❓ Hon. McSweeney raises concerns about the failing WA dairy industry and seeks urgent government action. Hon. Chance acknowledges the severity, details past support, and outlines ongoing efforts to find legal solutions for farmer negotiation rights.
AnsweredQoN 372Legislative Council
QuestionView source ↗
The minister is reported in today’s The West Australian as stating that the Western Australian dairy industry had reached full market failure and that there was no evidence that the state’s shrinking population of 285 dairy farmers could bargain freely or fairly with Western Australia’s four major milk processors and their big retail clients. That is true. It is no longer fanciful to imagine that Western Australia will not have a dairy industry at all. The minister said that the state could meet its demands from reconstituted milk. He urged Australia’s competition watchdog to reconsider its decision last month to reject a request from Western Australian farmers to negotiate as a block with processors. I would like to know what the minister is doing about that and what the government is doing to save the dairy industry in Western Australia. I am very genuine in asking: where do we go from here? Hon KIM CHANCE
AnswerView source ↗
I thank the member for some notice of this question. I entirely appreciate the manner in which the question has been asked because it is a serious matter. I was accurately reported in what I said. I am genuinely concerned that, as a result of survey information I have seen that was generated by the dairy industry, we have now reached the point of full market failure. We had been hovering close to that. The government has supported the industry in its attempts to secure interim authorisation under the Trade Practices Act by an application to the Australian Competition and Consumer Commission. Regrettably, four weeks ago or thereabouts, the interim authorisation application was not approved by the ACCC. I will deal with that matter separately with the ACCC. Similarly, I am working through the detail of options that might be available to the state through exemption provisions under the Trade Practices Act. I cannot say much more about that at this stage because it might unreasonably raise hopes in the industry that I do not want to raise and see disappointed. There may be options within the provisions of the Trade Practices Act. They are somewhat similar to section 21(1)(aa) of the Gene Technology Act, which makes specific provision for states and territories to form their own legislation that, provided it takes account of the commonwealth legislation, effectively has protection from section 109 of the Constitution. Section 109 holds that, when there is inconsistency between state and commonwealth law, the commonwealth law prevails. Occasionally in commonwealth law there are provisions built in that give state and territory laws some protection from actions under section 109. I am looking at the Trade Practices Act to see whether there is a way I can do that. We are doing that in parallel with our approach to the ACCC. Although interim authorisation under the Trade Practices Act was refused by the ACCC, that refusal is not and should not be taken as an indication that the ACCC will not finally approve such an authorisation. It is just that it chose to not approve the interim authorisation. The difficulty that poses for the industry - as I said, the government has been financially and physically supporting the industry in its application - is that the process of going from interim authorisation application to full application to address the enumerated points that the ACCC provided in its advice to the industry can take years. It can take enormous resources and money. There is some precedent for that in a Victorian application of a similar nature from the broiler industry. That prospect has disheartened an industry that is already under enormous pressure. That is why I am seeking to find some other way. We have scoured through the massive legislation that governs agriculture in the state. There is half a cubic metre of legislation that, hopefully later this year, we will be able to do something about. We are trying to find a way that can provide an authority for me to issue an order that will have the effect of establishing a negotiation agency. We have not been able to find such an order. We have started on the commonwealth legislation. I have reason for some moderate enthusiasm about possibly finding something there. Hopefully, within a couple of weeks, I should be able to report further.
