Transcript Station: ABC SOUTHERN QUEENSLAND Date: 16/03/2015 Program: QLD COUNTRY HOUR Time: 12:35 PM Compere: CRAIG ZONCA Summary ID: V00060995118 Item: CARMEN BROWN REPORT ON FINAL SENATE COMMITTEE HEARING INTO SUGAR INDUSTRY. INTERVIEWEES: BARRY O'SULLIVAN, SENATOR; SHAYNE RUTHERFORD, EXECUTIVE GENERAL MANAGER, WILMAR Audience: Male 16+ N/A CRAIG ZONCA: Female 16+ N/A All people N/A And the final Senate committee hearing into the sugar industry's bitter marketing dispute sat before a huge crowd in Townsville on Friday of last week. As expected, the proceedings did get a little heated at times. It was a day many canegrowers had been eagerly awaiting, with milling company Wilmar finally getting its chance to present evidence before the committee. Our reporter, Carmen Brown, was there. REPORTER: It was before a crowd of several hundred canegrowers that milling giant Wilmar attempted to defend its role in the bitter marketing debate dividing the sugar industry. [Excerpt from hearing] SHAYNE RUTHERFORD: ...but we just, unfortunately could not participate. AGENCY REPORT For private research and not to be disseminated. Every effort made to ensure accuracy for the benefit of our clients but no legal responsibility is taken for errors or omissions. (*) - Indicates unknown spelling or phonetic spelling. Metro TV demographics are supplied by OzTAM, Radio and Non-Metro TV demographics are supplied by Nielsen Media Research. ABs = Managers, administrators, professions. GBs = Grocery buyers. UNIDENTIFIED SPEAKER: What is your fear of grower choice? What - how can you fear that? If you believe that you have a superior model of marketing that will benefit them, don't you think that they've got the IQ to be able to decide between you and some other broker? What is your fear of grower's choice? I mean, to me, it's pat the puppy, nurse the baby, grower's choice; it's a very simple principle. SHAYNE RUTHERFORD: Well it's, you know... [Applause] [End of excerpt] REPORTER: But despite his repeated assurances, Wilmar executive general manager Shayne Rutherford clearly struggled to convince growers his company has their best interests at heart. The crowd reacted to Wilmar's evidence with a mix of anger and frustration at times, as the committee struggled to get to the straightforward answers it had come seeking. Senator Barry O'Sullivan admits it was a difficult process. BARRY O'SULLIVAN: I think they had a tough job, I think they knew that. They've been observing these last three days and down in Murwillumbah. They're locked into a position; but look, they stood their ground there today. They stood their ground on behalf of what they see as Wilmar's AGENCY REPORT For private research and not to be disseminated. Every effort made to ensure accuracy for the benefit of our clients but no legal responsibility is taken for errors or omissions. (*) - Indicates unknown spelling or phonetic spelling. Metro TV demographics are supplied by OzTAM, Radio and Non-Metro TV demographics are supplied by Nielsen Media Research. ABs = Managers, administrators, professions. GBs = Grocery buyers. interests. But I don't know, it's 4500 to one at the moment, so I think we'll be inclined - and I don't speak for my colleagues, it's a personal opinion - I think my final statement says it all. Whatever the solution is, whether Wilmar participates and the growers participate or not, it has to have a basis of trust and confidence between millers and growers and it has to meet the test of fairness and equity and it has to be absolutely transparent, because that's the disinfectant that keeps fair processes in place. REPORTER: It may seem like a near-impossible task for the millers to regain the trust of canegrowers and ultimately move the industry forward, but Wilmar's Shayne Rutherford says he's confident the marketing dispute can be resolved without the need for regulation. SHAYNE RUTHERFORD: I think it's a really long journey. I think there is a range of views out there in the growers. I mean, we have 1500 growers and obviously there was only a representative sample there today. I mean, we've had very positive feedback from some growers that we presented to recently. But part of the issue is that we have had a very regulated industry and the beliefs that many growers have about millers are the result of generations of conflict within a regulated and statutory orientated system. We've only been deregulated for 10 years and so it takes time to develop that level of trust and we look forward to taking the growers on that journey with us. AGENCY REPORT For private research and not to be disseminated. Every effort made to ensure accuracy for the benefit of our clients but no legal responsibility is taken for errors or omissions. (*) - Indicates unknown spelling or phonetic spelling. Metro TV demographics are supplied by OzTAM, Radio and Non-Metro TV demographics are supplied by Nielsen Media Research. ABs = Managers, administrators, professions. GBs = Grocery buyers. REPORTER: So why has it had to come to a point where there's a Senate hearing, to get to that point? Why can't Wilmar build that trust on its own? SHAYNE RUTHERFORD: Yeah, it's a really good question and I think we've committed to some principles that we've articulated. We've invited the grower collectives late last year, December last year, to an independently-facilitated engagement process. We've put up straw man(*) model, we've developed some agreements, we've tried really hard to satisfy what we consider to be the legitimate grower concerns in the area of transparency. We're so confident that we've made a genuine effort, we've actually provided those agreements of our own volition to the ACCC and the State and Federal Departments of Agriculture. We've had some challenges in getting the grower collectives to engage with us and you'd be aware that we exchanged some correspondence with the Senate committee today that demonstrated that we've been trying really hard to bring the parties to the negotiating table and we've been at pains to point out that our discussions are without prejudice to whatever model they want to discuss. I think it's actuall... absolutely imperative that the parties actually come together and I think the chairman of the Senate committee made that call to arms in his conclusion and we strongly support that. AGENCY REPORT For private research and not to be disseminated. Every effort made to ensure accuracy for the benefit of our clients but no legal responsibility is taken for errors or omissions. (*) - Indicates unknown spelling or phonetic spelling. Metro TV demographics are supplied by OzTAM, Radio and Non-Metro TV demographics are supplied by Nielsen Media Research. ABs = Managers, administrators, professions. GBs = Grocery buyers. REPORTER: Senator Barry O'Sullivan remains hopeful the industry can resolve the issue on its own, without government intervention. BARRY O'SULLIVAN: Well look, the negotiations have been going on between the parties now for quite a long period of time and efforts have already been made. But we've made some approaches, I've talked to the Millers Council about coming back to the table. Clearly, my colleague senators today made it clear to Wilmar that they should get back to the table. Wilmar's on the record now of saying that everything's on the table and that will include grower economic interest. And so I'm satisfied with that at this point. CRAIG ZONCA: Sounds like it's going to get even more interesting when it comes to sugar marketing. Senator Barry O'Sullivan ending that report from Carmen Brown. * * END * * TRANSCRIPT PRODUCED BY ISENTIA www.isentia.com AGENCY REPORT For private research and not to be disseminated. Every effort made to ensure accuracy for the benefit of our clients but no legal responsibility is taken for errors or omissions. (*) - Indicates unknown spelling or phonetic spelling. Metro TV demographics are supplied by OzTAM, Radio and Non-Metro TV demographics are supplied by Nielsen Media Research. ABs = Managers, administrators, professions. GBs = Grocery buyers.