WESTERN Australia’s Spud King Tony Galati has welcomed the decision to scrap potato regulation, saying it is a win for all growers and consumers.

Agriculture and Food Minister Dean Nalder confirmed WA’s potato industry will be deregulated from July 1, 2016.

WA has long been the only state with a regulated potato market, in which the Potato Marketing Corporation controls prices, varieties and how many spuds can be planted by 78 potato-growing families who pay fees.

Mr Nalder said the Government would fund a $14 million industry adjustment package to transition growers, many of whom have been fighting for the change.

The ruling is a big win for Baldivis potato grower Tony Galati, the man behind the Spud Shed fruit and vegetable empire, who has fought a high-profile battle against the WA Potato Marketing Corporation, which landed him in the WA Supreme Court.

Mr Galati said: “I’m quite ecstatic”.

“I’m very happy, and it’s a victory not just for me, but for our family, our staff that’s been with us all these years trying fight for a democracy — but the biggest winners are the people from Perth.

“West Australians can now enjoy the same rights as the rest of Australia.

“Perth now has more variety, and it’s now going to be more price-competitive”.

Referring to the $14 million assistance package, Mr Galati said: “Things are pretty tough at the moment, we’re lucky we have a bit of assistance.’’

Mr Galati, who briefly flirted with the idea of running for politics after an April 1 prank grew legs, said: “My life and focus is my business and the political side would’ve been a secondary part for me. Apparently you have to basically not work, just work in politics. My passion is my business”.

In revealing the end of potato regulation Mr Nalder said: “This will end the uncertainty for the State’s growers who provide high-quality potatoes for our local market, as well as the packers, processors and transporters.”

The Minister said the Potato Growers Association of WA Inc (PGA) had confirmed to Government that the vast majority of growers wanted deregulation brought forward and requested a suitable adjustment package to support producers through the change.

“We will sit down with industry to discuss the most appropriate way of ensuring the package

provides the most equitable distribution of funds to potato growers,” he said.

CCI WELCOMES POTATO DECISION

The WA business community welcomed the potato industry deregulation.

Chamber of Commerce and Industry of Western Australia (CCI) Chief Executive Officer Deidre Willmott said the archaic regulations had made WA a laughing stock nationally.

“Lifting these ridiculous restrictions will stimulate growth and competition in Western Australia’s potato industry,” Ms Willmott said.

“The Economic Regulation Authority had estimated that potato market regulation would cost the State economy $33 million over the next 15 years, so the removal of this economic burden is certainly a welcome saving for the budget.

“CCI has long called for deregulation of the potato industry and we thank the State Government for finally following through on their commitment and for further removing unnecessary red tape that hinders the business community.”

Regional Development Minister Terry Redman said the package would support growers and included $2 million for industry development.

“Industry will be supported with funds matched dollar-for-dollar, allowing it to undertake research and development, invest in marketing and retain access to varieties,” Mr Redman said.

“I have been advocating hard for a suitable package to help this industry moving forward with deregulation and I believe a smooth transition will be possible in coming months.

“At a recent meeting in Manjimup attended by 150 growers and industry participants, there was unanimous support to bring forward deregulation and I gave my commitment for Royalties for Regions to support the adjustment package.”

Under the Government’s decision, the Potato Marketing Corporation of Western Australia (PMC) will wind up its operations by the end of 2016.

The next steps involve consultation about the repeal process with key stakeholders including the Potato Marketing Corporation, Department of Treasury, the Potato Growers Association, vegetablesWA, and wash packers and processors.

“Following deregulation, growers are expected to focus on gourmet and seed potatoes, which in unregulated markets offer higher prices than standard lines. Growers seeking economies of scale may also move into producing processing potatoes. Growers of other vegetables may also produce potatoes as a profitable rotation option,” Mr Nalder said.