Code issues

The ongoing process of reviewing the much maligned Horticulture Code of Conduct is progressing with a call for further submissions by the recently re-established Horticulture Code Committee.

The closing date for submissions is 6 February 2009. The Committee’s primary term of reference is to consider the implications of implementing the ACCC’s recommended amendments to the Code – being the 13 recommendations made by the ACCC as part of its review of the retail grocery industry.

The objectives of the Code are not under review, and as far as I am aware, there is no push from any industry sector wanting to change the underlying objectives and purpose of the Code.

What does need to change is the Code itself, which has proven to be inflexible and unworkable.

As with all regulation, the devil is in the detail and when generalised rhetoric is put into words that become regulation without the appropriate levels of broader industry review, or indeed the Government not heeding the advice of its own advisors, as was the case with the existing Code – the outcome was always going to be a disaster. An absolute priority must be given to ensuring that the Code is cost effective and workable.

The basis of the commercial relationship between growers and traders can be given clarity and transparency through the use of documented terms of trade. This can be done without additional provisions which make the Code overly prescriptive, costly to implement and virtually impossible to comply with. Brismark and Brisbane Markets Limited have supported change, and have promoted a position of all sectors of the industry working more co-operatively to achieve an industry-based outcome.

The fact remains that growers and traders do need options in how they do business, and irrespective of the Code, the majority of growers and traders have effective and workable arrangements already in place.

Yes, things can be done better, but it is more about raising the bar and promoting better commercial practices and less about forcing substantial change on a whole industry.