Part 1: Chairman's Review
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Patrick Musgrave
I am pleased to be able to report on the
continuing operations of the Dairy Adjustment
Authority (the Authority). The work of the
Authority over the past twelve months has been
concentrated on completing the Supplementary
Dairy Assistance program, which was
announced by Minister Truss in May 2001.
The Supplementary Dairy Assistance program
targeted dairy producers who were most
severely affected by price movements following
deregulation, and those whose entitlement for
Dairy Structural Adjustment Program payments
was unintentionally limited by that Scheme’s
eligibility criteria.
There are two major components of the Supplementary Dairy Assistance Program:
- basic and additional market milk payment
rights; and
- discretionary payment rights.
The market milk payment rights comprised an additional payment to those farmers who were primarily reliant on market milk. By 30 June
2003, some 7,735 eligible dairy farmers had
been granted payment rights to the value of
$101.7 million.
The discretionary payments took longer to complete than anticipated, because the Dairy
Adjustment Authority had to:
- review its files to identify cases that may be eligible for a discretionary payment right;
- respond to numerous requests for information;
- seek further information from several hundred dairy farmers, and
- address applications received from farmers over an extended period.
The members of the Dairy Adjustment Authority Board then considered each case on its merit and exercised the discretion of
the Authority when making the decisions.
The cases were often complex, and in some instances, required considerable time
to analyse the information received against legislative requisites.
Discretionary payments to eligible dairy
producers commenced in November 2001,
and were almost complete by December 2002.
At 30 June 2003, 641 eligible dairy producers
had been granted discretionary payments rights
to the value of more than $17.9 million.
In November 2002, the Dairy Adjustment
Authority completed a Review of the Adequacy
of Collections of Dairy Adjustment Levy to fund
the programs.
The Dairy Adjustment Authority continues
to resolve minor administrative matters in
connection with some of the Dairy Structural
Adjustment Program payment rights, whilst
also dealing with remaining appeals to the
Administrative Appeals Tribunal.
The Dairy Adjustment Authority is now well
into its winding up phase, with activity largely
related to quarterly payments under the
programs. This phasing-down of activities has
resulted in further substantial decreases in the
costs of operations.
The Dairy Adjustment Authority will continue
until the last of the Dairy Structural Adjustment
Program and Supplementary Dairy Assistance
payments are made in 2008.
It should be noted that the Authority would not
have made such significant progress and met
Government timeframes through this challenging
exercise without the dedication and hard work
of its members, management and staff.
In addition, I would like to express the appreciation of the Board and Management
of the Dairy Adjustment Authority to the
Australian Dairy Corporation, for its continued
support by readily providing resources and
facilities to enable the Authority to perform
its legislative functions.
 Patrick Musgrave
Chair
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