❓ A WA parliamentary question on notice addresses potato exports, licensing, quality concerns, board remuneration, gifts, and commercial relationships of the Potato Marketing Corporation (PMC). The PMC provides data on potato sales for contract purposes, licensing considerations, responses to quality concerns, justification for board remuneration, details of received gifts, and commercial relationships.
AnsweredQoN 3620Legislative Assembly
QuestionView source ↗
(1) For the years 2010,
2011, 2012, 2013 and 2014, I ask what was the total quantity of potatoes exported by licensed farmers to markets outside of Western Australia? (2) What
are the criteria, if any, need to be met by prospective potato growers before they can be licensed by the Potato Marketing Corporation (PMC) to sell potatoes to the Western Australian market? (3) I
refer the PMC to the 2011 strategic analysis of the Western Australian potato industry
conducted by the McKinna Group, which states that restaurateurs chose to limit
the use of potatoes on their menus because of poor quality and a lack of
choice, and I ask: (a) is the PMC aware of this report and if not, why not; (b) has
the PMC responded to these concerns; and (c) if yes to (b), how? (4) I
refer to the PMC's annual reports from the years 2004 and 2014, which indicate that the
Chairman’s position has attracted a threefold increase in fee payments, and at least a twofold increase in fee payments for other board positions, and I ask: (a) given that Australia Bureau of Statistics figures show a significantly lower rate of wage growth across Western Australia over this time frame, on what basis are these fee increases justified; (b) have
there been significant changes to the responsibilities attached to the Chairman
and other board positions between 2004 and 2014 that justify these increases in fee payments; and (c) if yes to (b), what are they? (5) Since January 2014, has any board member or employee of the PMC accepted any: gifts, hospitality, invitations to any events or free accommodation, in connection with their respective roles with the Corporation: (a) if yes, then what was the nature of these items; and (b) if yes, what was the estimated cost of these items? (6) Does the PMC have any commercial or financial relationship with any private company or individual, and if so, what is the nature of that commercial or financial relationship?
2011, 2012, 2013 and 2014, I ask what was the total quantity of potatoes exported by licensed farmers to markets outside of Western Australia? (2) What
are the criteria, if any, need to be met by prospective potato growers before they can be licensed by the Potato Marketing Corporation (PMC) to sell potatoes to the Western Australian market? (3) I
refer the PMC to the 2011 strategic analysis of the Western Australian potato industry
conducted by the McKinna Group, which states that restaurateurs chose to limit
the use of potatoes on their menus because of poor quality and a lack of
choice, and I ask: (a) is the PMC aware of this report and if not, why not; (b) has
the PMC responded to these concerns; and (c) if yes to (b), how? (4) I
refer to the PMC's annual reports from the years 2004 and 2014, which indicate that the
Chairman’s position has attracted a threefold increase in fee payments, and at least a twofold increase in fee payments for other board positions, and I ask: (a) given that Australia Bureau of Statistics figures show a significantly lower rate of wage growth across Western Australia over this time frame, on what basis are these fee increases justified; (b) have
there been significant changes to the responsibilities attached to the Chairman
and other board positions between 2004 and 2014 that justify these increases in fee payments; and (c) if yes to (b), what are they? (5) Since January 2014, has any board member or employee of the PMC accepted any: gifts, hospitality, invitations to any events or free accommodation, in connection with their respective roles with the Corporation: (a) if yes, then what was the nature of these items; and (b) if yes, what was the estimated cost of these items? (6) Does the PMC have any commercial or financial relationship with any private company or individual, and if so, what is the nature of that commercial or financial relationship?
AnswerView source ↗
Answered
18 March 2015
Responded by
Minister representing the Minister for Agriculture and Food
Response time
21 days
(1) As the Potato Marketing Corporation (PMC) does not regulate export, it does not have detailed data on the subject of the question. The data that the PMC has is provided below, and relates only to the volume of potatoes sold for contract purposes, only a relatively small percentage of which may go to exports.
Season Tonnes
2010 19,457
2011 23,888
2012 21,897
2013 16,939
2014 19,748*
Total 101,929
* Estimate Only
(2) The PMC does not currently have formal criteria for prospective potato growers before they can be licensed, as the numbers seeking such licenses are relatively low and each case is treated on its merit. However, some of the factors that are considered include:
· experience in the agriculture sector, especially horticulture, with a track record of successful growing;
· being quality assured, as well as accredited for chemical use and food safety;
· geographical location, for example, the PMC is interested in some new growers outside existing areas to mitigate risk of climate and disease; and
· time of year, for example, some Pools are at full capacity while others have additional capacity available.
(3) (a-c) The PMC is well aware of the McKinna Analysis, which was tabled in Parliament by the then Minister in 2012. The PMC Board commissioned the McKinna Strategic Analysis of the WA Ware Potato Supply Chain, which was delivered in October 2011. The aim of the Analysis was to identify options to enhance the effectiveness and efficiency of the WA potato supply chain. All recommendations that the Board accepted are either completed, or work has commenced in implementing the intent of the Analysis.
In particular, the PMC is actively working with high profile chefs as part of its Food Service Campaign in promotion and marketing so that they understand that there are significant numbers of varieties available and understand the PMC's work in quality. This highly successful campaign has resulted in the appointment of Chef Ambassadors for Potatoes, called "Potatodors", to spread the message in the foodservice industry.
