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Legislative Council Legislative Council Thursday, 3 June 2004 THE PRESIDENT (Hon John Cowdell) took the Chair at 10.00 am, and read prayers. STANDING COMMITTEE ON UNIFORM LEGISLATION AND GENERAL PURPOSES Australian Crime Commission (Western Australia) Bill 2003 - Extension of Reporting Time Hon Adele Farina presented a report of the Standing Committee on Uniform Legislation and General Purposes, in relation to the Australian Crime Commission (Western Australia) Bill 2003, seeking an extension of time in which to report from Thursday, 3 June 2004 to Tuesday, 22 June 2004, and on her motion it was resolved - That the report do lie upon the Table and be adopted and agreed to. [See paper No 2234.] STANDING COMMITTEE ON UNIFORM LEGISLATION AND GENERAL PURPOSES Architects Bill 2003 - Extension of Reporting Time Hon Adele Farina presented a report of the Standing Committee on Uniform Legislation and General Purposes, in relation to the Architects Bill 2003, seeking an extension of time in which to report from Friday, 4 June 2004 to Tuesday, 29 June 2004, and on her motion it was resolved - That the report do lie upon the Table and be adopted and agreed to. [See paper No 2235.] MARKETING OF EGGS ACT 1945, AMENDMENTS Statement by Minister for Agriculture, Forestry and Fisheries HON KIM CHANCE (Agricultural - Minister for Agriculture, Forestry and Fisheries) [10.04 am]: Mr President, I announce this morning that State Cabinet has approved provisions to amend the Marketing of Eggs Act 1945 to provide for the expiry of the Act and the dissolution of the Western Australian Egg Marketing Board on or before 31 December 2005. The expiry of the Act will fulfil the State’s national competition policy obligations to egg marketing. A Bill to this effect will be introduced into the other place today. The Government acknowledges that moves to a deregulated market will have a significant impact on the 107 licence holders with a base hen quota under the Act. In recognition of this, the Government has committed $8.75 million for an adjustment assistance scheme for egg producers. I have written to all licensed producers advising them of the Government’s decision. Another key plank of the Government’s transition process will be the transfer of the business of the Egg Marketing Board to a newly formed producer-owned egg marketing company based on cooperative principles, provided that the Government is satisfied that the shareholding provisions in the constitution of the new company provide equity. The Government wants to ensure continuity in the provision of egg packing, processing and distribution to enable a smooth transition to a deregulated market and to give all producers who use the company’s services an opportunity to share in the marketing and value adding of their product. The Act is set to expire on 31 December 2005, because the Government has been advised by the National Competition Council that this will satisfy the State’s obligations under national competition policy and will allow sufficient time for the transition from a regulated egg market to a deregulated egg market. By that time, arrangements for the transfer to a new producer-owned egg marketing company of the business of the board will have been finalised, appropriate arrangements will have been made for the staff of the board and any other transitional matters will have been settled. The Act may expire before 31 December 2005 by order of the Governor published in the Government Gazette if all the necessary transitional arrangements are completed before then. I would now like to say a little about the background to the Government’s decision. The Marketing of Eggs Act 1945 established the Western Australian Egg Marketing Board, which trades as Golden Egg Farms, to administer the licensing and marketing system under the Act. The Act prohibits the keeping of more than 50 fowls for the purpose of producing eggs for sale, except with an annual licence issued by the board. The licence specifies the number of fowls that may be kept and there are strict limits on the issue of licences to other than existing licence holders. The sale of eggs to any person or entity other than the board is prohibited. The effect of the expiry of the Act will be the end of this system of licensing and hen quotas. Like all Western Australian Acts that impose restrictions on competition, the Marketing of Eggs Act was reviewed for compliance with national competition policy. The result of that review was a recommendation for the repeal of the Act 3422 [COUNCIL - Thursday, 3 June 2004] and a transition to a deregulated egg market by July 2007. In principle, Cabinet accepted the recommendations of this review in August 2003, but the decision was subject to further consultation with the National Competition Council on the effect on the State’s competition payments of delaying full deregulation until 2007. Following the cabinet decision of