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Legislative Assembly for the ACT: 1998 Week 10 Hansard (24 November) . . Page.. 2780 ..

MR SMYTH (continuing):

Mr Speaker, earlier this year the Government initiated a review of the Milk Authority Act 1971 and the Public Health (Dairy) Regulations. This review was undertaken as part of the ACT's national competition policy obligations. The purpose of the review was to report on the regulatory arrangements for the supply of milk in the ACT, the structure of the Milk Authority with regard to its role as regulator and marketing body, and to identify areas for reform and restrictions on competition.

This comprehensive review of the ACT milk market and the various sectors within that market recommended a phased reform to address restrictions on competition and encourage business efficiencies within the market. During the review the Government became aware that there were potential breaches of the Commonwealth's Trade Practices Act related to a number of arrangements. This Assembly passed the Milk Authority (Amendment) Act 1998 which authorised an exemption for this conduct with cover sunsetting on 31 December 1998. As part of the review process there was considerable consultation with market participants and other interested groups on the possible reforms and restrictions to competition.

After the review report was presented to the Government I called for public responses in July this year. Sixteen formal responses were submitted and I, like many other members of the Assembly, received many letters from Canberra consumers.

As members of this Assembly will be well aware, at around the time the review was being conducted changes were occurring within the national milk market. The entry of new milk suppliers into the ACT market was a clear indication of the directions arising from the national reform of the milk industry. New South Wales and Victoria have already deregulated much of their milk markets, with regulation over the dairy industry still remaining.

Under the cross-border provisions of the self-government Act, milk processors have always been allowed to supply to the ACT market, as can the local ACT-based processor supply in New South Wales. Despite the competition from the new milk suppliers, we have seen a strong response by the Canberra community in support of the Canberra Milk brand and the local processor.

Mr Speaker, in reaching a position on reform of the market, the Government has taken account of the views of market participants and consumers and has decided on arrangements that best suit Canberra consumers and which protect local jobs for Canberrans and protects the Canberra Milk brand. The Milk Authority (Amendment) Bill (No. 2) 1998 presented to this Assembly therefore proposes amendments that extend Trade Practices Act authorisation and makes the necessary changes to transfer regulatory functions away from the Milk Authority.

The first necessary amendment is to extend the section 51 authorisation for the Milk Authority Act as the existing authorisation expires on 31 December 1998. This is required only for the current contracts between the Milk Authority and the local processor and distributor of the Canberra Milk brands. The amendment provides an

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