Assistance scheme planned for deregulation of egg marketing

4/6/04
Agriculture Minister Kim Chance has announced an $8.75million assistance scheme for egg producers to coincide with the transition to a deregulated egg market.
Mr Chance said State Cabinet had approved provisions to terminate the Marketing of Eggs Act 1945 on or before December 31, 2005, the timeframe imposed by the National Competition Council (NCC).
Licences issued under the Act by the WA Egg Marketing Board would also be terminated at that time in order to satisfy National Competition Policy (NCP) requirements.
"The Marketing of Eggs Act 1945 established the WA Egg Marketing Board, trading as Golden Egg Farms, to administer the licensing and marketing system under the Act," Mr Chance said.
"Licences issued by the board specify the number of hens that may be kept and the sale of eggs to any person other than the board is prohibited.
"These restrictions imposed by the Act have now been found to be anti-competitive and in conflict with the State's obligations under the National Competition Principles Agreement."
The Minister said industry members and the Egg Marketing Board had been involved in discussions on the future of the industry since 1996, when the Act was first reviewed for NCP compliance.
A Transition Advisory Committee, including Government and industry representatives, has been working on the proposed changes since September 2003.
"In 2003, the State Government announced its intention to deregulate the industry by July 2007, but unfortunately this timeframe has not been acceptable to the NCC and has had to be brought forward to avoid NCP penalties," Mr Chance said.
"The State Government, however, recognises that moves to deregulate the market and cancel licences with hen quotas would have a significant impact on 107 licence holders with base hen quotas under the Act.
"The $8.75million adjustment assistance package recognises the impact of the repeal of the Act on the licences and quotas administered by the board and proposes assistance be paid to producers in proportion to base hen quotas."
The Minister said the new legislation would also allow for the board's assets, worth an estimated $9million, to be transferred to a producer-owned egg marketing company based on co-operative principles.
The Transition Advisory Committee is developing the key principles underpinning the new company.
Provisions will also be made for biosecurity, animal welfare and food safety assurance responsibilities, previously covered by the Act, to be transferred to industry organisations and Government departments.
Legislation has been introduced to State Parliament this week in order to comply with NCP obligations and the time constraints applied by the NCC.
Minister's office: 9213 6700