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Chapter 1
Introduction
1.1
On 14 February 2008, the Senate referred the following matter to the
Senate Select Committee on Agricultural and Related Industries for inquiry and
report by 16 June 2008:
The pricing and supply
arrangements in the Australian and global chemical and fertiliser markets, the
implications for Australian farmers of world chemical and fertiliser supply and
pricing arrangements, monopolistic and cartel behaviour and related matters.[1]
1.2
The Senate subsequently extended the reporting date to 16 October 2008, and this was later extended to 2 December 2008.
Conduct of the inquiry
1.3
The inquiry was advertised in the Australian, metropolitan newspapers,
a wide range of regional newspapers, and through the Internet. The
committee also invited submissions from a wide range of organisations and
individuals. The committee requested submissions by 19 March 2008, however this was subsequently extended to 3 April 2008. Due to public interest in the
inquiry, the committee continued to accept submissions during the course of its
inquiry.
1.4
The committee received 54 submissions – 46 public submissions and 8 confidential
submissions. A list of individuals and organisations that made public
submissions to the inquiry is at Appendix 1. The committee held four public hearings:
Canberra on 16 May 2008, Melbourne on 23 July 2008, and Canberra on 11 and 14 November 2008. The committee also held a number of in camera hearings. A list
of the witnesses who gave evidence at the public hearings is at Appendix 2.
1.5
The committee was concerned at the number of people who felt
intimidated about expressing their concerns about the Australian fertiliser
market and would not appear before the committee.
The committee's interim report
1.6
The committee has decided to report in two stages. This interim report
addresses parts of the terms of reference relating to fertiliser supply and
pricing arrangements. Chapter 2 outlines the structure of the fertiliser
industry including the main industry players, market concentration and
production and consumption of fertiliser in Australia. It also reviews current
regulatory arrangements. Chapter 3 of the report discusses a range of
competition issues, including the impact on the market of major players in the
industry. The chapter also discusses the nature and extent of a range of market
distortions and reviews a number of options to address these issues.
1.7
In its final report, the committee will further review issues related to
fertiliser supply and pricing arrangements, including options for addressing anti-competitive
behaviour through the Trade Practices Act 1974, and other options such
as the adoption of an industry code of conduct and provision of a greater
monitoring role for the Australian Competition and Consumer Commission. The
committee will also investigate the need for a strengthening of current
regulatory arrangements under which the industry operates. In addition, the
committee will review whether there is a need for improving fertiliser use
efficiency, and developing alternatives to chemical fertilisers and developing
further domestic sources of supply.
1.8
The committee, in its final report, will also address the second part of
the reference relating to pricing and supply arrangements in the Australian and
global chemical market, and the implications for Australian farmers of world
chemical supply and pricing arrangements.
1.9
The committee intends to table its final report by 30 June 2009.
Acknowledgement
1.10
The committee thanks those individuals and organisations who made
submissions and gave evidence at the public and in camera hearings.
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