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DAIRY INDUSTRY (AMENDMENT) BILL 1993
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
The object of this Bill is to amend the Dairy Industry Act 1979:
(a) to provide for the removal, on and from 1 July 1998 (or an earlier agreed date),
of zoning and other restrictions on the delivery of milk by registered vehicle
vendors and to deal with ancillary matters (including compensation and the
rationalisation of the businesses of vehicle vendors); and
(b) to remove, on and from that date, the powers of the Dairy Corporation to fix
retail and certain other milk prices; and
(c) to remove all powers of the Dairy Corporation in relation to margarine; and
(d) to require less information in returns that dairy farmers and others must make
to the Dairy Corporation; and
(e) to dispense with certain unused formal procedures for the investigation of
complaints by dairy farmers.
Clause 1 specifies the short title of the proposed Act.
Clause 2 provides for the proposed Act to commence on a day or days to be
appointed by proclamation.
Clause 3 amends the Dairy Industry Act 1979 as set out in Schedules 13.
SCHEDULE 1--AMENDMENTS RELATING TO DEREGULATION OF
VEHICLE VENDORS AND OF RETAIL AND CERTAIN OTHER MILK
PRICES
Schedule 1 (1) inserts Division 1A of Part 4 into the Act. The new Division:
(a) Specifies that the deregulation date is 1 July 1998 or an earlier date agreed to
by the Minister and the Amalgamated Milk Vendors' Association Inc.
(b) Removes, on and from the deregulation date, the power of the Dairy
Corporation to impose conditions on the certificate of registration of a vehicle
vendor that restrict the area in which the vendor may supply milk, restrict the
persons from whom the vendor may buy milk, restrict the type of milk that
may be supplied, require the delivery of milk on particular days or on demand
or require milk to be maintained at a particular temperature.
(c)
Removes, on and from the deregulation date, the power of the Dairy
Corporation to refuse to issue a certificate of registration to a vehicle vendor, or
cancel such a certificate, on the ground that the vendor's business is wasteful or
unnecessary, that the vendor does not have particular qualifications or that it is
in the public interest to do so.
(d)
Establishes a Distribution Sector Rationalisation Scheme to encourage and
facilitate the rationalisation of the vehicle vendor distribution sector of the
dairy industry. The Scheme is to be operated and financed by the dairy
industry. Under the Scheme, vehicle vendors will be given the opportunity to
sell their businesses and, after the rationalisation of those businesses, to
purchase a new business.
(e)
Provides that no compensation is payable, because of deregulation, to certain
vehicle vendors (including those who are given an opportunity to participate in
the Scheme).
Schedule 1 (2) inserts section 60D into the Act. The new section removes, on and
from the above deregulation date, the powers of the Dairy Corporation to fix retail and
certain wholesale prices for milk. Price-fixing powers retained include those relating to
the minimum price to be paid to dairy farmers for milk and certain wholesale prices to
be paid by processors for milk.
The new section also increases from three-monthly periods to six-monthly periods
the times at which the Dairy Corporation is required to undertake a review of the prices
that it is authorised to fix for milk and dairy products.
SCHEDULE 2--AMENDMENTS RELATING TO MARGARINE
This Schedule repeals all references to margarine from the Act so as to remove all
powers of the Dairy Corporation in relation to margarine.
SCHEDULE 3--MISCELLANEOUS AMENDMENTS
Schedule 3 (1) requires less information in returns that dairy farmers and others must
make to the Dairy Corporation. The information is to be limited to information relating
to accounting for the use of milk and to information required for the fixing of prices for
milk.
Schedule 3 (2) repeals provisions that require certain formal procedures to be
observed in relation to complaints by dairy farmers. Because of an existing informal
procedure, the provisions proposed for repeal have not been used.