Chris Trevor (Flynn, Australian Labor Party) Share this | Hansard source

I rise this afternoon to speak on the Rural Adjustment Amendment Bill 2009. This bill amends section 7 of the Rural Adjustment Act 1992 to allow for the appointment of National Rural Advisory Council, NRAC, members for three terms. The proposed amendment will remove the current provision that a person may, on one occasion only, be reappointed as a member. The Rural Adjustment Act 1992 specifies that NRAC’s main role is to provide advice on rural adjustment and regional issues, including whether areas should be assessed as being in exceptional circumstances, EC. The bill will ensure that current or previous members who have developed considerable expertise in undertaking EC assessments through membership for two terms can serve an additional, third, term and continue to contribute to NRAC.

The National Rural Advisory Council is a skills-based independent advisory council to the Australian government Minister for Agriculture, Fisheriesand Forestry. NRAC was established in December 1999 as a statutory consultative body following legislative changes to the Rural Adjustment Act 1992. It replaced the Rural Adjustment Scheme Advisory Council and expanded the range of roles and functions of the original council. NRAC advises the Minister for Agriculture, Fisheries and Forestry on rural issues, including EC applications and extensions to EC declarations.

Currently NRAC consists of a chairperson and not more than seven other members. The members are appointed by the minister on a part-time basis. At least one member is appointed to represent the states, at least one member is an officer of the Department of Agriculture, Fisheries and Forestry who is appointed to represent the Commonwealth, one member is appointed to represent the National Farmers Federation and the other members are appointed because of their expertise in economics, finance and administration, banking, sustainable agriculture, regional adjustment, regional development and farm management or training.

Four of the eight current members’ second terms expire on 30 June this year and, without the proposed amendment, those members will be unable to serve a third term. The amendment will mean that current members, who have developed considerable expertise in undertaking EC assessments, can continue to make significant contributions to NRAC by serving a third term.

A streamlined review process was introduced by the Australian government to make it easier for farmers who have not experienced a break in the drought to have their EC declarations assessed for a possible extension. Under the review process, NRAC reviews EC declared areas before their expiry date to assess whether an extension to the declaration is warranted. As part of the review, NRAC assesses information from a number of sources, including the National Agricultural Monitoring System, analysis provided by the Bureau of Rural Sciences and the Australian Bureau of Agricultural and Resource Economics, state and local governments and local producers. Additionally, NRAC may undertake an inspection tour of the area. I implore members to continue to undertake an inspection tour of all areas under consideration.

If NRAC assesses an area as no longer being in exceptional circumstances and the minister accepts advice not to extend the declaration, assistance ceases on the date the declaration ends. If NRAC supports extending the declaration and the minister agrees, assistance continues until the new declaration end date. Exceptional circumstances assistance is the Australian government’s main mechanism for providing assistance to eligible farmers and small business operators who are experiencing a severe downturn in income due to rare and severe climatic or other events. The rationale for providing EC assistance is to ensure that eligible farmers and small business operators with long-term prospects of viability are not forced to leave the land or the business due to short-term adverse events which are beyond their ability to manage.

Australian farmers have, to a large extent, been successful in managing the inevitable booms and busts that occur in agriculture. It is a way of life for them. They work very hard and are an extremely resilient bunch of Australians. They have done this by developing flexible farm management practices and plans which minimise the risk to their farm business of changes in prices, seasonal conditions and personal circumstances. They have also achieved this through other means such as using investment opportunities, savings strategies and private insurance where it is available.

Australian state and territory government rural policy encourages continued improvements in efficiency and competitiveness in all rural industries. The role of government is therefore to assist farmers enhance their skills in key areas of risk management, business planning and natural resource management. Agriculture, fisheries and forestry industries are a vital component of the economic security of my electorate of Flynn. Compared to other electorates, Flynn is ranked 10th in the proportion of people employed in these sectors—some 14 per cent. In comparison to other electorates, Flynn was ranked eighth in the total number of people employed in the agriculture, fisheries and forestry industries, with the beef industry being the largest. Over 4,700 people are employed in this industry. There are over 6,700 businesses in Flynn in the agriculture, fisheries and forestry industries, which is equal to 43 per cent of all businesses in my electorate. In comparison to other electorates, Flynn is ranked fifth in the number of businesses in these industries.

My electorate of Flynn has a diverse range of agriculture, fisheries and forestry industries, including but not limited to beef, sheep, sugar cane, fruit and vegetable growing, sawmilling, pig farming, cotton growing, grape growing, fishing, logging, dairy farming and nut growing, to name a few. Agriculture, fisheries and forestry industries are a vital component of my electorate, with a total gross value of over $1.6 billion, which is 18 per cent of the entire gross value for Queensland.

My electorate of Flynn is known as the industrial hub of Australia because of our coalmines, aluminium plants, power stations, deep-sea ports and many other associated industries, including the proposed LNG industry for Gladstone. Only a few hours ago, Australian oil and gas company Santos and its Malaysian joint venture partner Petronas announced the first binding sales contract for Queensland to produce liquefied natural gas. This announcement is a significant step in the development of the project, which is set to inject up to 6,000 much-needed jobs into regional Australia. I congratulate Santos and its partners. This news today means that Australia is set to become a significant exporter of cleaner energy to fuel economic growth in Asia, while creating thousands of jobs here at home, in particular in my electorate of Flynn.

In addition, and getting back to the point, the electorate of Flynn also contributes enormously to the Australian economy through the agriculture, fisheries and forestry industries. These industries are a vital component of the economic prosperity of my electorate. They are the lifeblood of many rural and regional towns and communities in Flynn, creating wealth and employment for these areas. They keep the local corner store open, they keep the local hardware store open, they keep the local school open and the local clothing store open. Australia was built on the back of these industries.

Unlike many other industries, family businesses in the agriculture, fisheries and forestry industries are often handed down through generations. To the people involved in these industries—and there are thousands of them—it is not just a job; it is a family tradition, a way of life, a certain culture, a certain existence. To these many hardworking people the weather can be both cruel and kind. Often their livelihoods depend on: ‘Will it rain; won’t it?’, ‘Will it hail; won’t it?’, ‘Will there be a bushfire or won’t there?’ or ‘Will it flood or won’t it?’

The Rural Adjustment Amendment Bill 2009, which will allow for the reappointment of National Rural Advisory Council members for two subsequent terms after their initial term, is an important and integral component of the agricultural, fisheries and forestry industries in my electorate. Passage of this bill will ensure that members who have developed considerable expertise can continue to make significant contributions to NRAC and to the government. May their decisions be just and equitable, fair and reasonable, and in the best interests of farmers in my electorate, many of whom continue to do it extremely tough, especially in the Burnett area. As I have said before, I implore them to continue to visit all areas before recommendations are made. Farmers are our lifeblood and the heart and soul of this nation. I commend this bill to the House.

See this speech in context