Speakers: Speaker 13, Speaker 27, Speaker 12

Transcript

Speaker 13

have here a situation where you've got two RO >> one of which has recommended a change in the levy The grain producers Australia has uh late last year I believe represented a 20% reduction in the levy. Uh effectively the other organization uh in in this case um grain growers limited can effectively act as a block on consideration of that change ever

Speaker 12

being made. >> What um the way I'd characterize it is that it's important that GDC >> or is it a ministerial decision? The way I'd characterize it, Senator, is that there are two representative organizations. Both of their um views um or recommendations to the minister are important. >> So the minister could >> but the minister makes the final decision.

Speaker 13

>> In the end, it is a ministerial decision. >> Yes. >> Okay. So we've got an we've got a we got a RDC. We got a we got a grower funded industry R&D body that currently has reserves which um I've been told by numerous farmers in Western Australia, grain producers in Western Australia. Uh aronomists in Western Australia, I've got uh I've got information here from Paul McKenzie who's an aronomist and grower in the Geraldton region. Uh he's written to the minister on this as well. Whereas effectively you've now got reserves equaling four years of spending, three to four years of spending on R&D with not another dollar coming in. At some point that level of reserve has to should trigger some reconsideration of the level of the R&D levy borne by industry. I mean yes, plenty of farmers are doing really well. We've had record crops in Western Australia, but there are farmers who are actually going out of business where, you know, a change to the levy could make a material impact on their ability to stay in business, their ability to send kids to school, the ability uh to refinance, repl business. What what is the trigger mechanism in this case where you've got two representative or organizations? One of whom has said, you know, the levy should be reconsidered and one of which

Speaker 12

has said it shouldn't. So there isn't a a formal trigger other than what we've outlined, Senator, which is the ability of those representative organizations to make representations to the minister um off the back of engagement with the levy base um about the levy about the level of the levy. Um so so I don't have too much more to add, but I'll ask colleagues if there's any further >> information that we can supply. So,

Speaker 27

Senator, the both organizations need to be consulted, but according to our levy guidelines, industry sets the levies. Um, one of those representative organizations can undertake consultation with industry. It's it's on that organization who whoever puts forward a proposal to the minister for consideration to show that they have broadly consulted with industry to demonstrate that there is overwhelming industry support for a change to the levy and then the minister takes that it looks at that proposal with advice from us uh consults with the RDC and the other representative organization if there's more than one and then makes a decision. So either one can can come forward and it's it's they do have to demonstrate broad significant industry support for a change. In relation to your other question about wool and dairy um yes they both have polls that are baked into the legislation and that that was um in the legislation previously at the request of industry so they happen

Speaker 13

regularly. >> Okay. So uh in terms of the um so is there a a formal process by which GPA has sitted uh has submitted um their current report to the minister? Is that is that do they just produce a report and it sits out there? Is that is there a formal uh communicate to the minister to say this is the consultation we've done and this is what we've recommended?

Speaker 27

Yes, they they if they initiate a process which they have, they need to provide a proposal to the minister which needs to address all of the components in our levy guidelines which are public um and which we have spoken to them about. >> And has that happened? >> Uh they have provided a proposal to the

Speaker 13

minister? >> They have. And has the minister responded? >> Not at this stage. >> Right. And is there a time frame for that response in in the either in the legislation or or indicated by the

Speaker 27

minister to the department? >> No, there's no particular time frame. So she will consider it on advice from the

Speaker 13

department. >> Okay. Um, and just getting back to my earlier question and um, and I'll ask the GC this evening, but can you break out the the amount contributed over the last four years from Western Australia?