Nola Marino (Forrest, Liberal Party) Share this | Hansard source

I think I am the only member of this place who is a dairy farmer and so I bring a particularly direct focus to this debate on the Rural Research and Development Legislation Amendment Bill. I was disappointed to hear some of the comments from those opposite earlier in this debate, particularly given that for six years I sat in this place and, as a farmer, felt like I was a poor relation in the debate on policies and issues. Unfortunately, the comments we hear now demonstrate great hypocrisy. In bringing my contribution to the table today, as a farmer and as a levy payer, I want to talk about some of the reasons behind this—because, unfortunately, what we see is selective memory by those opposite.

All of us on this side would dearly love to have those conditions that Labor inherited when they came into government. As we all know, we left $20 billion in surpluses and $50 billion in savings—what an opportunity for the government of the day. Is that what we inherited? Clearly, the answer is no. I remind people, because sometimes we forget—we get so used to hearing the numbers—why it is that we need tough decisions. We had $191 billion in deficits left by Labor. If we did not make any changes, there would be a further $667 billion in gross debt, another $123 billion in further cumulative deficits ahead, and $1 billion in interest every single month. That equates to $30 million a day. That is $1.4 million an hour. Each speaker here has spoken for about 15 minutes, and in that time, thanks to Labor, we are borrowing another $340,000 to service the interest on the debt. That $12 billion a year in interest that is currently flowing out the doors could be going to any one of a number of very much needed programs and portfolio areas, not least the agricultural sector. Some of those opposite have suggested that $12 billion is not an issue—but $12 billion is more than the aged care budget. It is more than we spend on universities. If we do not make any changes and continue just to spend, as Labor would do, it would end up at being $2.8 billion a month in interest. In my view, that is obscene. As the IMF said, our spending under Labor was on the highest trajectory in the OECD. That is what we came into government facing—not $20 billion in surpluses and $50 billion in savings. Tough decisions are necessary.

The other issue that I wanted to talk about is the absolute lack of respect that I saw on the opposite side for our primary production sector. We saw that manifest itself in practical terms, as if this industry was an expendable one. That is exactly what, unfortunately, I have heard in the debate today—it is lip-service and is still seen, clearly, as an expendable industry. The Rural Research and Development Legislation Amendment Bill will make amendments to the Primary Industries Research and Development Act, which controls the research and development. It gives effect to some of the 2014-15 budget measures, and I have explained why they are necessary. It will allow the government to recover the cost of membership fees of international commodity organisations and regional fisheries management organisations from the matching amounts paid to rural research and develop and corporations. The bill also makes a number of additional amendments to the governance of R&D corporations.

I want to talk about some of what is happening in my electorate and why R&D is so important. In my part of the world we have the dairy industry, the beef industry, horticulture, viticulture, vegetables—everything down to olive oils, and even the forestry sector and the fisheries sector. We have a very good irrigation scheme run as a cooperative by farmers—one that those at the time at a state government level thought was bound to fail. There is a wonderful saying—where water flows, food grows. It certainly does, and that cooperative of farmers has done an amazing job. It is a multi-award-winning organisation. In my part of the world there is much said about the efficiency of farmers. I am of the very strong belief that, in the environment that has existed since 2000, in the south-west of Western Australia if you were not among the most efficient farmers in not only in Australia but the world you simply would not have been in business.

They are the efficiencies required in Australia to compete with countries when we export, when there are tariffs, when there are subsidies, when there are non-tariff barriers and all of the above. Our farmers have to compete in that environment—and compete they do. They produce some of the best food and fibre anywhere in the world. In my sector, the dairy industry, Western Australia produces some of the highest quality milk not only in Australia but in the world. As we have heard previously, our farmers operate in one of the harshest climates that you will find anywhere in the world. Australia is, I think next to Antarctica, the driest continent in the world. This is the environment in which our farmers operate, and they are very, very efficient at it.

