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Mandatory Code of Conduct for Grain Export Terminals – Regulation Impact Statement – Department of Agriculture

On 19 September 2014, the Minister for Agriculture and the Minister for Small Business jointly announced the release of a mandatory code of conduct designed to give bulk wheat exporters fair and transparent access to port terminal services, regardless of who owns the infrastructure. The Code of Conduct replaces the ‘access test’ arrangements under the Wheat Export Marketing Act 2008, which were seen to impose an unnecessarily high burden on a small number of port operators. The new Code applies to all port terminal service providers, including some operators who were not subject to the previous arrangements. However, where competition exists, the Code allows for businesses to be exempted from certain mandatory requirements, excluding basic publishing obligations. The Australian Competition and Consumer Commission has powers to monitor and enforce compliance with the Code. The Regulation Impact Statement (RIS) explored three other options – the retention of the existing access test arrangements; a ‘one size fits all’ mandatory code that makes no provision for different levels of competition; and the removal of all industry-specific regulation, relying instead on general competition laws. The proposal has been assessed as likely to have a measurable but contained impact on the economy with significant impacts on competition. A RIS for consultation was prepared by the Department of Agriculture and was published on 19 June 2014. The RIS was prepared and certified by the Department of Agriculture, at the Deputy Secretary level, and has beenassessed as compliant by the Office of Best Practice Regulation (OBPR). The OBPR notes that the RIS process followed by the Department of Agriculture was consistent with best practice. The Department has estimated average annual regulatory cost savings of $0.63 million. The OBPR has agreed to the regulatory cost savings.