for all the freight services. Additionally, they help the management to come up with decisions by advising them on the way forward. Maunder (1979) asserts that, these frameworks help in creating control mechanisms that enables easy collection of information and data for further analysis. They also streamline the process of annual assessment and review of freights by its committee. However, national governments comes in for intervention by putting up strict laws and regulations on the environment and consumer protection, transport, occupational health and management of chemical substances in general. The Australian air Express main objective is to make sure their clients are free form danger as well as their services are delivered on time. This is well explained by the frequent services their planes undergo every three months. They provide the best proposition in Australian market and offer its customers a high level of comfort and service.

Moreover, the regulatory bodies in the Australian air express aims to achieve high sustaining growth and employment with a rising standard of the living members in Australia. It also wants to stabilize their finance thus contributing to the world economy. Secondly, it aims at contributing a sound expansion in economic in its country as well as other non-member countries, thus expanding the world trade in a non-discriminatory basis, multilateral in accordance to international standards. Furthermore, regulatory frameworks are fundamental policies in all countries. For them to be beneficial, they need to be transparent, comprehensive, coherent and establishing suitable framework to liberalize network industries. They also advocate and enforce law and competition policies as well as, opens internal and external markets in trade and investment.

Some of the key industry players in this case the stakeholders are independent regulators. They make sure the regulatory activities are not interfered by politics and influence for exceptional public and private interests, especially those regulated enterprises. This is because in any regulated company such as Australia air express, it has to be independent in order to guarantee transparency to its customers, quality and predictability when in comes to decision making. Additionally, the independent regulators contribute to progress in technology and innovation in a number of sectors. It also establishes economic benefits of more open markets to invest as well as lowers prices for consumers. Their respective powers, pose specific problems in Australia industries because some differ form government administration posing a serious challenge in other democratic systems. The regulators must be endowed with specific institutional agencies and governance in addition to suitable framework in accountability.

Some ideologies which guide the approach to regulation frameworks is the free market economy theory. This is where all markets are not regulated by any party expect the market participants. The government therefore, plays a neutral role in legislation and administration of the market economic activity by protecting them from internal pressures and offering subsidies to them. Moreover, the theory also holds an ideal free market, property rights that are exchanged at a price and arranged by buyers and sellers. Either the theory also holds an ideal free market where property rights are exchanged at a price directly or indirectly, which according to the theory it causes markets to be less efficient (Kirk, 2005).

However, the effectiveness of the regulatory framework is to deregulate government regulations and rules that restrain the operation of market forces. It also eliminates and reduces the government control of how businesses are done thus moving to a free market. International Monetary Fund (2006) argues that, despite many players entering the market, the regulatory framework helps in regulating and protecting consumer rights in terms of minimizing and maximizing the prices. Additionally, it stimulates and encourages the development and ensures goods and services are affordable to the consumer. Therefore, companies are forced to provide good quality products at the lowest economic price to their customers. This is because regulatory framework government makes sure that they adhere to these standards.

References

International Monetary Fund. (2006). Australia: financial system stability assessment, including

Reports on the observance of standards and codes on the following topics: banking supervision, insurance regulation, securities regulation, and payment systems
IMF country report

Kirk, R. J. (2005). Theory and practice. Amsterdam: Elsevier.

Maunder, W. P. J. (1979). Government intervention in the developed economy. London: Croom Helm