The proposed reforms would dismantle the long-standing Dairy Food Safety Victoria, and combine it with several other industry bodies, forming a multi-industry regulator, Food Safety Victoria.
The Australian Dairy Industry Council has expressed concerns that the financial assets of the current regulator would be lost during the proposed reforms.
The chair of the council, Ben Bennett, said that these funds were of significant value for the dairy industry, coming from licensing and fees, not the taxpayer.
“These reserves safeguard the Victorian dairy sector, they are prudential funds held to manage risk and compliance,” Mr Bennett said.
The chief executive officer of the Australian Dairy Product Federation Janine Waller told Country News that initially the government gave reassurances, but these had since been wound back.
“These are licences paid by dairy farmers, dairy processors, money that they have generated, but potentially it's going to go into a black hole,” Ms Waller said.
“At the start we were told that [the funds] would be ring-fenced for dairy specifically if there was to be reform progress.
“Now we've been given no guarantee as to what's to happen to that money.”
When Country News expressed these concerns to a spokesperson for the government, they indicated that under the proposal, the existing assets of Dairy Food Safety Victoria would be held and transferred to the new regulator.
The government spokesperson clarified to Country News that the $6 million would not become consolidated revenue, and be lost into the machine of government reform.
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