Fiona Nash (NSW, National Party) Share this | Hansard source

My colleagues in the chamber would be very well aware that there are a number of very significant issues that we are having to deal with in this parliament at the moment, but there is one issue that is very much under the radar that I think should be right up there in everybody’s minds—that is, the issue of wheat. It might not sound very exciting to be standing here and talking about wheat when we have got things like the ETS and many other issues around at the moment, but this is a vitally important issue for our agricultural sector. What we have seen with the deregulation of the wheat marketing system last year is an appalling change of circumstances for our farmers. If ever there was a stupid decision by a government, that was it because it has done absolutely nothing but make circumstances worse for the majority of our farmers. Quite frankly, in my view we should have a single desk back. I know we cannot go back to exactly the same old single desk system, but there is no doubt in my mind that we should be going back to an orderly system of marketing wheat, and I believe that because I know that the majority of growers also believe that.

We have a very interesting situation where we have got the Productivity Commission inquiring into the changes in the wheat export marketing arrangements. But guess what? Submissions had to be lodged by 13 November—talk about black Friday—and the hearings across the country for this inquiry are between 23 November and 15 December. I do not know if the government are completely stupid, but if they opened their eyes and talked to a few people out in the farming sector they might actually realise that the harvest is going on as we speak. These are farmers who have had to deal with years and years of drought, who know that the changes to the wheat marketing system have not been to their advantage, yet because they are flat out hard at work in the middle of the harvest they have not got the time to either put in a submission or be able to attend any of the hearings.

It is interesting that the Assistant Commissioner of the Productivity Commission responded to an email from one grower by saying, ‘We appreciate that the timing of the initial hearings and regional forums is inopportune for wheat growers; however, the timetable for the Productivity Commission’s inquiry in the wheat export marketing arrangements is beyond its control.’ I wonder who decided when these hearings and the submissions were supposed to be in. I stand to be corrected, but my guess is that it was the Minister for Agriculture, Fisheries and Forestry, Mr Burke. How disconnected must he be from the farming sector to have the Productivity Commission conduct this inquiry right in the middle of the harvest. If anything shows what complete disregard he has for the farming sector, it is that. It is absolutely appalling and he should be extending this time frame. The commission does not have to report until the middle of next year and there is absolutely no reason that this minister should not be extending the time frame so these farmers can deal with what is an incredibly difficult issue.

Before we went down the path of deregulating the wheat export marketing system, there were a number of players out there who were full-on about how we should be deregulating. Mind you, this was in the face of the Americans, who for years had been saying that Australia should get rid of the single-desk system for exporting wheat because it gave us an unfair advantage. If ever there were a reason to keep a system in place, surely that was it. But, no, we got rid of it anyway.

There were a number of commentators and analysts who made comments around that time, and one of them was Malcolm Bartholomaeus, who on 16 March 2007 said change is what the sector needs. He said:

Growers need radical change if they are to remain competitive in the global agricultural economy.

The old AWB single-desk system has failed.

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The ultimate would be a deregulated model …

Guess what? In the Land on 12 November, just last week, we again heard from Mr Bartholomaeus, who writes a regular column called ‘Smart marketing’ in the Land. Keep in mind the comments I just gave you as I quote him:

As we enter the peak harvest period this year basis levels are running at $0/t to +$5t, or still up to $20/t lower than what we would have expected from the old single desk.

The question for growers is how to get basis levels, and therefore the final price, up to the levels we used to enjoy from the single desk pool system.

It is highly likely that delivering to a pool in the deregulated market is not going to get us over the line.

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If changes are not made, most growers will be worse off, the industry will be worse off, and the country will have lost valuable export income.

It goes on to say a range of things, including:

Second, we need to begin replicating what AWB used to do.

This is from one commentator who, at the time, was held in very high esteem by those who wanted to deregulate the market. Now he is saying, ‘We need to begin replicating what AWB used to do.’ There are many, many farmers right across this country who already know that. They already know that because they know the difficulties that are being placed on them by the changes to this system.

Growers are not able to manage the risk. We often have situations now where the debt-to-equity rate is changing for farmers—it is getting much worse—and they simply do not have the opportunity to take advantage of the market tools that are available. They just do not have the financial resources available to manage the risk. Some growers have said to me that the deregulation legislation has torn up about $1.5 billion to $2 billion in value to wheat growers in 16 months. The national pool used to manage the risks. This has now become open slather with no structure, and it is to the detriment of farmers. I note that Tony Burke said on a program last week—I think it was with Peter Switzer—how fantastic it was that we were opening up all these niche markets. The minister only has to stand still for two seconds to realise that if you have a niche market then by definition there are not very many people in it. We are talking about the majority of farmers, who are worse-off as a result of these changes to the deregulated market.

The pool had quite significant wholesale negotiating power when it came to rail freight, storage and handling and port loading and could get prices that were to the best advantage of growers. We have seen an increase of around $20 to $30 per tonne for storage, handling and freight. Indeed, we have seen prices come down. When this issue is raised, people say, ‘It is just world market prices; it’s got nothing to do with deregulation going.’ The national pool had the ability to manage those risks. This is the point. Now it is up to individual growers, there is no orderly marketing system and there is no ability for the holder of the national pool to manage those risks.

We had a situation where we were selling to single-desk buyers. You do not have to be a rocket scientist to figure out that if you have one seller selling from one country into a market, and you are selling an exceptionally good product that people want and that people understand is quality controlled, then you are going to be able to extract a premium price. It is simply mind-boggling that the minister thinks, ‘We’ve opened up this market and everything is just fine.’ It is not. I can tell you it is not because I am speaking to the growers out there on the ground, who overwhelmingly are saying, ‘We are worse off under this system.’ Again, I repeat: the Americans used to say to the Australians, ‘You have to get rid of the single desk for wheat because it is giving you an unfair advantage.’ What complete stupidity was it to get rid of that?

Everywhere you turn now, regional Australia is getting absolutely belted. It is our farmers across this community who are feeding this nation. We need to ensure that they have a viable future. This government whacks them across the head at every turn—taking away the single desk, getting rid of Land and Water and cutting the Department of Agriculture, Fisheries and Forestry more than anyone else. This government is trying to impose an ETS that is going to hit regional Australia harder than anywhere else and, even if agriculture is excluded, all of those costs—fuel, transport, electricity, fertiliser, cement, packaging—still exist and they are all going to fall right in the lap of the farmers. It is about time this minister paid attention to what the majority of Australian wheat farmers want. It is time this country stood up and listened to what those farmers want so that they can have a sustainable future.