Government offers $27 million to help dairy industry deregulate

8/3/00

Primary Industry Minister Monty House said today that if the Western Australian dairy industry chose to deregulate to access the $1.8 billion Federal Dairy Industry Adjustment Package, the State Government would facilitate the move.
Yesterday State Cabinet agreed that if the industry decided to deregulate, it would introduce the required legislation and provide a $27 million assistance package over three years to help the transition.
The proposed $27 million assistance package would provide support for farm and regional adjustment; assistance to the processing sector; support for dairy workers and special assistance to some dairy farmers, such as those who would be unable to access flavoured milk premiums under the Federal package.
Cabinet also agreed to transfer the ownership and net assets of the Dairy Industry Authority (DIA) and the Herd Improvement Service of Western Australia (HISWA), worth in excess of $10 million, to industry - boosting the total value of the proposed package to more than $37 million.
A Transition Advisory Group for the DIA and a Steering Committee for HISWA are already in place to plan and guide the transformation of the two organisations into industry-controlled entities.
Mr House said the State Government would not provide further top-up to the $1.8 billion Federal package, other than that outlined in the State Government's assistance proposal.
He said the WA dairy industry and the State Government had had extensive discussions for more than a year and it was now time for the industry to make its position on deregulation clear.
"Industry has not yet requested the Government to deregulate and until this approach occurs, the Government's position is to maintain the present system of quota and farm gate pricing," he said.
"This position has been consistent and long standing."
Mr House said deregulation would mean a major transition for dairy farmers and the State Government's proposal would assist the continued growth and development of the WA dairy industry.
For more than a year the Australian dairy industry has been pursuing transitional adjustment arrangements in response to increasing commercial pressures for deregulation.
Earlier this year dairy industry leaders from around the country endorsed the Federal Dairy Industry Assistance Package - including the WA Farmers' Federation.
If WA dairy farmers choose to access the Federal package, they will receive an average payment of more than $230,000 per farm.
A meeting last week of State and Territory Agriculture Ministers, including those from Labor States, agreed to deregulate should their industries request them to do so.
For the Federal package to become available, all States and Territories are required to support deregulation.
Media contact: Peter Jackson 9481-2044