Sid Sidebottom (Braddon, Australian Labor Party, Parliamentary Secretary for Agriculture, Fisheries and Forestry) Share this | Hansard source

I do thank the members for Calare, Hinkler and Dawson for their support of the local and national sugar industry. I certainly take on board the viewpoints that they have represented so very well, particularly by the member for Dawson. I note that the member for Calare, an opposition spokesperson for agriculture, noted the comment from the Mackay sugar-mill owner who said it is absolutely essential that we pass the legislation. The member for Dawson reinforced that. The government is certainly reinforcing that. We do take on board the comments made by the members for Calare and Dawson about the need for genuine consultation, particularly taking into account priorities in the funding agreement and the priority-setting processes. We take that on board and certainly hope the new authority takes it on board as well. Thank you for your contribution and positive response to this.

In summing up, I would reinforce the fact that research and development play a critical role in ensuring our agricultural food and fibre industries are able to achieve productivity gains and be competitive, particularly in the international market. That is absolutely essential for sugar, which is very much a heavily export-oriented industry. On 22 September last year the Australian Sugar Industry Alliance came to the Australian government, after extensive consultation with the industry, asking it to restructure research and redevelopment arrangements for the sugar industry. Under the reforms, the Sugar Research and Development Corporation and BSES Limited will be wound up and their assets and R&D functions, along with the research coordination activities of Sugar Research Limited, transferred to the industry-owned company Sugar Research Australia Limited.

The proposal demonstrated strong support from industry through a poll of all levy-paying businesses and that has been absolutely reinforced by those members opposite who have spoken. The government assessed the proposal in detail and worked closely with the industry to ensure the Board of Sugar Research Australia Limited can operate independently and that the rights of levy-paying members are indeed protected. On balance, the government considers that this proposal represents the best mechanism for long-term delivery of research and development to the sugar industry.

The bills before you today, the Sugar Research and Development Services Bill 2013, the Sugar Research and Development Services (Consequential Amendments Excise) Bill 2013 and the Sugar Research and Development Services (Consequential Amendments and Transitional Provisions) Bill 2013, provide the mechanism to implement key elements of these reforms. Operating one industry research body, as members opposite have clearly supported, should deliver increased efficiencies. The new company should have the capacity to better integrate and avoid duplication of research and development activities across the sugar industry's supply chain, leading to a wider range of research opportunities and increased industry and public-good benefits.

Incorporating the existing sugar statutory levy and voluntary contributions under a new statutory levy will eliminate what we call free-rider problems, as all industry members that benefit from research and development services provided by Sugar Research Australia Limited will now contribute the same amount to their operations through the new statutory levy. The change should therefore create a stronger national research and development capability and provide certainty to growers and millers about their liabilities and the amount of funding that will be available for research and development to the industry.

Passage of these bills will implement arrangements that will underpin a strong and efficient research and development program that will help drive productivity and profitability in the Australian sugar industry and help to ensure its continued success. It will also generate significant flow-on effects to the broader community and to the economy in terms of regional development, exports and, most importantly, employment opportunities. I commend the bills to the House.

Question agreed to.

Bill read a second time.

Message from the Administrator recommending appropriation announced.

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