Rumour mill turns over CBH appeal

28 May, 2011 03:00 AM
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CBH has been quick to address an industry rumour, without actually denying it, that work had started on an appeal in case the Australian Competition and Consumer Commission (ACCC) ruled against Grain Express in the coming weeks.

The Pastoralist and Graziers Association (PGA) has suggested that the ACCC's appointed committee had accepted the called submissions and given its report to the Commission.

Subsequently the Commission sent a letter to those who made submissions stating the decision would be handed down by June 30.

The PGA said CBH's general manager of operations Colin Tutt had always said the co-operative didn't need Grain Express to be competitive but if that was the case then why had CBH prepared to launch an appeal process through the High Court of Australia?

CBH's acting general manager of operations Allyn Wasley said those who put in a submission were in fact sent a response from the ACCC to say the review of the decision would be handed down no later than June 30.

Mr Wasley said CBH wouldn't speculate on when or what the ACCC's decision on Grain Express would be but would continue to stand by the comments on the benefits of Grain Express.

"Grain Express is not about CBH being anti-competitive," he said.

"It is and has always been about making the WA supply chain more competitive and increasing value for growers."

He also said CBH wasn't afraid of competition and had the experience, flexibility and systems to provide the most efficient whole-of-supply chain service to the grain industry of WA, with or without the notification of Grain Express.

"Last year CBH opened the above-rail operation to tender and took the decision to invest up to $175 million in rolling stock," he said.

"The tenders for the above-rail operation and the construction of rolling stock were conducted through a globally competitive process.

"CBH has brought competition to the WA grain rail industry for the first time together with increases in productivity and efficiency."

The new rail arrangement would provide growers a competitive rail transport service and would compete on its own merits with other above-rail operators if the rules around Grain Express changed.

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READER COMMENTS

Graingrower
20/07/2011 12:42:23 PM, on Farm Weekly

CBH appeal is a waste of growers resources. If they are as good as they say they are they have no worries they will be the cheapest and get all the grain. CBH are frightened of competition because they goudge growers. Cross subsidization of outer lying growers by closer farmers. Let's have competition and then we will get the cheapest price for grain storage and handling.
Graingrower
20/07/2011 12:42:25 PM, on Farm Weekly

CBH appeal is a waste of growers resources. If they are as good as they say they are they have no worries they will be the cheapest and get all the grain. CBH are frightened of competition because they goudge growers. Cross subsidization of outer lying growers by closer farmers.Lets have competition and then we will get the cheapest price for grain storage and handling.

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