(4) (a-c) The remuneration of PMC board members, including the Chairman, is based on recommendations set by the Public Sector Commission and determined by the Minister. These are the only board fees paid to PMC board members. The figures quoted in each annual report are not necessarily directly comparable as, for example, in 2014 the figure for remuneration also included expenses incurred and reimbursed for items such as travel to meetings.
(5) (a-b) Since January 2014, the following gifts, hospitality, invitations to any events or free accommodation, in connection with their respective roles with the Corporation have been received:
One board member and one staff member attended the breakfast function; 'An Audience with Australia's Ambassador to Indonesia, Mr Greg Moriarty', hosted by the Australia Indonesia Business Council/ Indonesia Institute on 4 September 2014, total estimated value $180. This was in the context of researching the Indonesian market for potato exports, where a planned trip to meet Mr Moriarty in Indonesia had to be cancelled.
One staff member represented the PMC at the 2014 IGA Perth Royal Show Thank you Cocktail Party on 14 October 2014, total estimated value is not known.
One staff member attended the Kott Gunning Lawyers - Annual Christmas Drinks Under the Stars, a free function and consumed one light beer, total estimated value $8.50.
PMC staff received an estimated six bottles of wine at Christmas 2014, total estimated value $120.
One staff member received tickets for a netball game from a media outlet, total estimated value $58. This one-off event stemmed from an existing relationship prior to the staff member working at the PMC.
(6) Apart from standard supplier arrangements such as with growers, washpackers, variety rights holders, marketing service providers, consultants, legal and financial service providers, the PMC has the following commercial or financial relationships:
· A shareholding in Western Potatoes, which it received in return for a Government mandated investment in the company at its inception.
· A commercial agreement with A Galati and Galati Nominees, the details of which are commercial in confidence.
· A commercial arrangement with Beta Spud to provide an outsourced "Board Store" operation on behalf of the PMC.
Season Tonnes
2010 19,457
2011 23,888
2012 21,897
2013 16,939
2014 19,748*
Total 101,929
* Estimate Only
(2) The PMC does not currently have formal criteria for prospective potato growers before they can be licensed, as the numbers seeking such licenses are relatively low and each case is treated on its merit. However, some of the factors that are considered include:
· experience in the agriculture sector, especially horticulture, with a track record of successful growing;
· being quality assured, as well as accredited for chemical use and food safety;
· geographical location, for example, the PMC is interested in some new growers outside existing areas to mitigate risk of climate and disease; and
· time of year, for example, some Pools are at full capacity while others have additional capacity available.
(3) (a-c) The PMC is well aware of the McKinna Analysis, which was tabled in Parliament by the then Minister in 2012. The PMC Board commissioned the McKinna Strategic Analysis of the WA Ware Potato Supply Chain, which was delivered in October 2011. The aim of the Analysis was to identify options to enhance the effectiveness and efficiency of the WA potato supply chain. All recommendations that the Board accepted are either completed, or work has commenced in implementing the intent of the Analysis.
In particular, the PMC is actively working with high profile chefs as part of its Food Service Campaign in promotion and marketing so that they understand that there are significant numbers of varieties available and understand the PMC's work in quality. This highly successful campaign has resulted in the appointment of Chef Ambassadors for Potatoes, called "Potatodors", to spread the message in the foodservice industry.
(4) (a-c) The remuneration of PMC board members, including the Chairman, is based on recommendations set by the Public Sector Commission and determined by the Minister. These are the only board fees paid to PMC board members. The figures quoted in each annual report are not necessarily directly comparable as, for example, in 2014 the figure for remuneration also included expenses incurred and reimbursed for items such as travel to meetings.
(5) (a-b) Since January 2014, the following gifts, hospitality, invitations to any events or free accommodation, in connection with their respective roles with the Corporation have been received:
One board member and one staff member attended the breakfast function; 'An Audience with Australia's Ambassador to Indonesia, Mr Greg Moriarty', hosted by the Australia Indonesia Business Council/ Indonesia Institute on 4 September 2014, total estimated value $180. This was in the context of researching the Indonesian market for potato exports, where a planned trip to meet Mr Moriarty in Indonesia had to be cancelled.
One staff member represented the PMC at the 2014 IGA Perth Royal Show Thank you Cocktail Party on 14 October 2014, total estimated value is not known.
One staff member attended the Kott Gunning Lawyers - Annual Christmas Drinks Under the Stars, a free function and consumed one light beer, total estimated value $8.50.
PMC staff received an estimated six bottles of wine at Christmas 2014, total estimated value $120.
One staff member received tickets for a netball game from a media outlet, total estimated value $58. This one-off event stemmed from an existing relationship prior to the staff member working at the PMC.
(6) Apart from standard supplier arrangements such as with growers, washpackers, variety rights holders, marketing service providers, consultants, legal and financial service providers, the PMC has the following commercial or financial relationships:
· A shareholding in Western Potatoes, which it received in return for a Government mandated investment in the company at its inception.
· A commercial agreement with A Galati and Galati Nominees, the details of which are commercial in confidence.
· A commercial arrangement with Beta Spud to provide an outsourced "Board Store" operation on behalf of the PMC.
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