Fed: Dairy deregulation looks set to proceed = 2

AAP General News (Australia)
12-22-1999
Fed: Dairy deregulation looks set to proceed = 2

He said dairy farmers would have to seriously consider whether it was viable for them
to stay in the industry or whether they should take advantage of the restructuring package
and move on.

"This money will allow them to do that with some degree of dignity and some degree
of equity," he told AAP.

The package was dependent on uniform agreement and would be funded by an 11-cent levy
on the price of a litre of milk.

Mr Truss said that would not lead to a price rise because deregulation would see prices fall.

He asked the state ministers to consider their positions urgently because appropriate
legislation needed to be introduced into parliament in February in time for it to pass
before the current regulations expired on June 30.

NSW Agriculture Minister Richard Amery said he was disappointed the Victorian government
had made the decision to deregulate within 24 hours of its dairy farmers' vote on the
issue.

Mr Amery said he would consult with NSW dairy farmers over the next six weeks to consider
the options.

The $1.7 billion package from the federal government was in fact coming from the farmers'
own pockets, he said.

NSW and Queensland were both pushing the federal government to provide some assistance
packages to rural communities, he said.

The fear of deregulation had already impacted on the industry with a major processor
rationalising its operations, closing two regional processing plants in Taree and Orange,
he said.

"That's over 30 jobs gone already," he said.

The meeting agreed to establish a commonwealth/states working party to consider the options.

AAP maur/tsm/pjs

KEYWORD: DAIRY LEAD 2 SYDNEY

1999 AAP Information Services Pty Limited (AAP) or its Licensors.