August 2003, I established a transition advisory committee, comprising industry and government representatives, to provide advice on the transition from a statutory marketing system to a deregulated marketing system. Producer members of the transition advisory committee reported to the executive of the Western Australian Poultry Farmers Association on issues under consideration and provided feedback to the transition advisory committee. In turn, the Poultry Farmers Association executive kept its members informed of the transition planning through meetings and newsletters. The transition advisory committee provided input into the preparation by the Department of Agriculture, with the assistance of the Department of Treasury and Finance, of a paper for the National Competition Council arguing that there was a public interest case for delaying deregulation until 2007. This paper outlined a phased deregulation process up to July 2007, and on this basis submitted that the suspension of the State’s competition payments should be lifted. However, the National Competition Council was not satisfied that there was a public interest case to justify a delay in reform past December 2005. The Government believes the adjustment assistance scheme to be provided to producers will assist a smooth transition to deregulation within the time frame nominated by the National Competition Council. The transition advisory committee has now presented a draft report to me, and I have approved the release of the report to producers and other stakeholders in the industry and invited their submissions on it. Among other things, the report considers the key principles to underpin the new producer-owned company. It is because these important aspects of the transition process are to be developed in close consultation with industry that they are not prematurely set out in the Bill. Instead, they will be the subject of regulations to be made under proposed new section 43 of the Act. Under proposed new section 42, the Bill makes it clear that before the expiry, I, as minister, must ensure the future employment prospects, and prevent the erosion of any rights, of people appointed, employed or otherwise engaged by the board. The industry has expressed concern that the expiry of the Act will leave the industry and consumers with greater biosecurity, animal welfare and food safety risks. To address this, the Bill includes an amendment to the Stock Diseases (Regulations) Act to allow a register of egg production establishments to be kept under the Act for the purpose of disease eradication, prevention and control. The licensing system under the Marketing of Eggs Act has had the important side effect of ensuring the collection of records that could prove vital to the protection of the State’s biosecurity. This amendment will ensure that this tool is not lost. A registration process may also be useful to food safety and animal welfare programs, although compliance in these areas would remain the responsibility of the Departments of Health and of Local Government and Regional Development. In conclusion, I express my confidence that this Bill not only satisfies the State’s obligation under national competition policy, but, more importantly, provides a mechanism to ensure a smooth transition to a modern egg marketing industry while preserving the benefits to producers that have ensued from the statutory system that is to be removed. I will shortly have my office arrange briefings for opposition members regarding the Bill that will be introduced into the other place today. REVENUE LAWS AMENDMENT BILL 2004 Receipt and First Reading Bill received from the Assembly; and, on motion by Hon Nick Griffiths (Minister for Housing and Works), read a first time. Second Reading HON NICK GRIFFITHS (East Metropolitan - Minister for Housing and Works) [10.14 am]: I move - That the Bill be now read a second time. This Bill seeks to implement the stamp duty and land tax revenue relief measures announced as part of the 2004-05 state budget. Specifically, the Bill proposes amendments to the Stamp Act 1921 to increase stamp duty relief to eligible first home buyers, to reduce stamp duty rates on conveyance of property and to adjust the thresholds of the concessional rates of stamp duty for purchases of a principal place of residence or business property. Additionally, the Bill proposes a number of amendments that seek to ensure stamp duty is paid on the acquisition of a 90 per cent interest in a listed company that otherwise would be land rich. The Bill also proposes amendments to the Land Tax Act 2002 to increase the lowest three thresholds of the land tax scale. Complementary provisions are also contained in the Revenue Laws Amendment and Repeal Bill 2004. I will now examine each of these proposed changes in greater detail. Part 1 of the Bill contains the short title of the Act and the proposed commencement provisions.
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