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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-05-15 Daily Xml
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GRAIN INDUSTRY

The Hon. CARMEL ZOLLO (15:18): I seek leave to make a brief explanation before asking the Minister for Agriculture, Food and Fisheries a question about the grains industry.

Leave granted.

The Hon. CARMEL ZOLLO: South Australia is known for its production of high quality grains.

Members interjecting:

The PRESIDENT: Order!

The Hon. CARMEL ZOLLO: What's going on? I couldn't hear him. South Australia is known for its production of high quality grains, in particular wheat and barley, but in recent times the industry representation has not matched the great successes of this important rural industry. Can the minister update the chamber on developments in the grain industry?

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) (15:18): I thank the honourable member for her most important question and her ongoing interest in these most important policy areas. Grains are, as the member has indicated, very important crops for South Australia, providing an estimated $4.6 billion to the state's economy in 2010-11, following a record harvest. Of course, not all crops are bumper crops, but the industry certainly has been a mainstay in South Australia for many years.

It was very disappointing that the important figures in this industry were unable to unite and solve their differences for the good of the industry. Members will recall that I announced on 15 December 2011 that I had been forced to intervene. I was reluctant to do so; however, it is important to protect the interests of grain growers so that they can gain value for the money they contribute for representation.

Under the Wheat Marketing Act 1989 a voluntary levy was collected and is required to be provided to the Grains Committee of SAFF. However, as both my predecessor (as the former minister for agriculture) and I were not satisfied that the moneys were being used for the purposes required, these residual funds have been withheld. Following consultation with the industry through both the South Australian Farmers Federation and Grain Producers South Australia, I announced that I would establish a new Primary Industries Fund (PIF) under the Primary Industries Funding Scheme Act 1998 for grains to replace the levy under the Wheat Marketing Act and that a new PIF would operate from 1 March 2012.

I can advise the chamber today that an independent consultant, Mr Neil Howells, has been appointed to develop the management plan for this new fund. Mr Howells was appointed on 4 May and has already commenced preliminary work. Mr Howells will be undertaking a wide consultation with the industry, and I understand that he will be meeting with stakeholder organisations, including the South Australian Farmers Federation, Grain Producers SA and the Advisory Board of Agriculture, very shortly.

In addition, public meetings with grain growers will be arranged for Karoonda, Keith, Wudinna, Tumby Bay, Crystal Brook and Maitland in early June, and it is expected that this consultation process will result in a completed management plan being ready for release in August this year. The consultant has been asked to be flexible in the approaches seeking input from grain growers (we know that it is a busy time of the year) and to give every opportunity for grain growers to contribute. Growers who are not able to attend the regional meetings will be able to make submissions via an online survey through the PIRSA website. A five-year management plan will cover:

the type of activities which may be funded;

how the organisation may access the fund;

how applications for projects will be assessed, which may be by committee;

if by committee, how the committee will be formed;

management of contingencies, including the grain grower refunds;

reporting requirements for projects funded under the scheme; and

the level and format of consultation the grain growers consider appropriate for the required annual revisions of the management plan.

The completed plan will be reviewed and updated annually by a consultative process to ensure that it continues to be relevant and to reflect the priorities of grain growers here in South Australia.

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