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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-06-04 Daily Xml
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GRAIN EXPORTS, PORT ACCESS

Mr VENNING (Schubert) (14:27): My question is to the Minister for Infrastructure. Has the government considered the ramifications of the proposed merger between South Australia's ABB Grain and Canada's Viterra? Is it concerned about the operation of the Outer Harbor deep water grain terminal, considering the fact that the government put in resources to assist with deepening the harbour?

The merger of the two companies will create one of the largest grain trading companies in the world. ABB has a virtual monopoly on the handling and storage of grain here in South Australia, as well as being an international grain trader. The new port at Outer Harbor has had a large amount of government funds invested in it, especially to deepen the berth, which also benefits the adjoining container terminal.

Some commentators are saying that the port and its facilities should be excluded from the deal. This could be one of the largest company deals ever seen in our state, and there is concern and anxiety at what the final outcome will be and how it will affect our largest export industry. I declare my interest as a grain grower in this matter and, therefore, my inherent interest in the matter.

The Hon. P.F. CONLON (Elder—Minister for Transport, Minister for Infrastructure, Minister for Energy) (14:29): Plainly, when the infrastructure was created through work between this government and the private sector, there were always going to be concerns that access would be provided to any of those who had a legitimate interest to do so on an equitable and reasonable basis, which is not unusual in ports around the world.

As you would know, the number of parties seeking to ship grain are not that large, and the way it was dealt with and the way I always believe it should be dealt with in the first instance, if possible, is by reasonable agreement between the owners and other interested parties as to how access would be provided. That is what pertains at the moment, but I can indicate that there is clearly a capacity, were that not the case, and we prefer that, because the cheapest form of regulation is self-regulation, not regulation imposed by the government. There is plainly a capacity for us to regulate access to such a facility, and plainly that would be what we would seek to do, should the people operating the facility not provide fair access. In my view, that would cover the circumstances you raise. I am quite happy to look at it further, but in my view that would be the appropriate response at first look.

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