July 31, 2008

Western Australia moves closer to grain export deregulation


Western Australia has moved closer to full grain export deregulation with the Economic Regulation Authority recommending the deregulation of barley, rapeseed and lupin exports.

The ERA's final report on the review of the Grain Marketing Act, found that current restrictions on the export of the three grains was unlikely to deliver a net public benefit.

Currently, Western Australia is the only state to regulate the export of barley, rapeseed and lupins via the Grain Licensing Authority, which is charged with issuing special export licences.

The ERA said the removal of current licensing requirements was likely to result in greater competition in the WA grain market.

However, the ERA has recommended that deregulation be delayed to the 2009-10 harvest rather than be introduced in 2008-09, as was recommended in the authority's draft report.

Pastoralists and Graziers Association chairman Leon Bradley said there were no benefits in maintaining the authority and that maintaining it would only penalize producers since there were no such restraints at other states.

Western Australia alone accounts for 10 percent of the world's globally traded wheat.

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