05/12/2007 - 15:53

ERA to review grain marketing

05/12/2007 - 15:53

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The Economic Regulation Authority will undertake an inquiry into operation and effectiveness of the grain marketing system in Western Australia, as part of a five-yearly review of the Grain Marketing Act.

The Economic Regulation Authority will undertake an inquiry into operation and effectiveness of the grain marketing system in Western Australia, as part of a five-yearly review of the Grain Marketing Act.

The inquiry's terms of reference calls on the ERA to report on issues that could affect grain marketing in WA, including the effectiveness of the Grain Licensing Authority, and to analyse the net public benefit of the current framework, which includes restrictions on the export of barley, canola and lupins.

The report may consider alternative regulatory models that could be applied in WA, including retaining the GLA framework with some possible amendments, adopting a light handed regulatory approach with independent licensing of grain export marketers, similar to the South Australian model, or full deregulation.

With state regulation of exported grains has also been gradually replaced by open markets in the past decade, WA remains the only state which continues to regulate exports of canola and lupins, and joins SA in being the only two states regulating barley exports.

Co-operative Bulk Handling Ltd's marketing arm, Grain Pool Pty Ltd, currently holds the main bulk export license for prescribed grains, while the GLA grants special export licenses to exporters wishing to ship a specified volume to specified country.

The full ERA announcement appears below:

 

Review of the Grain Marketing Act 2002

The Economic Regulation Authority has been asked by the State Government to inquire into the operation and effectiveness of grain marketing in Western Australia, as prescribed by the Grain Marketing Act 2002.

The Authority is to consider and report on issues that could affect grain marketing in the State, including the effectiveness of the Grain Licensing Authority.

The inquiry will also analyse the net public benefit of the current framework, which includes restrictions on the export of 'prescribed grains' (barley, canola and lupins).

The State Treasurer Eric Ripper gave the Authority written notice of the inquiry on 29 November, under Section 38(1)(a) of the Economic Regulation Authority Act 2003.

A statutory review of the Grain Marketing Act 2002 was scheduled for 2007. The Authority has published an issues paper to help interested parties understand the matters under review and to facilitate public comment and debate.

The issues paper, and information on how to make a submission to the Authority, can be obtained from the Authority web site.

Submissions on matters raised in the issues paper, with particular reference to the questions posed throughout the document, should be submitted no later than 18 January 2008.

After considering responses, the Authority will publish a draft report in March 2008 for further public consultation. The final report for the inquiry will be delivered to the State Government by 27 June 2008, after which the Government has 28 days to table the report in Parliament.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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