Appendix 3
Recommendations of the Productivity Commission Report on Wheat Export
Marketing Arrangements[1]
RECOMMENDATION 4.1
The Wheat Export Accreditation Scheme 2008 should be
abolished on 30 September 2011. This timing would coincide with the end of the
2010-11 marketing year and give the Australian Government sufficient time to
put the required legislative changes in place.
RECOMMENDATION 4.2
Regulation 9AAA of the Customs (Prohibited Exports)
Regulations 1958, which prohibits bulk exports of wheat unless exported by an
accredited wheat exporter, should be repealed effective 30 September 2011.
RECOMMENDATION 4.3
Wheat Exports Australia should be abolished on 30
September 2011.
RECOMMENDATION 4.4
The Wheat Export Charge should be abolished on 30
September 2011.
RECOMMENDATION 4.5
If the Australian Government decided not to abolish
accreditation, a system similar to that administered by ESCOSA for bulk exports
of barley in South Australia would be the next best alternative.
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A less attractive alternative would be to amend the Wheat
Export Accreditation Scheme 2008. As outlined in this report, this would
include streamlining the level of assessment employed by Wheat Exports
Australia and more clearly defining its role to ensure that its powers do not
extend into matters of competition policy.
If the Australian Government decided not to abolish
accreditation, the application fees and the Wheat Export Charge would need to
be reviewed. A Cost Recovery Impact Statement should be formulated, in line
with the Australian Government Cost Recovery Guidelines. The Wheat Export Charge
should no longer be levied on exports of wheat in bags and containers, as they
are not covered by the accreditation scheme.
Any new or amended arrangements put in place by the
Australian Government should be reviewed after no more than five years.
RECOMMENDATION 5.1
The Australian Government should proceed with the
scheduled independent review of the National Access Regime. This review should
commence no later than 31 December 2011.
RECOMMENDATION 5.2
The requirement for grain port terminal operators to
pass the access test contained in the Wheat Export Marketing Act 2008
(continuous disclosure requirements and an ACCC accepted port access
undertaking) as a condition for exporting bulk wheat should remain in place
until 30 September 2014. Responsibility for determining if the access test is
met (including the continuous disclosure requirements component) should rest
solely with the ACCC beyond 30 September 2011, whether or not accreditation
continues past that date.
Ideally, grain port terminal operators not subject to
the access test between 30 September 2011 and 30 September 2014 would
voluntarily publish their shipping stem and port access protocols.
The requirement for port terminal operators to pass
the access test as a condition for exporting bulk wheat should be abolished on
30 September 2014.
The requirement for continuous disclosure should
continue after 30 September 2014, although this should no longer be a condition
for exporting bulk wheat. From this date, the continuous disclosure rules
should be applied to all grain port terminals, regardless of ownership.
Responsibility for monitoring compliance with continuous disclosure rules
should remain with the ACCC after 30 September 2014.
From 1 October 2014, access disputes (other than those
relating to the continuous disclosure requirements) should be dealt with by the
National Access Regime under Part IIIA of the Trade Practices Act.
Ideally, port terminal operators would supplement these
arrangements with a voluntary code of conduct from 1 October 2014.
Should the access test continue beyond 30 September
2014, it should be reviewed after no more than five years.
RECOMMENDATION 6.1
The ACCC has announced that it will review the exclusive
dealing notification granted to CBH, regarding the use of Grain Express. In
light of market developments and concerns over the contestability of CBH’s
supply chain, the Commission endorses the decision by the ACCC to review Grain
Express. The Commission recommends that the ACCC makes its determination as
soon as practicable.
RECOMMENDATION 6.2
When considering investment in road and rail
infrastructure for the transportation of grain, decisions should be based on
thorough cost-benefit analysis, including both economic and social costs and
benefits. Where possible, the analysis should consider the benefits that can be
obtained throughout other parts of the grain supply chain.
RECOMMENDATION 7.1
The Commission sees value in the provision of stocks
information by state to support the effective operation of the domestic and
export wheat markets. However, if the industry wants this information, it
should pay for it. The most efficient approach to funding this information
would be via an existing compulsory industry levy. Specifically, the GRDC levy
collection framework appears to be the most practical and cost-effective option
for funding stocks information by state.
RECOMMENDATION 8.1
Reforms and initiatives to improve the collection and
enforcement of End Point Royalties, such as those recommended by the Advisory
Council on Intellectual Property’s Review of Enforcement of Plant Breeders
Rights, should be implemented expeditiously.
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