GrainCorp shuns mandatory Federal Government code


GrainCorp, Australia’s biggest east-coast bulk handler, says that it does not support the mandatory code of conduct set out by Federal Government in its current form.

The proposed code is designed to ensure that smaller exporters or ‘tier two’ operators, have greater access to terminals.

Under current legislation, only port terminal operators with a wheat exporting business must pass an access test.

GrainCorp chairman, Don Taylor says he supports the concept of the code, but would prefer no regulation at all.

Taylor said: “We think there’s a lack of equity in terms of operators who can fit outside the present code and can effectively compete with us, and these are typically multinationals 30 times the size of GrainCorp.”

He added: “We don’t have a monopoly and if we take Newcastle for example, where we have a competing terminal there, the ACCC has recognised that there is competition in that port zone and it has actually provided a draft ruling that we should be exempt from the code.”

Mr Taylor says tighter regulations will cost the company financially.

He concluded: “We’re looking at AU$1million a year in terms of dealing with the code and the issues around it, but that’s just the administrative cost.”

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