Sugar Industry (Real Choice in Marketing) Amendment Bill 2015

Overview

This bill amends the Sugar Industry Act 1999 so cane growers can choose who markets the sugar they have an economic interest in, and can take disputes with mill owners to arbitration. It was introduced by independent MP Shane Knuth and passed with amendments in 2015.

Who it affects

Queensland cane growers and sugar mill owners are most directly affected, along with sugar marketing entities such as Queensland Sugar Limited and regional cane-growing communities.

Key changes

• Supply contracts between growers and mills must spell out how payment is calculated and who bears the sale-price risk on the raw sugar
• Growers can nominate the marketing entity for their share of the sugar (grower economic interest sugar) and the mill must accept that nomination if they can't agree
• If a grower and mill can't agree on a contract term after at least 10 business days of negotiation, either side can refer the dispute to arbitration under the Commercial Arbitration Act 2013
• The arrangements are expressly authorised for Commonwealth competition law, so parties aren't exposed to anti-competitive conduct claims for following the scheme
• Existing supply contracts keep running under the old rules until their current term ends or they are renewed