The Australian Competition and Consumer Commission today issued a draft determination proposing to allow the South Australian Oyster Growers Association (SAOGA) and five oyster hatcheries to continue collecting a levy from SA oyster growers.
"Funds collected from the levy are used for research and development for the South Australian oyster industry," ACCC chairman Graeme Samuel said today. "This contributes to the viability and competitiveness of the industry, and consumers may benefit from higher quality and improved safety of oysters produced.
"The levy has been operating successfully since 1999 and continues to receive widespread industry support. Funds are used for scientific research and development activities, including the enhancement of the selective breeding program and research into toxicity in oysters."
Oyster growers can seek a refund of the levies they have paid in any year but will not have access to the results of research undertaken if they do. However SAOGA says that in the 10 years of the levy's operation no grower has sought a refund.
An existing authorisation for the levy arrangements expires on 24 August 2010. The ACCC has granted interim authorisation to allow the oyster spat levy arrangements to continue until the ACCC issues a final decision.
The ACCC invites comments on the draft determination.
Parties wishing to make submissions should do so by 10 September 2010. Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.