Chris Ellison (WA, Liberal Party, Minister for Justice and Customs) Share this | Hansard source

I table an explanatory memorandum relating to the bill and move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

WHEAT MARKETING AMENDMENT BILL 2006

The Wheat Marketing Amendment Bill 2006 introduces temporary measures to address the immediate concerns of Australian wheat growers. This bill provides for the temporary transfer of the veto power for bulk wheat exports from AWB (International) Ltd (AWBI) to the Minister for Agriculture, Fisheries and Forestry until 30 June 2007. I must emphasise that these changes are not intended to pre-empt or pre-determine any long term policy considerations by the Government, nor does the Government intend to hold the veto in the long term.

This is a temporary measure which is being taken to address current concerns in the industry about the wheat marketing arrangements, particularly in Western Australia where there is not the same range of domestic marketing options as there is in the eastern states. The movement of the veto does not represent a change to the Australian Government’s single desk policy. For the six months in which the Minister holds the veto AWBI will continue to be exempt from requiring an export consent from the Wheat Export Authority (WEA) and will continue to be the buyer of last resort.

These temporary arrangements are also intended to address the uncertainty caused by the ongoing debate and consideration of the long term wheat marketing arrangements in light of the Cole Inquiry.

By temporarily transferring the veto from AWBI to the Minister for Agriculture, Fisheries and Forestry the Government will be able to carefully consider longer term arrangements while addressing the immediate concerns of growers. To rush the consideration of these long term arrangements would put at risk the future interests of Australian wheat growers. The Government’s dominant concern in the consideration of both long term and temporary arrangements is the interests of Australian wheat growers.

Importantly, by introducing these temporary measures it allows the Government to undertake thorough consultation with a range of stakeholders, particularly with growers in relation to wheat marketing arrangements for the long term. This will ensure all views are considered and the most appropriate arrangements identified for taking the industry forward.

The functions of the WEA in light of this bill, including the considerations that it applies when assessing applications from exporters other than AWBI, have not changed. The WEA will continue to assess each application in accordance with the legislation, seeking to complement any objective of Nominated Company B – AWBI – to maximise net returns for pools operated by that company, while at the same time seeking to facilitate the development of niche and other markets, where the WEA considers this may benefit both growers and the wider community. In conducting its functions the WEA will continue to consult with AWBI about each bulk export application and its possible impacts on the National Pool. Before approving or rejecting an application the WEA must obtain the agreement of the Minister.

The Minister’s decision will be based on broad consideration of the public interest and the Minister will have in mind obligations under the World Trade Organisation (WTO) in exercising these powers.

The WEA will provide its assessments of bulk wheat export applications to the Minister for his consideration. In conducting his assessment the Minister will consider the WEA’s views, including any impacts on the National Pool. The Minister will have a further responsibility to consider whether approving or rejecting an application is in the public interest. Such decisions will be made in consultation with other relevant Senior Government Ministers.

Where the Minister’s assessment, based on public interest, differs from the WEA’s assessment the Minister has the power to direct the WEA to approve or reject the application.

The issuing of permits for exports of wheat in bags and containers will not change and will continue to be regulated by the WEA. This will ensure that traders continue to develop niche and other markets within the single desk framework for the benefit of growers and the industry.

This bill provides the Australian Government with the opportunity to address the urgent concerns of growers while allowing the Government to consult on, and consider, possible future wheat marketing arrangements. The measures implemented by this bill show that the Government will not rush to change this policy in the long term without due consideration.

The Australian Government’s principal concern is the wellbeing of Australian wheat growers. To this end, we are committed to working with the Australian wheat industry to secure the best outcome for Australian wheat growers.

Ordered that the resumption of the debate be made an order of the day for a later hour.