GRAIN INDUSTRY FUND

The Hon. J.S.L. DAWKINS (15:07): My question is directed to the Minister for Agriculture, Food and Fisheries. Given that yesterday the minister tabled regulations under the Primary Industry Funding Schemes Act 1988—Grain Industry Fund—General, will she detail how this fund will operate while the levy implemented under the Wheat Marketing Act 1989 is still in operation?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (15:07): I thank the honourable member for his most important question. Indeed, I have to say there has been a most unfortunate set of circumstances that has forced government intervention in this matter where, in fact, I believe we should not be. In fact, I believe that the industry itself should be in a position to take full control of its own advocacy, promotion and management of the industry levy. In an ideal world it should be able to do that quite independently of government.

However, it is most unfortunate that that was not the case and there are irreconcilable differences between the different arms within the sector that have required the government to intervene. I just want to put on the record up-front that it is with a great deal of reluctance that I believe I have been forced to intervene in this matter. I have been forced to intervene in terms of addressing the overall interests of the industry, and I think that is most unfortunate.

Nevertheless, that is the way it is and, as I said, it is most important that the industry is not damaged and that we do not lose the confidence of grain growers, given that the levy is, in effect, voluntary and they contribute to that to serve the greater interests of the industry. If growers were to pull out of that and redeem their levies it would really bring about a significant adverse effect to the industry.

At the moment the Wheat Marketing Act authorises the minister to collect payments from the proceeds of grain sales for the purposes of two funds. They are the grains section of the South Australian Farmers Federation (known as the grains industry committee) and, secondly, the grains research through the South Australian Grain Industry Trust.

The SAFF board suspended its grains industry committee at a meeting in July and the two parties were not able to agree on a range of issues, including the appropriation of funds through the SAFF Grains Industry Fund authorised under the act, and I am advised that at no stage has there been any suggestion of inappropriate use of funds or any impropriety. It was rather the organisational elements that there were disagreements over.

The SAFF board announced the suspension of the grains industry committee, and I am advised that there was a public meeting of grain growers in 2011 in Adelaide, attended by 60 of 5,000 grain growers, and they resolved to progress a proposal to establish a new representative group. A steering committee was established, and South Australian grain growers were offered an opportunity to vote on the GPSA proposal in September which, in fact, received overwhelming support.

In December, SAFF announced that it would retain its own grain industry committee, and I have now determined that it is best to establish a new funding scheme for the grains industry by transferring the head of power for the collection of a SAFF grains section fund to a PIF (primary industry fund) scheme act. The arrangements for this are currently being developed and the regulations gazetted, and it is intended that the fund is going to commence on 1 March.

It is proposed that the current grain industry fund payment, established by the act, will be set at zero at the same time as the establishment of the new fund to avoid overlapping arrangements and, like other PIFs, the new fund will be administered by the government and have a five-year management plan guiding the expenditure of the fund, and that will outline the key outcomes to be achieved for the benefit of the industry.

Any entity, including both SAFF and GPSA, that is able to demonstrate that they represent a significant proportion of South Australian grain growers, or their interests, will be able to apply for funds, as long as the projects are in line with the fund management plan. I have said in this place before that it is not the role of government to determine which industry body should represent grain growers—or, for that matter, any other primary industry group.

The industry itself should be in a position to organise itself and its representation, and I have encouraged both organisations to work through their differences to ensure that the best outcomes are achieved for all grain growers who contribute to the fund. SAFF has recently announced a partnership with Grain Growers Limited, one of several national grain grower organisations, and a series of joint meetings has been planned throughout the state. As I have said publicly, I would seek advice on the options to best ensure that the levy funds are utilised most effectively in the interests of this very important industry.

While I am extremely disappointed that SAFF has obviously walked away from a signed in-principle agreement to work cooperatively with GPSA, which they did earlier this year, what is important is that the growers' funds be used to support the grain industry in the interests of grain growers, and I am confident that these interests will be best served by the establishment of the new PIFs to support this important industry.