Embed Size (px)
Citation preview
Twenty-eighth
Report to the Parliament
Report on the
Melbourne Wholesale Fruit and Vegetable Market Trust
Parliament of Victoria
October 1990
PARLIAMENT OF VICTORIA
Twenty-eighth Report to the Parliament
REPORT ON THE
MELBOURNE WHOLESALE FRUIT AND VEGETABLE MARKET TRUST
Ordered to be printed
MELBOURNE
VIC NORTH GOVERNMENT PRINTER
OCTOBER 1990
No. 147
I l i ~ F
M ~
' ),
!i
' ~
l * I i M
i
- i ii -
TABLE OF CONTENTS
Recommendations Summary of Findings Chairman's Foreword Members and Staff of the Public Bodies Review Committee Reference to the Public Bodies Review Committee List of Tables List of Figures Presentation Conventions
1
2
3
Introduction
1.1 1.2 1.3 1.4 1.5
Terms of Reference Scope of the Agricultural Inquiries Operating Principles for PBRC Inquiries Methodology Inspections and Visits
The Melbourne Wholesale Fruit and Vegetable Market Trust
2.1 Background to the Establishment of the Market 2.2 Role of the Central Market 2.3 The Regulatory Environment
2.3.1 Consideration of Trust Legislation 2.3.2 The Department of Agriculture and
Rural Affairs
Characteristics of the Fruit, Vegetable and Flower Industries
3.1 The Fruit and Vegetable Industries
3.1.1 The Domestic Market 3.1.2 Exports of Fruit and Vegetables 3.1.3 Industries Assistance Commission (lAC)
Vegetable Report 1986 3.1.4 The Industries Assistance Commission (lAC)
Fruit Report 1988
Page
V xi XV xvii xix xxl xxiii XXV
1
1 2 2 3 4
5
5 7
10
1 0
1 2
15
15
15 19
21
22
4
5
6
3.2
3.3
- i V-
The Flower Industry
3.2.1 The Domestic Market 3. 2. 2 Exports of Flowers
Implications for the Market
Organisational. Structure of the Market Trust
4.1 Trust Membership
4.1 .1 Evaluation of Trust Membership
4.2 Advisory Committees
4.2.1 Evaluation of the Advisory Committees
4.3 The Role and Objectives of the Trust
4.3.1 Evaluation of the Trusrs Role and Objectives
Operations of the Market Trust
5.1 Statutory Functions
5.1.1 Appraisal of the Statutory Functions
5.2 Appraisal of the Trust's Financial Position
5.2.1 Overview of Annual Accounts 5.2.2 Cost Recovery 5.2.3 Debts Owed to the City of Melbourne 5.2.4 Cash Collection Procedures
5.3 Market Facilities
5.3.1 Appraisal of Market Facilities 5.3.2 Additional Use of the Market
Conclusion
Attachment 1
24
24 25
26
29
29
29
31
32
32
34
39
39
39
46
46 53 53 54
55
55 58
61
Ust of Written Submissions and Public Hearing Particulars 6 3
Bibliography 69
-V-
RECOMMENDATIONS
Mission and Objectives :
The Committee recommends:
1 . That the Trust's mission statement be stated in legislation as:
"To promote the efficient and effective use of the Melbourne Wholesale Fruit
and Vegetable Market as the central horticultural market in Victoria, by
encouraging and facilitating the exchange and distribution of produce
between buyers and sellers within that market."
2. That in order to achieve this mission the following objectives should be
included in the legislation:
( i ) optimise the number of buyers in the Market;
( i i ) optimise the number of sellers in the Market;
{ i i i) maximize the volume of horticultural produce going through the
Market;
( i v ) promote the Market as the venue for the exchange and distribution
of horticultural produce;
( v ) to establish trading conditions which assist in ensuring that prices
are set by supply and demand; and
( v i) be financially self-sufficient.
-Vi-
Accountability :
The Committee recommends:
3. That the Trust ensures compliance with the specified objectives and
develops criteria to measure whether it has achieved the objectives.
4. That the Trust monitors changes to the industry environment and regularly
assesses the impact of these changes on Market operations.
5. That the Melbourne Wholesale Fruit and Vegetable Market Trust be
reviewed again by the Public Bodies Review Committee after the expiration
of five years.
Membership:
The Committee recommends:
6. That section 7 of the Melbourne Wholesale Fruit and Vegetable Market Trust
Act 1977 be amended to encompass the following changes in Trust
membership:
( i ) Increase total membership of Trust by two; from seven to nine
members, one of whom shall be a full-time member and eight part
time members.
( i i ) There shall be five user members to be nominated by the Minister
for Agricultur~ and Rural Affairs from a panel of names, submitted
by organisations representing producers of farm produce
(including flowers), wholesalers, retailers and other interests
concerned in the use and operation of the Market.
( i i i) The Market's Chief Executive Officer to be the one full-time
member.
( i v ) Three non-user members to be appointed at the discretion of the
Minister for Agriculture and Rural Affairs; of which, one
I
Promotion:
·Vi i ·
appointment to be made in consultation with the Minister for
Consumer Affairs and one in consultation with the Treasurer.
The Committee recommends:
7. That the Trust continues to promote the Market as the venue for the
wholesale sale of fruit, vegetables and cut flowers and also encourages wider
use of the market.
Finance:
The Committee recommends:
8. That the debt owed to the City of Melbourne be retired as soon as possible.
9. That the Trust's management continue to review and update internal control
procedures governing all Market operations.
Market Site and Facilities:
.. The Committee recommends:
1 0. That the Trust purchases additional land only if it can gain early access to
the land.
11 . That the Trust prepares and investigates a range of options which will
redress the Market's lack of adequate space and should cover the following:
the possibility of gaining access to all or part of the Fish Market
site;
the purchase of additional land which is situated to the west of the
Market; and
to move the Market to another site.
-Vi i i-
1 2. That the market site should be used for additional activities which would
generate further income for the Trust and the Melbourne Wholesale Fruit
and Vegetable Market Trust Act 1977 be amended accordingly.
Legislation :
The Committee recommends:
13. That the Melbourne Wholesale Fruit and Vegetable Market Trust Act 1977
be amended, taking into account the specific recommendations cited in other
sections of this Report. The revised Act should dispense with sections which
are no longer relevant, in particular those relating to the transfer of the
Market from the Melbourne City Council to the Trust.
14. That the Trust within 12 months revise the current set of regulations
taking into account the recommendations put forward in the various reports
it commissioned. The revised recommendations should be relevant, clear
and easily understood and that penalties, for breaches of regulations, should
be set at a realistic level.
Appeals Procedure :
15. That the Market users have recourse to the Administrative Appeals Tribunal
if they wish to appeal against a Trust decision. The Melbourne Wholesale
Fruit and Vegetable Market Trust Act 1977 should be amended to allow for
such an appeal procedure.
Communication :
The Committee recommends:
16. That the Trust management should meet and consult with the advisory
committees on a regular basis and that advisory committees receive copies
of the minutes and agendas of all Trust meetings.
17. That the Trust notifies all Market users in writing, when changes to Market
operations are introduced.
- i X-
1 a. That the Trust, on an annual basis, provides all Market users with an
updated information booklet covering issues such as rents and charges for
all facilities, details of lease and stand allocation procedures and other
relevant maners.
1 9. That the Trust Issues a Market newsletter on a regular basis covering
matters of general Interest relevant to the horticultural industry as well as
to the Market itself.
,.. ~ '
-Xi-
SUMMARY OF FINDINGS
The Public Bodies Review Committee conducted its inquiry into the Melbourne
Wholesale Fruit and Vegetable Market Trust with particular regard to its efficiency
and effectiveness. The following terms of reference have also guided the Committee's
inquiry:
(a) Whether or not the objects of the body are worth pursuing in
contemporary society.
The Committee considers that the operation of an efficient, central
wholesale fruit and vegetable market to be essential in ensuring the
transfer of produce from grower to consumer in the most equitable manner.
The Committee considers that a statutory authority, in the form of a Trust,
to be the most appropriate structure to manage the operations of the
Melbourne Wholesale Fruit and Vegetable Market Trust.
The Committee views the absence of objectives from the Melbourne
Wholesale Fruit and Vegetable Market Trust Act 1977 as a major weakness
and recommends that the Trust mission statement and objectives be
specified in the Act.
(b) Whether or not the body pursues Its objects efficiently,
effectively and economically.
The Committee considers that the Trust has performed its functions in an
efficient, effective and economic way. In regard to promotion and research
activities, the Committee believes that the Trust should continue to promote
the sale of fresh fruit, vegetables and cut flowers at the market as specified
in section 15 of the Act.
(c) Whether or not the structure of the body is suited to the
activities it performs.
The Committee, having regard to the functions of the Trust, recommends
that Trust membership be increased by two, from seven to nine members.
lt recommends that the Trust comprise five user members and four non-
. i I
-Xi i •
user members, one of whom is to be the Chief Executive Officer of the
Market. The Committee is advocating this revised Trust structure as it
believes the current structure does not adequately reflect the importance of
the contribution of the market participants to Trust decision-making.
( d } Whether or not the body duplicates the work of another person
or body.
The Melbourne Wholesale Fruit and Vegetable Market is the only wholesale
market in Victoria for the wholesale sale of fresh fruit, vegetables and cut
flowers and its position is protected by legislation. The Committee
considers it important that this situation should continue.
( e} The financial and other liabilities and obligations of the body.
The Committee considers the Trust to be of a sound financial state. Since
1978 the Trust has turned the Market from a loss-making organisation to
one generating sizable profit.
As. regards liabilities. the Trust still owes an amount, subject to dispute, to
the City of Melbourne dating since the transfer of the Market and its
facilities in 1978. The Committee considers that the Trust should ascertain
the precise sum due to the City of Melbourne and make appropriate
arrangements for its repayment.
( f } The staff of the body (including officers or employees of the
public service whose services have been made use of by the
body}.
The Committee considers that the staffing of the Market Trust is adequate to
perform its functions. Steps have been taken to recover costs for all
services provided by the Department of Agriculture and Rural Affairs.
{ g } The extent to which the body seeks information as to the effect
of its activities and acts on the Information it receives.
The Trust over the years has commissioned several reports on various
aspects of the operations of the Market, but has rarely put into operation
-Xi i i •
any of the recommondations of the reports. The Committee considers the
procrastination of the Trust an uneconomic and inefficient use of resources.
( h ) The extent to which the body considers the public interest
when performing its functions.
The Trust has carried out this function by having a Trust member
nominated to represent consumers. The Committee considers that the
proposed amendments to the composition of the Trust membership will
further enhance achievement of this objective.
( I ) The extent to which the body encourages public participation in
its activities.
The Committee considers that the Trust carries out this function by its
membership being composed, in part, of non-market users.
( j ) The manner in which the body handles complaints about its
activities.
The Committee considers that there should be an appeal mechanism such as
the Administrative Appeals Tribunal whereby market users have some
recourse if they feel a Trust decision is incorrect.
( k ) The extent to which the body Is prepared to improve its
structure, composition or procedures.
The Committee considers that the Trust, as evidenced by the number of
reports and evaluations of its operations, is aware of the need to have a
market relevant to industry requirements and generally is prepared to
make necessary improvements. However, the Committee considers that the
Trust has been intransigent on some issues and has not been receptive to
ideas put forward by market users.
I I
-xv-
CHAIRMAN'S FOREWORD
The Public Bodies Review Committee has been conducting a review of 16 statutory
bodies from the agricultural sector of Government. The Report on the Melbourne
Wholesale Fruit and Vegetable Market Trust is the fifteenth review of these
agricultural statutory bodies.
This review has enabled the Committee to understand the many complex components
of a wholesale fruit and vegetable market. The early morning (4.00 a.m.) visits
provided considerable insight to the lives of the 3,000 or so people who ~arn their
living from the Market.
The Committee believes that the Market plays an important role in the distribution
of fresh fruit, vegetables and cut flowers. The Committee strongly recommends that
the Trust adopts a more entrepreneurial spirit to its management of the Market and
ensures that the role and functions of the Market remain . relevant.
In producing this Report, I am pleased to state that the Public Bodies Review
Committee has attained a high degree of consensus. We believe the proposed
recommendations, if adopted, will increase the efficiency and effectiveness of the
Market.
On behalf of the Committee, I wish to thank all individuals and organisations who
assisted the work of the Committee by providing written submissions, background
information and public hearing evidence. In particular, the Committee appreciates
the information and assistance provided, with willingness and courtesy, by the
Melbourne Wholesale Fruit and Vegetable Market Trust Members and staff with
special thanks to Mr. Peter Bahen, Chief ·Executive Officer, and Mr. Noel Danne,
General Manager. The Committee also wishes to acknowledge the time and information
provided by Mr. John Dermody, Managing Director of the Sydney Market Authority.
lastly, the Committee wishes to thank its staff, most particularly, the Committee's
Senior Research Officer, Ms. Joyce Duffy, who researched and drafted this Report;
its Executive Officer, Mr. David Ali, for providing administrative and secretarial
support and Mrs. Jenny Hercog for typing this Report.
