❓ The WA government acknowledges the dairy industry crisis post-deregulation. While refuting National Competition Policy as the primary cause, they highlight existing support packages and collective bargaining opportunities, rejecting further intervention at this time.
AnsweredQoN 942Legislative Council
QuestionView source ↗
I refer to the current crisis faced by the dairy industry in Western Australia following the forced deregulation of the industry via national competition policy. (1) How does the Government intend to address the crisis caused through the abuse of the buying power of Western Australian supermarkets, which has meant that the price paid to dairy farmers, who have been stripped of their former marketing arrangements, fails to cover the full cost of producing the milk? (2) Given that dairy farmers have clearly been bearing the brunt of the implementation of national competition policy, will the Government consider granting assistance to those affected? (3) If not, why not? (4) If yes to (2), can the minister provide a time frame in which this will be done? (5) If yes to (2), can the minister provide details of the policy initiatives this might entail? (6) If the Government considers this issue a federal one, will the minister, on behalf of the Western Australian dairy community and those communities that depend on that industry, lobby his federal counterpart to address this failure of the public interest test within the national competition policy legislative review process? Hon KIM CHANCE
AnswerView source ↗
I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(1) How does the Government intend to address the crisis caused through the abuse of the buying power of Western Australian supermarkets, which has meant that the price paid to dairy farmers, who have been stripped of their former marketing arrangements, fails to cover the full cost of producing the milk? (2) Given that dairy farmers have clearly been bearing the brunt of the implementation of national competition policy, will the Government consider granting assistance to those affected? (3) If not, why not? (4) If yes to (2), can the minister provide a time frame in which this will be done? (5) If yes to (2), can the minister provide details of the policy initiatives this might entail? (6) If the Government considers this issue a federal one, will the minister, on behalf of the Western Australian dairy community and those communities that depend on that industry, lobby his federal counterpart to address this failure of the public interest test within the national competition policy legislative review process? Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(2) Given that dairy farmers have clearly been bearing the brunt of the implementation of national competition policy, will the Government consider granting assistance to those affected? (3) If not, why not? (4) If yes to (2), can the minister provide a time frame in which this will be done? (5) If yes to (2), can the minister provide details of the policy initiatives this might entail? (6) If the Government considers this issue a federal one, will the minister, on behalf of the Western Australian dairy community and those communities that depend on that industry, lobby his federal counterpart to address this failure of the public interest test within the national competition policy legislative review process? Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(3) If not, why not? (4) If yes to (2), can the minister provide a time frame in which this will be done? (5) If yes to (2), can the minister provide details of the policy initiatives this might entail? (6) If the Government considers this issue a federal one, will the minister, on behalf of the Western Australian dairy community and those communities that depend on that industry, lobby his federal counterpart to address this failure of the public interest test within the national competition policy legislative review process? Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(4) If yes to (2), can the minister provide a time frame in which this will be done? (5) If yes to (2), can the minister provide details of the policy initiatives this might entail? (6) If the Government considers this issue a federal one, will the minister, on behalf of the Western Australian dairy community and those communities that depend on that industry, lobby his federal counterpart to address this failure of the public interest test within the national competition policy legislative review process? Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(5) If yes to (2), can the minister provide details of the policy initiatives this might entail? (6) If the Government considers this issue a federal one, will the minister, on behalf of the Western Australian dairy community and those communities that depend on that industry, lobby his federal counterpart to address this failure of the public interest test within the national competition policy legislative review process? Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(6) If the Government considers this issue a federal one, will the minister, on behalf of the Western Australian dairy community and those communities that depend on that industry, lobby his federal counterpart to address this failure of the public interest test within the national competition policy legislative review process? Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(1) How does the Government intend to address the crisis caused through the abuse of the buying power of Western Australian supermarkets, which has meant that the price paid to dairy farmers, who have been stripped of their former marketing arrangements, fails to cover the full cost of producing the milk? (2) Given that dairy farmers have clearly been bearing the brunt of the implementation of national competition policy, will the Government consider granting assistance to those affected? (3) If not, why not? (4) If yes to (2), can the minister provide a time frame in which this will be done? (5) If yes to (2), can the minister provide details of the policy initiatives this might entail? (6) If the Government considers this issue a federal one, will the minister, on behalf of the Western Australian dairy community and those communities that depend on that industry, lobby his federal counterpart to address this failure of the public interest test within the national competition policy legislative review process? Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(2) Given that dairy farmers have clearly been bearing the brunt of the implementation of national competition policy, will the Government consider granting assistance to those affected? (3) If not, why not? (4) If yes to (2), can the minister provide a time frame in which this will be done? (5) If yes to (2), can the minister provide details of the policy initiatives this might entail? (6) If the Government considers this issue a federal one, will the minister, on behalf of the Western Australian dairy community and those communities that depend on that industry, lobby his federal counterpart to address this failure of the public interest test within the national competition policy legislative review process? Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(3) If not, why not? (4) If yes to (2), can the minister provide a time frame in which this will be done? (5) If yes to (2), can the minister provide details of the policy initiatives this might entail? (6) If the Government considers this issue a federal one, will the minister, on behalf of the Western Australian dairy community and those communities that depend on that industry, lobby his federal counterpart to address this failure of the public interest test within the national competition policy legislative review process? Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(4) If yes to (2), can the minister provide a time frame in which this will be done? (5) If yes to (2), can the minister provide details of the policy initiatives this might entail? (6) If the Government considers this issue a federal one, will the minister, on behalf of the Western Australian dairy community and those communities that depend on that industry, lobby his federal counterpart to address this failure of the public interest test within the national competition policy legislative review process? Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(5) If yes to (2), can the minister provide details of the policy initiatives this might entail? (6) If the Government considers this issue a federal one, will the minister, on behalf of the Western Australian dairy community and those communities that depend on that industry, lobby his federal counterpart to address this failure of the public interest test within the national competition policy legislative review process? Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(6) If the Government considers this issue a federal one, will the minister, on behalf of the Western Australian dairy community and those communities that depend on that industry, lobby his federal counterpart to address this failure of the public interest test within the national competition policy legislative review process? Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
Hon KIM CHANCE replied : I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
I thank Hon Dee Margetts for some notice of this question. Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
Before I begin my formal answer to the question, which will cover all parts, it is necessary to correct or at least point to the assertion that the deregulation of the dairy industry was predicated on the requirements of the obligations of national competition policy. To the extent that national competition policy played a role in the deregulation of the dairy industry, I contend that that role was minor or not at all effective. In point of fact, the deregulation of the national dairy industry and the consequential deregulation of the dairy industry in Western Australia was predicated on a desire by processing companies in particular, which was supported by farmers in the Victorian dairy industry, to reshape the national industry. As far as I am concerned, it had absolutely nothing to do with national competition policy. Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
Hon Dee Margetts interjected. The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
The PRESIDENT: Order, members! This is not a debate and the minister might want to get to the formal answer. Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
Hon KIM CHANCE: I concede that people have made that claim and, indeed, the Western Australian Government’s own budget papers have made a reference to it, but at the time I challenged that reference and I still challenge it. (1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(1) The Government welcomes the Australian Competition and Consumer Commission’s authorisation for Western Australian dairy farmers to engage in collective bargaining with milk processors as an important opportunity to increase their market power. I urge all dairy farmers to support their representatives in these negotiations. I am also seeking to meet with representatives of the major supermarket chains to discuss options to provide fair and equitable prices to farmers, particularly following the increase in food prices caused by the 2002 dry season. (2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(2) The State Government has already provided a $27 million package to help the dairy industry through the transition to a deregulated market. (3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(3) Not applicable. (4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(4)-(5) The state dairy assistance package began in July 2000 and will be completed on 30 June 2003. The scheme provides for business grants of up to $21 000 for dairy businesses, training grants of up to $2 000 and a provision to rebate stamp duty paid when converting the eight-year federal package to a one-off payment. Former suppliers of George Weston Foods Ltd also received top-up payments to the federal dairy structural adjustment package totalling $2.2 million. The Government has invested more than $11 million in improving processing facilities through the dairy processing incentive scheme. This has enabled the establishment of the farmer-owned Challenge Dairy Cooperative and equipment upgrades by Harvey Fresh and the Margaret River Dairy Company. (6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
(6) No, I do not regard re-raising this issue with the federal minister to be of any value. The federal minister has accepted the advice of the national dairy industry organisations and is not of a mind to reconsider regulation of the industry. Speaking more generally, I have indicated that I would consider re-regulation as an option in the event of market failure. Although prices are at very low levels at present, market failure is not evident. In fact, the current re-ruling prices are indicative of international price levels and are in line with those that were widely predicted to result from dairy deregulation in the way that it was proposed to occur and ultimately did occur. We have some opportunities to address what is a critically low commodity price level but, in the short term at least, re-regulation is not one of those opportunities.
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