❓ Hon Paul Llewellyn raises concerns about dairy product dumping in WA and its impact on the local industry. Hon Kim Chance clarifies that current trade practices legislation doesn't prohibit the alleged dumping and emphasizes market competition.
AnsweredQoN 1033Legislative Council
QuestionView source ↗
DAIRY PRODUCTS - DUMPING
I refer to the state’s dairy industry. (1) Is the minister aware that dairy products, including cheese, are being dumped into Western Australia at less than normal market prices, despite the freight costs involved in bringing them from other states, such as Victoria, and even New Zealand? (2) If yes to (1) - (a) what impact is this having or is likely to have on the successful development of value-adding in the state’s dairy industry; (b) what impact is it likely to have on the prospects of further improvement of WA’s low farm-gate milk prices; and (c) what action has the minister taken or does he intend to take? Hon KIM CHANCE
I refer to the state’s dairy industry. (1) Is the minister aware that dairy products, including cheese, are being dumped into Western Australia at less than normal market prices, despite the freight costs involved in bringing them from other states, such as Victoria, and even New Zealand? (2) If yes to (1) - (a) what impact is this having or is likely to have on the successful development of value-adding in the state’s dairy industry; (b) what impact is it likely to have on the prospects of further improvement of WA’s low farm-gate milk prices; and (c) what action has the minister taken or does he intend to take? Hon KIM CHANCE
AnswerView source ↗
I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
(1) Is the minister aware that dairy products, including cheese, are being dumped into Western Australia at less than normal market prices, despite the freight costs involved in bringing them from other states, such as Victoria, and even New Zealand? (2) If yes to (1) - (a) what impact is this having or is likely to have on the successful development of value-adding in the state’s dairy industry; (b) what impact is it likely to have on the prospects of further improvement of WA’s low farm-gate milk prices; and (c) what action has the minister taken or does he intend to take? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
(2) If yes to (1) - (a) what impact is this having or is likely to have on the successful development of value-adding in the state’s dairy industry; (b) what impact is it likely to have on the prospects of further improvement of WA’s low farm-gate milk prices; and (c) what action has the minister taken or does he intend to take? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
(a) what impact is this having or is likely to have on the successful development of value-adding in the state’s dairy industry; (b) what impact is it likely to have on the prospects of further improvement of WA’s low farm-gate milk prices; and (c) what action has the minister taken or does he intend to take? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
(b) what impact is it likely to have on the prospects of further improvement of WA’s low farm-gate milk prices; and (c) what action has the minister taken or does he intend to take? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
(c) what action has the minister taken or does he intend to take? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
(1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
(2) Not applicable.
(1) Is the minister aware that dairy products, including cheese, are being dumped into Western Australia at less than normal market prices, despite the freight costs involved in bringing them from other states, such as Victoria, and even New Zealand? (2) If yes to (1) - (a) what impact is this having or is likely to have on the successful development of value-adding in the state’s dairy industry; (b) what impact is it likely to have on the prospects of further improvement of WA’s low farm-gate milk prices; and (c) what action has the minister taken or does he intend to take? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
(2) If yes to (1) - (a) what impact is this having or is likely to have on the successful development of value-adding in the state’s dairy industry; (b) what impact is it likely to have on the prospects of further improvement of WA’s low farm-gate milk prices; and (c) what action has the minister taken or does he intend to take? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
(a) what impact is this having or is likely to have on the successful development of value-adding in the state’s dairy industry; (b) what impact is it likely to have on the prospects of further improvement of WA’s low farm-gate milk prices; and (c) what action has the minister taken or does he intend to take? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
(b) what impact is it likely to have on the prospects of further improvement of WA’s low farm-gate milk prices; and (c) what action has the minister taken or does he intend to take? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
(c) what action has the minister taken or does he intend to take? Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
Hon KIM CHANCE replied: I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
I thank Hon Paul Llewellyn for providing some notice of the question. (1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
(1) The movement of dairy product around the nation is governed by the commonwealth Trade Practices Act; however, dumping of product, as alleged in the question, does not in itself constitute a breach of the Trade Practices Act. The Howard government repealed that section of the act that dealt with dumping. All that remains now in the Trade Practices Act are the provisions that deal with the misuse of market power, and that is a concept that is very much harder to establish in law. Dairy products of interstate and international origin are frequently discounted as specials by retailers, as are Western Australian products. It is nothing more than dairy processors and retailers engaging in their legal right to compete for market share. It does not mean that it is something that the government either endorses or encourages. It is a process of market share competition. The sale of Western Australian cheese and ice-cream interstate, which is the other side of the question, along with the sale of interstate products in Western Australia is a normal part of providing choice and value to consumers in a national marketplace. (2) Not applicable.
(2) Not applicable.
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