ACCESS and pricing safeguards would ensure WA farmers continued to get a fair deal under the long-term lease of Fremantle Port, Treasurer Mike Nahan told growers at a forum in Northam on Tuesday night.
Dr Nahan and Agriculture and Food and Transport parliamentary secretary Jim Chown presented details of the lease, outlining the benefits for the sector.
"We will be placing restrictions, to prevent the lessee bidding on the facility, on stevedoring companies, their affiliates and companies with a strategic interest in up-stream transport linkages. This is aimed at mitigating the risk of unfair or anti-competitive outcomes," Dr Nahan said.
The port lessee will be required to have an access policy, with an obligation not to unfairly discriminate against any user or potential user or to hinder access for exporters but also importers of critical agricultural products such as fertiliser.
"The State's Economic Regulation Authority (ERA) will be tasked with overseeing access as well as implementing a price monitoring regime based on transparent pricing principles, including reference to existing port prices," he said.
Dr Nahan said it was important to understand existing Fremantle Port Authority (FPA) charges, for example, FPA fees make up only one per cent of total post farm gate costs for a tonne of wheat.
"The ERA will monitor pricing against a range of indices and have the power to require the lessee to justify any price increases," Dr Nahan said.
The State will also retain the harbour master function, allowing effective oversight over marine safety and access for users to the waterways.
The State will be responsible for approving the Port lessee's master plan for development.
Dr Nahan said the changes, which would be incorporated in a range of governance mechanisms, had been positively received at recent briefings for farming and livestock groups.
p See more on the forum in next week's Farm Weekly.
"I believe they can clearly see the benefits, including how a privately managed port will facilitate investment resulting in enhanced productivity and efficiency relative to public ownership," Mr Nahan said.
"The private sector will seek to optimise the existing port through infrastructure investment and upgrades which the government would be unlikely to have the capacity to fund in the near term."
Mr Nahan said leasing the port will fast track initiatives which would allow for larger vessels as well as the shift of live export trade from the inner to the outer harbour.
"We will use some of the proceeds from the lease to fund the development of a new berth at Kwinana to allow the movement of livestock facilities from the inner to the outer harbour,'' he said.
"This is a big plus and we believe one that will be welcomed by the wider farming community as it is vital for the future of WA's agricultural sector in ensuring the longevity of the live export industry."
Mr Nahan said port privatisation across Australia also provided an insight into what the reality had been when it comes to pricing under private sector management.
"The leasing of the Brisbane, Flinders and Botany ports has resulted in price increases which have broadly been in line with inflation and all are subject to price monitoring," Mr Nahan said.
"We know that agriculture is critically important to both the State and national economies and we are seeking to reach a lease agreement that allows this sector to grow through increased investment to improve the efficiency of the supply chain."