John Harrowfield M.P., Chairman.
a
X V j j-
PUBLIC BODIES REVIEW COMMITTEE
of the Parliament of Victoria
COMMITTEE MEMBERS
Mr. A. Andrianopoulos, M.P. The Hon. G.B. Ashman, M.LC. Mr. D.J. Cunningham, M.P. Mr. J.E. Delzoppo, J.P., M.P. (Deputy Chairman} Mr. D. Dollis, M.P. Mr. B.J. Evans, M.P. The Hon. P.A. Hall, M.L.C. Mr. J.D. Harrowfield, M.P. (Chairman) Mr. V.P. Heffernan, O.A.M., M.P. {from 25 September 1990) Mr. D.J. Perrin, M.P. (to 25 September 1990) Mr. G. Seitz, M.P. Mr. R.C.G. Sercombe, M.P. The Hon. K.M. Smith, M.L.C.
~QMMITTEE STAFF
Dr. B.J. Menzies, Director of Research (to 2 February 1990) Mr. C.J. Wilcox, Director of Research {from 6 August 1990) Ms. J.M. Duffy, Senior Research Officer Ms. J.l. Anderson, Research Officer
Mr. D.l. Ali, Executive Officer and Secretary to the Committee Mrs. J.A. Hercog, Word Processor Operator
r I
-xix-
REFERENCE TO THE PUBLIC BODIES REVIEW COMMITTEE
EXTRACTED FROM THE VICTORIA GOVERNMENT GAZETrE 26 June 1 985, No. 66, pp. 2423 - 4
Parliamentary Committees Act 1968
At the Executive Council Chamber, Melbourne, the eighteenth day of June 1985
PRESENT:
The Lieutenant-Governor as Deputy for His Excellency the Governor of Victoria
Mr. Wilkes Mr. Cathie Mr. Jolly
In accordance with the powers conferred by Section 4M of the Parliamentary Committees Act 1968 and all other power enabling him, the Lieutenant-Governor as
· Deputy for His Excellency the Governor of Victoria, by and with the advice of the Executive Council, hereby nominates the following public bodies for review by the Public Bodies Review Committee:
Citrus Fruit Marketing Board* Melbourne Wholesale Fruit and Vegetable Market Trust Poultry Farmer Licensing Committee Poultry Farmer Licensing Review Committee Stock Medicines Board Tobacco Leaf Marketing Board Tobacco Quota Appeals Tribunal Tobacco Quota Committee Tomato Processing Industry Negotiating Committee Victorian Abattoir and Meat Inspection Authority Victorian Broiler .Industry Negotiation Committee Victorian Dairy Industry Authority Victorian Dried Fruits Board Victorian Egg Marketing Board Victorian Wheat Advisory Committee Western Metropolitan Market Trust Wine Grape Processing Industry Negotiating Committee
And the Honourable Evan Walker, Her Majesty's Minister for Agriculture and Rural Affairs for the State of Victoria, shall given the necessary directions herein accordingly.
LG. Houston CLERK OF THE EXECUJNE CQUNCIL
Withdrawn by the Governor in Council on 5 May 1987.
·X X·
Owing to the dissolution of the Parliament on 29 August 1988, the above reference of 26 June 1985 lapsed. Accordingly, after the State Election, the Governor in Council on 15 November 1988 reissued the reference nominating the Victorian Dairy Industry Authority for review by the Public Bodies Review Committee. On 29 November 1988, the Governor in Council also reissued the reference nominating the Victorian Abattoir and Meat Inspection Authority, the· Western Metropolitan Market Trust and the Melbourne Wholesale Fruit and Vegetable Market Trust for review.
EXTRACTED FROM THE VICTORIA GOVERNMENT GAZETTE 6 May 1987, No. G17, p. 1029
Parliamentary Committees Act 1968
WITHDRAWAL OF THE REVIEW BY THE PUBUC BODIES REVIEW COMMITrEE OF THE
NOMINATION OF THE CITRUS FRUIT MARKETING BOARD
The Governor in Council under Section 4M (3) of the Parliamentary Committees Act 1968, withdraws for review by the Public Bodies Review Committee, the nomination of the Citrus Fruit Marketing Board made by Order of 18 June 1985 and published in the Victoria Government Gazette, 26 June 1985
Dated: 5 May 1987
Responsible Minister:
EVAN WALKER, M.LC. Minister for Agriculture and Rural Affairs
L.G. Houston CLERK OF THE EXECUTIVE COUNCIL
I ~
J -
·X Xi·
LIST OF TABLES
Table Table Page Number
Gross Value of Production of Fruit, Australia Years Ended 30 June 1986 to 1989 1 5
2 Total Production of Vegetables for .Human Consumption, Years Ended 31 March 1983 to 1989 1 6
3 Production of Fruit - Breakdown by State (Gross Value)1988/89 1 7
4 Production of Vegetables - Breakdown by State (Tonnes) 1988/89 1 7
5 Apparent Consumption of Vegetables (Kg Per Capita Per Year) 1 9
6 Apparent Consumption of Fruit (Kg Per Capita Per Year) 20
7 Exports of Fresh Fruit and Vegetables ($ Million) 20
8 Per Capita Consumption of Cut Flowers ($A) 25
9 MWF&VMT: Various Rents and Charges, 1989 and 1990 41
1 0 Number of Growers and Buyers at the Market 43
1 1 Melbourne Wholesale Fruit and Vegetable Market Trust, Nominal and Real Operating Surplus (Deficit) 1978 to 1989 47
1 2 Melbourne Wholesale Fruit and Vegetable Market Trust: Nominal Income Sources, 1978 to 1989 49
13 Melbourne Wholesale Fruit and Vegetable Market Trust, Real Income Sources, 1978 to 1989 50
14 Melbourne Wholesale Fruit and Vegetable Market Trust: Nominal Expenditure, 1978 to 1989 51
15 Melbourne Wholesale Fruit and Vegetable Market Trust Real Expenditure, 1978 to 1989 52
-xxiii-
LIST OF FIGURES
Figure Figure Page Number
Production of Fruit - Breakdown by State (Gross Value) 1988/89 1 8
2 Production of Vegetables (Tonnes) - Breakdown by State, 1988/89 1 8
3 MWF&VMT: Income Sources, 1988/89 48
4 MWF&VMT: Rental Income, 1988/89 48
5 MWF&VMT: Expenditure, 1988/89 53
r
XXV-
PRESENTATION CONVENTIONS
Five conventions have been adopted in the presentation of this Report to aid
readability.
First, the acronym MWF&VMT refers to the Melbourne Wholesale Fruit and
Vegetable Market Trust.
Second, the term 'Trust' should be interpreted as a reference to the Melbourne
Wholesale Fruit and Vegetable Market Trust.
Third, the term 'Market' should be interpreted as a reference to the Melbourne
Wholesale Fruit and Vegetable Market.
Fourth, the term 'Committee' should be interpreted as meaning the Public Bodies
Review Committee.
Fifth, the term 'the Act' generally refers to the Melbourne Wholesale Fruit and
Vegetable Market Trust Act 1977.
- 1 -
REPORT ON THE MELBOURNE WHOLESALE FRUIT AND VEGETABLE MARKET TRUST
1 . INTRODUCTION
In June 1985, 17 statutory agricultural bodies were referred to the Public Bodies
Review Committee by the Governor in Council for review. Subsequently, on 5 May
1987, the Citrus Fruit Marketing Board was withdrawn from the original referral
to the Public Bodies Review Committee. Among the remaining 16 bodies listed for
review was the Melbourne Wholesale Fruit and Vegetable Market Trust
(MWF&VMT).
1 . 1 Terms of Reference
Under the terms of the Parliamentary Committees Act 1968, as amended by the
Parliamentary Committees (Joint Investigatory Committees) Act 1982, which
altered the structure of the Committee, the Public Bodies Review Committee is
obliged to review any public body nominated for appraisal and to report to the
Parliament on whether or not the body should cease to exist. When reviewing a body
the Committee may inquire Into any matter that it considers relevant, and it shall
Inquire into the following matters in particular:
(a) whether or not the objects of the body are worth pursuing in contemporary society;
(b) whether or not the body pursues its objects efficiently, effectively and economically;
(c) whether or not the structure of the body is suited to the activities it performs;
(d) whether or not the body duplicates the work of another person or body;
(e) the financial and other liabilities and obligations of the body;
(f) the staff of the body (Including officers or employees of the public service whose services are being made use of by the body);
(g) the extent to which the body seeks Information as to the effect of its activities and acts on the Information it receives;
- 2 -
(h) the extent to which the body considers the public interest when performing its activities;
( i ) the extent to which the body encourages public participation in its activities;
( j) the manner in which the body handles complaints about its activities; and
( k) the extent to which the body is prepared to improve its structure, composition or procedures.
1. 2 Scope of the Agricultural Inquiries
The original brief to the Public Bodies Review Committee for the review of 17
agricultural statutory bodies (p. xix) represented the first reference of the
agricultural sector of Government to the Committee. The reference differed from its
predecessors in that it called for appraisal of 17 bodies. These ranged from small
advisory organisations through to statutory bodies with quasi-market-related
functions, to fully-fledged marketing authorities whose powers involve controls
over production inputs and/or outputs. The statutory body under review in this
Report, the Melbourne Wholesale Fruit and Vegetable Market Trust (MWF&VMT), is
primarily involved in operating a central market for the wholesale trade of fresh
fruit, vegetables and cut flowers in Victoria.
1.3 Operating Principles for PBRC Inquiries
In its first Report to the Parliament in December 1980, the Public Bodies Review
Committee outlined the basic philosophy that guided its reviews. That Committee
adopted six basic operating principles which were subsequently refined in November
1984. These related to its Inquiries and Reports being:
1.
2.
Open:
Parliamentary in Perspective:
Each review should as far as possible be by an open process.
The Committee should operate in the first instance as an instrument of the Parliament rather than of Government or of a political party.
3. Consultative:
4. Research-based:
5. Committee-based:
6. Constructive:
- 3 -
The Committee should seek to enter into genuine discussion with all relevant groups and individuals.
The Committee's hearings should be augmented by independent high quality research.
The Committee itself should be the working, reviewing agency, not simply endorsing the work of others.
The Committee's work should be a constructive and future-orientated review of policy, not a negative audit of the past.
The present Committee {as constituted by the Parliamentary Committees (Joint
Investigatory Committees) Act 1982) feels that these principles have contributed
substantially to the effectiveness of the work of earlier Committees and has endorsed
them as the basis for its own operations.
1 • 4 Methodology
The Committee employed five main approaches to obtaining information for this
Inquiry. First. it called for background information from the body under review.
Second, it solicited submissions from interested parties {including the body under
scrutiny) and provided guidelines for these by issuing the Terms of Reference to
such organisations and persons. Third, it held public hearings at which the body
under review was questioned. Other interested parties were also invited to appear at
these hearings. Attachment 1 on page 63 of the Report outlines details relating to
Public Hearings the Committee· held during the course of this Inquiry into the
Melbourne Wholesale Fruit and Vegetable Market Trust. Fourth, documentary data
relevant to the Inquiry were collected. Fifth, follow-up consultation was undertaken
by the Committee's research staff when additional information was required.
The evaluation of the Melbourne Wholesale Fruit and Vegetable Market Trust
involved analysing the data and information in light of the functions and resources of
the organisation. lt also required appraising the relevance of the organisation, its
performance and areas where Improvement could be effected.
- 4 -
1 . 5 Inspections and Visits
During the course of this review, the Committee and its staff visited the Melbourne
Wholesale Fruit and Vegetable Market and the Sydney Market Authority to inspect the
markets and to discuss market operations with management. In addition, a member
of the research staff visited and discussed market operations with personnel of the
Adelaide Produce Markets Umited.
The Committee and its staff wishes to thank the industry for the hospitality extended
to it during the course of these visits.
( i i i ) Merchants and Agents:
( i v) Carrier/Agents:
- 7
Who sell produce from Victorian, interstate and overseas producers. There are 240 "A" type stores with 66 tenants and 162 "B" type stores with 121 tenants.
Who are growers holding a licence under the Farm Produce and Commission Agents Act 1965 to sell produce grown by farmers in their area.
The Trust manages the operation of the facility including leasing of merchant stores
and warehouses, allocation of grower stands, and buyer and tenant parking. The
Trust also enforces regulations to ensure that trading takes place in an orderly
manner.
2.2 The Role of the Central Market
One of the main functions of a central market is to establish a price level for a given
product for an entire region by providing a clearing house mechanism. To perform
this role effectively, the market must handle the greater proportion of produce so
that prices are set by supply and demand criteria. Central markets are weakened as
a result of produce by-passing the market. The greater the proportion of produce
by-passing the central market, the weaker the price-setting mechanism which
directly affects the confidence of all market users.