Hon KIM CHANCE replied: I thank the member for some notice of this question. I entirely appreciate the manner in which the question has been asked because it is a serious matter. I was accurately reported in what I said. I am genuinely concerned that, as a result of survey information I have seen that was generated by the dairy industry, we have now reached the point of full market failure. We had been hovering close to that. The government has supported the industry in its attempts to secure interim authorisation under the Trade Practices Act by an application to the Australian Competition and Consumer Commission. Regrettably, four weeks ago or thereabouts, the interim authorisation application was not approved by the ACCC. I will deal with that matter separately with the ACCC. Similarly, I am working through the detail of options that might be available to the state through exemption provisions under the Trade Practices Act. I cannot say much more about that at this stage because it might unreasonably raise hopes in the industry that I do not want to raise and see disappointed. There may be options within the provisions of the Trade Practices Act. They are somewhat similar to section 21(1)(aa) of the Gene Technology Act, which makes specific provision for states and territories to form their own legislation that, provided it takes account of the commonwealth legislation, effectively has protection from section 109 of the Constitution. Section 109 holds that, when there is inconsistency between state and commonwealth law, the commonwealth law prevails. Occasionally in commonwealth law there are provisions built in that give state and territory laws some protection from actions under section 109. I am looking at the Trade Practices Act to see whether there is a way I can do that. We are doing that in parallel with our approach to the ACCC. Although interim authorisation under the Trade Practices Act was refused by the ACCC, that refusal is not and should not be taken as an indication that the ACCC will not finally approve such an authorisation. It is just that it chose to not approve the interim authorisation. The difficulty that poses for the industry - as I said, the government has been financially and physically supporting the industry in its application - is that the process of going from interim authorisation application to full application to address the enumerated points that the ACCC provided in its advice to the industry can take years. It can take enormous resources and money. There is some precedent for that in a Victorian application of a similar nature from the broiler industry. That prospect has disheartened an industry that is already under enormous pressure. That is why I am seeking to find some other way. We have scoured through the massive legislation that governs agriculture in the state. There is half a cubic metre of legislation that, hopefully later this year, we will be able to do something about. We are trying to find a way that can provide an authority for me to issue an order that will have the effect of establishing a negotiation agency. We have not been able to find such an order. We have started on the commonwealth legislation. I have reason for some moderate enthusiasm about possibly finding something there. Hopefully, within a couple of weeks, I should be able to report further.
I thank the member for some notice of this question. I entirely appreciate the manner in which the question has been asked because it is a serious matter. I was accurately reported in what I said. I am genuinely concerned that, as a result of survey information I have seen that was generated by the dairy industry, we have now reached the point of full market failure. We had been hovering close to that. The government has supported the industry in its attempts to secure interim authorisation under the Trade Practices Act by an application to the Australian Competition and Consumer Commission. Regrettably, four weeks ago or thereabouts, the interim authorisation application was not approved by the ACCC. I will deal with that matter separately with the ACCC. Similarly, I am working through the detail of options that might be available to the state through exemption provisions under the Trade Practices Act. I cannot say much more about that at this stage because it might unreasonably raise hopes in the industry that I do not want to raise and see disappointed. There may be options within the provisions of the Trade Practices Act. They are somewhat similar to section 21(1)(aa) of the Gene Technology Act, which makes specific provision for states and territories to form their own legislation that, provided it takes account of the commonwealth legislation, effectively has protection from section 109 of the Constitution. Section 109 holds that, when there is inconsistency between state and commonwealth law, the commonwealth law prevails. Occasionally in commonwealth law there are provisions built in that give state and territory laws some protection from actions under section 109. I am looking at the Trade Practices Act to see whether there is a way I can do that. We are doing that in parallel with our approach to the ACCC. Although interim authorisation under the Trade Practices Act was refused by the ACCC, that refusal is not and should not be taken as an indication that the ACCC will not finally approve such an authorisation. It is just that it chose to not approve the interim authorisation. The difficulty that poses for the industry - as I said, the government has been financially and physically supporting the industry in its application - is that the process of going from interim authorisation application to full application to address the enumerated points that the ACCC provided in its advice to the industry can take years. It can take enormous resources and money. There is some precedent for that in a Victorian application of a similar nature from the broiler industry. That prospect has disheartened an industry that is already under enormous pressure. That is why I am seeking to find some other way. We have scoured through the massive legislation that governs agriculture in the state. There is half a cubic metre of legislation that, hopefully later this year, we will be able to do something about. We are trying to find a way that can provide an authority for me to issue an order that will have the effect of establishing a negotiation agency. We have not been able to find such an order. We have started on the commonwealth legislation. I have reason for some moderate enthusiasm about possibly finding something there. Hopefully, within a couple of weeks, I should be able to report further.
