WHEAT MARKETING (EXPIRY) AMENDMENT BILL

Introduction and First Reading

Received from the Legislative Council and read a first time.

Second Reading

The Hon. T.R. KENYON (Newland—Minister for Manufacturing, Innovation and Trade, Minister for Small Business) (15:40): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

The Wheat Marketing Act 1989 (WM Act) was enacted to regulate the marketing of wheat. It complemented the Commonwealth Wheat Marketing Act 1989 by conferring on the Australian Wheat Board functions in addition to those conferred on it by the Commonwealth Act.

The South Australian Grain Industry Trust (SAGIT) was established in 1991 to administer a trust fund (the SAGIT Fund) that comprised the balance of voluntary research levies made redundant following the commencement of the Commonwealth Primary Industries Research and Development Act 1989.

The WM Act was amended in 1991 to allow the Minister to approve the SAGIT Trust Deed for the purposes of establishing and controlling the application of the SAGIT Fund and to provide for the collection of voluntary contributions to the SAGIT Fund.

The Wheat Marketing Regulations 1998 (the WM Regulations) that promulgate the SAGIT Trust Deed expire on 1 September 2013 and under the Subordinate Legislation Act 1978 further extension is not possible.

The grains industry landscape has changed dramatically since the WM Act commenced in 1989. Then, state-based statutory authorities controlled grain storage and handling. Now, the industry's grain storage and handling assets are primarily owned by public companies with global grain marketing and processing interests. Domestic grain marketing controls were removed during the 1990s and passage of the Commonwealth's Wheat Export Marketing Amendment Act 2012 in November 2012 ended government regulation of export grain marketing.

As a result of these changes there is now no reason to retain 'an Act relating to the marketing of wheat'.

Repealing the WM Act will not impact the SAGIT Trust Deed as it can 'stand alone'. However, repealing the WM Act will impact the collection of the voluntary contributions for grains research and development.

When the WM Act commenced, there was no other state-based statutory mechanism that could have provided for the collection of voluntary contributions to the SAGIT Fund. However, the Primary Industry Funding Schemes Act 1998 (the PIFS Act) provides a superior mechanism for voluntary contributions because of the transparency and accountability obligations it imposes on the Administrator of a fund (particularly with regard to preparation of a management plan for the fund, prudential management of the fund and tabling of an annual report on the administration of the fund in each House of the South Australian Parliament), on collection agents and on contributors. There is, therefore, no reason to retain the WM Act in order to collect contributions to the SAGIT Fund.

Grains industry stakeholders have agreed to the collection of contributions moving from the WM Act to the PIFS Act and action to establish a PIFS Act Grains Research Scheme has been initiated.

The value of the grains industry's support for State-specific research and development to complement the national industry's investment via the Grains Research and Development Corporation should not be underestimated. Since 1993, SAGIT has invested $17 million in 162 projects. Matching contributions from other funders has doubled that investment, generating significant additional value for South Australian grain growers. Not surprisingly, there is almost unanimous grain grower support for the SAGIT arrangement, as evidenced by the fact that annual requests for refunds are sought by a mere 0.001 per cent of contributors.

To ensure that there is no interruption to the collection of contributions or the operations of SAGIT, the intention is to repeal the WM Act on the day the PIFS Act Grains Research Scheme commences and that both occur prior to the expiration of the WM Regulations.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Amendment provisions

These clauses are formal.

Part 2—Amendment of Wheat Marketing Act 1989

3—Insertion of section 12

This clause inserts a new section. The proposed section provides for the expiry of the Act on a day to be fixed by proclamation.

Debate adjourned on motion of Hon. I.F. Evans.