Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

On Tuesday night, in a sneaky, underhand move, the Abbott government made a decision that has created a severe risk to jobs in Mernda, within my electorate. More than 600 workers in Mernda are at risk of losing their jobs, thanks to a decision to double the levy charged to mushroom growers in Australia. Local Mernda grower, Costa Mushroom Exchange, produces more than one-third of Australia's mushrooms and will be slugged with a $1.6 million bill as a result of the spawn levy increasing from $2.16 per kilo to $4.32 per kilo.

The increase in the mushroom levy severely threatens the local company's ability to retain its 600-strong workforce. These 600 workers are our family, our friends and our neighbours. They may now be out of a job and they face the added stress of an uncertain future because of this heartless and cruel government. The effect of the mushroom levy increase on Costa Mushroom Exchange is absolutely devastating. This is a family owned company that supports the local economy, hires local workers and contributes back to the community. It is being punished by the Abbott government and its twisted priorities. Importantly, the additional money could have been better spent on expanding the company, therefore increasing productivity and the number of jobs and being of overall benefit to the local economy of Mernda and surrounding areas.

Costa's chief operating officer, Mr George Haggar, said, 'This is more than one-third of the total levy, yet Costa has only has one vote in any ballot of levy payers. We have seen no evidence to show how the business will benefit equally, compared to other levy payers, from having to pay double the amount of the current levy.' Costa has always made it clear to the agriculture minister, and to a number of other government and opposition MPs and senators, that it has never supported the levy being increased, as it does not believe an increase to be necessary or justified.

As highlighted by the Horticulture Australia Limited review, which was only received by the government late last week, the way in which the horticultural levies are collected and spent is in need of serious reform. It is therefore disappointing that the agriculture minister has chosen to act on doubling the mushroom levy before the review recommendations have been considered or acted upon.

Costa Group's Mushroom Exchange is a significant economic presence in Mernda, with an estimated economic benefit of between $150 million and $200 million for the state of Victoria. The risk of job losses is made even more acutely painful with Tony Abbott's vicious cuts to unemployment benefits, family payments and pensions, as well as his introduction of punishing taxes like the GP tax and the fuel excise.

I would say that the minister showed a complete lack of leadership and responsibility by not having the guts to contact Costa exchange to let them know of his sneaky change. By his actions he has shown a lack of support for Australia's horticultural industry and Australian jobs. Our community is going to suffer because of Tony Abbott's deceit, broken promises and twisted priorities.