Michelle Landry (Capricornia, National Party, Shadow Assistant Minister for Manufacturing) Share this | Hansard source

I seek leave to make a statement.

Leave granted.

I rise today to speak on the Industry, Science and Resources Committee's report into food and beverage manufacturing, titled Food For Thought. This report delves into the vital role that food and beverage manufacturing plays in Australia's economy, its connection to our world-class agriculture sector and the opportunities that lie ahead to strengthen and grow the industry. Australia is known for producing some of the highest-quality food and beverages in the world. Our farmers supply top-tier raw materials and our manufacturers turn them into world-class products that are enjoyed both domestically and internationally.

Food and beverage manufacturing is a significant part of the Australian economy. It is the largest manufacturing sector in the country, contributing billions of dollars annually and supporting hundreds of thousands of jobs. This industry adds immense value to our agriculture products, ensuring that Australia is not just a supplier of raw materials but a global leader in high-quality, innovative food production. Strengthening this sector means strengthening our entire economy. The report makes 23 recommendations to take advantage of these opportunities.

One of the major areas of concern raised during the inquiry was the taxation system for alcohol manufacturers, with 40 per cent of submissions coming from this sector. In response, the committee recommends the establishment of Spirits Australia, a dedicated industry body similar to Wine Australia to support the growth and international success of Australian distillers. The spirits sector contributes $15.5 billion to the economy and supports over 100,000 jobs yet it lacks the same level of government support as other beverage industries. Addressing this imbalance will help Australian spirit manufacturers thrive both domestically and internationally.

However, the committee also heard that Australia's excise tax system is placing an unsustainable burden on small distillers. The high rate of excise duty on spirits makes it incredibly difficult for small and emerging businesses to compete, stifling innovation and restricting their ability to grow. Unlike their counterparts in the wine industry, who benefit from a more favourable taxation structure, Australian distillers face some of the highest spirit taxes in the world. The report highlights that reforming this taxation system is crucial to ensure the survival and success of small distilleries, which creates jobs, supports regional economies and showcases Australians' craftsmanship on the global stage.

Another key focus of the report is ensuring regional communities benefit from food and beverage manufacturing. This sector is a significant employer in regional Australia, with nearly half of all jobs in meat, sugar, confectionary and beverage manufacturing located outside of capital cities. Developing strategically placed manufacturing facilities, particularly in northern Australia, could strengthen regional economies, reduce food transport costs and increase food security in remote communities. Such investments would not only create jobs but also support sustainable regional development and improve resilience in our food supply chains.

Labelling is another issue addressed in the report. Submitters raised concerns about inconsistent regulations and frequent changes to labelling requirements, which create unnecessary costs for businesses. The committee recommends supporting digitisation and innovation in labelling, such as the use of QR codes to provide detailed product information while reducing compliance burdens on manufacturers. This approach would ensure that consumers have access to the information they need while allowing businesses to remain agile and competitive in an evolving marketplace.

Finally, the inquiry examined workforce challenges in food and beverage manufacturing. The sector struggles with an ageing workforce, skills shortages and a lack of awareness among young people about career opportunities in the industry. To address this, the committee recommends targeted training programs, better alignment between education and industry needs, and reforms to skilled migration programs to support businesses facing labour shortages. A strong talent pipeline is essential to fostering innovation, ensuring product quality and safety, and driving sustainable growth.

The food and beverage manufacturing industry is an essential part of Australia's identity. It supports farmers, creates jobs, strengthens regional communities and ensures that Australian products remain at the forefront of the global market. This report provides a road map for strengthening Australia's food and beverage manufacturing sector. By implementing these recommendations, we can unlock the industry's full potential, create more high-value products, support regional development and enhance the health and wellbeing of Australians.

Finally, I'd like to thank our committee's chair, the member for McEwen. As he previously said, it was a really great committee. We enjoyed it as well as doing the work. I'd like to thank our fellow committee members from both sides of politics. We had a really great team, I must say. I'd also like to thank our wonderful secretariat for their professionalism and keeping the team on track during our inquiry.

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