Barnaby Joyce (New England, National Party, Minister for Agriculture) Share this | Hansard source

In summing up, I will deal with the two amendments to the bill and some of the issues raised by the member for Kennedy. The Primary Industries (Excise) Levies Amendment (Dairy Produce) Bill 2014 amends the Primary Industries Excise (Levies) Act 1999 to facilitate the dairy industry's continued commitment to maintaining the health of the Australian dairy herd. Australian Dairy Farmers Ltd, the industry's national representative body, has requested the preparation and introduction of this bill and, as such, it should not be seen as the government proposing these changes but something being driven by industry. The responsible industry is keen to ensure that they can maintain the Australian Animal Health Council and maintain the animal health and welfare issues of the dairy herd.

This bill will also allow the dairy industry to meet the requirements of being a signatory to the Emergency Animal Disease Response Plan. The bill amends the act by increasing the maximum permitted rate the Australian Animal Health Council levies on dairy produce. The maximum rate will increase from 0.058c to 0.145c per kilogram of milk fat and 0.1385c to 0.34625c per kilogram of milk protein. There is no financial impact on the dairy producer. This bill does not increase the actual levy paid by the dairy levy payers. The current operative rates were set in 1999 and are at the maximum levels allowable under the act. This merely gives them the right, if they so wish in the future, after discussions and a proper vote by the industry, to raise the levy if they choose. The increase will enable the industry to apply for future increases to the operative rates provided under the regulation if required. This bill is important to the industry and it is important that the parliament supports the industry in its endeavour to maintain the health of the herd.

I will now discuss the two amendments. The first amendment has been moved by the shadow minister for agriculture, the Hon. Joel Fitzgibbon. It is hardly even tangential to the bill; it is completely unrelated. But on the part that the government is not acting on drought, I might remind the House that one of my first actions as the Minister for Agriculture was to get a bill through to deal with drought, which involves the reallocation of tens of millions of dollars to drought affected areas and to find $10 million for water infrastructure. Today, the Prime Minister and I have announced the second iteration to deal with the effects of the drought which will provide access to a further $280 million at four per cent and bring forward the farm household allowance. People on farms will have access to a different assessment criteria, so they can maintain the dignity of their house by getting access to the social security net that should be available to any person in this nation. The assessment criteria for their on-farm net assets will increase from $1.5 million to $2.55 million, and will allow exclusion of the primary domicile, which was not in the first iteration. It will also allow them around $270,000 of off-farm assets. This shows an absolute commitment to dealing with the issues of the drought. Therefore, we will not be supporting the amendment moved by the Hon. Joel Fitzgibbon.

On the amendment moved by the Hon. Bob Katter, he did mention something that is correct, that the states deregulated not the federal government. This is once more an issue about regulation which, if properly processed, would be taken up by every state. Therefore, the government will not be supporting the amendment. To some of the other issues raised by the member for Kennedy. I believe that the dairy industry has a great future and that has been no better expressed in recent times than by the heated approach to the purchase of Warrnambool Cheese and Butter by Saputo from Murray Goulburn. They see a great future in dairying and we have seen an increase in our exports, predominantly into Asia, which in 2012-13 were worth $2.76 billion. The dairy industry does have a great future and, as Asia develops its middle-class exports of dairy products, will continue to grow.

I take some exception to the statements by the member for Kennedy regarding the approach to politics—that apparently the only way you can have an effect is to remove yourself from a political party and stand as an Independent. If he was collecting a salary before, he is still collecting it. He is collecting the same salary. I remind you that sometimes the hottest battles you can have are in the room with the people who actually make the decisions. In fact, that is the only way you can make a difference.

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