The Australian Competition and Consumer Commission has granted interim authorisation to the South East Potato Growers Association and its members.
The interim authorisation allows the growers to give effect to contracts negotiated under the previous authorisation granted in 2007 and to potentially negotiate new contracts.
"Interim authorisation will allow the existing arrangements to continue while the ACCC considers whether to reauthorise SEPGA and its members to collectively negotiate these sorts of arrangements in the future," ACCC chairman Rod Sims said.
There are approximately 70 potato grower businesses in South Australia and 17 of these belong to the South East Potato Growers Association.
The ACCC previously authorised SEPGA's collective bargaining arrangements in 2007, when it found that these arrangements would provide more benefit to the public than detriment. The existing authorisation will expire on 29 August 2012.
The granting of interim authorisation in no way binds the ACCC in its consideration of the substantive application for authorisation.
Authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
The ACCC has sought submissions from interested parties on SEPGA's substantive application for authorisation. A draft decision on the substantive application will be issued in September/October.
Further information can be found on the ACCC's public register at www.accc.gov.au/AuthorisationsRegister.