❓ Mr Wyatt questions the Potato Marketing Corporation's (PMC) advertising expenditure, legal basis, and frequency. The PMC defends its actions as necessary to protect its market position and inform consumers, providing cost details and legal justification.
AnsweredQoN 3459Legislative Assembly
QuestionView source ↗
I refer to the advertisement that was run by the Potato Marketing Corporation (PMC) on pages 2 and 3 of the West Australian on the 16 January 2015, and I ask: (a) what was the total cost to place these advertisements; (b) what section of the Marketing of Potatoes Act 1946 provides the PMC with the ability to spend its resources on these advertisements; (c) what was the total cost involved in designing the ad; and (d) how many ads have been run by the PMC in the West Australian for the years 2010, 2011, 2012, 2013, and 2014, and what were the costs in those years?
AnswerView source ↗
Answered
11 March 2015
Responded by
Minister representing the Minister for Agriculture and Food
Response time
21 days
(a) The Potato Marketing Corporation (PMC) was able to secure the space for the advertisement at an extremely competitive rate on the basis that the retail cost be kept confidential. The cost will be reported as part of the overall marketing expenditure in the PMC Annual Report.
(b) Under Section 17A(h) the PMC has the function of marketing potatoes in the state and elsewhere, which is reinforced by Section 17A(c) where it is charged with marketing that enables Western Australian (WA) potatoes to compete in price and quality with potatoes from elsewhere. Section 19(1)(p) also applies.
As a trading corporation, the PMC formed the view that recent incorrect editorial comment in The West Australian had the potential to mislead consumers, which are its key customers, and adversely affect its market position. Therefore, it took the decision to place the advertisement to inform its key customers of correct information and protect its market position.
(c) The cost of designing the advert was $3 494.30, including GST.
(d)At the request of growers, the PMC recommenced marketing potatoes in October 2013. In so doing, the PMC replaced previous levies imposed by other organisations to cover marketing and promotion. In 2013, three adverts were run at a cost of $15 298.47, including GST. In 2014, one advert was run at a cost of $1 101.49, including GST.
The spend is a minor percentage of the total spend by the PMC, and is part of the PMC's grower backed drive to increase consumption of potatoes in WA.
(b) Under Section 17A(h) the PMC has the function of marketing potatoes in the state and elsewhere, which is reinforced by Section 17A(c) where it is charged with marketing that enables Western Australian (WA) potatoes to compete in price and quality with potatoes from elsewhere. Section 19(1)(p) also applies.
As a trading corporation, the PMC formed the view that recent incorrect editorial comment in The West Australian had the potential to mislead consumers, which are its key customers, and adversely affect its market position. Therefore, it took the decision to place the advertisement to inform its key customers of correct information and protect its market position.
(c) The cost of designing the advert was $3 494.30, including GST.
(d)At the request of growers, the PMC recommenced marketing potatoes in October 2013. In so doing, the PMC replaced previous levies imposed by other organisations to cover marketing and promotion. In 2013, three adverts were run at a cost of $15 298.47, including GST. In 2014, one advert was run at a cost of $1 101.49, including GST.
The spend is a minor percentage of the total spend by the PMC, and is part of the PMC's grower backed drive to increase consumption of potatoes in WA.
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