Deregulation carrot for potato growers

The State Government is waving a financial carrot in front of potato growers in the hope they will agree to bring forward deregulation of the industry.

It is understood the Government has told industry leaders they are more likely to get a financial sweetener of about $10 million if they agree to deregulation before the State election in 2017. It would involve an industry support package to help with the transition to a free market within the next year.

It would not involve compensation for individual growers, although some of them have been paying up to $500 a tonne for production quota under existing legislation dating back to 1946.

Premier Colin Barnett has said the Potato Marketing Corporation, which regulates the industry, will not be around after the next election. Labor has a longstanding deregulation policy.

The WA Potato Growers Association board met in Bunbury yesterday to weigh its options, which include fighting a rearguard action against deregulation.