Keith Pitt (Hinkler, National Party) Share this | Hansard source

The Dairy Produce Amendment (Dairy Service Levy Poll) Bill 2016 amends the Dairy Produce Act 1986 to remove the legislative requirement for a dairy levy poll to be conducted every five years. This bill is consistent with the Australian government's commitment to creating a stronger business environment for the agricultural sector by reducing regulatory burden.

After extensive consultation with industry, Australian Dairy Farmers and Dairy Australia Ltd have requested the preparation and introduction of this bill into parliament on behalf of dairy farmers. The introduction of this bill will not have a negative impact on the dairy levy. Dairy levy payers demonstrated support for these changes by voting in favour of simplifying the levy process. If the bill is passed, it is expected the saving to industry would be up to $1 million every five years, when a poll is not required to be held. These funds could be redirected towards further investment in marketing or research and development activities.

On the subject of research and development, this coalition government is investing strongly into agricultural R&D. I note the government and industry invest around $550 million annually through the rural R&D corporations. New government initiatives will increase this investment and provide better targeted results. The government's $1.1 billion National Innovation and Science Agenda was launched on 7 December 2015. The agenda is aimed at supporting innovation and entrepreneurs in businesses across the economy, beginning in the 2016-17 financial year. More than $260 million has been allocated this year in Commonwealth matching funds for rural R&D corporations. This represents a $30 million increase on matching funds provided in 2012-13 by the former government.

Total rural R&D payments, including RIRDC, are budgeted at almost $269 million. This is up from $241.5 million in 2012-13. The government has invested $200 million over eight years for the Rural Research and Development for Profit program. The government has more than delivered on its election commitments in this regard. The first round of $26.7 million in R&D grants was announced in May 2015. These grants will be matched by more than $32 million in cash and in-kind contributions by the successful applicants. Further announcement on the second round of R&D-for-profit grants will be made in due course.

Recent GRDC activities have been raised in debate. The type of events referred to by the member for Hunter are not marketing as defined under GRDC's enabling legislation. The GRDC has an obligation to engage with its levy payers and to disseminate the findings of its research and development. Ultimately, the GRDC needs to answer to its levy payers for its expenditure in how it goes about communicating with those levy payers.

The bill is deregulatory in line with the government's policy of reducing red tape and lifting the regulatory burden on industry and will provide for a flexible, streamlined levy poll process consistent with the other agricultural sectors.

Question agreed to.

Bill read a second time.

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