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Protecting Australian Dairy Bill 2019

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8796

2019

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

 

Protecting Australian Dairy Bill 2019

 

 

(1)     Schedule 1, page 3 (line 1) to page 4 (line 30), omit the Schedule, substitute:

Schedule 1 Extending price notifications to milk

   

Competition and Consumer Act 2010

1  Subsection 95A(1) (at the end of the definition of applicable period )

Add “or 99ZAA”.

2  Subsection 95A(1)

Insert:

dairy products means processed and semi-processed products produced or derived from raw milk.

3  Subsection 95A(1) (at the end of the definition of locality notice )

Add “or 99ZAA(5)”.

4  Subsection 95A(1)

Insert:

major milk processor : see section 95AA.

raw milk means the unpasteurised lacteal fluid product of a dairy cow.

5  Subsection 95A(1) (at the end of the definition of response notice )

Add “or 99ZDA(6)(c)(i)”.

6  After section 95A

Insert:

95AA   Meaning of major milk processor

             (1)  A person is a major milk processor if:

                     (a)  the person produces dairy products; and

                     (b)  one or more of the following apply:

                              (i)  the person is a corporation;

                             (ii)  the person entered into an arrangement to purchase raw milk for the production of dairy products from a corporation;

                            (iii)  the purchase of raw milk by the person is related to constitutional trade and commerce (within the meaning of Part IIIA); and

                     (c)  the person satisfies either or both:

                              (i)  the revenue threshold for a financial year; or

                             (ii)  the production threshold for a financial year.

             (2)  A person satisfies the revenue threshold for a financial year if the consolidated revenue of the person, and any body corporate related to the person, was $200 million or more in the previous financial year.

             (3)  A person satisfies the production threshold for a financial year if the person, and any body corporate related to the person, required 500 million litres or more of raw milk to produce dairy products in the previous financial year.

             (4)  Consolidated revenue is to be calculated for the purposes of this section in accordance with accounting standards in force at the relevant time (even if the standard does not otherwise apply to the financial year of the person or a body corporate related to the person).

7  After subsection 95F(5)

Insert:

          (5A)  This Part also restricts a person’s ability to reduce the price for purchasing raw milk.

8  Before section 95X

Insert:

Subdivision A Price notifications for declared goods and services

9  After section 95Z

Insert:

Subdivision B Price notifications for raw milk

99ZAA   Price restrictions

Offence: previous local supply

             (1)  A person commits an offence if:

                     (a)  the person is a major milk processor; and

                     (b)  the person purchases (the current supply ) raw milk in a locality on particular terms and conditions (the actual terms ) at a particular price (the actual price ); and

                     (c)  the person has purchased raw milk in that locality on the same or substantially similar terms and conditions in the period of 12 months before the current supply; and

                     (d)  the actual price is less than the lowest price at which the person has purchased raw milk in that locality on the same or substantially similar terms and conditions in that period; and

                     (e)  the current supply is not an exempt supply.

Penalty:  100 penalty units.

Note:          Subsection (4) contains a defence to this offence.

Offence: no previous local supply

             (2)  A person commits an offence if:

                     (a)  the person is a major milk processor; and

                     (b)  the person purchases (the current supply ) raw milk in a locality on particular terms and conditions (the actual terms ) at a particular price (the actual price ); and

                     (c)  the person:

                              (i)  has not purchased raw milk in that locality on the same or substantially similar terms and conditions in the period of 12 months before the current supply; but

                             (ii)  has purchased raw milk in Australia on the same or substantially similar terms and conditions in that period; and

                     (d)  the actual price is less than the lowest price at which the person has purchased raw milk in Australia on the same or substantially similar terms and conditions in that period; and

                     (e)  the current supply is not an exempt supply.

Penalty:  100 penalty units.

Note:          Subsection (4) contains a defence to this offence.

Offence: no previous supply in Australia

             (3)  A person commits an offence if:

                     (a)  the person is a major milk processor; and

                     (b)  the person purchases (the current supply ) raw milk in a locality on particular terms and conditions (the actual terms ) at a particular price (the actual price ); and

                     (c)  the person has not purchased raw milk in Australia on the same or substantially similar terms and conditions in the period of 12 months before the current supply; and

                     (d)  the current supply is not an exempt supply.

Penalty:  100 penalty units.

Note:          Subsection (4) contains a defence to this offence.

Defence

             (4)  Subsection (1), (2) or (3) does not apply if the following 4 requirements are satisfied.

Note:          A defendant bears an evidential burden in relation to the matter in subsection (4) (see subsection 13.3(3) of the Criminal Code ).

Locality notice

             (5)  The first requirement is that the person has given the Commission a notice (a locality notice ) in writing stating that the person proposes to purchase raw milk in that locality on specified terms and conditions (the proposed terms ) at a specified price (the proposed price ).

Note:          The person may give further notices modifying the locality notice: see section 95ZDB.

Response to locality notice

             (6)  The second requirement is that:

                     (a)  the applicable period in relation to the locality notice has ended; or

                     (b)  the Commission has given the person a notice in writing stating that it has no objection to the person purchasing raw milk in that locality on the proposed terms at the proposed price; or

                     (c)  both of the following apply:

                              (i)  the Commission has given the person a notice (the response notice ) in writing stating that it would have no objection to the person purchasing raw milk in that locality on the proposed terms at a specified price (the approved price ) that is more than the proposed price;

                             (ii)  the person has, not later than 7 days after being given the response notice, given the Commission a notice in writing stating that the person proposes to purchase raw milk in that locality on the proposed terms at a price that is not less than the approved price.

Actual terms

             (7)  The third requirement is that the actual terms are the same as, or substantially similar to, the proposed terms.

Actual price

             (8)  The fourth requirement is that the actual price is not less than:

                     (a)  if paragraph (6)(a) or (b) applies—the proposed price; or

                     (b)  if paragraph (6)(c) applies—the approved price.

Subdivision C Miscellaneous

10  Subsection 95ZA(2)

After “a notice under subsection (1)”, insert “that relates to a locality notice given under subsection 99Z(5)”.

11  After subsection 95ZA(2)

Insert:

          (2A)  A price specified in a notice under subsection (1) that relates to a locality notice given under subsection 99ZAA(5) must be:

                     (a)  more than the proposed price; and

                     (b)  more than the price specified in any previous notice under that subsection in relation to the locality notice.

12  Subsection 95ZA(4) (at the end of the definition of proposed price )

Add “or 95ZAA(5)”.

13  Subsection 95ZD(2) (at the end of the definition of price notification powers )

Add “or 95ZAA(6)(b) or (c)”.

[price notification]