Wheat exports to be deregulated

The Australian Government and the Pastoralists and Graziers’ Association (PGA) both agree with recommendations put forth by the Productivity Commissions’ report to deregulate the wheat export market.

Senator Joe Ludwig, Minister for Agriculture, says deregulation, and reducing costs to growers and exporters, will further improve the wheat market inAustralia.

A three-stage process will be implemented to provide a smoother and more effective transition to full deregulation of the wheat market, allowing growers more time to adapt to the new environment.

The first stage will come into effect from 1^st October 2011, and will “reduce the level of administrative red tape for exporters, including accredited port terminal operators, and allow growers more time to adapt to the new environment,” according to Minister Ludwig.

By 1^st October 2014, the market will be fully deregulated, with access issues governed by code of conduct and general competition law, upheld by the ACCC. Current accreditation and port access tests will continue until this date.

From 30 September 2012, Wheat Exports Australia (WEA) and the wheat export charge will cease to continue. “This clearly shows that the industry has demonstrated its ability to self regulate without the burden of unnecessary Government legislation and cost,” Mr Snooke says.

Full deregulation is a significant improvement of the market and the benefits of competition, says PGA Western Graingrowers Chairman John Snooke.