Minister stands by single desk for WA potato industry

15/02/06
Agriculture and Food Minister Kim Chance today reinforced the State Government's commitment to the Potato Marketing Corporation, because of the benefits it provides to both producers and consumers.
Mr Chance said there was a single desk for potatoes in Western Australia because statutory reviews of the Potato Marketing Act had consistently confirmed that production and pricing regulation was in the public's best interest.
"Previous retail price analysis has demonstrated WA potato consumer prices to be nationally competitive," he said.
"In fact according to a report to the Potato Marketing Corporation in June 2002, potato retail prices in Perth were below the national average."
The Minister said the benefits to WA consumers and producers included consistently low and stable prices for consumers; better net returns for growers; less wastage of potatoes at the farm level, and lower environmental costs.
"Statutory marketing for potatoes will maintain industry stability in regional areas, and farmers have overwhelmingly expressed their support for an appropriate level of market regulation," he said.
Mr Chance said he had noted the comments by Chamber of Commerce and Industry (CCI) chief executive John Langoulant and invited him to a meeting to discuss these issues.
"I have written to Mr Langoulant today requesting a meeting with him to discuss these issues and explain to him personally why we retain the position that we do," he said.
Mr Chance said that following a public review of the Potato Marketing Act, the State Government made the decision in August 2003 to retain and reform the Potato Marketing Corporation (PMC) because of the benefits it provides for WA consumers and producers. This was consistent with our obligations under National Competition Policy.
These reforms include:

• separating the regulation and marketing functions of the corporation;
• removing the PMC's exporting role; and
• shifting delivery entitlements to tonnage, rather than area licensing.