The Australian Competition and Consumer Commission has granted interim authorisation to the Victorian Potato Growers Council and its members to continue collectively negotiating contracts and keep doing business through contracts negotiated under the previous authorisation granted in 2007.
“Many potato growers rely on contracts collectively negotiated with potato buyers such as McCain Foods and Smiths Snackfoods to plan for the next growing season. Interim authorisation means that Victorian growers will be able to rely upon previously negotiated contracts, despite the imminent expiry of their 2007 authorisation,” ACCC chairman Rod Sims said.
289 Victorian potato growers belong to the Victorian Potato Growers Council. The ACCC notes that the majority of potato growers are family farms.
The ACCC previously authorised the Victorian growers’ collective bargaining arrangements in 2007 when it was found that the public benefits would outweigh any detriment. The existing arrangements will expire on 31 July 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 the Victorian potato growers’ substantive application for authorisation. A draft decision on the substantive application will be issued in September/October. At this time, the ACCC may also consider extending interim authorisation to cover all of the collective bargaining arrangements proposed by the Victorian growers in their current application.