MINISTERIAL changes under new Prime Minister Malcolm Turnbull are unlikely to derail the establishment of an Agricultural Commissioner and new Agricultural Enforcement and Engagement Unit.
The $11.4 million initiatives were announced in the Agricultural Competitiveness White Paper released by the Coalition government in July and were roundly welcomed by leading farm groups.
The initiatives aim to enhance the Australian Competition and Consumer Commission’s (ACCC) skill capacity to properly investigate competition and address transparency issues in agricultural supply chains.
The White Paper announcement was prompted by criticism of the competition watch-dog’s lack of depth in analysing farm specific market/competition issues, like its approval of the JBS Australia takeover of the Primo Group and the proposed takeover of GrainCorp by Archer Daniels Midland.
However, the inaugural commissioner’s appointment has been delayed by the recent removal of Tony Abbott as Prime Minister, making farm groups increasingly anxious.
Mr Abbott and Agriculture and Water Resources Minister Barnaby Joyce launched the White Paper, saying the ACCC moves would promote fairer market competition.
“It will help the ACCC to become more familiar with market issues in the agricultural sector and a commissioner with a specific agricultural brief, with specific agricultural expertise obviously is going to bring a whole lot of insights which might otherwise not have been there," Mr Abbott said in July.
But under Mr Turnbull, Scott Morrison has been appointed Federal Treasurer and will now hold responsibility for competition policy including oversight of the ACCC.
He replaces Bruce Billson who previously held responsibility for competition policy as Small Business Minister but was replaced by Kelly O’Dwyer in Mr Turnbull’s ministry.
Mr Billson was understood to be holding talks with Mr Joyce and former Treasurer Joe Hockey on potential candidates for the commissioner’s role that’s understood to be paying about $350,000 per year and may be based in Sydney.
Australian Farm Institute (AFI) executive director Mick Keogh is believed to be the heavily favoured candidate but has only offered himself for the role part-time.
Former Regional Australia Institute (RAI) CEO Su McCluskey has also been linked to the position along with former Northern Territory Cattlemen's Association CEO Luke Bowen, but both are unlikely options.
Another fancied candidate for the role is highly experienced Agriculture and Water Resources Department senior manager Paul Morris who oversaw the White Paper’s development working out of the Prime Minister’s Department.
Mr Morris is also a former Executive Director of the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) and has performed a number of other leading, strategic policy roles linked to agriculture.
In late August, Mr Joyce told Fairfax Media that Mr Keogh wasn’t the only candidate under consideration for the commissioner’s role but he refused to speculate on other potential names.
However, he said he wanted to see the ACCC’s Agricultural Unit and new commissioner “happening as soon as possible”.
“This is not something that requires legislation so we’re going through the assessment of candidates now,” he said.
“We’ve had discussions around a number of candidates and we’ve put names backwards and forth.
“We want to make sure that the person (appointed) has had a long term engagement in rural industry, has a clear understanding of some of the issues pertaining to competition and to market power within that industry and has the capacity to work with the other ACCC board members in an effective way, so as to bring about better outcomes for people on the land.”
Last month, Agriculture Department Secretary Daryl Quinlivan said his Department had been working on the commissioner’s appointment with ACCC chair Rod Sims and an announcement was “getting closer”.
Last week, Mr Joyce released a detailed media statement updating progress on various initiatives in the multi-billion dollar White Paper announced three months ago, like taxation and drought policies.
However, the minister’s statement failed to mention details on progressing the Agricultural Commissioner or Engagement Unit.
Victorian rural Liberal MP Sharman Stone – who was recently appointed chair of the Coalition’s backbench policy committee on agriculture – said she supported having a specialist in the agribusiness and retail sector within the ACCC.
But Ms Stone said she would like to see the new minister responsible for competition policy provide an assurance that the Unit and Commissioner were not being neglected, in the change of government.
“I’m going to make sure these things happen and fast,” she said.
Ms Stone said Mr Joyce had also said he wanted feedback from her Committee on White Paper priorities or “campaign priorities” and how to progress them through to the next election.
“One of those areas is competition policy,” she said.
“In Australia we’re captured by the world’s biggest duopoly in retail grocery sales and that makes it extraordinarily difficult for suppliers whether you’re talking about fresh processed food, wines or beverages, to invest in innovation.
“As soon as they do invest, they’re asked by Coles or Woolworths to give them a generic home brand version at a fraction of the price.
“We can’t just fine Coles and Woolworths a few million dollars - I think we’ve got to talk about divestments.
“We’ve got to be much more serious about a fair go for the small businesses who go to the wall as the big businesses, like these duopolies, continue to exercise their extraordinary market power.
“The consumer doesn’t get a good deal when their choice is diminished because the price of $1 for a litre of milk or for a loaf of bread has knocked out half the suppliers.
“That’s not in the consumers' interest at the end of the day.”