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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2010-07-01 Daily Xml
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BARLEY EXPORTING ACT

Mr ODENWALDER (Little Para) (15:07): My question is to the Minister for Agriculture, Food and Fisheries. Can the minister advise the house what action has been taken in response to the review of the Barley Exporting Act 2007?

The Hon. I.F. EVANS: On a point of order, Madam Speaker: the ghost of defamation past, the member for Croydon, is briefing the media during question time—in the box up to my right. I understood that was out of order during question time. I understood the media staff could drop press releases off and leave but that it was out of order for members of parliament to be there briefing the media during question time.

The SPEAKER: I am not quite sure how the member understands that he is briefing the media. He may be having a pleasant chat.

Members interjecting:

The SPEAKER: Order! I do not uphold that point of order. It normally applies to staff; however, I can't see a thing up there, I don't know what's happening, and I hope that—

Members interjecting:

The SPEAKER: However, he has become the centre of attention—which I am sure the member for Croydon will wallow in. The Minister for Agriculture, Food and Fisheries.

The Hon. M.F. O'BRIEN (Napier—Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Northern Suburbs) (15:08): I thank the member for Little Para for the question. As most members in the house are aware, barley is our second-largest broadacre crop—

Members interjecting:

The SPEAKER: Order! I would like to hear the Minister for Agriculture.

The Hon. M.F. O'BRIEN: Mr Bankrupt is a bit noisy today. Yesterday represented a milestone in the history of the barley industry in South Australia. Yesterday the Barley Exporting Act expired, effectively ending regulation in this state except for provisions of the Trade Practices Act and related commonwealth legislation. This was a recommendation of a review into the 2007 Barley Exporting Act undertaken by Grope Hamilton Lawyers, based on extensive consultation with industry. The 2007 act followed an earlier review of barley marketing arrangements in 2006-07 which recommended deregulation but the industry asked for a safety net during the transition. I thought that was a commendable call. This transitional period was intended to allow growers time to consolidate their risk management and grain marketing skills, and my understanding is that most of them have done that.

During the transition the Essential Services Commission assessed the fitness and propriety of applicants intending to export barley, and issued licences. At no stage during the three year period were there any breaches that required the commission's intervention, and I think that was a welcome outcome. There was general agreement from all sectors of the industry that the barley market should be deregulated; however, the review identified two issues for consideration. These related to market power and information sharing. In relation to market power, the Productivity Commission is currently investigating wheat export marketing arrangements—and I think a number of members on that side of the house are aware of those proceedings—and those findings will have ramifications for the broader grain industry.

In relation to information sharing, I held discussions with growers, the South Australian Farmers Federation and Viterra. I met twice with Michael Schaefer, chairman of the SAFF grain committee, including once at Buckleboo—in your electorate, Madam Speaker—and I made a number of public statements calling for negotiations to resolve the issue so that deregulation could occur without obstacles remaining. I indicated to major grain traders that the government supported the view of growers that more information should be available to ensure a well-functioning market—and economists on that side of the house would be aware that one of the prerequisites for a fully competitive market is the free flow of marketing information.

I am pleased to advise the house that, on Monday, Viterra announced that it would be making more information publicly available regarding commodities that are managed through its grain network. This includes access to information about warehousing stocks, grain quality, and shipping. I am satisfied that the company intends to strike the right balance between sharing information to help growers make informed decisions and protecting its commercial interests in a competitive market.

I met with senior executives from Viterra on Tuesday, and they expressed satisfaction with how the government had handled this issue. Effectively, we went in to bat for growers, and the Rann government achieved the result that SAFF wanted in a manner that brought credit to all parties to the discussion. Also on Tuesday, the South Australian Farmers Federation issued a statement welcoming the outcome.

Viterra has acknowledged the value of transparency and communication, and I expect that there will be ongoing dialogue between Viterra and its clients to fine tune the details of the information to be disclosed and how it is provided. I was pleased to note that the South Australian Farmers Federation also welcomed Viterra's announcement in relation to shipping. There is no intention from the state government to further investigate the barley industry in relation to deregulation.

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