Michael Sukkar (Deakin, Liberal Party, Assistant Minister to the Treasurer) Share this | Hansard source

The Primary Industries Research and Development Amendment Bill 2017 will allow the statutory rural research and development corporations—the fisheries, cotton, grains and rural industries R&D corporations—to conduct marketing using voluntary contributions. R&D corporations have helped to keep rural industries productive and profitable by conducting research, development and extension which are practical and relevant to each industry sector. New advances in science and technology provide great opportunities for Australian farmers.

Through its investments in research and innovation, this government is helping farmers to make the most of these opportunities. Together with rural industries, we invest over $600 million annually in the rural R&D corporations, and about $300 million of this is government funding that matches eligible R&D expenditure. In addition, the coalition government established the Rural R&D for Profit program to improve farm-gate productivity and profitability and deliver real outcomes for all Australian farmers.

Rural R&D for Profit drives collaboration between different industry sectors and leverages broader commercial and research funding. Total funding available for the program is $180.5 million over eight years ending in 2022. Grant funding of almost $114.7 million has been awarded to 36 projects over the first three rounds of the program, matched by almost $170 million in cash and in-kind contributions from successful applicants and their partners.

A number of industries have already seen benefit in having a single body guiding industry R&D and marketing—and most industry-owned corporations were established to also do marketing, I may add. Marketing has helped to build our pork, wool and red-meat industries, to name just a few, and expanded Australian access to international markets. There are 15 rural R&D corporations, of which 10 carry out marketing activities which provide a valuable service to their respective industry sectors. However, the four statutory R&D corporations can only conduct marketing activities if they receive a statutory marketing levy. The industry-owned R&D corporations that have chosen to undertake marketing don't have any such restriction. Establishing a statutory levy is expensive and, of course, can take some time.

Therefore, these amendments mean that the fisheries, cotton and grains industries and smaller rural industries, such as chicken, meat, honey, rice and pasture-seed industries, will be able to promote their products without the expense of establishing and collecting a statutory levy. Promoting their products has the potential to increase the size and value of those industries. Larger and more valuable primary industries are likely to be more self-sustaining and to provide flow-on benefits to the Australian community by creating employment and broader economic activity. The bill will also include 'an activity incidental to marketing' in the definition of 'marketing activities' to allow the R&D corporations to plan and consult about those respective activities.

Proactive industries are the future of Australian agriculture, fisheries and forestry. Industries that see an opportunity to promote their product grow their business and ultimately become more profitable. This bill will help a range of rural industry sectors to make it happen and is, of course, another demonstration of the government's commitment to implementing effective policies to ensure that Australian agriculture is achieving its full potential. I therefore commend the bill to the House.

See this speech in context