Press Release

John_snooke__small_

GPA RE-REGULATION NOT SUPPORTED BY WA GROWERS

2012-09-03

“Grain Producers Australia Chairman Pete Mailer’s desire to re-regulate bulk wheat exports through expanding the role of WEA is merely the first step by Eastern States Farming Organisations to resurrect the failed legacy of statutory wheat marketing and regulation of the entire grains industry in Australia,” PGA Western Grain Growers Chairman John Snooke said today.

“Mr. Mailer’s misleading rhetoric that ‘further deregulation at this time is premature and that the Bill does nothing to formally address the concerns that have been raised by growers and the trade consistently over the past twelve months’ is an attempt by his small band of self appointed hyper-regulators at GPA to implement unnecessary ‘specialist oversight’ in order to secure its relevance by pandering to the policies of the National Party.

 

“GPA’s continued attacks on the Bill and its intention to increase the role and responsibilities of Wheat Exports Australia shows that many of its members refuse to move on from the days of the single desk.”

“This Bill will fully de-regulate the wheat market after a successful transition period, and most importantly ensures that agri-politicians can no longer meddle in the natural functions of the market, which was the source of many of our previous problems.”

“According to GPA and their National Party cohorts the success of the wheat industry should now be preceded with regulation. The facts are that since partial deregulation of bulk wheat exports in 2008, the lessening of regulation has lead to more competition improving the economic viability farmers only dreamed of under the previous single desk.”

This continual advocating for re-regulation to improve competition is not only illogical, as it offers no benefits to the growers, but is now causing many politicians and industry participants to question the motives of GPA and their capability as a representative organisation.”

“Western Australian grain growers who produce the majority of Australia’s export wheat have seen their wheat basis improve between $20 to $90 per tonne following the removal of the Single Desk, and we are not prepared to give that up, or disproportionately fund the WEA to impede the growth of our industry.”    

“As well, the containerised wheat trade is not prepared to once again be subject to regulatory oversight, nor are other bulk and non bulk grains including barley, canola, and lupins, which continue to be exported through deregulated competitive markets.”

“GPA’s concerns over the behaviour of bulk handlers are better served by supporting the establishment of a voluntary industry code of conduct rather than attempting to delay its introduction by attempting to delay the passage of the Wheat Export Marketing Amendment Bill.”

“The West Australian grains industry will continue to thwart the attempts by the GPA and Eastern States agri-politicians to delay further deregulation of the bulk wheat export market and will carry on with reminding Labor, Liberal, and Greens members of Parliament of the precedent they set in 2008 by removing 75 years of regulatory control of bulk wheat exports which not only failed growers, but almost destroyed Australia’s international reputation in the grains industry’ said Mr Snooke.

 

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