Damian Hale (Solomon, Australian Labor Party) Share this | Hansard source

I stand today to make my contribution to the government’s Australian Wine and Brandy Corporation Amendment Bill 2009 which will amend the Australian Wine and Brandy Corporation Act 1980 to allow the Australia-European Community Agreement on Trade in Wine to come into force. In addition to this it will further protect Australia’s reputation for the production of wines of quality and integrity by strengthening the Australian Wine and Brandy Corporation’s Label Integrity Program and correct, via updates and modernisation of the previous legislation, numerous weaknesses within the compliance provisions of the Australian Wine and Brandy Corporation Act 1980.

On 1 December 2000 the Australia-European Community Agreement on Trade in Wine was signed by Stephen Smith, the Minister for Foreign Affairs. For many this date will be forever remembered for a simple stroke of a pen that concluded the long and drawn out negotiations. The signing of the agreement represents the culmination of protracted negotiations spanning some 14 years, since the signing of the original agreement in 1994—an agreement which left much to be desired. The new agreement finalises negotiations on numerous issues from the initial agreement that were never of a satisfactory standard. This includes issues such as geographical indications and traditional expressions. Fortunately, after 14 long years in which extensive consultations were conducted with the Australian wine industry, the Department of Foreign Affairs and Trade, the Attorney-General’s office, IP Australia and the Australian Government Solicitor, these issues have been resolved.

The agreement represents a solution to every problem and loophole found in the agreement signed in 1994. Effectively, it fixes the problems that the previous agreement did not, taking a very positive step in supporting and strengthening not only the Australian wine industry but also the ties it has with its European counterpart and the large, lucrative European market. As the Winemakers Federation of Australia noted, this agreement ushers in a new era of cooperation with the European Union, which will not just bring mutual benefits for our respective wine industries but also help cement wider relations.

As the Winemakers Federation of Australia has said, the agreement represents a positive step in building stronger relationships with the European Union, but it is important to remember that this is not the only positive to come out of the negotiations and the final agreement. There are also many other benefits that have come as a result, benefits that the winemakers of Australia are keen to realise. The numerous key benefits to Australia’s wine producers are the European recognition of an additional 16 Australian winemaking techniques, simpler arrangements for approving winemaking techniques that may be developed into the future, simplified labelling requirements, European protection of 112 Australian registered geographical indications, labelling requirements for Australian wines sold in European markets and an effective dispute resolution system for trade related disputes.

The method by which the agreement has brought about these benefits is through the clarification of the intention of the original agreement by redefining, expanding and strengthening a number of provisions, the most important being the assurance of the preservation of Australia’s reputation as a producer of wines of quality and integrity. This also allows the promotion and enhancement of Australian winemakers’ assets in the large and valuable European market, which was worth over $1.3 billion in exports in 2007-08 alone, representing over half of Australia’s wine exports for that year.

In summary, this agreement basically allows producers to make fewer changes and concessions to sell their wines in the European Community. As a result of this easing of trade barriers, Australian winemakers’ techniques will be accepted and the requirements for everything from labelling and blending rules to alcohol levels will be much simpler. It effectively means the European Community implicitly recognises the provenance and prestige of Australian wines. For the winemakers of Australia this means that they can now market themselves independently. No longer will they need to hide behind European names. They can stand freely and be recognised. For wineries in Australia this is perhaps one of the most positive outcomes of this agreement. It will allow them to stand alone as a representation of their own independence and quality in the valuable European market.

However, despite all the benefits that this agreement will provide to winemakers in Australia, amendments must be made to our domestic legislation to bring them into effect, amendments that are presented in this bill. This fact alone demonstrates how important the bill is to winemakers. It represents an excellent opportunity for winemakers here in Australia to capitalise on the potential of the agreement. The first of these amendments is purely to ensure that the protection of geographical indications and translations of geographical indications meet Australia’s international obligations under the World Trade Organisation Agreement on Trade-Related Aspects of Intellectual Property Rights. The changes will provide rules for the protection of foreign countries’ geographical indications, translations of foreign countries’ geographical indications and traditional expressions and the introduction of provisions by determining geographical indications.

The changes also provide a determination process for foreign countries’ geographical indications and translations of geographical indications. These amendments will effectively protect Australian and European wine distributors from misuse in Australia. In addition, the amendments also resolve issues regarding the meaning of ‘false, misleading and deceptive practices’ in relation to geographical indications. These are all very important amendments in this bill.

