Sean Edwards (SA, Liberal Party) Share this | Hansard source

I hear my colleagues over there, Senator Nash and Senator McKenzie, in furious agreement. Where is the rest of rural Australia? Notwithstanding the importance of the Australian steel industry and the important contribution it makes to employment and GDP, one questions why this is the only industry receiving special attention from the government. The steel industry is not the only industry that is facing severe undue strain from the Brown-Gillard government's carbon tax. Only this afternoon the National Farmers Federation President, Jock Laurie, came out and said:

Ultimately, the carbon tax risks compromising the competitiveness of our agricultural industry.

He went on to say:

Our domestic agricultural industry competes on an international playing field—one that is no longer even when it comes to carbon. Overwhelmingly countries across the world are developing climate policies that recognise the importance of agriculture and prevent additional costs being added into their farmers’ businesses.

Mr Laurie also argued that today's decision means that in Australia the indirect costs of the carbon tax will be borne by our farmers—farmers who have spent decades becoming as efficient as possible in order to stay competitive globally. The figures speak for themselves. We know farmers are going to shoulder the burden of additional input costs, in some cases of up to $10,000 per annum, and we still have real concerns about the processing sector costs being passed back to farmers. Every farmer in this country wonders tonight what the future holds for their operational costs.

The parallels with the steel industry are uncanny, which begs the question: why is the government not providing the same kind of support to agriculture as it is to the steel industry? The Australian red meat sector, for example, is our No. 1 agricultural enterprise and is estimated to contribute $15 billion to the economy. We are the world's largest meat exporter, but the industry faces fierce competition in a highly competitive, price sensitive, world commodity market. The meat industry globally has traditionally been in a high-volume, low-margin business environment. To survive, it is required to employ a cost-plus business model running on a very tight one to three per cent profit margin and requiring very tight control over costs in order to be competitive. This sector, like the steel industry, is highly export dependent—80 per cent export dependent.

Under the government's carbon tax package, the food industry will receive $150 million over six years to assist the industry to become more energy efficient as part of the Clean Technology Food and Foundries Investment Program. But this program is on the basis of a $3 industry contribution for a matching Commonwealth contribution of $1, so you have to find that capital to get a 25 per cent contribution from the government. This pales in comparison to the $300 million being provided over four years to how many companies, Senator Nash, Senator McKenzie and Senator Madigan?