An efficient market is one of the important criteria that determine efficiency in an
industry. Buyers and sellers transact in the market place establishing prices for
the goods sold. These prices, in turn, influence the quantities demanded by buyers
and supplied by producers. If a market is functioning efficiently, prices will equate
quantities demanded and supplied. Producers will also gain information which will
enable them to react to consumer demands. Economic growth within the industry is
thereby fostered, which in turn contributes to the growth of the economy as a whole.
The main strengths of the central market system are as follows:
( i ) Price discovery role the concentration of buyers, sellers and large
volumes of produce in the one place allows the real value or price to be
- 8 -
established by means of supply and demand. Produce is available to
consumers at reasonable prices without much variation. Price distortion
by manipulation is unlikely to arise with the presence of a large number of
market participants and a large volume of produce.
( i i) Matching of growers to buyers - the size of the central market allows all
types of buyers and sellers from the very big to the very small to trade.
Historically, greengrocers have been the major retailers of fruit and
vegetables. They depend on the continued operation of the central market
system which provides more choice and ultimately a better product for the
consumer. Dealing outside the central market system limits the options of
all market participants.
( i i i) Comparison of produce - the large number of buyers and sellers coupled
with large quantities of fruit and vegetables permits the comparison of
produce to be made on its quality and price.
( i v) Competition - an integral element of the central market system is the
presence of healthy competition which thrives when you have a large
number of buyers and sellers coupled with a large volume of produce.
Prices are thereby maintained at the minimum which benefits the
consumer.
The central market system also has weaknesses; some of the more relevant ones are
discussed below:
( i ) The image of the central market has been poorly portrayed. lt is the
responsibility of market management to attract sufficient numbers of
buyers and sellers to the market by providing the necessary facilities.
( i i ) Produce by-passing the central market has increased in recent years. Sale
by contract between growers and supermarket chains has become
increasingly important, particularly in regard to vegetable growing in
Victoria. 1t is questionable then, if the proportion of produce sold in the
market actually acts as a price setting mechanism for the produce by
passing the market.
r I I !
! f
- 9 -
( i i i) Market structure adds costs to the marketing chain. However, it is
believed that the costs of the alternative (i.e. fragmented, unstructured
buying and selling) would tend to outweigh the cost of the market's
existence. Markets also tend to be large buildings with permanent
structures which are usually not capable of modification to suit changing
technology and advances in marketing.
( i v) Regulations address the problems of congestion, administration, rules of
conduct, etc. so that the market is allowed to operate as freely as possible.
However, regulations incur economic costs by impinging on the prime
function of the market, i.e. the interaction between buyers and sellers.
Most market users recognise the need for some regulation but greatly
resent the amount of petty rules affecting their business.
In Australia there are six central wholesale fruit and. vegetable markets located in
Adelaide, Brisbane, Melbourne, Newcastle, Perth and Sydney. lt is estimated that
70 per cent of all fresh fruit and vegetables for domestic consumption comes
through the central market system. All the markets are run by statutory
authorities except for Adelaide, which is a privately-owned market. The Adelaide
Produce Markets Limited, which commenced trading in October 1988, is an unlisted
public company with over 50 shareholders, all of whom are either growers,
retailers or wholesalers. However, it is too early to evaluate this option in terms of
efficiency and effectiveness as compared with statutory authorities operating
central markets.
The Melbourne Wholesale Fruit and Vegetable Market is the principal clearing house
for Victoria's huge production of fresh fruit and vegetables; an important component
of the State's economy. However, industry sources estimate that between 40 per
cent to 50 per cent of produce by-passes the Market mainly by direct contract
between growers and supermarket chains.
Legislative protection is given to the Market under the provisions of the Melbourne
Wholesale Fruit and Vegetable Market Trust Act 1977 which prohibits the
establishment of other wholesale fruit and vegetable markets within a radius of
50 km of the Melbourne GPO.
In essence, the role of central wholesale fruit and vegetable markets has been to
transfer produce, which is dying from the moment of harvest, from producers to i ''
- 1 0-
consumers in the most efficient and equitable manner. However, the role of the
central market is changing constantly to keep in line with modern marketing
techniques. For example, in recent years, the trend of pre-sold produce has been
increasing in importance. At the Melbourne Market it is estimated that growers
have 75-80 per cent of produce pre-sold before they get to the Market (through
telephone orders, etc.). Industry experts believe that central fruit and vegetable
markets will become more like those in America where they are no longer centres of
price determination but play more of a broking role.
2.3 The Regulatory Environment
2.3.1 Consideration of Trust legislation
The Melbourne Wholesale Fruit and Vegetable Market Trust Act 1977 and the
Melbourne Wholesale Fruit and Vegetable Market Trust Regulations 1978 form the
legislative base for the management and operation of the Market.
The Act establishes a Trust to run the Market and prescribes its powers and
functions. The Act specifies the constitution of the Trust, conditions relating to
Trust membership, remuneration of members and Trust meetings. Financial
matters are detailed, as are provisions relating to the transfer of the Market from
the Melbourne City Council to the Trust. Other issues such as use of Market land,
wholesale trading area, wholesale and retail selling on Market land are also
prescribed.
The Committee recommends that the Melbourne Wholesale Fruit and
Vegetable Market Trust Act 1977 be amended taking account of the
specific recommendations cited elsewhere in this report. The· revised
Act should dispense with sections which are no longer relevant, in
particular those relating purely to the transition of the Market from
the Melbourne City Council to the Trust.
The Regulations are the statutory rules which govern the operations of the Trust.
These rules prescribe the. day-to-day running of the Market covering such areas as:
market hours; conduct of persons in the market area; entry of vehicles; handling of
- 1 1
goods; advertising; and penalties for offences. The current set of Regulations were
devised in 1977/78 when the Trust was first established and appear to have been
adopted from the Melbo:.Hne City Council by-laws governing the Queen Victoria
Market. The need to revise and update the Regulations in line with a changing
environment, was recognised by the Trust as far~ back as December 19851 and was
also highlighted in the Chandler and Hirsh2 Report. Furthermore, the strategic
development plan, developed in conjunction with Arthur Andersen & Co3 in May
1987, refers to Market regulations being out of step with corn mercial business
practices. The Trust commissioned yet another report on the Melbourne Wholesale
Fruit and Vegetable Market Trust Act and Regulations and a comprehensive
discussion document was produced in April 19894 which was circulated to all
industry participants.
There is evidence, supplied in submissions to the Public Bodies Review Committee
and at public hearings~ that the Market participants want less regulation and
interference with their normal daily practices. The Committee recognises the need
for updated and relevant regulations which are an effective management tool, while
at the same time are accepted and endorsed by Market users.
The Committee recommends that the Trust within 12 months revise
the current set of regulations, taking into account the
recommendations put forward in the various reports it commissioned.
The revised Regulations should be relevant, clear and easily
understood and that penalties for breaches of regulations, should be
set at a realistic level.
Consideration of Certain Aspects of the Operation of the Melbourne Wholesale Fruit and Vegetable Market - MWF & VMT, December 1985.
2 Marketing of Fresh Fruit and Vegetables in Victoria - Peter Chandler and Brian Hirsh, March 1987.
3 MWF & VMT Strategic Plan, May 1987- Arthur Andersen & Go.
4 Discussion Paper: Melbourne Wholesale Fruit and Vegetable Market Trust Act - Brian Casey, April 1989.
F-~
. 1 2-
2.3.2 The Department of Agriculture and Rural Affairs
The Department of Agriculture and Rural Affairs administers three Acts which affect
the operations of the Melbourne Wholesale Fruit and Vegetable Market. These Acts
are discussed below:
(a) Fruit and Vegetables Act 1958
This Act prescribes the classing, in regard to quality and size, and packing and
labelling of fresh fruit and vegetables. Three Horticultural Inspectors based at the
market administer the Fruit and Vegetable Regulations 1988 at the Market. The
Minister for Agriculture and Rural Affairs recently directed that the cost of
administering these Regulations at the Market be recovered from the Trust. The
first year of cost recovery will be paid from the 1989/90 accounts and is estimated
at $150,000.
(b) Vegetation and Vine Diseases Act 1958
This Act provides the legislative base for the control of pests and diseases of plants
and plant products. Regulations under this Act restrict entry of plants and plant
products into Victoria from other States and the movement of plants and plant
products within Victoria. Horticultural Inspectors check documentation
accompanying interstate produce and, where necessary, inspect for the presence of
fruit fly. Wholesalers are charged for such inspection of produce and also for
inspection of export produce to other States. Fruit and vegetables for export
overseas are also inspected by market-based staff on behalf of the Australian
Quarantine and Inspection Service with costs recovered in full from the Federal
body.
(c) Farm Produce Merchants and Commission Agents Act 1965
This Act concerns all aspects of the sale of farm produce covering licensing of all
wholesalers; provision of a guarantee fund to protect growers if wholesalers are
unable to pay for produce due to financial failure; provision of accurate market
information in the form of the Market News Service; and inspection relating to these
three issues.
r
- 1 3-
There are seven inspectors from the Department of Agriculture and Rural Affairs
implementing the terms of this Act of which, four marketing inspectors are involved
with the regulatory aspects and three others produce the Market News Service.
There has been no attempt by the Department of Agriculture to-date to recover the
cost of producing the Market News Service, estimated to be $100,000 per annum.
However, the Committee understands that the Farm Produce Wholesale Bill
currently before the Parliament incorporates provision to recoup the cost of this
service from the Trust.
- 1 5-
3. CHARACTERISTICS OF THE FRUIT, VEGETABLE AND FLOWER
INDUSTRIES
3.1 The Fruit and Vegetable Industries
3 . 1 • 1 The Domestic Market
A wide variety of fruit is grown in Australia ranging from pineapples and mangoes
in the tropical climate areas to pome, stone and berry fruits in the temperate areas.
In recent years there has been an increase in the production of many new crops in
Australia which offer potential expansion opportunities for the future (e.g. avocado,
kiwi fruit and mango). Australian gross value of production of fruit increased by
54 per cent from $948.6 million to $1 ,462.6 million over the four years
1985/1986 to 1988/89 (see Table 1). Total area of fruit grown in Australia
increased from 102,000 hectares in 1981/82 to 177,000 hectares in 1988/89.
TABLE 1
GROSS VALUE OF PRODUCTION OF FRUIT, AUSTRALIA YEARS ENDED 30 JUNE 1986 TO 1989
Type of Fruit 1985/86 1986/87 1987/88 $m $m $m
Total Fruit (Excluding Grapes) 678.6 837.2 885.9
Grapes: -Table 37.4 52.3 69.1 - Wine 111.6 121.9 178.1 - Dried 121.0 98.0 106.5
Total Fruit
1988/89 $m
1,000.2
64.1 304.1
94.2
(Including Grapes) $948.6m $1,1 09.4m $1 ,239.6m $1 ,462.6m
Source: ABS Value of Agricultural Commodities Produced- Australia.
': ,t
'I
- 1 6
Vegetables were among the very first crops to be sown in Australia and since the
early days, the vegetable industry has flourished. Total area of vegetables sown in
Australia reached a peak of over 200,000 hectares in 1945, but this declined to
around 110,000 hectares in the 1970's and in 1988/89 it was 119,000
hectares. Yields have increased significantly due to specialised variety breeding,
greater use of irrigation and tighter control of plant diseases.
Total production of vegetables has increased steadily in recent years. From
1982/83 to 1988/89 production increased by over 30 per cent from 1,898,896
tonnes to 2,472,950 tonnes (see Table 2). Potatoes are by far the largest crop
accounting in 1988/89 for 42 per cent of production; with Victoria the main
growing State producing more than a third of the national crop. Victoria is the
largest producing State of both fruit and vegetables. lt produced 26.8 per cent of
total fruit production in 1988/89 valued at $392.0 million; with New South Wales
the second largest producer, producing 26.7 per cent (Figure 1 on page 18). With
regard to vegetables, Victoria is more dominant producing, almost 30 per cent of
total vegetables in the year 1988/89 .with Queensland the second largest producer,
producing just over 20 per cent (Figure 2 on page 18).
TABLE 2
TOTAL PRODUCTION OF VEGETABLES FOR HUMAN CONSUMPTION YEARS ENDED 31 MARCH 1983 TO 1989
Year
1982/83 1983/84 1984/85 . 1985/86 1986/8 7 1987/88 1988/89
% Change 1982 to 1989
Source: ABS Summary of Crops- Australia.
Tonnes
1 ,898,896 2,131,098 2,197,662 2,116,695 2,285, 750 2,444,210 2,472,950
30.2
- 1 7
TABLE 3
PRODUCTION OF FRUIT· BREAKDOWN BY STATE (GROSS VALUE) 1988/89
State $ million %
New South Wales 390.3 26.7 Victoria 392.0 26.8 Queensland 266.0 18.2 South Australia 309.5 21.1 Western Australia 68.2 4.7 Tasmania 34.4 2.4
Australia $1 ,462.6* 1oo.o*
Includes Northern Territory and Australian Capital Territory.
Source: ABS Value of Agricultural Commodities Produced- Australia 1988/89.
