Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Hansard source

And I hear the member for Paterson agreeing! We also have the best wine.

An export success story from my own electorate is SunRice, based in Leeton, which has developed over six decades from a single rice mill to become Australia's largest rice exporter, exporting 80 per cent of Australia's rice output to more than 60 countries.

But it is not just food and fibre that the Riverina produces. We have sophisticated manufacturing, processing, viticulture and services sectors which would like to take advantage of the Asian century—and indeed they can under a coalition government which is open for business. With ongoing support of schemes such as the EMDG, I am confident that through our small and medium businesses promoting their businesses and products overseas we will increase Australian exports.

While Labor cut export promotion funding, the coalition is restoring it. This will boost exports, support critical industries, create jobs and build prosperity for all Australians. The difference in priorities between this coalition government and the former Labor government could not be more stark.

This bill delivers on another key election commitment, and I very much commend it to the House. And as I do, I would like to talk about several Riverina businesses which are really winning in export markets. I speak of Hyne Timber at Tumbarumba, Murrumbidgee Irrigation Ltd and Coleambally Irrigation Co-operative Ltd. They may not be seen as great exporters, but the water they provide and the businesses that they run certainly underpin the whole economy of the western end of the Riverina. Those irrigation communities are providing enormous export benefits and balance of trade boosts to the Riverina, to New South Wales and indeed to our nation.

Then there is Advanced Communications and Southern Oil Refining. Last Wednesday I was very privileged to join the Minister for Industry, the member for Groom; the Queensland Minister for Environment and Heritage Protection, the Hon. Andrew Powell; and my good friend and colleague the member for Flynn, Ken O'Dowd; at the opening of the Northern Oil Refinery in Gladstone, which is in Ken O'Dowd's electorate. It was a wonderful occasion.

While much of Australian manufacturing is going down the gurgler unfortunately, a new, innovative and environmentally-friendly industry was officially launched in Yarwun on Wednesday. The $55 million Northern Oil Refinery, which will provide valuable exports, is the biggest of its kind in Australia and it sits right in Gladstone's backyard. It brings 40 new operational jobs and so many more indirect jobs to the region. It is a joint-venture project. Southern Oil Refining based in Wagga Wagga started when a few environmentally-friendly farmers came together because they wanted the means to create new oil out of the used sump oil on their farms. They came together and Southern Oil came about as a result. From that little idea of the few farmers in Wagga Wagga in New South Wales we now have a $55 million plant in Central Queensland.

Southern Oil Refining joined with JJ Richards & Sons, another great environmentally-friendly company. The project was officially launched by Minister Powell, who said that the value of the materials in commercial and industrial waste was estimated at $26.5 billion a year. In Australia about 350 million litres of waste oil is created annually, with 60 per cent of that burned and 24 per cent exported overseas to be burned. Once fully operational this re-refinery will reduce Australia's greenhouse gas emissions by 290,000 tonnes per year.

Southern Oil Refining Managing Director Tim Rose said that the plant was the next generation of waste oil management. He is so right. He gave a tremendous speech in which he said it was a unique event and hoped it was going to be something to be remembered. This is the start of a new industrial enterprise. Tim Rose said, 'At a time in Australia when much of the news is about how tough it is, particularly in manufacturing, we have stood up and committed to a significant investment in the future.' He said they are very proud of that, and so they should be. He said:

To the uninitiated 'lube oil' may not sound too sexy, but it is essential … it keeps your cars running, our planes in the air, mining and farming equipment going—it literally lubricates the wheels of commerce and industry.

This export industry started in Wagga Wagga and there is now a $55 million refinery in Central Queensland. I am very proud, like Tim Rose. Lubricating oil does not wear out; it just gets dirty and the additives in the oil lose effectiveness over time. They are going to re-refine it. The re-refining plant can process 100 per cent—every single drop—of Queensland's annual used lube oil. This represents a fantastic environmental opportunity for the state and for the industry.

I want to promote some more industries in the Riverina that are doing great export marketing things. We can talk about De Bortoli Wines, Warburn Estate, Westend Estate and Byrne Trailers. Byrne Trailers have been hard hit by the terrible shutdown of the live cattle export industry. They make fantastic trailers in Wagga Wagga and are getting things back on track after that hard hit. Then there is SunRice, which I mentioned before. Casella Wines last October toasted the success of bottling its billionth bottle of Yellow Tail wine. The Yenda based winery has gone from strength to strength after signing a multimillion dollar partnership with Coca-Cola Amatil, and has announced the release of two new products to the Australian market. In December last year they posted a $29 billion loss—and that hurt. That was the biggest loss in the company's history. That loss was brought about by the high Australian dollar but was not helped by the carbon tax—they use a lot of power at Casella Wines. Despite that loss, the family winery has seen a surge in positivity since the Australian dollar dipped.

Casella's Managing Director, John Casella, said that the one billionth bottle milestone was one his family never envisaged would happen so quickly. Yellow Tail was released in 2001. One billion bottles means that 10 billion glasses of Yellow Tail wine have been enjoyed around the world. Yellow Tail has held its position as the No. 1 imported wine and the No. 1 red wine in the United States—and to know that that comes from the Riverina! John Casella, his team, his family and all the grape growers right around the Riverina should feel very proud of that. As John Casella said:

Our success is testament to the commitment and hard work of all of our staff, and the support of our distributors, trade partners and our loyal fans. We’re continuing to see growth year-on-year and this is a result of the quality, consistency and value proposition that we offer.

It also shows exactly what can be done when we get the water to be able to grow those fine grapes and all the fine things we do in the Riverina. That is why I fought so hard to get a better water deal for my growers in the Riverina. We all need our water. I appreciate that South Australia needs water, but so does the Riverina to be able to grow the food and fibre that is the very best in the world.

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