Department of the Treasury
On 4 April 2017, the Treasurer prescribed the Competition and Consumer (Industry Code—Sugar) Regulations 2017 (‘the Code’) as a mandatory industry code under the Competition and Consumer Act 2010.
The Code:
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provides for an arbitration process for supply contracts between sugar suppliers and millers;
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provides for an arbitration process for on-supply agreements between millers and marketers; and
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ensures that growers have a right to choose who markets their sugar.
The Prime Minister granted an exemption from the Regulation Impact Statement (RIS) requirements because urgent and unforeseen events arose requiring a decision before a RIS could be prepared. Consistent with the Australian Government’s RIS requirements, a post implementation review must be completed within 2 years of implementation of the Code.
The change in regulatory burden as a result of the Code was required to be estimated by Treasury and provided to the Office of Best Practice Regulation within three months of the Code being implemented. Treasury have estimated that the increase in regulatory burden as a result of the Code is $844,000 per annum.