TABLE 4
PRODUCTION OF VEGETABLES· BREAKDOWN BY STATE (TONNES) 1988189
State Tonnes %
New South Wales 383,856 15.5 Victoria 722,298 29.2 Queensland 501,447 20.3 South Australia 240,336 9.7 Western Australia 221,046 9.0 Tasmania 396,216 16.0 Northern Territory and
Australian Capital Territory 7,751 0.3
Total 2,472,950 100.0
Source: ABS Summary of Crops -Australia 1988/89.
w 9.0%
r
- 1 8 -
TAS 2.4%
FIGURE 1
PRODUCTION OF FRUIT -BREAKDOWN BY STATE
(GROSS VALUE) 1988/89
NT & ACT 0.3%
~NSW 15.5%
FIGURE 2
PRODUCTION OF VEGETABLESBREAKDOWN BY STATE (TONNES)
1988/89
- 1 9 -
There has been a slow but steady increase in both the volume and proportion of fresh
vegetables in the diet of consumers due to increased health awareness and to a
greater choice of vegetables available to the consumer. Table 5 showing the
apparent consumption of vegetables supports this theory. The same trend is evident
in the fruit industry - slow but steady increase in consumption of fruit which can
be largely attributed to a growth in demand for fresh citrus fruit, particularly
oranges (see Table 6). Moreover, many fruits are becoming available for longer
periods each year and also improved transport and marketing techniques are an
asset.
Year
1981/82 1982/83 1983/84 1984/85 1985/86 1986/87
%Change 1982 to 1987
TABLE 5
APPARENT CONSUMPTION OF VEGETABLES (KG PER CAPITA PER YEAR)
Leafy and Potatoes Tomatoes Green
Vegetables
57.6 16.7 20.8 52.2 16.5 21.4 62.6 18.6 21.9 59.9 19.6 22.5 57.7 16.9 22.8 60.6 18.0 21.8
+5.2 +7.7 +4.8
Other Vegetables
35.7 34.8 35.7 40.4 38.8 38.9
+8.9
Source: Year Book Australia 1989.
3.1. 2 Exports of Fruit and Vegetables
Total
130.8 124.9 138.8 142.4 136.2 139.3
+6.4
Australia currently exports approximately 10 per cent of its fresh fruit and
vegetable production, equivalent to less than 1 per cent of world trade. Given
Australia's level of production in these sectors and the proximity of many large
import markets in South East Asia, there is potential for considerable growth in
Australian exports. In the three years to 1987/88, exports of fresh fruit and
vegetables more than doubled to $250 m. But in 1988/89 they dropped back to I
-2 0-
TABLE 6 APPARENT CONSUMPTION OF FRUIT (KG PER CAPITA PER YEAR)
Other Other Year Oranges Citrus Fresh
Fruit
1981/82 29.5 6.9 37.8 1982/83 41.4 6.4 39.6 1983/84 43.4 7.7 38.1 1984/85 37.8 7.5 41.4 1985/86 33.7 7.1 42.1 1986/87 33.3 7.3 40.6
%Change +12.8 +5.7 +7.4 1982 to1987
Source: Year Book Australia 1989.
TABLE 7 EXPORTS OF FRESH FRUIT AND VEGETABLES
($ MILLION)
Year Fruit Vegetables
1982/83 66.3 22.9 1983/84 59.8 31.8 1984/85 79.1 32.9 1985/86 110.5 43.8 1986/87 152.3 60.3 1987/88 177.3 76.0 1988/89 112.7 72.8 1989/90* 187.0 81.0
%Change +182 +253 1983 to 1990
• Austrade Estimate.
Total
74.2 87.4 89.2 86.7 82.9 81.2
+9.4
Total
89.2 91.6
112.0 154.3 212.6 253.3 185.5 268.0
+200
Sources: Austrade Fruit and Vegetable Export Newsletter, November 1989. Quarterly Review of the Rural Economy, December 1987.
around $185 m due, according to the Australian Horticultural Corporation, to the
strengthening of the Australian dollar and the strong domestic market. Table 7 gives
further details on exports of fruit and vegetables.
- 2 1 •
However, it should be noted that the potential to increase exports is limited by a
number of constraints such as quarantine restrictions in operation in some
potentially major markets, e.g. United States of America and Japan; inadequate
grading and quality standards; high cost of air freight; and increased production in
other southern hemisphere producers, e.g. South Africa, Chile, Brazil and New
Zealand. The Australian Horticultural Corporation was established to address these
and other related issues. Its primary objective is to help horticultural industries
achieve their full potential in overseas markets. Currently Australia is not
producing sufficient high quality, properly presented produce to obtain prices that
adequately reward the producer. Austrade believes that produce with the ability to
attract top prices are those which are seasonal, perishable or uniquely Australian
which can be exported to northern hemisphere markets during their off-season.
For Victoria, exports of fresh fruit and vegetables fell by 34 per cent from 74,436
tonnes in 1987/88 to 49,128 tonnes in 1988/89. This was in sharp contrast to
the previous five years during which exports of fruit and vegetables had increased
progressively. The decrease in exports was blamed on poor seasonal conditions
causing disease and quality problems in some lines of. produce. In addition, the low
returns received by growers on the European market the previous year scared away
many potential exporters.
3.1 .3 Industries Assistance Commission (lAC) Vegetable Report
1986
The Commission's terms of reference were directed at examining the potential for
the fresh vegetables and vegetable products industries in Australia and factors that
significantly affect growth, competitiveness and efficiency within the industry. The
report also examined other issues - structure and ownership, production costs,
export potential, developments in other countries, research and technology, and
government assistance and regulation.
The Commission found that vegetable industries were relatively free of special
regulation except in relation to some areas of marketing. Tariffs were the major
form of industry assistance. The Commission considered that assistance policies
should not favour any particular vegetable, otherwise they could influence
consumption decisions.
-22-
In regard to export potential, the Commission concluded that particular
Commonwealth regulations as well as transport difficulties were impeding growth.
Meeting these regulations would impose considerable costs from which no
compensating benefit, either to vegetable producers or to the general public, could
be seen. Governments could, however, play a role in developing export markets by
negotiating to eliminate barriers to trade in vegetables erected by importing
countries.
lt also highlighted the difficulty in obtaining relevant and accurate vegetable
statistics but it was thought that the additional cost of obtaining better statistics
would outweigh any benefit.
The Commission favoured the continuation of the central market systemS to ensure
the viable and efficient operation of the fresh vegetable industry. it also recognised
that the role of central markets diminished with the increase in sale by contract in
recent years.
3 .1.4 The Industries Assistance Commission (lAC) Fruit Report
1988
The Commission was asked to report on measures to develop the fresh fruit and fruit
products industries in Australia. At the time the reference was given to the
Commission a number of issues were topical, including:
proposals to establish a government agency to enhance export marketing of
all horticultural products;
a sudden substantial drop in the price of imported frozen orange juice
concentrate;
imports of some fresh fruits especially oranges, had risen as had imports
of processed fruits (canned pineapple and jams);
5 lt should be noted that though the Commission favoured the continuation of the central market system, it did not imply that central markets must be operated by statutory authorities.
-23
scheduled end to the statutory marketing arrangements for canned deciduous
fruits In December 1987; and
prospects for further development and increased exports of fresh fruit and
fruit products.
During the inquiry, further developments took place, most notably the
establishment of Horticultural Export Councils in each state as well as an Australian
Horticultural Export Corporation.
The lAC identified several issues that were of major significance to the fruit
industry which included the following findings:
Firstly, it found that it was vital that production decisions would reflect
market demands if the industry is to realise growth potential in fresh fruit
sales.
Secondly, the importance of irrigation costs needed to be highlighted. About
two-thirds of Australia's fruit production is grown under irrigation and
most fruit growers are dependent on the allocation ·of water rights by state
government authorities.
Thirdly, the report recognises the after-harvest problems faced by
growers in getting good quality fruit to consumers in Australia and
overseas, e.g. packing procedures need to be updated; correct temperate
controls researched.
Fourthly, in regard to the regulation of marketing, a number of issues were
of concern to the Commission. lt found that most fruits were subject to
some form of state regulatory control. In this context, it found little
evidence to support direct government involvement in fruit and vegetable
wholesaling, and also raised questions about minimum pricing
arrangements for canned fruits, citrus as well as certain other fruit.
Fifthly, both domestic and international transport networks were
investigated and were found to impact adversely on the quality of produce.
Difficulties with transport were seen to be a major impediment to
exporting.
-24-
The Commission's research indicated that a lot of change would be necessary to
improve the environment in which the fruit industry was operating. lt should be
noted that the findings of the 1986 lAC Vegetable Report favoured the continuation of
a central market system without commenting on government involvement in central
markets. However, one of the findings of the 1988 lAC Fresh Fruit and Fruit
Product Industries Report recommended against the need for government
involvement in both fruit and vegetable wholesaling. No decision has been taken yet
at Federal level in regard to the findings of the Fruit Report. The lAC findings and
recommendations were framed with the aim of achieving a more flexible and
responsive industry capable of adapting to variable market conditions with less
government assistance.
3. 2 The Flower Industry
3 . 2. 1 The Domestic Market
The Australian cut flower industry is estimated by the Australian Flower Growers'
Council to be around $96 millions . There are specialist flower growers established
in all States to meet the year-round demand for flowers. Most flowers are grown on
family farms though there are some corporate flower farms. The flower-growing
industry, like the fruit and vegetable industries has tended to be fragmented and
unstructured. Currently the industry is changing as flowergrowers adapt to meet
the demand for top quality flowers.
Most of the flowers grown in Australia are sold on the domestic market. But as can
be seen in Table 8, Australians tend not to spend as much on flowers as most
European households.
In Victoria, carnations represent 40 per cent of production; roses, chrysanthemums
and bulbs 15 per cent each; with the remaining 15 per cent comprising various
other types of flowers. About 80 per cent of flowers grown in Victoria by-pass the
wholesale market with about 50 per cent being sold direct to retailers and the
B Australian National Flower Show 1990 Fact Sheet.
- 2 5-
TABLE 8
PER CAPITA CONSUMPTION OF CUT FLOWERS ($A)
Country
Australia United Kingdom France Germany Italy Netherlands
Source: Australian National Flower Show 1990 Fact Sheet.
Total
$ 15.00 16.00 28.00 45.00 48.00 52.00
remaining 30 per cent to wholesalers. Most flower farms are located within 50
kilometres of Melbourne. Industry sources acknowledge that higher quality flowers
by-pass the Market. The majority of Market customers are greengrocers.
3.2.2 Exports of Flowers
The world export market for flowers is currently valued at $1.2 billion per annum
with Australia holding less than a one per cent share of that market. In 1984/85
Australia exported cut-flowers to the value of $1.3 million and in 1987/88 this
increased to $10.6 million. The level of imports for 1987/88 was $4.3 million. A
full range of flowers is exported, but the main lines are natives such as Kangaroo
Paw and Banksia.
Interest in Australian flowers is rapidly increasing in Asia. The total Japanese cut
flower market is worth $A 1.8 billion annually with imports valued at $A 142
million. This represents enormous potential for Australian growers who need to
address issues such as improved post-harvest handling procedures, transport and
quality production if they are to capture just a small fraction of the total Japanese
market which would be equivalent to a huge expansion in sales on the domestic
market.
- 2 6-
3. 3_--'-lm~p.lications for the Market
Recent reports highlight that the traditional horticultural sector is experiencing a
long term decline in profitability ,vith rec:l r<:.urns declining faster than real costs.
In particular, high interest rates have been a major impediment to reducing costs in
line with returns. The industry is characterised by low yields and low value output.
At the National Agricultural and Resources Outlook Conference held in January
1990, several papers indicated that the outlook for most horticultural crops was
for prices to fall, mainly because of increased supplies both on domestic and
overseas markets. Although increases in production are expected to continue in
1989/90, demand will also increase but to a lesser extent and farm incomes for the
average horticultural farm are likely to fall due to price declines and increases in
costs. For the medium term, the outlook is for a continued increase in domestic
production of all major horticultural crops. This adds further pressure to seek and
develop profitable export markets for horticultural produce.
The Market should be aware of the highly competitive nature of the horticulture
industries. The Industries Assistance Commission Reports highlight the benefit of
the central market in ensuring that the markets for fruit and vegetables continue to
operate efficiently.. However, to be an effective central market it must handle most
of the produce available for sale. In this regard, the Melbourne Wholesale Fruit and
Vegetable Market Trust needs to attract sufficient buyers and sellers to the market:
- providing the necessary facilities required by Market users, (e.g. warehousing,
parking, etc.); ensuring that a proper trading atmosphere prevails which is not
impeded by undue regulation; management being fully up to date on all relevant
industry issues; special attention needs to be given to the flower industry so as to
attract sufficient growers of top quality flowers into the Market.