Section 42 makes it an offence to sell, export or import wine in trade or commerce with false description. This is to ensure the geographical indications, traditional expressions, quality wine terms and other terms that are protected under the agreement have adequate protection against misuse. Under the current system the mental element of intention must be presented in order to prosecute someone for selling, importing or exporting a wine with a false or misleading description and presentation. This meant that if a person could provide incontestable evidence that they had no intention to mislead they would avoid liability. The amendments change the offence provisions to make it an offence if the sale, importation or exportation of wines is performed with the party or parties being reckless to the fact that the wine was false or misleading in its description and presentation. By changing the fault element to recklessness, the barrier to prosecution can be improved, making it easier to take action against any parties that commit this offence. It also brings offence provisions in line with the Criminal Code Act 1995.

Other changes extend record keeping requirements for the members of the grape and wine supply chain, whose actions are captured by the Label Integrity Program which operates under the Australian Wine and Brandy Act. The changes to the Label Integrity Program will benefit both consumers and the Australian wine industry by helping to ensure that Australian wine labels are truthful and accurate in relation to their origin and characteristics. Implementing this system will allow the Australian Wine and Brandy Corporation to trace a batch of wine from the retailer to the vineyard and confirm details that appear on the label are consistent at each point of the supply chain. This coverage will be extended to all wines. The additional reporting requirements for those captured by the Label Integrity Program will not be onerous, will not increase the reporting demands on the supply chain and will reflect was is generally considered to be sound business reporting practice. By having records at each point of the supply chain the integrity of the label can be confirmed. These amendments will strengthen the Label Integrity Program and increase the veracity of labels.

Another important change is to the compliance provisions in the bill. Changes will be made to rectify identified weaknesses in the compliance provisions of the Australian Wine and Brandy Act. The objective of these changes is to provide the Australian Wine and Brandy Corporation with the means to protect the reputation of the Australian wine industry for quality. Where a person is performing actions that may be contrary to the act, the change will provide the Australian Wine and Brandy Corporation with the power to apply an injunction to stop or to direct a person engaging in an action that may be contrary to the objects of the act.

All of these amendments culminate in a representation of every area that needs to be changed to maximise the benefit for the Australian wine industry and maximise its potential to expand further into the prosperous European market. It has become quite clear, through support of this bill from the wine industry, that they are very keen to see these changes come into force. The Australian Wine and Brandy Corporation, as the responsible authority, requested the amendments, which are supported by the Winemakers Federation of Australia, the national representative body of winemakers. This federation holds voluntary membership from parties that represent 95 per cent of the wine produced in Australia. The amendments will have been discussed and supported by the Legislation Review Committee of the Australian Wine and Brandy Corporation, which consists of representatives from the Wine Federation of Australia, an independent lawyer and representatives of the major wine companies in Australia. The representative group, Wine Grape Growers Australia, also attended the committee and supported the amendments, including the requirement the wine grape growers keep a record of geographical indication in which the grapes were grown. The legislation review committee advised that the industry would derive considerable benefits from the enhanced Label Integrity Program and improved compliance provisions that will assist in preserving Australia’s reputation as a producer of wines of quality and integrity.

This bill, which is widely supported by all the parties involved in the agreement negotiation process, will not only bring the agreement into force and allow the winemakers to benefit from the outcome of over a decade of negotiations but also provide improvements in label integrity and in the compliance provisions. With so much support for the bill from within the very industry it will regulate, it seems infallible that the bill will serve only to benefit the Australian wine industry and is thus worthy of receiving royal assent. The sooner it does, the sooner the Australia-European Community Agreement on Trade in Wine can enter into force and the sooner the Australian wine industry can start to enjoy the benefits that come with it, as well as the other benefits that will arise from the bill—benefits that have been long deserved by all of Australia as well as the Australian wine industry. For people working in the wine industry anywhere in Australia, whether it be in the Barossa Valley, the Margaret River area or the districts of winemakers in southern parts or in the Northern Territory, this bill is good news. I must admit that I googled to see if there was a winery in my electorate of Solomon, and its phone has been disconnected. The bill represents a positive step into a new, prosperous era for the wine industry of Australia. Having said that, I might just go and enjoy a nice glass of shiraz over dinner. I will finish those comments there. I fully support the bill and I commend the bill to the House.

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