Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Hansard source

Australia's agricultural production under the Liberal-National government has experienced strong economic growth. The strong performance of the sector is support by the Australian Bureau of Agriculture and Resource Economics, forecasting the gross value of Australian farm production to reach $61.3 billion in 2017-18. The agricultural sector is the pillar of rural and regional communities, with the effects of a poor or good season being felt far beyond the farm gate. The men and women—I would say boys and girls too, because farming is a family enterprise—cultivate the land, feed our nation and sell high quality food and fibre to the world. They're the ones who keep this nation going. The economy is all the better for it.

In my electorate of the Riverina and the central west, our local economy is backed by a thriving agricultural sector and diverse small businesses. From Yerong Creek to Peak Hill and everywhere in between, from canola to barley, wool to dairy and food processing to winemaking, produce of almost every variety is grown in that fine area in south-west New South Wales. As one of the nation's most important food bowls, the region makes a mighty contribution, growing some of Australia's best fresh food and produce. But we also recognise that with the good seasons invariably also come the bad.

The Regional Investment Corporation, a commitment made before the last election—and we won the last election—will continue to back our regional and rural communities. We want to support the hardworking farmers and their families who turn the land every day to feed our nation and the world. The establishment of the Regional Investment Corporation will help secure economic growth and investment in rural and regional Australia whilst also supporting our country communities to become more resilient in times of hardship. In the 2017 budget, handed down on 9 May with such aplomb by the Treasurer, the member for Cook, we delivered on this commitment. The Regional Investment Corporation will deliver up to $4 billion in concessional loans under the government's farm business concessional loans program and the National Water Infrastructure Loan Facility. The establishment of the corporation will streamline Commonwealth financing and concessional loan processing to enable new dams to be financed quickly and ensure drought loans are speedily approved to help farmers in need.

The corporation has been a long-time goal of the Deputy Prime Minister. Some have called it the 'Barnaby bank'. He is of course the Minister for Agriculture and Water Resources, the Minister for Resources and Northern Australia and the member for New England. His work to get it established is a testament to his advocacy, determination, drive and vision. It will operate as a separate entity within the agriculture and water resources portfolio. When hardship occurs or unforeseen circumstances such as a drought or industry crisis hit, the corporation provides the ability to act swiftly to respond and support our farmers as required.

I was born and raised on family farms. I understand the challenges faced when a whole season is at stake due to low rainfall. I get it. Pressures at home rise and families come under severe financial strain at times. The Nationals in government have a strong record of delivering assistance to farmers when times are tough, and we're helped all along the way particularly by regional Liberals such as the member for Wannon, the minister at the table. He's the Minister for Veterans' Affairs.

More than $1.1 billion has been provided to support farmers since the coalition was elected in 2013. This is in direct contrast to Labor. Labor has a shell of a drought policy, demonstrating its lack of support for farmers, regional communities and agriculture more broadly. Under Labor, the longstanding exceptional circumstances drought support policy was cut. Under Labor, the department of agriculture's budget was slashed—indeed, cut in half. Under Labor, the former agriculture minister, the member for Watson, directed the Productivity Commission to review the rural research and development system, threatening longstanding policy which matched the investment from farmers' R&D levies. Instead, Labor wanted the R&D funds to be directed towards government priorities rather than matters put on the table directly by the farmers who pay the levies. There's a good reason that farmers cannot and do not trust Labor. There's a good reason for it.

Labor have said they will scrap the Regional Investment Corporation and pocket the budget savings. They will do what they always do. They make up these pretend numbers, they spend the money and then, when the money doesn't come in, the money is gone and the economy is the worse for it. But, hopefully, they won't get back into government any time soon.

Last year, the Victorian Labor government delayed delivery of dairy recovery concessional loans by playing crude political games. The Regional Investment Corporation is the solution to address the politics from Labor, whether it's federally or whether it's at a state level. The corporation will administer the $2 billion in concessional loans to support the long-term strength, sustainability and profitability of farm businesses. And farm businesses, I have to say, are the backbone of the economy—just like all small businesses are—and they're benefitting from the tax rate going down to 27½ per cent, the lowest it's been since 1940, the lowest it's been for 77 years. They're also benefitting from the redefinition of what a small business is, from a $2 million turnover to a $10 million turnover, and that enables tens of thousands of small businesses, many of them farmers, to take advantage of this fantastic initiative and of the Regional Investment Corporation. They are also taking advantage of the instant asset write-off, of our fencing programs and of our programs funding water infrastructure, and they're benefitting as a result. They're also taking advantage of the free trade agreements we have been able to broker with China, South Korea and Japan. There's never been a better time to be a farmer, never been a better time to be a small-business person, certainly in regional Australia, where we have a decentralisation plan which is working.

The Regional Investment Corporation is the solution, and it's a good one. The corporation will administer the $2 billion in concessional loans, and it supports country communities. This assists them to grow and build while maintaining diversity and competition in the markets they supply. The Regional Investment Corporation will also deliver the $2 billion National Water Infrastructure Loan Facility, to provide concessional loans to the states and territories to fast-track priority water infrastructure projects. What could be more pertinent in this day and age than building water infrastructure? I have heard the member for New England, the Deputy Prime Minister, talking about that ad nauseam—as he should be. We want a secure water supply to unlock even more potential in the agriculture sector and to drive investment across regional and rural Australia, whether it's northern Australia or southern Australia, or in your own area, Deputy Speaker Hogan.