As discussed in Section 3.1.1, Victoria accounts for the greatest proportion of total
fruit and vegetable production and accordingly has an important impact on the
Australian economy. The Trust should be aware of the economy-wide impact of the
Market and devise policies and strategies for the market that will equip the Market
to deal with future foreseeable industry changes.
r ! I
I I I
- 2 7-
The Committee recommends that the Trust monitors changes to the
industry environment and regularly assesses the impact of these
changes on Market operations.
--------......r I
- 2 9-
4. ORGANISATIONAL STRUCTURE OF THE MARKET TRUST
4.1 Trust Membership
The Trust comprises seven members who are appointed·by the Governor in Council
under section 7 of the Melbourne Wholesale Fruit and Vegetable Market Trust Act
1977. Three members are nominated by the Minister for Agriculture and Rural
Affairs from lists submitted by organisations representing buyers, growers and
wholesalers. Such organisations may submit a panel of not less than three and not
more than five names in writing for consideration by the Minister. The other four
members are nominated by the Minister and comprise one representative of the
Department of Agriculture and Rural Affairs and three others. The Act does not
specify particular skills required of non-user members. The Governor in Council
appoints a Chairman and a Deputy Chairman.
Members may hold office for three years and are eligible for re-appointment.
Section 10 of the Act empowers the Governor in Council to remove a member from
office in certain circumstances. A person appointed to fill an extraordinary vacancy
holds office for the remainder of the term of office of his predecessor and shall be
eligible for re-appointment, if he is then qualified.
Requirements governing the meetings of the Trust are defined in section 11 of the
Act. The Chairman, or if he is not present the Deputy Chairman, presides at Trust
meetings. When both the Chairman and Deputy Chairman are absent, the members
present may elect a temporary Chairman. The Chairman has a deliberative vote as
well as a casting vote. A question arising at a meeting of the Trust may be
determined by a majority of votes, but there must be at least four members present
before a question may be determined.
4 .1.1 Evaluation of Trust Membership
Currently the Trust membership of seven, comprises three user members and four
non-user members. The Public Bodies Review Committee considers that the present
composition of the Trust has contributed to the Trust's apparent inability to make
f.J
. 3 0.
decisions in an efficient manner. 1t has also alienated the market participants who
feel that they are not part of the decision-making process (as evidenced in many
submissions received by the Committee). Furthermore, the structure is not suited
to the contemporary needs of the horticultural industry, of which one of the main
characteristics is change.
The Public Bodies Review Committee considers that the composition of the Trust
should reflect the importance of the contribution of the market participants by
having a majority of users serve on the Trust. The Committee acknowledges the
major role played by the user members in ensuring that the Trust is serving the
needs of the Market users. The three user members have contributed an intimate
knowledge of the Market which fosters expertise in the decision-making process by
encompassing three separate schools of thought on what should happen at the Market
(see Minutes of Evidence, p. 1,531 ).
In addition, the Committee finds that at the present moment flower growers are
dissatisfied with the performance of the Trust. The growers feel that the Trust has
not paid sufficient attention to their requirements. 1t is clear that the central
market does not handle the greater proportion of flowers grown in Victoria, which
the Committee considers a major weakness. As cited in Section 3.2. there is
potential to develop the flower industry particularly in regard to export earnings.
By including a flower grower on the Trust, this may help address the flower
growers' problems and give proper recognition to this developing sector of the
horticultural industry.
The Committee also sees a need for the Chief Executive Officer to be an integral part
of Trust decision-making. The inclusion of the Chief Executive Officer on the Trust
will hopefully encourage a greater corporate responsibility and is in keeping with
private sector practice.
The Committee recommends that section 7 of the Melbourne Wholesale
Fruit and Vegetable Market Trust Act 1977 be amended to encompass
the following changes in Trust membership:
( i ) Increase total membership of Trust by two; from seven to nine
members, one of whom shall be a full-time member and eight
part-time members.
,..
- 3 1 -
( 1 i ) There shall be five user members to be nominated by the
Minister for Agriculture and Rural Affairs from a panel of
names submitted by organisations representing producers of
farm produce (including flowers), wholesalers, retailers and
other interests concerned in the use and operation of the
market.
( 1 1 1) The Market's Chief Executive Officer to be the one full time
member.
( i v ) Three non-user members to be appointed at the discretion of
the Minister for Agriculture and Rural Affairs. One
appointment to be made In consultation with the Minister for
Consumer Affairs and one in consultation with the Treasurer.
At this moment in time, the Committee envisages that the five user members would
comprise one retailer, one wholesaler and three growers to represent the fruit,
vegetable and flower growing components of the industry. However, as time passes,
the industry may reflect different issues which may require representation on the
Trust, e.g. export, promotion, transport. The Committee recommends the new
membership composition format which will encourage a more flexible and relevant
Trust structure.
4. 2 Advisory Committees
The Trust, in accordance with section 13 of the Act, has appointed three advisory
committees representing buyers, growers and wholesalers to advise the Trust on
matters affecting the operations of the Market. The Trust is currently in the
process of establishing a flower growers' advisory committee. The appointment of
advisory groups is not compulsory and their role is not defined. Currently the
buyers' advisory committee has four members; the growers' advisory committee has
12 members and the wholesalers' advisory committee has 10 members.
a
-3 2
4.2.1 Evaluation of the Advisory Committees
The role of the three advisory committees, representing the buyers, growers and
wholesalers is not defined and the Trust is not obliged to consult with the committees
on any matter. The Public Bodies Review Committee considers that the advisory
committees have a wealth of knowledge and experience which the Trust is not
currently utilizing in the most effective way. 11 was evident in the submissions
received by the Committee that Market users want to have a more direct say in how
the Market operates. However, having thoroughly considered the issue, the Public
Bodies Review Committee recommends that the needs of the Market users would best
be served by strengthening the user component of Trust membership rather than
enhancing the role of the advisory committees. However, the Committee would like
to see the advisory committees continue in existence and to continue to provide
feedback to the Trust.
The Public Bodies Review Committee recommends that the Trust
management should meet and consult with the advisory committees on a
regular· basis and that advisory committees should receive copies of
the minutes and agendas of all Trust meetings.
4. 3 The Role and Objectives of the Trust
The objectives of the Melbourne Wholesale Fruit and Vegetable Market Trust are not
specified in the legislation. The Public Bodies Review Committee considers this to be
a major deficiency in the Melbourne Wholesale Fruit and Vegetable Market Trust Act
1977. The Trust in 1980 specified its role and devised a set of objectives to fulfil
this role. Viz:
"To manage the Melbourne Wholesale Fruit and Vegetable Market as a vital link in
the marketing chain between producer and consumer, so as to ensure the people of
Victoria:
Have ready access to a regular supply and variety of high quality fresh fruit
and vegetables;
i
-33-
Have fresh fruit and vegetables available at prices which are acceptable to
the consuming public and to the producers."
The role of the Trust, although restated on many occasions, has not changed
significantly from this time.
In May 1987, the Trust, in conjunction with Arthur Andersen & Co .• developed and
adopted a strategic plan.7
The Trust's business mission is stated as follows:
"To optimise the use of the Melbourne Wholesale Fruit and Vegetable Market as the central horticultural market in Victoria, by encouraging and facilitating the exchange and distribution of produce between buyers and sellers within that market."
To achieve this mission, the following objectives were formulated:
1 . Optimise the number of buyers in the Market.
2. Optimise the number of sellers.
3. Maximise the volume of horticultural produce going through the Market.
4. Promote the Market as the venue for the exchange and distribution of
horticultural produce.
5. To establish trading conditions which assist in ensuring that prices are set
by supply and demand. _)
6. Be financially self-sufficient.
7 Melbourne Wholesale Fruit and Vegetable Market Trust Strategic Plan, May 1987. Arthur Andersen & Co.
3 4-
4.3.1 Evaluation of the Trust's Role and Objectives
The Public Bodies Review Committee recognises the importance of clearly defined
objectives which should guide all decisions of the Trust. The Committee appreciates
the efforts made by the Trust to obtain a set of objectives, which meets the needs of
the Trust. However, it appears to the Committee that the strategic plan devised in
conjunction with Arthur Andersen & Co is not being used to the best advantage by the
Trust. lt is widely accepted that if objectives are to be attained, there must also be
realistic goals against which the performance of the Trust can be measured. The
Committee believes that while the Trust has adopted a set of objectives, no effort has
been made to ascertain if all or any of the objectives are being met.
The Committee appraised each of the objectives to assess their relevance and
suitability.
( 1 ) Optimise the Number of Buyers in the Market
The Committee recognises that this is a difficult objective to achieve, given that the
Trust is not in a position to provide sufficient facilities by way of warehousing, cool
rooms, etc, without acquiring additional land. However, the Trust should continue
its endeavours to attract buyers by listening to their requests and consulting with
the buyers' advisory committee. The inability of the Trust to attract a major
supermarket chain to the Market is considered a major weakness.
( 2) Optimise the Number of Sellers in the Market
In many ways, this objective is dependent on the state of the industry. The
Committee recognises that the Market is an important outlet for growers,
particularly small-time growers. The Trust should be aware of the increase in the
tendency for growers to by-pass the Market and should take steps to attract growers
to the Market, but adequate facilities need to be provided. The Trust has indicated
that the entire shed is already fully utilised with merchants and growers operating
selling stands. More space will be needed if the Market is to attract more sellers.
i !
-35
( 3) Maximise the Volume of Horticultural Produce Going Through the Market
The Committee has found that no precise information is available on the volume of
produce handled by the Market. it considers this an important weakness which the
Trust should take action to overcome. All grower/sellers are required to complete
manifest forms indicating type of produce, quality and quantity being brought to the
Market. However, the form is too long and complicated and needs to be simplified if
it is to be of use. In addition, there is no check that produce matches what is declared
on the manifest form. The Trust should take appropriate steps to increase its share
of fruit, vegetables and flowers going through the Market. The Sydney Market
Authority appears to be more successful in this regard.
( 4 ) Promote the Market as the Venue for the Exchange and Distribution of
Horticultural Produce
The name of the Market was changed in August 1987 to "Fresh Centre" - conveying a
new image for the Market and intended to attract more Market users. The Committee
believes that the Trust should concentrate its efforts on promoting the Market and
the sale of fruit, vegetables and cut flowers at the Market. Wider industry
promotion adopted in recent years by the Trust is not part of its functions, as set out
in the Act.
·r 5) To Establish Trading Conditions Which Assist in Ensuring that Prices are
Set by Supply and Demand
This objective will be met by having a large number of buyers and sellers coupled
with a large volume of produce; which means achieving Objectives 1, 2 and 3. The
Committee considers it is important that the Trust does not in any way impede
normal trade practices with undue regulation.
( 6) Be Financially Self-sufficient
The Committee believes this objective to be a pre-requisite for the continuation of
the Melbourne Market. The Trust should continue to ensure that all fees and charges
are set at a level to cover full cost of operations including a portion to cover major
capital works. While the the annual accounts show that revenue has exceeded
expenditure for a number of years, the Trust needs to provide ways and means of
-
- 3 6-
covering the cost of impending major capital works, e.g. new roof, additional parking
and warehousing.
The Committee is of the opinion that the objectives espoused in the strategic plan do
not govern the decisions and actions of the Trust. The Committee considers that the
Trust should regard the set of objectives as an overall umbrella framework within
which the Trust ·Should operate. The Trust should be more committed to
implementing the objectives which it feels will help improve the operation of the
wholesale market. Following a discussion with management of the Market and Trust,
it was evident to the Committee that the objectives were not seen as an important
· factor in the decision-making process. Indeed many strategies suggested as a means
of meeting an objective were ignored, pending the completion of the Public Bodies
Review Committee's Inquiry.
The Committee recommends:
That the Trust's mission statement be specified in legislation
as:
"To promote the efficient and effective use of the Melbourne
Wholesale Fruit and Vegetable Market as the central
horticultural market in Victoria, by encouraging and
facilitating the exchange and distribution of produce between
buyers and sellers within that market."
That in order to achieve this mission the following objectives
should be included in the legislation:
( i ) Optimise the number of buyers in the Market;
( i I ) Optimise the number of sellers in the Market;
( i i i) Maximise the volume of horticultural produce going
through the Market;
( i v) Promote the Market as the venue for the exchange and
distribution of horticultural produce;
-3 7-
( v ) To establish trading conditions which assist in ensuring
that prices are set by supply and demand; and
( vI ) Be financially self-sufficient.
That the Trust ensures compliance with the specified
objectives and develops criteria to measure whether it has
achieved the objectives.
- I I j
. 3 9-
5 OPERATIONS OF THE MARKET TRUST
5. 1 Statutory Functions
The functions of the Trust, as conferred by section 5 of the Melbourne Wholesale
Fruit and Vegetable Market Trust Act 1977 are controlling, maintaining and
managing the Market and the Market land:
• (a) the controlling, maintaining and managing of the Melbourne wholesale fruit and vegetable market;
(b) the controlling, maintaining and managing of the market land; and
(c) such other functions as are conferred on it by or under this or any other Act.·
The Trust's powers under the Act are as follows:
to grant leases, tenancies, permits and licences on the Market land;
to provide buildings, premises, machinery and equipment for the purposes
of the Market;
to enter into arrangements with others for the sale of produce by the Trust
on behalf of these others;
to make grants of money to persons that in the opinion of the Trust will
promote the sale of fruit, vegetables or cut flowers at the Market.
