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ECONOMICS REFERENCES COMMITTEE—REFERENCE

Senator Xenophon, also on behalf of Senators Colbeck and Milne, pursuant to notice of motion not objected to as a formal motion, moved business of the Senate notice of motion no. 2—That the following matter be referred to the Economics References Committee for inquiry and report by 15 April 2011:

The impact on the Australian dairy industry supply chain of the recent decision by Coles supermarket (followed by Woolworths, Aldi and Franklins) to heavily discount the price of milk (to $1 per litre) and other dairy products on the Australian dairy industry, with particular reference to:

 (a) wholesale milk prices;

 (b) the decrease in Australian production of milk from 11 billion litres in 2004 to 9 billion litres in 2011, of which only 25 per cent is drinking milk;

 (c) whether such a price reduction is anti-competitive;

 (d) the suitability of the framework contained in the Horticulture Code of Conduct to the Australian dairy industry;

 (e) the recommendations of the 2010 Economics References Committee report, Milking it for all it's worth - competition and pricing in the Australian dairy industry and how these have progressed;

 (f) the need for any legislative amendments; and

 (g) any other related matters.

Senator Nash, by leave, moved the following amendment:

 Omit paragraph (a), substitute:

 (a) farm gate, wholesale and retail milk prices;

Question—That the amendment be agreed to—put and passed.

Main question, as amended, put and passed.