Building and securing new investment in water infrastructure projects will generate local jobs—that's what this government is all about: jobs, jobs and more jobs—and open new possibilities for regional communities. The loan facility will provide an initiative to the states and territories to pursue priority water infrastructure projects. With the successful passage of this bill, the Regional Investment Corporation will be open for business next year, in 2018. That's because our nation is open for business. It was a closed shop under those opposite, but we're open for business. There are trading possibilities and, with small business front and centre of this government's priorities, we are open for business.

Located in Orange in the Central West, it's estimated the corporation will directly employ up to 30 people. That might not seem a lot, but 30 people in a place the size of Orange is significant. Not only has this been met with excitement by the member for Calare, who described the move as the 'country version of Wall Street', but the move is backed by Orange city councillor and local real estate agent Chris Gryllis, who said:

These are jobs that we can do with and as a real estate agent, as a citizen of Orange, and as a councillor, we welcome this initiative.

Of course he's optimistic; of course he's enthusiastic about this. Why wouldn't he be? Establishing the corporation in Orange in the Central West of New South Wales also fits within the government's decentralisation agenda—and what a good agenda that is. President of the National Farmers' Federation, Fiona Simson, supports the move. She said:

It just makes sense for an agency charged with administering concessional loans to farmers to be based in the regions where farm businesses operate.

Moving government departments to the regions puts money back into towns, and local business benefits. We want to see regional communities reach the greatest potential for economic growth and agricultural productivity.

Over the longer term, decentralisation of government agencies such as the Regional Investment Corporation will create new career pathways and build local capacity for our young people to live and work in the communities they grew up in. Sadly, sometimes in country communities our best exports are our young people. We want to give them the incentive, if they have left, to come back; but better still we want to give them the incentive to stay and not leave in the first place. Our regional towns and communities will now become centres of excellence—they always were, but they just need a bit of prodding sometimes—creating long-term confidence and sustainability within regional Australia.

We know that the contribution that agriculture makes nationally to our bottom line and locally in our regional towns and communities is enormous. The Nationals and Liberals stand united with farmers, and we have the record to prove it. We've delivered a $4 billion agricultural competitiveness white paper, the most substantive investment in agriculture to date. We've strengthened the rural research and development system, with the $190 million Rural R&D for Profit initiative and confirmed that farmers' R&D funds should be prioritised towards initiatives to boost farmgate returns.

Protecting commodities from pests and diseases is an ongoing challenge, and we're delivering $25.8 million for the control of pest weeds and animals in drought affected regions. There was also a boost of $200 million through the agricultural competitiveness white paper. I have often heard the member for New England in question time come to this despatch box and talk about the eradication programs we're funding to eliminate wild dogs and the like and just get mocked by those opposite, who don't understand what those dogs do to regional communities and the regional stock on which we all rely.

We're providing security of future funding for the Rural Financial Counselling Service and extra resources to ensure that farmers have the support that at times they desperately need. And drought affected communities are supported by the $35 million Drought Communities Program to help fund local projects and provide employment opportunities in 23 municipalities across Australia. We have strengthened the Farm Management Deposits Scheme to help farm businesses deal more effectively with fluctuations in cash flow due to environmental and market changes.

We have delivered other policies that will directly benefit farmers. Developing northern Australia is part of the government's vision to unlock new opportunities in the north. The northern Australia white paper provides $700 million—they're big numbers, but they're what we're delivering—for priority road projects in the north, including $100 million to improve northern cattle supply chains. Beef roads—how important!

Throughout my electorate, on my small business roadshow, I have spoken with farmers in dozens of communities and heard just how helpful the instant asset write-off is for investment in capital equipment and in the office. That is why the government extended the instant asset write-off in the budget this year—because it's just so valuable to small businesses. Farmers and stakeholders told us so. That $20,000 makes all the difference. Farmers can fully deduct the cost of water facilities and fencing in the year those things are purchased, and fodder storage assets over three years. It is important stuff, good stuff.

Through our reforms to section 46 of the Competition and Consumer Act, which were passed in the Senate last night, we're levelling the playing field for small business, including farm businesses. The government have a proud record of delivering the policies to support farmers and farm businesses to manage through drought. We know how important cash flow and equity are. Unlike Labor, the Liberals and Nationals are committed to investing in agriculture and supporting it through hardship. The United Nations Food and Agriculture Organization has forecast significant growth in global food and fibre demand, which will require a 70 per cent increase in food production alone by 2050 compared with average 2007 levels, and that's not including fibre production. Building sustainability in the sector will boost future productivity and provide economic stability.

Our agricultural industries are fundamental to the prosperity of regional Australia and the nation. They are part of our plan to create more local jobs in country communities. Ag is the fabric of our country communities, an important pillar of our economy which has the support of this government. Through this bill we'll continue to back farmers, day in, day out.

Connectivity and synergy are not just buzzwords. It's all about trading partners, it's all about regionalism and it's all about decentralisation. I particularly like the story of Craig Shapiro, a financial services, city, big end of town boy—he wouldn't mind me calling him that. He's one of a growing number of city investors looking to regional Australia. He's the CEO and co-founder of the Blue River Group, which last year purchased the 94-year-old Wagga Wagga dairy company Riverina Fresh. He understands how important regional areas are. He is a fantastic corporate decentralisation story, and we want to see more of it.

That's why this bill is so important. I condemn the member for Hunter's stunt, his second reading amendment, but I do commend the motion. It's a good motion. Parliament should get behind it.

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