April 30, 2008

Australian senate wants access rules for grain silos to level playing field 

An Australian Senate committee Wednesday recommended introducing access rules for upcountry grain storage and handling facilities for accredited exporters as part of legislation the government plans to introduce to liberalise wheat export.

In a report on the planned new laws, the committee notes concerns of growers about the potential for the formation of regional bulk wheat monopolies and vertically integrated supply chains developing and its potential risks. 

Current laws require the owners of port infrastructure for wheat exports to enter into an access undertaking to be approved by the Australian Competition & Consumer Commission. However, there is no similar requirement for owners of upcountry bulk handling and storage facilities.

The regulation of access to infrastructure upcountry is at least as important as access to port facilities, according to the report by the Senate's Standing Committee on Rural and Regional Affairs and Transport.

"The committee considers that all bulk handling and storage facilities owned by an accredited exporter should be subject to the same access requirements," the report said.

The committee recommended the government address this issue when the two pieces of legislation are introduced to parliament in May.