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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-05-29 Daily Xml
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GRAIN INDUSTRY FUND

In reply to the Hon. J.S.L. DAWKINS (1 May 2012).

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): I am advised:

1. The Primary Industry Funding Scheme for the grain industry came into effect with a commencement date of 1 March 2012. Grain sales made on or after the commencement date had the rate of five cents per tonne deducted by the grain purchaser in accordance with the regulations. Grain purchasers remitted a total of $15,273.14 for the month of April, the first month in which remittances for the new scheme were due to be paid to me by grain purchasers.

2. As indicated earlier, as of the 29 February 2012, I held an amount of $450,880.66. Since then, further contributions have been remitted for grain sold prior to the commencement of the new scheme. This combined with interest earned takes the total I hold at the end of April to $529,497.51.

The South Australian Farmers Federation have agreed to share equally between themselves and the new grain grower representative group Grain Producers SA (GPSA) these withheld funds. This was on the condition that funds will be expended by both organisations as is intended by the objectives of the Wheat Marketing Act. To ensure this happens, I have asked that both organisations provide a list of costed projects on which the residual funds will be expended.

3. The Primary Industry Funding Scheme Act 1998 and the Regulation establishing the new grain industry fund under the Act establishes how the funds will be collected, remitted and applied. As you know from the provisions of the Act and Regulation, in effect grain growers through the five year management plan established for the purpose, dictate how the grain grower funds contributed to the scheme will be spent. The funds cannot be used for any other purpose but for grain grower benefit. Provisions within the Act allow recovery of reasonable costs to Government for administration and audit of the fund.

4. An independent consultant has been engaged by PIRSA to consult widely with grain growers and industry to inform the draft of a five year Management Plan for the scheme. The consultant will report on these outcomes and provide a draft Management Plan that incorporates the wishes of grain growers. The Management Plan will be presented at a public meeting called for the purpose during August 2012 after which applications for funds by appropriate grain grower organisations can be made. However, funds available for projects will be limited until the next grain harvest commences, when deductions from proceeds of sales of the new season grain will be remitted into the new scheme by grain purchasers.

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