The Queensland Government has welcomed moves by Federal Trade Minister Mark Vaile to establish Productivity Commission inquiry into the dairy industry, but questioned why the same proposal was dismissed less than a fortnight ago.

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Primary Industries & Fisheries, Henry Palaszczuk
prim...@cabinet.qld.gov.au
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20/10/04

Queensland Primary Industries and Fisheries Minister Henry Palaszczuk said Federal Labor had proposed a Productivity Commission inquiry into the dairy industry and Woolworths supermarkets chief executive officer Roger Corbett has been lobbying the Howard Government for 10 months for a comprehensive dairy inquiry.

"When I raised the need for an inquiry that would examine the post-farmgate machinations of the dairy industry, particularly processing and retailing, the current Federal Agriculture Minister Warren Truss dismissed the idea out of hand," Mr Palaszczuk said.

"On 7 October I supported a Productivity Commission inquiry into the dairy industry and Warren Truss accused me of 'indulging in noisy politics'. What does Warren Truss say now that his senior colleague, Mr Vaile, supports a Productivity Commission inquiry?"

Mr Palaszczuk said Mr Truss had again shown he was a hindrance in the Agriculture portfolio rather than a help.

"Mr Vaile's call for a Productivity Commission inquiry is a victory for commonsense as well as vindication of Labor's agricultural policies and dare I say my pursuit for a better deal for Queensland's dairy industry," he said.

"I only hope Federal Treasurer Peter Costello responds positively to Mr Vaile's request."

Mr Truss had originally tried to dismiss calls for a Productivity Commission inquiry into the dairy industry by referring to the review requested by the Primary Industries Ministerial Council at its meeting in Adelaide on 19 May.

"From the outset, Mr Truss tried to block that review, but was forced to accept it due to the resolve of State and Territory Agriculture Ministers. However, the review does not deal in detail with post-farmgate dynamics of the dairy industry," Mr Palaszczuk said.

Mr Palaszczuk said under national dairy deregulation, no Government determined milk prices paid to dairy farmers or paid by consumers.

"One of the biggest causes of low prices paid to dairy farmers has been from the processors jockeying to secure contracts for the generic supermarket milk brands," he said.

Mr Palaszczuk said vigilant oversight of the dairy industry by the Australian Competition and Consumer Commission was also a must.

Media contact: Kirby Anderson 3239 3004 or 0418 197 350