Dairy Deregulation 2000

LEGISLATIVE COUNCIL p1108 Wednesday 24 May 2000

Second reading

The Hon. K.T. GRIFFIN (Attorney-General): I move:

That this bill be now read a second time. I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

This bill brings into effect an agreement between the Australian dairy industry, the commonwealth government and the States to deregulate the Australian dairy industry in a coordinated and orderly manner.

This has been requested by the dairy industry itself at a national level and has the full support of the Australian Dairy Industry Council, the Australian Dairy Farmers Federation, and, at the State level, the South Australian Dairy Farmers Association, milk processors, vendors and milk hauliers.

The dairy industry, at all levels, has been very concerned that deregulation through a piecemeal removal of price and supply controls across Australia, could cause dislocation and confusion in the industry.

The South Australian Government has done all in its power to ensure that the changes that now need to be made will be implemented under the best possible conditions for the State's dairy farmers. The industry now has an agreement with the states and the commonwealth that dairy farmers will be entitled to structural adjustment assistance over the next eight years, conditional on each State removing milk price and supply control arrangements from its statutes.

The Bill is designed to come into effect at the same time as similar legislation in die other milk producing states. It will deliver to dairy farmers the opportunity to assess and restructure their businesses so that they can operate in a new, deregulated market environment. The result of this adjustment will be that South Australia's dairy industry will be more competitive and will have its export prospects further enhanced.

I commend this bill to honourable members.

Explanation of Clauses

Clause 1: Short title

Clause 2: Commencement These clauses are formal.

Clause 3: Amendment of s. 3—Interpretation This clause removes the definitions of "authorised price equalisation scheme" and 'farm gate price' from the Act.

Clause 4: Amendment of s. 12—Functions of the Authority This clause removes paragraph (a) of section 12 which refers to the Authority's functions of recommending the imposition, variation or removal of price control in respect of dairy produce.

Clause 5: Amendment qfs.15—Accounts and audit

 This clause removes subsection (3) of section 15 which refers to the audit of any money collected and paid under section 23(3) of the Act or under a price equalisation scheme.

Clause 6: Amendment of s. 19—Licence fee This clause inserts subsection (la) which provides that the regula¬tions may prescribe differential licence fees.

Clause 7: Repeal of Division 2 of Part 4 This clause removes Division 2 of Part 4 of the Act which deals with the control of the price of dairy produce of specified classes and the farm gate price for milk.

Clause 8: Repeal of Division 3 of Part 4 This clause repeals Division 3 of Part 4 of the Act under which the Minister may set up price equalisation schemes or approve voluntary price equalisation schemes.

The Hon. P. HOLLOWAY secured the adjournment of the debate.