Sussan Ley (Farrer, Liberal Party, Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry) Share this | Hansard source

I thank all members of the House for their contributions to this debate on the Forestry Marketing and Research and Development Services Bill 2007 and the Forestry Marketing and Research and Development Services (Transitional and Consequential Provisions) Bill 2007. The forestry industry is important to Australia as it contributes significantly to our national economy and exports. Research and development makes a positive contribution to the productivity and sustainability of the Australian forestry industry. When combined with generic marketing and promotion, it will increase the competitiveness of Australia’s forest and wood products in the international market.

I thank the member for Hotham for his support for the continuation and expansion of forest research and development to include the promotion of Australia’s forestry industry, although I must correct him on one small point: the new arrangements do not result from the Uhrig review but rather from the expressed desires of the forestry industry to broaden the scope and capacity of the industry research and development provider to include marketing and promotion to its already strong track record on research and development. The Forestry Marketing and Research and Development Services Bill 2007 will provide the power for the government to declare an industry owned company as the industry services body for the forestry industry.

I also thank the member for Corangamite for his support and echo his comments that the development and promotion of a sustainable forest can only be beneficial to Australia and those Australians who depend on forestry for their livelihood. In fact, in my own electorate of Farrer the forestry industry is a major employer and economic driver.

Good research and development coupled with promotion and marketing is an important requirement for the industry to remain strong and competitive. This legislation is an important step forward for the Australian forestry industry. The establishment of public companies or industry services bodies to undertake the delivery of marketing, research and development and other services to the agricultural industries is not a new concept. The legislation follows the precedent set by other industries. It closely resembles other industries’ legislation but has been tailored to meet the specific requirements of the circumstances of the forestry industry and the operating arrangements of the Forest and Wood Products Research and Development Corporation. Under these new arrangements, there will be accountability to the levy payers as members of the company and to the government through the funding contract. The constitution of the new company, which is to be the industry services body, and the funding contract are being developed. The funding contract will be tabled in both houses of parliament after it is signed off. Recent practice has been to table the funding contracts in parliament after signing.

The legislation will provide for the establishment of a new industry services body for the forestry industry that will give industry the opportunity to better promote the environmental values of wood products as well as increase access to domestic and international markets. The industry services body will undertake generic marketing and promotion, research and development, and other industry services to the forestry industry. Integration of research and development and promotion will enable the forestry industry to be responsive in a unified voice to deal with the challenges currently facing the industry. It is hoped that the establishment of this new industry services body will also improve communication within the industry and with stakeholders and the government. By being able to better promote the industry and improve communication, access opportunities to the domestic and international markets for Australian forest and wood products will be maximised.

The company that is declared as the industry services body will be limited by guarantee under the Corporations Act 2001 and will assume the research and development activities that are currently provided by the statutory authority, Forest and Wood Products Research and Development Corporation. The company will have a skills based approach to its board membership and advisory committees. This will allow interested parties seeking positions within the company to be considered, based on their skills set and the desired skills set of the company. Members of the company will have the opportunity to nominate and vote for board members.

The accompanying bill provides for the one-off transfer of assets and liabilities and the corporation’s existing employees to allow the new industry services body to function from day one with funds and without any disruption to the current research and development work. The transferring employees will support the interim board of the industry services body which will be made up of most of the current serving board of the corporation to ensure a smooth transition from the corporation to the industry services body.

The Commonwealth values the outputs of research and development, and the legislation will provide for the Commonwealth to continue to match, dollar for dollar, funds spent by the industry services body on eligible research and development. The new industry services body will be accountable to the Commonwealth. It will be bound by a number of measures outlined in the legislation, the funding contract and the company constitution. Should a variety of circumstances occur such as the company constitution is changed in an unacceptable way, the industry services body fails to comply with the legislation or the funding contract, or the company ceases to carry on business, the minister will have the ability to suspend the payment of statutory levies and other relevant payments and/or declare that the company ceases to be the industry services body.

The transition from the existing statutory authority, Forest and Wood Products Research and Development Corporation, to the new industry services body provided for in this legislation will unite and strengthen Australia’s forestry industry to remain productive and sustainable into the future.

The Forestry Marketing and Research and Development Services Bill 2007 and the accompanying transition bill are the result of a partnership approach to forestry matters between the government and the forest industry. It aims to provide the industry with greater ownership and control to enable them to be responsive to the markets and to have the capacity to respond more effectively and efficiently to current and emerging challenges. Ultimately this will mean increased access to domestic and international markets and improved sustainability and profitability of the industry.

Once again, I thank those who spoke on the legislation. I have not mentioned the member for Wills, the member for Batman and the member for Lyons. I thank them, as well as the members for Corangamite and Hotham. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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