Peter Garrett (Kingsford Smith, Australian Labor Party, Minister for School Education, Early Childhood and Youth) Share this | Hansard source

The member has asked a series of questions. I am not sure that I got each and every single one noted down, but certainly those questions that I do not address directly here I will take on notice, as is the appropriate process in this consideration in detail.

In relation to a question that the member has asked around the Food and Grocery Council and a set of figures that she has referred to from Citigroup, I will take that particular question on notice, as I represent the minister, as I will the questions she raised about whether or not there has been any Treasury modelling done in relation to that question that she asked. I have seen some of the commentary from the Food and Grocery Council. We recognise that, like other major stakeholder groups, they play a legitimate role in putting a view into the debate around the price on carbon and other related issues. However, we are particularly mindful that the high Australian dollar and the higher input costs do produce some pressures on the food processing industry.

One of the most important things that we as a government can do is to assist in innovation, to develop an innovation strategy. I note that the minister has announced the establishment of a food processing industry strategy group, and also of a food industry support network, operating through Enterprise Connect, to enhance business development and innovation services provided to the sector. This is clearly something which the government is addressing and is mindful of, and the government does intend to consult key stakeholder groups during coming months in relation to those issues—not only on those issues that the government knows are important to the Food and Grocery Council and the food industry generally, but also more generally, in relation to making sure that our industries have the best opportunity they can to respond to the challenges they face.

The member has asked me questions in relation to Commercialisation Australia. I will take those questions on notice. In relation to the questions that the member has asked me about the R&D tax credit, I make the point to the member opposite that the purpose of the R&D tax credit is to replace the existing R&D tax concessions, which was strongly recommended by the review, as the member would know, of the National Innovation System. This is an important review, it is long overdue, and we are committed to delivering it. The government has made clear that the new R&D tax credit is to focus assistance on activities that are likely to deliver economy-wide benefits—that is the key here—that would not be enjoyed otherwise in the absence of public support. This will mean that there is an extension of government support for genuine research and development, encouraging many more Australian companies, especially smaller firms, to invest in research and development. Again the member has asked questions in relation to Treasury modelling, and again those questions specifically will be taken on notice. I would make the point that the new R&D tax credit is not a cost-saving measure. Eligibility criteria have been rationalised, yes, but the key intent of this tax incentive is to improve Australia's innovation and productivity performance, and that happens by us having the opportunity to deliver something which will support genuine research and development. It is intended to assist genuine research and development activities, and it does not discriminate against any industry sectors. I commend the minister for his very good work in this area.

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