House debates

Thursday, 2 November 2006

Questions without Notice

Horticulture Code of Conduct

2:56 pm

Photo of Peter AndrenPeter Andren (Calare, Independent) Share this | | Hansard source

My question is to the Minister for Agriculture, Fisheries and Forestry. Given that the government will deliver only part of its promised mandatory horticulture code of conduct by exempting retailers, the major supermarket chains, food processors and exporters from compliance, how can the code protect growers? Will they or consumers be expected to bear the cost of this inadequate code? What is the expected cost?

Photo of Peter McGauranPeter McGauran (Gippsland, National Party, Deputy Leader of the House) Share this | | Hansard source

I thank the honourable member for his question. The government will enact its election commitment with regard to the mandatory code of conduct, which was for suppliers to wholesalers.

Photo of Gavan O'ConnorGavan O'Connor (Corio, Australian Labor Party, Shadow Minister for Agriculture and Fisheries) Share this | | Hansard source

Mr Gavan O’Connor interjecting

Photo of David HawkerDavid Hawker (Speaker) Share this | | Hansard source

Order! I call to order the member for Corio.

Photo of Peter McGauranPeter McGauran (Gippsland, National Party, Deputy Leader of the House) Share this | | Hansard source

The code of conduct is to institute transparency of actions, and the terms of trade will be defined so that every supplier knows exactly how their produce is being treated by wholesalers. Consequently you will know the delivery time and the price paid, and the relationship will be set in stone; whereas when a supplier is selling to a retailer or supermarket those terms of trade are necessarily known—you obviously know all the aspects that will now be incorporated in the code of conduct. To force a code of conduct, beyond the retail code of conduct, on the retailing sector would force up costs—which would be borne by suppliers. Let me make this perfectly clear: the mandatory code of conduct will set the terms of trade which are already part of a contract between a supplier and a retail outlet.