The Trust provides the facilities and the physical structure to allow produce to pass
from producer into the retail system for sale to the public.
5 .1.1 Appraisal of the Statutory Functions
to control, maintain and manage the Melbourne Wholesale Fruit and
Vegetable Market and the Market land.
-40-
The Public Bodies Review Committee recognises that there are certain contentious
aspects to the Market's operations. However, the Committee considers that its role
does not extend to arbitrating on specific issues such as Market hours or the
allocation of grower stands. Rather, the Committee believes that the changes it has
recommended for the composition of the Trust will help redress some of the
problems encountered with Market operations.
To control, maintain and manage the Market, the Trust undertakes a wide range of
activities. The Committee has evaluated the overall performance of the Trust with
particular regard to efficiency and effectiveness and has assessed the relevance of
each of its activities.
( i) Allocation of Space
In its simplest format the Trust performs the role of landlord, providing the
facilities and physical structure to allow produce to pass from producer into the
retail system for sale to the public. The Trust allocates stands, stores and parking to
bona fide Market users. Certain conditions pertain to the various categories of space.
Charges and fees in operation at 1 January 1990 are set out in Table 9.
Merchants/Agents Stores may be categorised into 'A' and 'B' type stores. There are
240 'A' type modules with 66 tenants and 162 'B' type modules with 121 tenants. 'A
and B' type stores are operated on a lease basis payable on the first day of every
month with penalties imposed for late payments. Leases may be transferred only
with Trust approval obtained in advance. In addition, the Trust receives a percentage
of the annual rent upon transfer of lease.
Grower/Seller Stands total 640 and are located in the central area of the market
floor. Table 10 shows the numbers of growers and buyers at the market from
1985/86 to 1988/89. The Trust allocates stands on a first or second right basis
for two sets of days: Monday-Wednesday-Friday and Tuesday-Thursday; a very
complicated, antiquated system. Rent is payable quarterly in advance with penalties
imposed on late payments. There is a considerable waiting list, mainly comprising
existing growers who wish to move to a new location.
·f I
- 4 1 -
TABLE 9
MWF&VMT: VARIOUS RENT AND CHARGES 1989 AND 1990
Rent • Per Month Type A Store Type B Store Storage Cage
Charges Grm!lilrlSilllilr Smca l st ace 2DC BiQbt
Monday-Wednesday-Friday Tuesday-Thursday Saturday Carrier Agents (in addition) Casual Stands
Parking Fees (j) Country Buyers
Under Cover - Artic. Vehicles - Other Vehicles
Not Under Cover - Artic. Vehicles - Other Vehicles
(jj) Casual Cail~ Staca
Under Cover - Artic. Vehicles - Other Vehicles
Not Under Cover - Artic. Vehicles
Uii) Other Buyers
Under Cover - Permanent Reserved Parking Not Under Cover:
Permanent Reserved Parking Unreserved Parking
Mobile Equipment Park Fork Lift Trucks Motor Scooters
1989 $
490 268 281
261 /qtr 174/qtr
17/day 22/day 27/day
, 332/qtl' 1 66/qtr
166/qtr 83/qtr
42/day 21/day
24/day
205/qtr
1 09/qtr 63/qtr
165/qtr 82/qtr
1990 $
531 290 304
277/qtr 184/qtr
18/day 23/day 29/day
352/qtr 176/qtr
176/qtr 88/qtr
44/day 22/day
26/day
217/qtr
116/qtr 67/qtr
1 75/qtr 87/qtr
Source: Melbourne Wholesale Fruit and Vegetable Market Trust Notice.
% Increase
8.4 8.2 8.2
6.1 5.7 5.9 4.5 7.4
6 6
6 6
4.8 4.8
8.3
5.8
6.4 6.3
6 6
42
Parking is a very contentious issue because demand is greater than supply. There is
a limited amount of undercover parking available which the Trust has allocated to
buyers. There is a separate area under the Market roof allocated to country buyers
(buyers from more than 160 km from the Melbourne GPO} which causes further
problems as the country buyers have access to the Market and its sellers in advance
of metropolitan retailers. The Trust would like to provide more parking but lacks
the necessary space. All parking fees are payable quarterly in advance.
( i i) Market Hours
The Trust has a prescribed set of market hours governing entry to and exit from the
Market with the primary aim of running an 'orderly market.' Different categories
of Market users are allowed to enter the Market at different times, subject to the
vigilance of the Market officers on duty at the gate. The Committee was made aware
through public hearings and submissions received that many Market users are
dissatisfied with the restrictions imposed by the hours of operation imposed by the
Trust. The Committee believes that changes to the composition of the Trust and the
implementation of a consultation mechanism will overcome problems in this area.
( i i i) Sale of Citrus in the Growers' Area
Since 1979 sales of citrus, other than lemons in the grower/sellers section of the
Market have been prohibited. Citrus is the only fruit or vegetable which may not be
sold by its grower. Citrus growers wishing to sell their produce are required to
become licensed wholesalers and to operate from a merchant store (usually a
"Type 8" store}.
A number of submissions received by the Public Bodies Review Committee referred
to the citrus prohibition. All of the associations representing citrus growers as well
as the merchants favour the continuation of the current system. Some metropolitan
growers would like an end to the prohibition so that growers could once again sell
citrus in the central area of the Market.
f I
TABLE 10
NUMBER OF GROWERS AND BUYERS AT THE MARKET
%Change 1985/86 1986/87 1987/88 1988/89 1985 to
1989
Number of Growers (Permanent)
Fruit/Vegetable 874 858 848 850 Flower 80 91 80 82 TOTAL 954 949 928 932 -2.3
Number of Growers (Casual) ,.. Fruit/Vegetable 400 381 600 618 UJ
Flower 36 38 40 46 ,TOTAL 436 419 640 664 +52.3
Total Growers 1,390 1,368 1,568 1,596 +14.8
Number of Buyers
Local 1,467 1 ,512 1 ,211 1,14 7 -21 .8 Country 100 106 146 152 +52.0
Total Buyers 1,567 1,618 1 ,357 1,299 -1 7.1
Source: Trust Management.
-44-
( i v) Marketing and Promotion
Section 15 of the Melbourne Wholesale Fruit and Vegetable Market Trust Act 1977
enables the Trust to give grants to persons that will promote the sale of fresh fruit,
vegetables and cut flowers at the Market. In recent years, the Trust has not adhered
to the strict guidelines se! out in the Act governing promotion grants. The Trust
considers that it has a role to play in the promotion of various aspects of the
horticultural industry and not just issues pertaining to the Market itself. The
Public Bodies Review Committee considers the developmen\ of the Market to be of
major importance which will require the full attention of the Trust.
The Committee recommends that the Trust continues to promote the
Market as the venue for the wholesale sale of fruit, vegetables and cut
flowers and also encourages wider use of the Market.
( v) Warehouse and Other Facilities
The Committee regards the lack of adequate warehousing as a major weakness in the
Trust's operation of the Market. Complaints regarding the inadequate facilities
cover: insufficient warehouse space on site; no processors, chainstores or
commercial centre, no public retail market, no repacking, cool storage, or export
packing facilities; and no separate flower market. Central Markets located in
Brisbane and Sydney have no problem providing the facilities required by Market
users. The Committee recognises that the area of the Melbourne Market is much
smaller than the other two markets, being 23 hectares compared with Sydney (41
hectares) and Brisbane (55 hectares). However, it must be stressed that if the
Melbourne Market is to continue to remain a viable entity, it must be in a position to
meet the needs of Market users and to attract more buyers and sellers to the Market
by providing modern facilities. The issue is discussed further in Section 5.3.
$
. 4 5.
(vi) Communication
Communication between the Trust, management and Market participants needs to be
effective for the continued efficient operation of the Market. The Trust requires a
high standard of information so that the decision-makers have access to all relevant
information. The strategy planS found that Market participants were generally ill
informed of Trust and management actions and future plans.
The Public Bodies Review Committee considers the breakdown in communication a
serious weakness which has been the major contributor to feelings of discontent
expressed by Market users in submissions received by the Committee.
The Committee recommends:
That the Trust notifies all Market users In writing when
changes to Market Operations are Introduced;
That the Trust, on an annual basis, provides all Market users
with an updated Information booklet covering issues such as
rents and charges for all facilities, details of . lease and stand
allocation procedures and any other relevant matters; and
That the Trust Issues a Market newsletter on a regular basis
covering matters of general Interest relevant to the
horticultural Industry as well as to the Market itself.
(vi i) Appeal Procedure
The current decision-making process is handled almost entirely. by the Trust itself.
lt makes decisions on long term policy Issues as well as on daily Market activities
and the decisions are made on an ad-hoc basis. The current system makes no
provision for an independent, impartial appeal mechanism which . Market
8 Melbourne Wholesale Fruit and Vegetable Market Trust Strategic Plan, May 1987. Arthur Andersen & Co.
... I
'
-4 6-
participants may utilise to appeal a Trust decision which they consider to be
incorrect.
The Committee recommends that Market users have recourse to the
Administrative Appeals Tribunal If they wish to appeal against a Trust
decision. The Melbourne Wholesale Fruit and Vegetable Market Trust
Act 1977 should be amended to allow for such an appeal procedure.
5. 2 Appraisal of the Trust's Financial Position
5. 2. 1 Overview of Annual Accounts
The Public Bodies Review Committee is satisfied that the Melbourne Wholesale Fruit
and Vegetable Market Trust is operating efficiently from a financial perspective.
For the year ending 30 June 1989, the Trust showed an operating surplus of
$1.7 million, a nominal increase of 53 per cent and a 41 per cent increase in real
terms on the 1988 results. The sum of $0.37 million was allocated to retained
earnings with the remaining surplus. allocated to the various reserve funds. Table
11 shows the Trust's performance in nominal and real terms since 1978.
An analysis of the 1988/89 Trust's sources of income reveals that almost 84 per
cent of income ($6.2 million) is derived from rental charges. The second most
important income-contributing sector is interest on investments, contributing
almost nine per cent of total income or $0.6 million (see Figure 3 on page 48).
Rental of merchant stores and grower stands Is payable monthly and quarterly in
advance enabling the Trust to place considerable sums in short term deposits, which
in light of the high interest rates, which have prevailed over the last year or two,
have earned lucrative sums of interest. Tables 12 and 13 on pages 49 and 50
provide further detail of the Trust's sources of income. Rental income is derived
from a number of sources with rental of merchant and grower stands accounting for
almost 62 per cent ($3.4 million in 1988/89). There are 240 ·A" type and 162
"8" type merchant stores with a total of 187 tenants contributing over $2.2
million, almost 36 per cent of rental Income in 1988/89. There are 640 grower
stands which accounted for 26 per cent ($1.6 million) of rental income in the same
year (see Figure 4 on page 48).
r.,.· ·'
I ' ·~
I l i I I
I
• -- 4 7-
TABLE 11
MELBOURNE WHOLESALE FRUff AND VEGETABLE MARKET TRUST NOMINAL AND REAL* OPERATING SURPLUS (DEFICIT)
1978 TO 1989
OPERATING SURPLUS (DEFICIT)
Year Ending 30 June Nominal Real* $ $
1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
(April-June) {40,975) (1 00,037) 139,915 310,646 321,961 653,993 516,428 943,075 418,024 687,653 326,602 494,702 948,544 1,400,892
1,919,378 2,618,881 1,219,271 1,515,187
572,282 664,286 1 '159,522 1,249,754 1,774,283 1,774,283
Adjusted to CPI, Eight Capital Cities Index (December 1989 = 100).
Source: Melbourne Wholesale Fruit and Vegetable Market Trust, Annual Reports.
Total rental income in 1988/89 increased over 11 per cent to $6.3 million from
the previous year with the largest increase occurring In income derived from
renting of shops, cafes, etc.
On the expenditure side the Trust incurred costs of $5.7 million in 1988/89, an
increase of just under one per cent in nominal terms on the previous year, but a
decrease in real money of six per cent. (See Tables 14 and 15 on pages 51 and 52
setting out nominal and real Trust expenditure for the period 1978 to 1989.) All
subheads, with the exception of promotion and research grants, show a decrease in
real money terms on the previous year.
An analysis of expenditure for the year 1988/89 shows that two sectors account for
almost 58 per cent of total expenditure. Salaries and associated costs at $1.7
million account for 31 per cent of total expenditure and finance charges at $1.5
million account for almost 27 per cent of total costs (see Figure 5 on page 53).
