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Tuesday, 22 May 2001
Page: 26796

Mr O'Connor asked the Minister for Agriculture, Fisheries and Forestry, upon notice, on 8 March 2001:

(1) What funds have been allocated by the Government to structural adjustment in the dairy industry in Australia.

(2) How were these funds raised.

(3) Is the dairy structural adjustment program funded by a levy on drinking milk and by consumers.

(4) What Federal Government funds are in the recent package of assistance to the dairy industry.

Mr Truss (Minister for Agriculture, Fisheries and Forestry) —The answer to the honourable member's question is as follows:

(1) The Government has allocated $1.78 billion dollars for structural adjustment in the dairy industry.

(2) These funds are being raised through a levy of 11 cents per litre on liquid milk products comprising whole-milk, modified milk, Ultra Heat Treated (UHT) milk and flavoured milk. Sales of imported milk are also covered by the levy.

(3) Yes. The dairy structural adjustment program is being funded through the imposition of a levy on drinking milk.

(4) The Federal Government is providing $1.78 billion in funds to assist dairy farmers and dairy dependent communities adjust to deregulation. Consumers are ultimate beneficiaries of market milk deregulation. These funds are being raised through the imposition of the 11 cent levy over about 8 years on liquid milk products.