The government has supported the industry in its attempts to secure interim authorisation under the Trade Practices Act by an application to the Australian Competition and Consumer Commission. Regrettably, four weeks ago or thereabouts, the interim authorisation application was not approved by the ACCC. I will deal with that matter separately with the ACCC. Similarly, I am working through the detail of options that might be available to the state through exemption provisions under the Trade Practices Act. I cannot say much more about that at this stage because it might unreasonably raise hopes in the industry that I do not want to raise and see disappointed. There may be options within the provisions of the Trade Practices Act. They are somewhat similar to section 21(1)(aa) of the Gene Technology Act, which makes specific provision for states and territories to form their own legislation that, provided it takes account of the commonwealth legislation, effectively has protection from section 109 of the Constitution. Section 109 holds that, when there is inconsistency between state and commonwealth law, the commonwealth law prevails. Occasionally in commonwealth law there are provisions built in that give state and territory laws some protection from actions under section 109. I am looking at the Trade Practices Act to see whether there is a way I can do that. We are doing that in parallel with our approach to the ACCC. Although interim authorisation under the Trade Practices Act was refused by the ACCC, that refusal is not and should not be taken as an indication that the ACCC will not finally approve such an authorisation. It is just that it chose to not approve the interim authorisation. The difficulty that poses for the industry - as I said, the government has been financially and physically supporting the industry in its application - is that the process of going from interim authorisation application to full application to address the enumerated points that the ACCC provided in its advice to the industry can take years. It can take enormous resources and money. There is some precedent for that in a Victorian application of a similar nature from the broiler industry. That prospect has disheartened an industry that is already under enormous pressure. That is why I am seeking to find some other way. We have scoured through the massive legislation that governs agriculture in the state. There is half a cubic metre of legislation that, hopefully later this year, we will be able to do something about. We are trying to find a way that can provide an authority for me to issue an order that will have the effect of establishing a negotiation agency. We have not been able to find such an order. We have started on the commonwealth legislation. I have reason for some moderate enthusiasm about possibly finding something there. Hopefully, within a couple of weeks, I should be able to report further.
Hon KIM CHANCE replied: I thank the member for some notice of this question. I entirely appreciate the manner in which the question has been asked because it is a serious matter. I was accurately reported in what I said. I am genuinely concerned that, as a result of survey information I have seen that was generated by the dairy industry, we have now reached the point of full market failure. We had been hovering close to that. The government has supported the industry in its attempts to secure interim authorisation under the Trade Practices Act by an application to the Australian Competition and Consumer Commission. Regrettably, four weeks ago or thereabouts, the interim authorisation application was not approved by the ACCC. I will deal with that matter separately with the ACCC. Similarly, I am working through the detail of options that might be available to the state through exemption provisions under the Trade Practices Act. I cannot say much more about that at this stage because it might unreasonably raise hopes in the industry that I do not want to raise and see disappointed. There may be options within the provisions of the Trade Practices Act. They are somewhat similar to section 21(1)(aa) of the Gene Technology Act, which makes specific provision for states and territories to form their own legislation that, provided it takes account of the commonwealth legislation, effectively has protection from section 109 of the Constitution. Section 109 holds that, when there is inconsistency between state and commonwealth law, the commonwealth law prevails. Occasionally in commonwealth law there are provisions built in that give state and territory laws some protection from actions under section 109. I am looking at the Trade Practices Act to see whether there is a way I can do that. We are doing that in parallel with our approach to the ACCC. Although interim authorisation under the Trade Practices Act was refused by the ACCC, that refusal is not and should not be taken as an indication that the ACCC will not finally approve such an authorisation. It is just that it chose to not approve the interim authorisation. The difficulty that poses for the industry - as I said, the government has been financially and physically supporting the industry in its application - is that the process of going from interim authorisation application to full application to address the enumerated points that the ACCC provided in its advice to the industry can take years. It can take enormous resources and money. There is some precedent for that in a Victorian application of a similar nature from the broiler industry. That prospect has disheartened an industry that is already under enormous pressure. That is why I am seeking to find some other way. We have scoured through the massive legislation that governs agriculture in the state. There is half a cubic metre of legislation that, hopefully later this year, we will be able to do something about. We are trying to find a way that can provide an authority for me to issue an order that will have the effect of establishing a negotiation agency. We have not been able to find such an order. We have started on the commonwealth legislation. I have reason for some moderate enthusiasm about possibly finding something there. Hopefully, within a couple of weeks, I should be able to report further.
