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Legislative Assembly for the ACT: 1998 Week 10 Hansard (24 November) . . Page.. 2781 ..


MR SMYTH (continuing):


extension until 31 December 1999, during which time the contracts will be renegotiated to remove the potential breaches of the Trade Practices Act. The other areas currently exempted will be resolved by the Milk Authority withdrawing the obligation on home vendors to only distribute the Canberra Milk brands of milk and by transferring the regulatory functions away from the Milk Authority.

The amendments also propose the transfer of price control regulation to the Treasurer. This includes the review and setting of the various maximum prices for retailed milk and the margins for the processor, distributor and home vendors. These, appropriately, should be set by reference to the Independent Pricing and Regulatory Commissioner for the ACT. The Government proposes to make such a reference early in 1999.

Home vendors are licensed in the ACT and are supported by the regulation of exclusive zones. The amendments in this Bill do not change these regulations but transfer this responsibility to ministerial administration. This will be administered by my department, the Department of Urban Services. The transfer of the regulatory responsibilities away from the Milk Authority is necessary as it is not appropriate that the authority have a commercial relationship with market participants and then also have the power to regulate their operations and profits. Mr Speaker, in addition to the amendments to the Milk Authority Act, the Government is reviewing the Public Health (Dairy) Regulations to remove those regulations which are no longer necessary and to ensure that there are no impediments to allowing home vendors to broaden their product base.

The Government has decided to retain ownership of the Canberra Milk brand trademark for the ACT community. The Government will enter into licensing arrangements to protect the value of this community asset. Thus we will support the continuation of local jobs for Canberrans through the processing of milk at the ACT-based plant. Retaining the existing price control arrangements will benefit dairy producers, including Goldenholm, home vendors and Canberra milk consumers. Retaining the current licensing and exclusive zoning arrangements for home vendors will allow this sector time to adjust to new circumstances. We will, by amending the regulations, give them time to build expanded business opportunities and to undertake any necessary restructuring.

In conclusion, Mr Speaker, the Government is taking the action that is necessary to provide orderly transition in the market which will meet our competition policy obligations and, most importantly, at the same time protect the interests of all Canberrans.

Debate (on motion by Mr Hargreaves) adjourned.

Sitting suspended from 12.36 to 2.30 pm


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