Luke Hartsuyker (Cowper, National Party, Deputy Manager of Opposition Business in the House) Share this | Hansard source

I welcome the opportunity to speak on the motion that is in my name. The New South Wales north coast has endured floods, damaging winds and torrential rain on a number of occasions in the last two years. The unusually wet weather in late 2010 and early 2011 has devastated our local sugar industry. Many farmers planted crops twice and lost both crops to the wet weather, leaving them with no possibility of a harvest but still out of pocket because of the substantial cost of planting. There are currently some 6,000 hectares of land in northern New South Wales which should be covered with sugar cane but lie unplanted. The New South Wales Canegrowers Association is working with the affected parts of the industry to develop solutions to this problem.

I am calling on the government to match the assistance provided to the Queensland and Victorian farmers following the natural disasters in those states. New South Wales's support measures currently fall some $10,000 short of the assistance available for farmers in Queensland and Victoria, who are able to access up to $25,000 re-establishment assistance in flood declared areas. Unlike in other areas, New South Wales sugar cane is primarily a two-year crop, so the impact of poor conditions in late 2010 will flow through until at least 2012. Canegrowers New South Wales estimates that the 2012 harvest could be 50 per cent lower as a result of poor weather. Canegrowers in northern New South Wales have been forced to take on short-term financing of $1,000 per hectare at a 7 per cent interest rate with the loans to be repaid from the proceeds of the coming crop—an example of the local industry attempting to help itself in a very difficult situation. Unfortunately the crops around Broadwater and Harwood are expected to be the worst in 50 years. Without decent crops in the next couple of years the viability of the cane industry in New South Wales will certainly be called into question.

In northern New South Wales sugar cane is a major driver of local economies. Money from sugar cane operations flows through the many different suppliers in towns like Maclean, Yamba and Grafton. The sugar cane industry is one of the region's biggest employers and accounts for $230 million of economic output each year; total direct and indirect employment in the industry is estimated at some 2,200 people. This includes 600 cane farmers and 150 seasonal harvesting workers. The sugar mills provide employment for 450 people. I have been advised that these mills are currently operating at a loss due to the difficulty in conditions and increased costs.

The cane industry in New South Wales is broken into three regions with each region have a milling facility. Should the tonnage from any of the mill areas fall below sustainability levels, this would bring into question the future operations of those mills. It is vitally important that we maintain the critical mass of product flowing through those mills to retain our industry in the long term. The New South Wales Canegrowers Association put forward a plan which they believed would assist the industry to get back on its feet and assure the sustainability of sugar in northern New South Wales. They estimate that about 6,070 hectares needs to be replanted and, to put this in perspective, that is the equivalent of around 8,900 football fields with the estimated cost of replanting being some $10 million. The industry acknowledges that some losses are manageable and come with the territory, come with what it means to be a farmer; however, the industry also believes that the record adverse events in 2010 and 2011 result in the requirement for a comparatively small amount of government intervention to help get the industry back on its feet.

The industry has put forward a proposal to the government with two important elements. The first problem is the inequity in the disaster assistance provided to canegrowers in New South Wales, and I have touched on that inequity between Queensland and New South Wales. Their second proposal is a package involving a partnership between the Australian government, the New South Wales government and the cane growing industry. The industry is proposing that the cost of replanting be funded equally between the two levels of government and individual growers, and predicts a maximum replanting cost of $1,750 a hectare, with an independent auditing program to ensure the integrity of the scheme. The New South Wales Cane Growers Association met with the member for Page, Janelle Saffin, on 12 July to present its case. However, we are yet to hear of a response from the Minister for Agriculture, Fisheries and Forestry. Sugarcane is generally planted in September and October, and this means we must get the issue sorted out in the next few weeks if we are to avoid irreparable damage to the New South Wales sugar industry.

These weather related problems in New South Wales are further challenges for Australian industry at a time when many sectors are struggling with increased costs and difficult trading conditions. Manufacturing in Australia is already struggling due to a range of factors. BlueScope steel announced today that it will cut 1,000 jobs and close one of its blast furnaces due to difficult conditions. Recently OneSteel announced it will shed 400 jobs. AWU National Secretary Paul Howes said we are 'facing a major crisis in Australian manufacturing'. Businesses around Australia are facing very difficult trading conditions indeed. The high Aussie dollar is hurting exporters, consumer confidence is low and households are saving more money. Wasteful government spending is helping to keep interest rates higher than they would otherwise be.

Instead of working with Australian industries to protect Australian jobs and growing Australian businesses the government is pressing ahead with plans to introduce a carbon tax that will push up the cost of electricity and transport. This particularly affects our cane industry, where transport is such a major factor in the cost of production. Businesses in Australia are crying out for support and a fair go. Instead the government is waging war on Australian businesses and Australian jobs by introducing new taxes, reregulating the labour market and mismanaging government programs. I met recently with cane growers to discuss the impact of the carbon tax. They were deeply concerned about the impact of this tax, particularly on the cost of transport and of operating local sugar mills.

It is clear that the Gillard government does not have the will or the competence to support Australian industries. The New South Wales cane industry desperately needs help from the Australian government to ensure its long-term prosperity. We still await a response from the minister, and I note that the member for Page is in the chamber and will be speaking shortly on this matter. I call on the parliament to support this motion. Hundreds of jobs and local businesses are at stake. Certainly the vibrant, long-term future of the cane industry is very much at stake at this very difficult time.

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