Hon Dee Margetts questions the Minister for Agriculture, Forestry and Fisheries regarding the costs associated with the transition of the WA Egg Marketing Board, specifically who will bear these costs and the impact on egg producers. The Minister clarifies the funding sources and addresses concerns about financial burdens on producers and national competition policy payments.

AnsweredQoN 941Legislative Council
Asked
10 November 2004
Portfolio
Agriculture, Forestry and Fisheries

QuestionView source ↗

I refer the minister to question without notice 683 in which he stated that it is not intended to charge WA egg producers for future consultancy, legal or other costs of the transition. (1) Will the minister clarify who will pay those costs? (2) If the WA Egg Marketing Board is to pay these costs, is it not the same as asking the producers to pay? (3) In the same answer, the minister indicated that the assistance package of $8.75 million was conditional on the federal Government reinstating national competition policy payments regarding eggs. How much is involved, and when were these competition penalty payments for egg production imposed? Hon KIM CHANCE

AnswerView source ↗

I thank Hon Dee Margetts for some notice of this question. (1) These costs will be met by the WA Egg Marketing Board. However, it might be possible by agreement for the board to transfer some contingent liabilities to the new company. This aspect is being addressed by the board and the interim board of NEWCO as part of the transition process. The Department of Agriculture has met consultancy costs incurred by the transition advisory committee up to 30 June 2004. On the transfer of the assets from the board - that is, the WA Egg Marketing Board to NEWCO - the Government will waive stamp duty and thereby avoid an additional cost to the industry. (2) Producers will not be levied to meet transition costs. (3) A penalty of $3.75 million was advised by the federal Treasurer for 2003-04 on 8 December 2003. In view of the Government’s decision to deregulate the industry and the proclamation of the Marketing of Eggs Amendment Bill 2004, the Government expects the payment for 2003-04 to be reimbursed, and payments of $3.8 million for 2004-05 and $3.9 million for 2005-06 to be reinstated.
(1) Will the minister clarify who will pay those costs? (2) If the WA Egg Marketing Board is to pay these costs, is it not the same as asking the producers to pay? (3) In the same answer, the minister indicated that the assistance package of $8.75 million was conditional on the federal Government reinstating national competition policy payments regarding eggs. How much is involved, and when were these competition penalty payments for egg production imposed? Hon KIM CHANCE replied: I thank Hon Dee Margetts for some notice of this question. (1) These costs will be met by the WA Egg Marketing Board. However, it might be possible by agreement for the board to transfer some contingent liabilities to the new company. This aspect is being addressed by the board and the interim board of NEWCO as part of the transition process. The Department of Agriculture has met consultancy costs incurred by the transition advisory committee up to 30 June 2004. On the transfer of the assets from the board - that is, the WA Egg Marketing Board to NEWCO - the Government will waive stamp duty and thereby avoid an additional cost to the industry. (2) Producers will not be levied to meet transition costs. (3) A penalty of $3.75 million was advised by the federal Treasurer for 2003-04 on 8 December 2003. In view of the Government’s decision to deregulate the industry and the proclamation of the Marketing of Eggs Amendment Bill 2004, the Government expects the payment for 2003-04 to be reimbursed, and payments of $3.8 million for 2004-05 and $3.9 million for 2005-06 to be reinstated.
(2) If the WA Egg Marketing Board is to pay these costs, is it not the same as asking the producers to pay? (3) In the same answer, the minister indicated that the assistance package of $8.75 million was conditional on the federal Government reinstating national competition policy payments regarding eggs. How much is involved, and when were these competition penalty payments for egg production imposed? Hon KIM CHANCE replied: I thank Hon Dee Margetts for some notice of this question. (1) These costs will be met by the WA Egg Marketing Board. However, it might be possible by agreement for the board to transfer some contingent liabilities to the new company. This aspect is being addressed by the board and the interim board of NEWCO as part of the transition process. The Department of Agriculture has met consultancy costs incurred by the transition advisory committee up to 30 June 2004. On the transfer of the assets from the board - that is, the WA Egg Marketing Board to NEWCO - the Government will waive stamp duty and thereby avoid an additional cost to the industry. (2) Producers will not be levied to meet transition costs. (3) A penalty of $3.75 million was advised by the federal Treasurer for 2003-04 on 8 December 2003. In view of the Government’s decision to deregulate the industry and the proclamation of the Marketing of Eggs Amendment Bill 2004, the Government expects the payment for 2003-04 to be reimbursed, and payments of $3.8 million for 2004-05 and $3.9 million for 2005-06 to be reinstated.
