Senator HARRIS (8:41 PM) —I would like to seek some more information from Senator Troeth and it goes to the issue of the share capital. The explanatory memorandum, under clause 17, share capital, states:

I emphasise the section of the EM where the government says that the declaration cannot be varied or revoked. Therefore, once the share capital is initiated it is locked in under the legislation. Whilst that is appropriate for the members who have contributed in the past through their wool levies to ABARE, what would be the position of a new person who enters the industry and will pay the same levies but ultimately will have no share register whatsoever in those new entities? The same is also applicable to those members who are presently entitled to share listings in the new entities based on their previous contribution to the taxes and levies. There could be variations in the positions of those producers—someone may reduce their production and still have the same share rights within the company or someone who has an original right may double their production but that will not be reflected in their share capital in the entity. As I have said, someone who has not contributed in the past to any levies or fees but becomes a substantial producer would not be represented at all by way of share issue and therefore, I believe, would not be able to participate in the direction that the entity is going in.

I am questioning the wisdom of the government in locking that share capital at that point in time. Would it not be prudent for the government to have some process by which it could introduce new share capital at some subsequent time? It is not a criticism of what the government is doing. I support very much what the government is doing, but I am raising the issue of somebody who enters this industry—and we are all looking to this being the positive move that would encourage people who are in the industry to increase their production and also to encourage new players into the market. Where is their ability to be part of that process?