Bill Heffernan (NSW, Liberal Party) Share this | Link to this | Hansard source

I present the interim report of the Select Committee on Agricultural and Related Industries on food production in Australia and move:

That the Senate take note of the report.

This matter came to our attention from a company called Cuthbertson Brothers in Tasmania, which I am sure Senator O’Brien is familiar with. The committee concluded that, on the evidence presented to us, Cuthbertsons were being unfairly treated by Swift Australia, the takeover company of the abattoir operation on King Island. It appeared on the evidence given to us that the sheepskins from the abattoirs where the service kills had been cancelled—so there was a sole operator—were being tendered through a process through a gentleman in Melbourne who accepted the bids that were made by the various people that needed the skins in a tender system which allowed Swifts, after the tenders were opened, to then top the price of the tender, which I have to say is a unique way of having a tender system, wouldn’t you agree, Senator O’Brien?

On the evidence presented we thought that this was unfairly treating Cuthbertsons, an iconic Tasmanian company, and the resultant economic impact and the loss of jobs on the local communities had quite serious implications. Unfortunately and sadly, Swifts declined the invitation to come and give their version of events. So I can only say that on the version of events that were presented to us and on the evidence by both people who have sheepskins to sell and Cuthbertsons it was, as I say, a unique tender system which has been taken up by the ACCC. We will leave it for them to gather evidence. I can say that it was a worthwhile exploration and quite an important report that we dropped today because, if this conduct were allowed to continue, it would be a serious abuse of market power with a very flawed, as it appears on the evidence, tender system which would then set a precedent for other parts of the industry. I commend the report to the Senate. Obviously, the committee will be keeping a watching brief on the progress of the discussions between the ACCC and the affected parties. Thank you very much.

Question agreed to.