Free-Range Eggs

The Hon. T.T. NGO (16:03): I seek leave to make a brief explanation before asking the Minister for Business Services and Consumers a question about the government's free-range egg industry code.

Leave granted.

The Hon. T.T. NGO: Today, we were served very nice free-range chicken for lunch. Yesterday, 9 February, the government announced the release of a draft free-range egg industry code and certified trademark and rules. Can the minister update the house on the progress of the South Australian free-range egg industry code?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (16:04): I thank the honourable member for his most important question and hope that he, along with other honourable members, enjoyed his chicken for lunch.

The labelling of eggs produced under free-range production systems has been the subject of considerable debate over a number of years and the dilemma has been around the definition of what constitutes free range. As members are well aware, there is no national enforceable standard for free-range eggs, and this government has worked very hard with other jurisdictions to try to work towards a national federally consistent approach to egg labelling—without very much success, I may say. Other jurisdictions have fiercely held onto their own jurisdictional systems.

However, South Australia got sick of the dithering of other states, and that led to the previous consumer minister to announce that South Australia would look to provide consumers with an assurance of free range here in this state through an accredited code. The South Australian government recognises that consumers really are desiring and wanting accurate information on labels to accurately reflect what they see as free range and for it not to be misleading or misrepresenting.

We took that step not because it was easy—far from it; there were many different views in relation to free range—but because there was a clear need to protect our local free-range producers and to provide consumers with certainty so that they knew what they were purchasing and could make decisions in their purchasing.

The SA Free Range Egg Industry Code being released for targeted consultation, which we released yesterday, is linked to the government's previous commitments to premium food. Members would recall that the bill previously tabled by the Hon. Tammy Franks sought to amend the Food Act 2001, and the aim of that bill was to set the number of egg-laying chickens to 1,500 per hectare, which we obviously support.

However, at the time we made it clear that we did not believe the Food Act was the appropriate instrument to implement that sort of policy because it didn't have power to regulate primary producers (egg farmers). So, the government did not support that approach even though in principle we supported the 1,500 because the consequence of what we saw was an inappropriate use of the Food Act would not have put the regulatory burden on egg producers but instead placed it on thousands of food businesses, the vast majority of which don't actually package or label eggs and many of whom are small retail businesses.

We sought a different approach, and that is what we released yesterday. The government released an industry code which will allow for clear branding to recognise our local producers that choose to comply with the code. The approach by the government seeks to support true free-range egg producers in South Australia while not disadvantaging the broader industry.

The release of the draft regulations, rules, and certified trademark is a significant step forward in helping us realise that, and the government will again consult with industry. We have a further round of consultation just to ensure that an effective and fair regulation system is implemented in line with industry expectations.

We know that there has been some considerable debate around the particular brand that we have chosen. The industry initially had some ideas about that brand that we were not able to proceed with because of the IP and ACCC rules around certified brands that are required, that they can't be similar to current registered brands. They have to have a reasonable degree of uniqueness, so we had to go back to the drawing board and start again with that, and I am pleased to say we are continuing that dialogue.

Before registration status can be achieved, IP Australia will be required to examine the proposed trademark to ensure that it is not conflicting with existing trademarks and that it is adhering to the law, again providing consumers with greater assurance. ACCC must also assess and approve the rules to make sure that they are not detrimental to the public or likely to raise concerns, particularly in relation to competition, unconscionable conduct, unfair practices, product safety or product information.

Members should be aware that the detail contained in the rules about the operation and administration of the certified trademark is not to be taken lightly. It has received careful consideration to achieve a fine balance in providing some security and protection to true free-range egg producers while not imposing unnecessary red tape. These certified free-range eggs will now have the power and authority of a certified trademark, and if that is breached you can incur a fine of, I think, up to $500, or prosecution could ensue.

I strongly encourage members who are passionate about this subject—and I know there are many here who are—to support the government's industry code as the way forward for South Australia to provide South Australian producers with a symbol to help consumers recognise these products as premium, truly free range and South Australian, and, of course, compliant with a particular set of codes.