GRAIN Trade Australia chair Andrew Goyder says the Australian Wheat Port Code is no longer “fit for purpose”, arguing consumers and other stakeholders have nothing to fear from a deregulated environment.
The Wheat Port Code regulates the conduct of port terminal service providers and seeks to ensure exporters of bulk wheat have fair and transparent access to port terminal services.
The Department of Agriculture, Fisheries and Forestry began a review of the code late last year and the Australian Competition and Consumer Commission has already stated it should be changed.
Addressing the Australian Grain Industry Conference at Crown Conference Centre in Melbourne, Mr Goyder said “the GTA concurs with many in the industry including the ACCC that the Wheat Port Code is no longer fit for purpose”.
“Government regulation of the markets is only required when there is market failure. The grain industry has never been in better shape. There is no evidence of market failure in the grain market,” Mr Goyder said.
“In fact, the contrary is true. The only evidence we do have is that deregulation of the export market since 2008 has led to industry growth.”
He talked of healthy competition in domestic container markets as well as an environment of “investment, innovation and sometimes sheer ingenuity”.
“Supply chain capacity growth has been substantial,” Mr Goyder said.
“In 2008-09 (before export deregulation), the maximum monthly export was three million tonnes [of grain] with an average of 1.8 million tonnes.
“In 2022-23, the maximum monthly export was 5.8million tonnes and an average of 4.3million tonnes”, Mr Goyder said, noting increased investment in grain export terminals with benefits along the supply chain.
“We think industry is ready and able and should be given the opportunity to take the next step forward in managing its own affairs rather than continuing with regulation that is not fit for purpose, or even additional regulation.”
An ACCC discussion paper released late last year noted a heavy regulatory burden on new port terminal supply providers (PTSPS) entering the market.
According to the ACCC, the code’s obligations apply to new entrant PTSPs “by default”, despite new entrants often entering grain catchment areas where significant and well-established port terminal facilities are already operating.
The original code dates back a decade and was always politically contentious, with the governing federal coalition divided between east coast figures such as Barnaby Joyce favouring regulation, and those from Western Australia who favoured full deregulation.