"'
0.69% Miscellaneous Items
- 4 8-
3.86%
FIGURE 3
MWF&VMT: INCOME SOURCES, 1988/89
FIGURE 4
MWF&VMT: RENTAL INCOME, 1988189
i
I
l
Year Ending 30 June
TABLE 12
MELBOURNE, WHOLESALE FRUIT AND VEGETABLE MARKET TRUST:
Rental Income
$
NOMINAL INCOME SOURCES, 1978 TO 1989
Interest on Lease Miscellaneous Government Abnormal Investments Premiums Items* Grant** Item***
$ $ $ $ $
Total
$
1978 (April-June only) 310,985 82,497 393,482 2,327,099 2,541,094 3,041,421 3,278,470 3,535,248 4,311,362 6,158,544 6,014,007 5,940,260 6,847,462 7,508,221
1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
*
..
• •
1,788,486 2,085,392 2,477,782 2,675,131 2,909,428 3, 706,180 4,443,479 4,784,416 4,847,090 5,641,777 6,276,143
9,814 72,998
212,144 265,473 293,741 251,413 387,161 557,736 630,284 765,513 646,597
128,450 8,085
22,381 119,955
35,830 5,136 7,066
21,364 17' 123 18,419 55,548 24,600 23,887 42,197 51 ,446
492,969 377,568 344,429 316,502 314,956 335,350 311,078 323,602 327,796 260,518 289,941
961,278 195,203 103,118 115,076 124,139
Miscellaneous Items: Traffic fines, Breaches of Regulations, Interest on overdue Rents, Profit on Sale of Assets, etc.
Government Grant: Section 43 of the Melbourne Wholesale Fruit and Vegetable Market Trust Act 1977 entitles the Trust to receive from the Government half of the amount paid to the Melbourne City Council in relation to transfer of the Market.
Abnormal Item: The Trust contributes each year to a sinking fund operated by the Melbourne City Council. The amount included here represents the Trust's share of the interest earned on the investment of the sinking fund.
Source: Melbourne Wholesale Fruit and Vegetable Market Trust, Annual Reports.
~ <0
Year Ending 30 June
Rental Income
$
TABLE 13
MELBOURNE WHOLESALE FRUIT AND VEGETABLE MARKET TRUST REAL* INCOME SOURCES, 1978 TO 1989
Interest on Investments
$
Lease Premiums
$
Miscellaneous Items**
$
Government Grant***
$
Abnormal Item•
$
Total
$ 1978 (April-June) 759,241 201 ,408 - 960,649 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
. .
... +
3,970,883 21,790 4,236,019 148,280 4,524,803 387,406 4,400,610 436,705 4,406,889 444,928 5,473,608 371,309 6,062,872 528,259 5,945,590 693,098 5,626,338 731,612 6,080,812 825,084 6,276,143 646,597
159,625 9,385
24,123 119,955
79,552 10,432 12,904 35,144 25,936 27,203 75,792 30,570 27,727 45,481 51,446
Adjusted to CPI, Eight Capital Cities Index (December 1989 = 100).
1,094,513 766,947 628,979 520,648 477,061 495,273 424,448 402,140 380,494 280,792 289,941
Miscellaneous Items: Traffic fines, breaches of regulations, interest on overdue rents, etc.
. 5,166,738 - 5,161,678 - 5,554,092 - 5,393,107
5,354,814 6,367,393
1,311,609 8,402,980 242,578 7,4 73,601 119,696 6,895,252 124,031 7,380,321 124,139 7,508,221
Government Grant: Section 43 of the Melbourne Wholesale Fruit and Vegetable Market Trust Act 1977 entitles the Trust to receive from the Government, half of the amount paid to the Melbourne City Council in relation to transfer of the market.
Abnormal Item: The Trust contributes each year to a sinking fund operated by the Melbourne City Council. The amount included here represents the Trust's share of the interest earned on the investment of the sinking fund.
Source: Melbourne Wholesale Fruit and Vegetable Market Trust, Annual Reports.
(11 0
--·---.. ~----'"--------- -- --· --------
TABLE 14
MELBOURNE WHOLESALE FRUIT AND VEGETABLE MARKET TRUST: NOMINAL EXPENDITURE, 1918 TO. 1989
Salaries Promotion Total Year Ending and and Administration Cleaning Repairs and Market Operating Finance 30 June Associated Research Expenses• Maintenance Costs .. Charges• ..
Costs Grants
$ $ $ $ $ $ $ $
1978 ( lp'il- Jl.llEt 186,299 - 36,743 29,938 8,023 8,426 165,028 434,457 1979 687,719 3,078 120,844 142,915 55,062 185,599 991,967 2,187,184 ' 1980 808,249 - 158,604 155,253 68,728 193,588 834,711 2,219,133 CJ1
1981 886,740 - 172,990 168,942 126,974 245,582 923.765 2,524,993 ...... 1982 993,738 29,083 270,907 207,268 161,842 251,905 945,703 2,860,446 ' 1983 1,173,955 39,900 252,747 221,928 183,365 314,966 1,021,785 3,208,646 1984 1,257,229 35,225 266,095 227,209 169,243 332,638 1,075,179 3,362,818 1985 1,361,908 102,747 350,931 263,187 454,601 438,381 1,267,411 4,239,166 1986 1,435,324 156,335 418,936 288,990 592,360 503,382 1,399,409 4,794,736 1987 1,566,812 68,917 603,469 361,030 421,257 680,021 1,666,472 5,367,978 1988 1,736,571 103,920 499,746 396,955 716,677 728,835 1,505,236 5,687,940 1989 1,794,226 201,416 436,024 409,521 583,762 772,874 1,536,115 5,733,938
Administration costs include Insurance, rates, audit fees, printing and stationery, etc. Market operation costs Include depreciation of fixed assets, power, uniform, etc. Finance charges comprises interest on loans (Trust and City of Melbourne).
Source: Melbourne Wholesale Fruit and Vegetable Market Trust, Annual Reports.
TABLE 15
MELBOURNE WHOLESALE FRUIT AND VEGETABLE MARKET TRUST REAL* EXPENDITURE, 1978 TO 1989
Salary Promotion Market Year Ending Costs, and Administration Cleaning Repairs and Operating 30 June
etc. Research Expenses Maintenance
Costs Grants
$ $ $ $ $ $ 1978 (April-June) 454,832 89,705 73,091 19,587 20,571 1979 1,526,907 6,834 268,304 317,307 122,251 412,076 1980 1,641,781 - 322,169 315,363 139,606 393,232 1981 1,619,320 - 315,906 308,514 231,873 448,470 1982 1,634,706 47,843 445,644 340,957 266,231 414,386 1983 1,778,181 60,436 382,834 336,153 277,742 4 77,076 1984 1,856,785 52,023 392,992 335,562 249,952 491,269 1985 1,858,245 140,192 478,825 359,104 620,277 598,146 1986 1, 783,676 194,277 520,611 359,128 736,126 625,552 1987 1,818,703 79,997 700,486 419,071 488,981 789,345 1988 1,871,708 112,007 538,635 427,845 772,448 785,552 1989 1, 794,226 201,416 436,024 409,521 583,762 772,874
• Adjusted to CPI, Eight Capital Cities Index (December 1989. 100) .
Source: Melbourne Wholesale Fruit and Vegetable Market Trust, Annual Reports.
-
111:.:111
i
Finance Total Charges
$ $ 402,900 1,060,686
2,202,413 4,856,092 1,695,533 4,507,684 1,686,934 4,611,017
01 1,555,688 4, 705,455 I\)
1,547,690 4,860,112 1,587,918 4,966,501 1,729,310 5,784,099 1,739,044 5,958,414 1,934,384 6,230,967 1,622,372 6,130,567 1,536,115 5,733,938
4iiilj I
i 1~
-53-
31.29% Salaries and Associated
FIGURE 5
MWF&VMT: EXPENDITURE, 1988/89 .
5.2.2 Cost Recovery
The Trust endeavours to recover from Market users all costs associated with the
operation of the Market, as well as providing for necessary capital works. In this
regard, Market charges are increased approximately six per cent annually, or in
line with CPI increases, subject to the approval of the Minister for Agriculture and
Rural Affairs. Reserves are set aside to cover major maintenance works; major
resurfacing of all car parking and concourse areas; developing extra car parking and
office accommodation; loan redemption and early retirements.
5.2.3 Debts Owed to the City of Melbourne
In 1978 the Trust took over the management and operation of the Melbourne
Wholesale Fruit and Vegetable Market from the Melbourne City Council under the
L
-54-
Melbourne Wholesale Fruit and Vegetable Market Trust Act 1977. Under the
provisions of the agreement reached with the Melbourne City Council, the Trust, in
addition to acquiring the Market assets, took over loan and debt liabilities totalling
$9.86 million in respect of loans raised by the Council to establish the Market at
the Footscray Road site in 1969. The sum of $9.86 million comprises the balance of
loans raised by the Council, capitalised revenue costs and accumulated losses
incurred on Market operations in the period 1 December 1969 to 31 March 1978.
Since 1978 the Trust has made annual payments to the Melbourne City Council
covering capital repayments, interest on loans and payments to a Melbourne City
Council sinking fund. Section 44 of the Act provides for a 50 per cent contribution
from the Treasurer of Victoria, of the amount due to the Council in relation to the
transfer of the Market.
The Trust has included in the 1988/89 balance sheet as a liability. debt due to the
City of Melbourne amounting to $3.7 million. However, the Auditor-General's
Office was advised by the City of Melbourne that the amount owed is $1.3 million, a
difference of $2.4 million. Accordingly, the Trust's accounts for 1988/89 received
a qualified report by the Deputy Auditor-General. The matter has been referred by
the Trust to the Department of Agriculture and Rural Affairs for advice. The Public
Bodies Review Committee has been informed that an independent arbitrator, chosen
by the Minister for Agriculture and Rural Affairs, in consultation with the Minister
for Local Government, has been asked to investigate the matter and come to a decision
as a matter of urgency.
The Public Bodies Review Committee recommends that the debt owed to
the City of Melbourne be retired as soon as possible.
5.2.4 Cash Collection Procedures
Serious weaknesses in internal control over the collection of rental income from
casual growers and carrier agents were highlighted by the Auditor-General's Office
on completion of the audit of the 1987/88 accounts. 1t was found that it was not
possible to determine whether all rental income from casual growers and carrier
agents had been brought to account.
0
I
j
__L
-55·
The Auditor-General recommended that:
internal controls be strengthened over the collection of fees; and
management conduct unannounced checks to ensure that all Market users
have the appropriate permit or ticket. 9
In response to the weaknesses highlighted by audit, the Trust commissioned
consultants, Ernst and Young, to carry out a study and evaluation of cash collection
procedures; its report and recommendations were received by the Trust in January
1990.
The Public Bodies Review Committee regards the weaknesses highlighted by audit as
very serious and wishes to emphasise the Important function of management to
ensure that such breakdowns in internal control are rectified immediately and do not
· recur. However, the Committee Is pleased to note that the 1990 Report on
Ministerial Portfolios1 o reported improvements in the control procedures
governing collection of rental income from casual growers and carrier agents.
The Committee recommends that the Trust's management continue to
review and update Internal control procedures governing all Market
operations.
5. 3 Market Facilities
5. 3. 1 Appraisal of Market Facilities
The Melbourne Wholesale Fruit and Vegetable Market is located on a 23 hectare site
at Footscray Road. The Public Bodies Review Committee considers that the operation
9 Report of the Auditor-General on Ministerial Portfolios, May 1989 • Office of the Auditor-General of Victoria.
1 0 Report on Ministerial Portfolios, May 1990 - Office of the Auditor-General of Victoria.
-56-
of an efficient and effective wholesale market is affected by the quantity and quality
of facilities available to Market users.
The main Market building, which is one of the largest single span structures in the
world, accommodates all the merchants and agents stores and the grower-seller
stands. The Trust believes that having all buyers and sellers in the one area .
promotes a healthy competitive environment where prices are an accurate reflection
of supply and demand.
Secondly, the central location of the Market is ideal, being convenient to all
metropolitan buyers which allows ·for their daily attendance, thereby ensuring
consumers have access to fresh produce. 1t is also accessible for a large number of
growers, particularly vegetable growers who can travel to the Market two or three
times a week to sell their produce.
Thirdly, the provision of a rail terminal is particularly beneficial to the merchant
sector. lt is mainly used for transporting bananas from Queensland and New South
Wales and for hard produce such as pumpkins and melons.
Fourthly, other facilities, such as the weighbridge, shops and cafes and a bank on
site service the needs of all Market user groups.
However, the Committee considers that the Trust has failed to meet the demands from
Market users on a number of issues. Demand exists among merchants and agents for
more warehouse space as current storage facilities are inadequate. The absence of
additional space encourages merchants to use warehouse facilities located outside the
Market site providing further encouragement to by-pass the· Market. Additional
warehousing is also required if buyers' demands for a cool storage area and
distribution centre are to be met. Also, if the Trust is seriously interested in
attracting a major supermarket chain to the Market, extra warehouse space would
be required.
Existing parking facilities are very limited and there is an urgent need· to provide
additional parking for all Market user groups. In particular, undercover parking
for buyers is required.