The bill also makes some additional amendments to the governance of R&D. It removes the requirement for the minister to organise an annual coordination meeting for the chairs and it also removes some parliamentary tabling requirements. These are just further efficiencies. There are currently 15 R&D corporations, five statutory Rural Research and Development Corporations governed by the Primary Industries Research and Development Act. Ten of these are industry owned rural research and development corporations created from former statutory rural research and development corporations and, at the request of the relevant industry, most of them are able to undertake marketing activities in addition to their R&D. Also, most of them are primarily funded by statutory levies on primary production or products. These are the producers—us; the people just like me in the south-west of Western Australia. We are funding ourselves and directly investing in research and development and, by extension, investing in not just our own future and the future of the communities that rely on us but also Australia's future.

I note that the productivity growth—and, again, this is an area where we have seen and continue to see a lack of respect—in the farm sector has outpaced the rest of the economy. I wonder how many people not just in this place but in the rest of Australia actually grasp that fact, actually understand just how well our people on the land right are doing their job. Productivity growth in the farm sector has outpaced the rest of the economy. Right now, in my part of the world, it is hay season. There are a whole lot of farmers out there on tractors, mowing, tethering, raking and baling hay. They just get on with their job—like a lot of small businesses in this country. They work in their business, they have got their heart and soul in their business and they do what they do very, very well.

As I said, we had the Brunswick Show this last weekend—one of the biggest regional shows in Australia—and we saw a wonderful display of beef cattle, dairy produce, trade displays and machinery dealers. We cannot underestimate how important these shows are not only in bringing everybody together but also for the small businesses that keep our rural and regional communities operating and vibrant. These are the people who actually contribute to fundraising events in local communities, to football clubs and to other local community service organisations. Often it is the farmer's gear that is used for the local fire brigade or to help out to level a particular piece of ground. It is often the farmers who are called on for their common sense and expertise. Frequently, it is their tractor or truck or some other of their gear that is needed to be used. It is farmers and primary producers who provide this.

In Western Australian, Western Dairy uses some of the R&D funds for practical on-farm work. This is the sort of R&D that makes a difference on the ground. This is what we want to see and this is what our farmers need. To stay ahead in the environment in which they find themselves, they need research, innovation and practical outcomes. This is basically the edge that Australia has got, along with our biosecurity. We really need to protect our biosecurity and our clean and green image. With R&D—by constantly innovating and by constantly being efficient—we can stay ahead of the rest of the world in this sector. You do not outpace the rest of the economy, as the farming sector has done, without very effective R&D. In recent times some of that has eased slightly, but this is an industry that is constantly looking to innovate.

The other side of it is that most farmers in Australia are part of Landcare groups or Natural Resource Management groups. This is not just because they want to be efficient environmentally; they also want to manage their properties well. They know that there will be another group of farmers who will need to produce food and fibre on it, and so they are looking to manage their properties in a way that allows that capacity to stay with the land. This is another thing that is often overlooked in the debate about what farmers bring to the table. It is not just the economic multipliers but also the environmental management that they are very, very good at. As a member of the environment committee, I remember another member of parliament saying to me, 'I'm surprised to see you here.' I said, 'Why is that?' She said, 'Well, you're a farmer.' I said, 'Yes.' And she said, 'Well, you're an environmental vandal.' I said, 'Well, that's really an interesting comment. Are you aware that the majority of farmers are part of Landcare and Natural Resource Management groups?'

We live on rain water on my property. I do not know how many other people do that. If we are talking about managing resources and making the most of recycling and others measures, then we do that. We live on rain water. We grow a lot of our own vegetables and fruit. Of course, we have our own milk and, at times, eat our own beef. So when we talk about who is having an impact and how—and that is besides how well we manage or pastures or how well we manage our irrigation—there is a lot of misinformation out there about the contribution that farmers make across a range of areas of our economy. R&D is important to such management. We on this side have committed an extra $100 million to R&D, on top of the $250 million already committed, which will start next year. This is a critical to our primary producing sector being able to not only stay competitive but also continue to innovate and change

The number of farmers, who are constantly looking for information the best way they can, want to receive it on their farm while they are doing the job—while they are in the tractor. They want to get on with their job; they want the information they need; and they want to be the best at what they do. That is why I support the measures contained in this bill. Equally, we need some understanding of the reasons the government keeps having to make tough decisions, and those tough decisions are brought about by the lack of financial management by the previous Labor government. It is unfortunately a habit that we see repeated frequently in this place.

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