Posted on November, 7, 2024 at 08:44 pm
THE DEPARTMENT of Agriculture, Fisheries and Forestry has recommended that an industry-managed framework should replace the Wheat Port Code in the second review of the instrument published today.
DAFF has also opened public submissions today, inviting feedback on findings from its second review.
The Wheat Port Code, introduced in 2014, was due to expire October 1 but the Attorney-General opted to defer the sunsetting until October 1, 2026, in order to provide time for the government to consider the review’s findings and implement any agreed changes.
Deputy Secretary for Agriculture, Fisheries and Forestry Policy Matt Lowe said the review found that the current make-up of the code was no longer fit-for purpose.
“The Wheat Port Code was originally put in place in 2014 to regulate the conduct of port terminal service providers so bulk wheat exporters had fair and transparent access to ports,” Mr Lowe said.
“The review has found that while some parts of the code are still creating benefits for the wheat export industry, the code as it stands is no longer fit-for-purpose.
“The review recommends Grain Trade Australia work with the grain export industry to develop an industry-managed code in place of the current code – preferably one that builds on the parts of the code that we know still work well for the industry.
“The review also recommends that the government review the new industry-managed code in five years’ time to make sure it’s doing everything it should.”
DAFF recommended the industry-managed code should feature provisions including:
In making the recommendations, DAFF commented that there were “divergent views” between industry groups on the future of the code “with no one option emerging as a clear preference”.
“The majority of stakeholders considered the code in its current form is not fit for purpose but held contrary views on what this meant for the future of the code,” the report said.
The report said the GTA and bulk wheat port terminal service providers (PTSP) were consistent in calling for the code to be left to sunset and either replaced by an industry-managed framework, or no similar code.
Exporters and other businesses involved in the supply chain had “mixed views”,with some wanting the code to remain with amendments, while others “considered that no code was required”.
“Most, but not all, grower representative organisations argued that regulation of the export supply chain was still required to address ongoing concerns about the potential for misuse of market power by PTSPs.”
The report said many grower groups, while agreeing that the code was not fit for purpose, wanted a “more effective regulatory regime”, either by amending the code, or via a complete replacement.
The report highlighted that almost all grower groups considered the code was “inadequate because it does not sufficiently address their concerns about price and supply-chain issues”.
Grower-group submissions called for the government to conduct an inquiry into the broader grains market and supply chain.
“They considered this should be done as a first step towards introducing a broader regulatory framework to cover the grains supply chain, extending to all grains, and potentially to issues beyond just exporters’ access to port terminal services.”
Extension to all grains
The report also investigated the benefits of extended the Wheat Port Code to encompass all grains.
The review found that the extension of the good faith principle “would improve the operation of the code”.
It said this could occur if the code was amended, or if an industry-led framework was implemented.
“We therefore consider if the government agrees to our recommendation to transition to an industry managed code, that this code should apply to all grains, rather than being restricted to bulk-wheat exports.”
Feedback on the second review of the Wheat Port Code is open until Friday 31 January 2025.
Mr Lowe encouraged all stakeholders to make a submission and have their say on the future of the regulation.
“This is the industry’s chance to let us know what they think of the recommendations.
“Is this the outcome they want? And if not, what can we take from the review that will work for our grain exporters?
“I encourage everyone with a stake in the wheat export industry to get involved and make their opinions known.”
Source: Grain Central