There is also a request. from the flowergrowers for a separate area to be set aside for
the wholesale sale of flowers as they perceive the current Market building to be
•
r··~----·-·-
. .
!
-57-
detrimental to the growth and development of the flower industry. The
flowergrowers also require cool storage space.
Further demands on the limited Market land were highlighted in the strategic plan 11
such as the need to provide an administration centre, a central export facility and to
encourage a processing company to set up at the Market.
The Public Bodies Review Committee considers that the existing landlocked Market
site, does not enable the increasing demands for additional space being made on the
Trust by various Market participants to be met. The Committee considers that, in
order to continue to operate a viable and efficient central market, the Trust must be
in a position to' meet the needs of the current Market users and also to provide the
necessary facilities to entice other groups within the industry to use the Market.
Furthermore, the Trust will need to evaluate the impact of the Docklands
Development plans on the Market site and on Market operations.
The Public Bodies Review Committee is aware that the Trust purchased in October
1988 almost five hectares of land adjoining the Market .on its western side, at a cost
of $2.9 million. However, the Committee has been informed that the Trust will not
have full access to ·the land until the year 2026 due to Crown tease obligations. The
Committee considers the purchase of land tied into a long lease an ill-informed and
costly error and criticises the Trust for such action.
The Committee recommends:
• . That the Trust purchases additional land only if it can gain
early access to the land.
That the Trust prepares and Investigates a range of options
which will redress the problem of lack of space covering the
following:
the possibility of gaining access to all or part of the
Fish Market site;
1 1 Strategic Plan 1987, Arthur Andersen and Co.
5.3.2
-58-
the purchase of additional land which Is situated to the
west of the Market; and
to move the Market to another site.
Additional Use of the Market
The Public Bodies Review Committee considers that the Trust is not obtaining
optimum benefit from the present Market site. lt considers the fact that the Market
is empty for most of Saturday and all of Sunday an inefficient use of resources.
Furthermore, the Market Is empty from 1 0 a.m. onwards, Monday to Friday,
increasing the waste of resources.
The Committee on its visit to the Sydney Market Authority was most impressed by
the optimum use of the Market site by the Authority. In addition to the wholesale
market, the Sydney Market Authority operates a retail fresh food market on
Saturday from 6 a.m. to 1 p.m.; and Paddy's Markets at two locations, Flemington on
Friday and Sunday and at Redfem on Saturday and Sunday. In this way, the Sydney
Market Authority has acquired additional income flowing from these ancillary
operations and is making better and more efficient use of its resources. lt is
estimated that the retail operations contribute 25 per cent of revenue and 50 per
cent of the Authority's profit.
The Committee is aware of the legislative restrictions contained in the Melbourne
Wholesale Fruit and Vegetable Market Trust Act 1977 regarding the utilisation of
the Market site. The Trust is restricted to the operation of a wholesale market for
fruit, vegetables and cut flowers. The Trust may permit use of the Market site for
other purposes, outside Market hours, with the approval of the Minister for
Agriculture and Rural Affairs. However, to permit retail sales of fruit, vegetables,
cut flowers or any other commodity the Minister for Agriculture and Rural Affairs
must consult with the Minister for Local Government before giving consent. The
Committee finds that the restrictions contained in the Act adversely impinge on the
economic welfare of the Market Trust.
•
-59-
The Committee recommends that the Market site should be used for
additional activities which would generate further income for the
Trust and that the Melbourne Wholesale Fruit and Vegetable Market
Trust Act 1977 be amended accordingly.
••
- 6 1 -
6 . CONCLUSION
The Public Bodies Review Committee considers the Melbourne Wholesale Fruit and
Vegetable Market to be an integral part of the economy of Victoria. lt plays an
important role in the distribution of fruit, vegetables and cut flowers; a role which
the Committee believes will continue to be relevant for the foreseeable future. The
Market has served the people well including growers, merchants, retailers and the
consumer. However, the industry is continually developing and adapting to a wide
variety of technological changes and the Market needs to continue to keep abreast of
industry happenings.
The Committee would like to see the Trust adopt a more entrepreneurial attitude in
its management of the Market so as to obtain maximum benefit from the facility
itself. The Committee recognises the tendency for produce to by-pass the Melbourne
Market (particularly vegetables) as a major threat to the continued viability of the
Market. The Trust needs to act now to arrest this trend and ensure the Market
remains the main venue for the wholesale sale of fruit, vegetables and cut flowers.
Furthermore, the Committee believes that the proposed change in membership
composition will contribute to a change in Trust attitude from that of a fire-fighting,
reactive body to a progressive, innovative Trust, able and willing to implement new
policies which will lead the Market into the next century.
The Committee proposes the Trust considers and evaluates the Committee's
recommendations with a view to their implementation in the near future.
The Committee recommends that the Melbourne Wholesale Fruit and
Vegetable Market Trust be reviewed again by the Public Bodies Review
Committee after the expiration of five years.
Committee Room
3 October 1990.
* *
j
i
1
,. ~- .
·63·
ATTACHMENT 1
LIST OF WRITTEN SUBMISSIONS AND PUBLIC HEARING PARTICULARS
•
-65-
LIST OF WRITTEN SUBMISSIONS
(a) Submissions addressed to the Committee:
Mr. A.T. Brentnall.
Citrus Management Company Limited (Mildura) on behalf of Citrus Fruit Marketing Board and Murray Valley (N.S.W.) Citr.us Marketing Board.
Cobram Barooga Citrus Growers Association.
Mr. D. Marrows.
Melbourne Wholesale Fruit and Vegetable Market Trust.
Mid-Murray Citrus Growers Incorporated (N.S.W.).
N.S.W. Citrus Growers Council.
Northern Victoria Fruitgrowers' Association Ltd.
The Orchardists and Fruit Cool Stores' Association of Victoria.
Rowse Bros. Pty. Ltd.
Sunraysia Districts Citrus Co-operative Society Limited (Mildura).
Vegetable Growers' Association of Victoria.
Victorian Farmers Federation Flowergrowers Group.
Victorian Fruit and Vegetable Wholesalers' Association Incorporated (3 submissions).
Yarra Valley Market Users Group.
(b) Submissions received by B. Casey and subsequently referred to the Commlttee:12
Australian Citrus Growers Federation (South Australia).
Banana Industry Committee (Queensland).
Citrus Management Company Ltd. (Mildura) on behalf of: Citrus Fruit Marketing Board and Murray Valley (N.S.W.) Citrus Marketing Board.
Committee of Direction of Fruit Marketing (Brisbane).
Country Fruit and Produce Buyers Association Inc.
1 2 Submissions received by B. Casey (Department of Agriculture and Rural Affairs) as part of his review of the Melbourne Wholesale Fruit and Vegetable Market Trust Act 1977 and the Regulations made under it.
G
f I
- 6 6-
Country Fruit and Produce Buyers Association Inc.
Mr. E. Crow (Narre Warren).
Eastern Metropolitan Fruitgrowers Association (Warrandyte).
J.D. Cairns Orchard (Merricks North).
The Hon. D.E. Kent (Yannathan).
Marketing Unloading Association (Footscray).
Mr. D. Marrows (Mildura).
Mid-Murray Citrus Growers Incorporated (N.S.W.)
Mr. J.H. Noonan (Dixon's Creek).
N.S.W. Citrus Growers' Council.
N.S.W. Department of Agriculture and Fisheries.
Orchardists' and Fruit Cool Stores' Association of Victoria (Footscray).
Rossie's Transport and Produce Merchants (N.S.W.).
Mr. J. Scopelliti (Buronga, N.S.W.).
Sub-Zero Refrigerated Freight Lines (Footscray).
Sunraysia Districts Citrus Co-operative Society Ltd. (Mildura).
Victorian Farmers' Federation-Flowergrowers' Group.
Vegetable Growers' Association of Victoria.
Victorian Fruit and Vegetable Wholesalers' Association Incorporated.
Victorian Retail Fruiterers Association.
Waikerie Co-operative Producers Limited (South Australia).
Ms. J. Westwood (East Trentham).
19 March 1990
2 April 1990
-67-
PUBLIC HEARING PARTICULARS
Melbourne Wholesale Fruit and Vegetable Market Trust
Chairman Deputy Chairman 2 Members Chief Executive Officer
Department of Agriculture and Rural Affairs Manager, Plant Standards Branch and Deputy
Chairman of the Trust Manager, Market Information Acting Manager, Agribusiness and Trade
Development
Mr. L. Lethlean, Director, Exhibition Trustees, Royal Exhibition Building (former Chairman of the Trust)
Victorian Fruit and Vegetable Wholesalers' Association Inc.
Secretary/Manager President
Citrus Fruit Marketing Board
Murray Valley Citrus Marketing Board (N.S.W.)
Citrus Management Company Ltd.
Mid-Murray Citrus Growers Inc. Chief Executive Chairman President Secretary
i
0
- 6 9-
I
BIBLIOGRAPHY
0
t
• 7 1 •
BIBLIOGRAPHY
Adelaide Produce Markets Limited: Annual Report, 30 June 1989.
Arthur Andersen and eo.: Melbourne Wholesale Fruit and Vegetable Market, Strategic Plan, May 1987.
Austrade: Fruit and Vegetable Export Newsletter, November 1989
Australian Bureau Statistics (ABS):
Apparent Consumption of Foodstuffs, Catalogue No. 4306.0; Crops and Pastures, Catalogue No. 7321.0; Fruit, Catalogue No. 7322.0; Selected Agricultural Commodities, Catalogue No. 7112.0; Summary of Crops, Catalogue No. 7330.0; · Victorian Year Book, 1990; Year Book Australia, 1986 and 1989.
Australian Flower Growers' Council: Proceedings of Australian Floriculture Conference, 30-31 July 1988.
Brisbane Market Trust Annual Report, 30 June 1989.
Casey, B: Discussion Paper on the Melbourne Wholesale Fruit and Vegetable Market Trust Act, April 1989.
Chandler, P. & Hirsh, B.: Marketing of Fresh Fruit and Vegetables in Victoria, March 1987.
Cole, C.E.: Melbourne Markets, 1841-1979.
Committee of Direction of Fruit Marketing, Annual Report 1988/89.
Commonwealth of Australia: Business Regulation Review Unit and Government of Victoria: Regulation Review Unit: Report of an Inquiry into Food Regulation in Australia, November 1988.
Department of Agriculture and Rural Affairs:
Annual Reports to Parliament 1987/88 and 1988/89;
Fresh Centre Weekly Reports - various weeks;
Market News Service - various days:
Review of the Farm Produce Merchants and Commission Agents Act, July 1987; and
State Supervising Officers Report. Plant Exports, Victoria. 1988/89.
Department of Agriculture and Rural Affairs and Department of Management and Budget: The Victorian Cut Flower Industry - Issues and Opportunities, A Discussion Paper, July 1987.
• i
,------------------------···················-----
-7 2-
Department of Industry Technology and Resources with Department of Agriculture and Rural Affairs: Fresh Horticultural Exports from Sunraysia - Realising the Potential, September 1985.
Economic and Budget Review Committee: 26th Report to the Parliament - Report on matters arising from the Auditor-General's 1987/88 Report on Ministerial Portfolios, May 1990.
Ernst and Young: Report on Cash Collection Procedures and Stand Allocation, January 1990.
Industries Assistance Commission - Report No. 410. Fresh Fruit and Fruit Product Industries, February 1988.
Report No. 384: Vegetables and Vegetable Products, April1986.
Lloyd, A.G.: Rural Economics Study, A Report to the Minister for Agriculture and Rural Affairs, July 1986.
Melbourne Wholesale Fruit and Vegetable Market Trust (MWF & VMT):
Annual Reports, 1978 to 1988/89.
Consideration of Certain Aspects of the Operation of the Melbourne Wholesale Fruit and Vegetable Market, December 1985.
Minutes and Agenda Papers of Trust Meetings, 1988-1990.
Metropolitan Market Trust, Perth, Western Australia: Annual Report, 1988/89.
National Agricultural and Resources Outlook Conference: Various Papers on the Horticultural Industry: 1986-1990.
National Farmers Federation: Australian Agriculture, The complete reference on rural industry 1989/90.
Parliament of Victoria:
Farm Produce Merchants and Commission Agents Act 1965;
Fruit and Vegetables Act 1958;
Melbourne Wholesale Fruit and Vegetable Market Trust Act 1977;
Melbourne Wholesale Fruit and Vegetable Market Trust Regulations 1978; and
Vegetation and Vine Diseases Act 1958.
Parliament of New South Wales:
Sydney Farm Produce Market Authority Act 1968; and
Sydney Farm Produce Market Authority (Amendment) Act 1985.
Quarterly Review of the Rural Economy, December 1987, March 1988.
-73·
Report of the State Development Committee on the Administration and Operation of the Melbourne Wholesale Fruit and Vegetable Market, June 1973.
Sydney Market Authority, Annual Reports, 1988 and 1989.
Sydney Market Authority • various explanatory guides and leaflets.
World Union of Wholesale Markets Congress, 17-2219/1989 - various papers.
•
