House debates

Monday, 19 September 2011

Private Members' Business

AQIS Export Service Rebate

7:31 pm

Photo of Dan TehanDan Tehan (Wannon, Liberal Party) Share this | Hansard source

Those on the other side may laugh, but I would like to highlight that the coalition has once again played a very constructive and positive role in producing an outcome, in this instance for the meat industry. I would like to especially recognise the member for Calare for the role that he has played in bringing about this positive outcome.

It is a positive outcome, but there is still more to be done. I do not think that those opposite should rest on their laurels and think that because they have delivered this money that that is the end of it. There are still very deep concerns, especially amongst the smaller players in the industry, about the implication that this move to full cost recovery will have. As a matter of fact, last week I had a representation from industry in my electorate asking me to once again take up this issue, and that is something that I will be doing. I have asked the constituent to provide me with the relevant information and I have said that I will approach the minister. I intend to do that and I hope the minister will be prepared to listen.

For the benefit of the House, I just want to outline what the member for Calare and I, in seconding this motion, set out to achieve. We wanted an immediate commission of an independent study on the legitimate cost to government of AQIS export service inspection fees and charges for the six affected industries as evidenced at the AQIS-AMIC joint ministerial task force meeting on 7 May 2010 and we would still like to see that. Obviously we have the horticultural industry, the fish industry, the dairy industry, the live export industry and the grain industry still waiting to see what the government will do. We have also called on the government to table in the House a document that explains how the government will provide a reduction in annual regulatory costs to the export industries in the order of $30 million per year from 1 July 2011. We would still like very much to see that document and also a document that outlines the completion of reforms that were to be delivered as part of the agreement to remove the AQIS export service rebate between the government and the six affected industries—the meat industry, the fish industry, the dairy industry, the horticulture industry, the grain industry and the live export industry. We would still very much like to see this.

We also noted that the above commitments were part of a package agreed by the former Minister for Agriculture, Fisheries and Forestry in return for the passage of their legislation to remove the 40 per cent AQIS export service rebate. We called on the government to continue the AQIS export service rebate until the reforms are delivered as agreed by the government.

As we saw, the minister has, to the tune of $25.8 million, come to the table, sat down and negotiated with the Australian meat industry to get a resolution. It is not by any means a perfect resolution, but it is better than where we were and I am happy to say that. I commend the industry for having sat down with the government and for being able to put a strong case to get that $25.8 million. That is a good outcome of the motion that we have put in the House and a good outcome that it has pressured the government to sit down with the industry and deliver this $25.8 million. I know that those opposite are not very good at giving credit where credit is due, but if some of them do I am sure the member for Calare would gratefully receive that feedback. If you were going to be fair about it, that is what you would do.

I hope the government are going to sit down with the other five affected industries and come to a similar resolution with them, because this is too important an issue to those five other industries for the government to sit back, rest on their laurels and say, 'We have done this for AMIC, so that is where it is going to stop.' I hope we will see the government continuing to sit down, listen and deliver much-needed resources to those other industries as well.

I would say once again that I also think the government needs to consult with the smaller businesses, especially in the meat industry. We have to recall that ultimately what we are doing is passing on to business 100 per cent of the legitimate costs for inspection services. There is no other country in the world that does this. We are passing 100 per cent of the legitimate costs for inspection services onto business. This is a big step. We have to make sure that our meat industry remains as competitive as possible. If we do not, they operate in an international environment and our meat producers will suffer as a result.

Let us not forget that the government is also putting additional costs on the meat industry. The meat industry is a trade-exposed emissions-intensive industry. What they are about to be hit with in the carbon tax legislation is going to make them less competitive and is going to put their costs up. We are going to be doing this at a time when we are also hitting them with this extra cost to their business with regard to inspection services. So I plead with the government: reconsider the way you are going to treat meat processors under your carbon tax legislation. You are going to put a huge additional cost on the meat processors and they are trade exposed and emissions intensive. So think about that. You might have come to the table late with your $25.8 million for the inspection services—and there are still concerns around the smaller processors—but, when it comes to your carbon tax legislation, you could be doing insurmountable damage to the international competitiveness of meat processors. So think long and hard about that and think whether you have that right.

It has given me great pleasure to second this motion, because one of the most efficient and best meat processors you will come across globally is in my electorate of Wannon. I refer to Midfield Meat. They are a huge employer, they do an outstanding job, they are mechanised to a standard that you cannot find anywhere else in the world and they are also a terrific community based company which puts a significant amount back into our local community. I also have smaller meat processors right across my electorate who do outstanding jobs as well. This is an important motion; it got the government to act—just before time. Let us hope the government now will act on its carbon tax legislation as well.

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