1998, Volume 1, Paper 19
ISSN: 2209-6612

Plant and Animal Health Regulation: Some Competition Policy Issues

Nick Milham – Program Leader Industry Policy Sub-Program, Economics Services Unit, NSW Agriculture
Scott Davenport – General Manager, Economics Services Unit, NSW Agriculture

Abstract

To meet their commitments under the Competition Principles Agreement, Commonwealth, State and Territory Governments are reviewing legislation that restricts competition. In relation to agriculture, the focus of the policy to date has been on statutory marketing legislation, with less emphasis placed on legislation aimed at influencing production processes. In this paper, plant and animal health legislation is briefly examined to provide an initial assessment of how these arrangements restrict competition. This is followed by a discussion of the market failure rationales for such arrangements and consequent issues that warrant consideration in public benefit assessments. Conclusions are reached concerning appropriate legislative objectives and design principles, and guidelines for determining who should pay for regulatory intervention to control plant and animal diseases.

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