I thank the member for some notice of this question. I entirely appreciate the manner in which the question has been asked because it is a serious matter. I was accurately reported in what I said. I am genuinely concerned that, as a result of survey information I have seen that was generated by the dairy industry, we have now reached the point of full market failure. We had been hovering close to that. The government has supported the industry in its attempts to secure interim authorisation under the Trade Practices Act by an application to the Australian Competition and Consumer Commission. Regrettably, four weeks ago or thereabouts, the interim authorisation application was not approved by the ACCC. I will deal with that matter separately with the ACCC. Similarly, I am working through the detail of options that might be available to the state through exemption provisions under the Trade Practices Act. I cannot say much more about that at this stage because it might unreasonably raise hopes in the industry that I do not want to raise and see disappointed. There may be options within the provisions of the Trade Practices Act. They are somewhat similar to section 21(1)(aa) of the Gene Technology Act, which makes specific provision for states and territories to form their own legislation that, provided it takes account of the commonwealth legislation, effectively has protection from section 109 of the Constitution. Section 109 holds that, when there is inconsistency between state and commonwealth law, the commonwealth law prevails. Occasionally in commonwealth law there are provisions built in that give state and territory laws some protection from actions under section 109. I am looking at the Trade Practices Act to see whether there is a way I can do that. We are doing that in parallel with our approach to the ACCC. Although interim authorisation under the Trade Practices Act was refused by the ACCC, that refusal is not and should not be taken as an indication that the ACCC will not finally approve such an authorisation. It is just that it chose to not approve the interim authorisation. The difficulty that poses for the industry - as I said, the government has been financially and physically supporting the industry in its application - is that the process of going from interim authorisation application to full application to address the enumerated points that the ACCC provided in its advice to the industry can take years. It can take enormous resources and money. There is some precedent for that in a Victorian application of a similar nature from the broiler industry. That prospect has disheartened an industry that is already under enormous pressure. That is why I am seeking to find some other way. We have scoured through the massive legislation that governs agriculture in the state. There is half a cubic metre of legislation that, hopefully later this year, we will be able to do something about. We are trying to find a way that can provide an authority for me to issue an order that will have the effect of establishing a negotiation agency. We have not been able to find such an order. We have started on the commonwealth legislation. I have reason for some moderate enthusiasm about possibly finding something there. Hopefully, within a couple of weeks, I should be able to report further.
The government has supported the industry in its attempts to secure interim authorisation under the Trade Practices Act by an application to the Australian Competition and Consumer Commission. Regrettably, four weeks ago or thereabouts, the interim authorisation application was not approved by the ACCC. I will deal with that matter separately with the ACCC. Similarly, I am working through the detail of options that might be available to the state through exemption provisions under the Trade Practices Act. I cannot say much more about that at this stage because it might unreasonably raise hopes in the industry that I do not want to raise and see disappointed. There may be options within the provisions of the Trade Practices Act. They are somewhat similar to section 21(1)(aa) of the Gene Technology Act, which makes specific provision for states and territories to form their own legislation that, provided it takes account of the commonwealth legislation, effectively has protection from section 109 of the Constitution. Section 109 holds that, when there is inconsistency between state and commonwealth law, the commonwealth law prevails. Occasionally in commonwealth law there are provisions built in that give state and territory laws some protection from actions under section 109. I am looking at the Trade Practices Act to see whether there is a way I can do that. We are doing that in parallel with our approach to the ACCC. Although interim authorisation under the Trade Practices Act was refused by the ACCC, that refusal is not and should not be taken as an indication that the ACCC will not finally approve such an authorisation. It is just that it chose to not approve the interim authorisation. The difficulty that poses for the industry - as I said, the government has been financially and physically supporting the industry in its application - is that the process of going from interim authorisation application to full application to address the enumerated points that the ACCC provided in its advice to the industry can take years. It can take enormous resources and money. There is some precedent for that in a Victorian application of a similar nature from the broiler industry. That prospect has disheartened an industry that is already under enormous pressure. That is why I am seeking to find some other way. We have scoured through the massive legislation that governs agriculture in the state. There is half a cubic metre of legislation that, hopefully later this year, we will be able to do something about. We are trying to find a way that can provide an authority for me to issue an order that will have the effect of establishing a negotiation agency. We have not been able to find such an order. We have started on the commonwealth legislation. I have reason for some moderate enthusiasm about possibly finding something there. Hopefully, within a couple of weeks, I should be able to report further.
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