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Horticulture export regulation – Regulation Impact Statement – Department of Agriculture, Fisheries and Forestry

On 21 December 2012, the Minister for Agriculture, Fisheries and Forestry announced changes to the regulation of horticultural exports.  Regulations relating to the export of apples, pears and dried grapes will be removed from 31 January 2013.   The single importer arrangement for the export of citrus to the United States of America, which currently operates, will be replaced on 31 January 2013 by a new Citrus to US Marketing Program (similar to the Citrus to China program), both of which will be phased out on 31 January 2015. The Horticulture Marketing and Research and Development Services Act 2000 (HMRDS Act) and subordinate Regulations and Orders) allow horticultural industries, acting through Horticulture Australia Limited (HAL), to place conditions on horticultural produce exported from Australia.  This legislation was reviewed against the principles of National Competition Policy.  The Regulation Impact Statement (RIS) considers the government’s response to this review. The current uses of the export regulations generate no quantifiable net benefits and any potential benefits they may deliver could be achieved without the need for government regulation.  As such they do not conform to the principles of National Competition Policy. The RIS indicates that it is unlikely that any future use of export regulation enabled by the Regulations could conform with National Competition Policy principles or contemporary government policy in the areas of innovation and international trade. Any transitional costs to the citrus industry from the removal of the current regulations are expected to be small. It is likely that the proposed changes would increase the volume of citrus exported to the United States and China and increase the total revenue from those markets. The recommended changes would favour larger, efficient exporters at the expense of smaller, inefficient exporters, thereby increasing the productivity of the industry. The changes are unlikely to benefit those smaller producers who do not have the capacity to increase their production, nor are they likely to impose significant costs. The RIS was prepared by the Department of Agriculture, Fisheries and Forestry and assessed as adequate by the Office of Best Practice Regulation.