(3) In the same answer, the minister indicated that the assistance package of $8.75 million was conditional on the federal Government reinstating national competition policy payments regarding eggs. How much is involved, and when were these competition penalty payments for egg production imposed? Hon KIM CHANCE replied: I thank Hon Dee Margetts for some notice of this question. (1) These costs will be met by the WA Egg Marketing Board. However, it might be possible by agreement for the board to transfer some contingent liabilities to the new company. This aspect is being addressed by the board and the interim board of NEWCO as part of the transition process. The Department of Agriculture has met consultancy costs incurred by the transition advisory committee up to 30 June 2004. On the transfer of the assets from the board - that is, the WA Egg Marketing Board to NEWCO - the Government will waive stamp duty and thereby avoid an additional cost to the industry. (2) Producers will not be levied to meet transition costs. (3) A penalty of $3.75 million was advised by the federal Treasurer for 2003-04 on 8 December 2003. In view of the Government’s decision to deregulate the industry and the proclamation of the Marketing of Eggs Amendment Bill 2004, the Government expects the payment for 2003-04 to be reimbursed, and payments of $3.8 million for 2004-05 and $3.9 million for 2005-06 to be reinstated.
Hon KIM CHANCE replied: I thank Hon Dee Margetts for some notice of this question. (1) These costs will be met by the WA Egg Marketing Board. However, it might be possible by agreement for the board to transfer some contingent liabilities to the new company. This aspect is being addressed by the board and the interim board of NEWCO as part of the transition process. The Department of Agriculture has met consultancy costs incurred by the transition advisory committee up to 30 June 2004. On the transfer of the assets from the board - that is, the WA Egg Marketing Board to NEWCO - the Government will waive stamp duty and thereby avoid an additional cost to the industry. (2) Producers will not be levied to meet transition costs. (3) A penalty of $3.75 million was advised by the federal Treasurer for 2003-04 on 8 December 2003. In view of the Government’s decision to deregulate the industry and the proclamation of the Marketing of Eggs Amendment Bill 2004, the Government expects the payment for 2003-04 to be reimbursed, and payments of $3.8 million for 2004-05 and $3.9 million for 2005-06 to be reinstated.
I thank Hon Dee Margetts for some notice of this question. (1) These costs will be met by the WA Egg Marketing Board. However, it might be possible by agreement for the board to transfer some contingent liabilities to the new company. This aspect is being addressed by the board and the interim board of NEWCO as part of the transition process. The Department of Agriculture has met consultancy costs incurred by the transition advisory committee up to 30 June 2004. On the transfer of the assets from the board - that is, the WA Egg Marketing Board to NEWCO - the Government will waive stamp duty and thereby avoid an additional cost to the industry. (2) Producers will not be levied to meet transition costs. (3) A penalty of $3.75 million was advised by the federal Treasurer for 2003-04 on 8 December 2003. In view of the Government’s decision to deregulate the industry and the proclamation of the Marketing of Eggs Amendment Bill 2004, the Government expects the payment for 2003-04 to be reimbursed, and payments of $3.8 million for 2004-05 and $3.9 million for 2005-06 to be reinstated.
(1) These costs will be met by the WA Egg Marketing Board. However, it might be possible by agreement for the board to transfer some contingent liabilities to the new company. This aspect is being addressed by the board and the interim board of NEWCO as part of the transition process. The Department of Agriculture has met consultancy costs incurred by the transition advisory committee up to 30 June 2004. On the transfer of the assets from the board - that is, the WA Egg Marketing Board to NEWCO - the Government will waive stamp duty and thereby avoid an additional cost to the industry. (2) Producers will not be levied to meet transition costs. (3) A penalty of $3.75 million was advised by the federal Treasurer for 2003-04 on 8 December 2003. In view of the Government’s decision to deregulate the industry and the proclamation of the Marketing of Eggs Amendment Bill 2004, the Government expects the payment for 2003-04 to be reimbursed, and payments of $3.8 million for 2004-05 and $3.9 million for 2005-06 to be reinstated.
(2) Producers will not be levied to meet transition costs. (3) A penalty of $3.75 million was advised by the federal Treasurer for 2003-04 on 8 December 2003. In view of the Government’s decision to deregulate the industry and the proclamation of the Marketing of Eggs Amendment Bill 2004, the Government expects the payment for 2003-04 to be reimbursed, and payments of $3.8 million for 2004-05 and $3.9 million for 2005-06 to be reinstated.
(3) A penalty of $3.75 million was advised by the federal Treasurer for 2003-04 on 8 December 2003. In view of the Government’s decision to deregulate the industry and the proclamation of the Marketing of Eggs Amendment Bill 2004, the Government expects the payment for 2003-04 to be reimbursed, and payments of $3.8 million for 2004-05 and $3.9 million for 2005-06 to be reinstated.

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