Public comment sought on NCP review of Bulk Handling Act

15/5/02 The proposed merger of Cooperative Bulk Handling (CBH) and the Grain Pool of WA (GPWA) moved a step closer today with the release for public comment of the National Competition Policy Review of the Bulk Handling Act and Regulations 1967.

15/5/02
The proposed merger of Cooperative Bulk Handling (CBH) and the Grain Pool of WA (GPWA) moved a step closer today with the release for public comment of the National Competition Policy Review of the Bulk Handling Act and Regulations 1967.
Agriculture Minister Kim Chance said grain growers and industry stakeholders had until June 7, to comment on the review and its key recommendations concerning the future operations of CBH, which is governed by the Act.
The Bulk Handling Act 1967 was enacted to make provision for the bulk handling of grain by CBH.
The NCP review examined the Bulk Handling Act and Regulations to identify the restrictions on competition and the likely effect of the restrictions on competition and on the economy generally.
It also assessed and balanced the costs and benefits of the restrictions and considered alternative pricing systems.
Mr Chance said legislative changes to the Bulk Handling Act were required to enable the proposed merger between CBH and the GPWA, which gained 85 per cent support of voting CBH members in March. Legislative changes were also required to the Grain Marketing Act.
He said the State Government had given support to progressing legislative changes to facilitate the merger of CBH's storage and handling operations with the Grain Pool's marketing and trading activities.
The key change required to enable the merger is the repeal of Section 8 of the Bulk Handling Act which restricts the company from trading in grain.
Mr Chance said the NCP review had recommended the repeal of Section 8 as well as Section 9 (1) (a) which stops the company from discriminating against, or giving preference to, a person wishing to avail himself of the services of the Company.
Other recommendations for reform include:

  • maintaining the port tolls (Section 32) and foundation tolls (Section 31) until repayments are completed in 2009, after which the sections should be repealed. The tolls are no longer collected by CBH, but are currently being repaid within a set timeframe as required in the Act; and
  • the Government monitor the need for an access regime in the future if there are barriers restricting the entry of competitors into the storage and handling industry.
Copies of the report are available on the Department of Agriculture website at http://www.agric.wa.gov.au or from the Grains Review Executive Officer, Jamie Henderson on 9368 3464or e-mail jhenderson@agric.wa.gov.au
Comments should be received by the Grains Review Executive Officer by June 7, 2002.
Minister's office: 9213 6700