Senator TROETH (10:14 AM) —by leave—I move:

(1) Schedule 1, item 9, page 14 (line 12), omit "until 1 July 2004".

(2) Schedule 1, item 11, page 14 (lines 23 and 24), omit subsection (3C).

(3) Schedule 1, item 13, page 15 (after line 12), after subsection (6), insert:

(7) Before the end of 2004, the Authority must conduct a review of the following matters, and give the Minister a report on the review:

(a) the operation of subsection (1A) in relation to nominated company B:

(b) the conduct of nominated company B in relation to:

(i) consultations for the purposes of subsection (3A); and

(ii) the granting or withholding of approvals for the purposes of subsection (3B).

Following consideration of the report by the Senate Rural and Regional Affairs and Transport Legislation Committee on this bill, the government has decided to remove the provisions in the bill which would have sunsetted the grower company's legislated export monopoly rights for wheat on 1 July 2004. The government has also decided to require the Wheat Export Authority to review these arrangements.

The legislative provisions for the grower company monopoly for a prescribed period were put in place in recognition that the legislation would be reviewed under the national competition policy in 1999-2000. If the review found in favour of maintaining monopoly arrangements for wheat, the five-year time frame was seen as giving the grower company time to recognise its credentials and demonstrate sound arguments to put before parliament as to why the company should continue to hold its monopoly rights. However, the government does recognise the importance of providing certainty to wheat growers that their company will retain the right to export wheat without a consent from the Wheat Export Authority unless parliament decides otherwise. Therefore, the government has decided to amend the provisions in the bill to provide for no time limit to the grower company's right to export wheat.

The government has also decided to require a review to ensure the performance of the pooling subsidiary company in regard to its use of the monopoly. These changes will have a minimal impact on the overall export monopoly arrangements. They will not remove the government's commitment to the national competition policy and the regular review of the legislation governing the wheat export arrangements. Further legislation will be required at some time to put in place permanent funding arrangements for the Wheat Export Authority. Obviously, the Grains Council of Australia and other parties will need to be consulted if these arrangements are to be based on a levy or a tax.