Productivity Commission report exposes LNP on sugar regulation

Queensland Minister for Agriculture and Fisheries Bill Byrne today welcomed the release of the Queensland Productivity Commission’s regulation impact statement on the proposed re-regulation to sugar marketing.

“Today’s report underlines the LNP for the economic vandals that they are,” Minister Byrne said.

Minister Byrne responded to the QPC report while visiting a sugar mill south of Townsville.

“Workers at this mill don’t deserve to have their jobs put on the line by the radical and reckless actions of the Liberal National Party,” he said.

“In its damning assessment, the QPC has found the re-regulation proposal interferes with the property rights; could reduce the overall returns to the sugar industry; could reduce the returns to the industry by adding extra costs; would re-introduce pre-contract arbitration which may lead to both financial (legal) and time loss costs for the industry and could leave parties exposed to action by the Australian Competition and Consumer Commission.

“If the Liberal National Party doesn’t immediately announce their opposition to re-regulate the sugar industry then they will be the single greatest sovereign risk in modern Queensland history.

“The Productivity Commission clearly states that there is no market failure or abuse of market power in the sugar industry and therefore no case for government intervention.

“The Liberal Party used to believe that free markets promoted growth and encouraged investment. Now they’re less than a shadow of their former selves, being led astray by the National Party of old.”

The Queensland Productivity report into the proposed legislation on the re-regulation of the sugar industry concluded:

We have considered in detail the extensive submissions made in response to the Consultation RIS, and made some amendments to the analysis. However, the conclusion of this RIS remains unchanged, specifically:

(a) there was no evidence to support a case for market failure in the Queensland sugar industry that would indicate the need for additional Government intervention; and

(b) that the benefits of additional regulation, as proposed by the Bill, do not outweigh the costs.

The Decision RIS concludes that retaining the existing regulatory framework ― with no additional regulation ― will provide the greatest net benefit to Queensland.

For a copy of the report visit:www.qpc.qld.gov.au

Media Contact: Michelle Connolly: 0478 325 738