The Australian Competition and Consumer Commission has re-authorised* Agsafe's Code of Conduct which allows Agsafe to impose trading sanctions on businesses not accredited through its industry program.
Agsafe is an industry body established by manufacturers of agricultural and veterinary chemicals. Agsafe sought authorisation for its Code of Conduct which requires businesses who trade in agricultural and veterinary chemicals to obtain accreditation through the industry program know as the Guardian Program. Agsafe's Code of Conduct has previously been authorised by the ACCC.
The ACCC had initially indicated a reluctance to allow the continuation of trading sanctions in the longer term. However, the ACCC has since received submissions from relevant government agencies indicating their support for Agsafe to be given a role in the regulation of agricultural and veterinary chemicals, through the imposition of trading sanctions.
ACCC Chairman, Mr Graeme Samuel, said the Guardian Program provides a number of benefits to the industry and end users of farm chemicals.
"It assists individuals to safely use agricultural and veterinary chemicals and assists businesses to comply with the legislative requirements for the use, storage and handling of such chemicals.
"However, the ACCC considers that the ability of Agsafe to impose trading sanctions on non-accredited businesses results in a significant public detriment where these businesses are already compliant with legislation.
"Where trading sanctions are applied, they significantly restrict the businesses' ability to trade and therefore compete in relevant retail markets. Even the threat or existence of sanctions distorts a businesses' choice as to whether it should obtain accreditation services from Agsafe, another training provider, or otherwise choose to meet legislative requirements.
"The requirement to participate in the Guardian Program may also limit the ability of other training and accreditation providers to compete with Agsafe in the provision of such services.
"For the ACCC to be satisfied that Agsafe's ability to impose trading sanctions results in a public benefit, the ACCC considers it necessary that government agencies who have responsibility for administering legislation relating to the storage and handling of chemicals to indicate that they want to give Agsafe such a regulatory role.
"In light of these submissions, the ACCC has concluded that, Agsafe's Code of Conduct results in a net public benefit and has decided to authorise the code for three years.
"Should Agsafe wish to seek authorisation at the end of the three year period the ACCC would expect relevant government agencies to clearly identify the extent to which they wish to give Agsafe an ongoing role to impose trading sanctions under the Guardian Program."
The ACCC's final determination is available from the ACCC website, under Authorisations.