Glenn Sterle (WA, Australian Labor Party) Share this | Hansard source

I do, and thank you very much, Mr Deputy President. I have to share this with the Senate. There was an ABARES analysis carried out on behalf of the review, summarising the economic effects associated with a possible foot-and-mouth disease outbreak in Australia, and it is very important that people should know this. Based on data in 2000 and 2001, the Productivity Commission estimated that over a 10-year period there would be severe, direct economic losses to the livestock and meat processing sector from an outbreak of foot-and-mouth disease. These losses ranged from $7.1 billion for a small, three-month outbreak to $16 billion for a large, 12-month outbreak—that was expressed in current dollar terms back then, so it would be a lot more now. The Productivity Commission also estimated the economy-wide effects of a large outbreak as an alternative measure. The economy-wide effects were estimated to reduce Australian GDP by between $10.3 billion and $16.7 billion, in current dollars back then—and that was over a 10-year period—which is equivalent to a one to two per cent decline in GDP in one year. Control and compensation costs were estimated to range between $25 million for the small outbreak and $600 million for the large outbreak. Also, reflecting international experience, the economic impact of trade restrictions would be far greater than the cost of controlling the disease.

It is a very important issue. What actually happens is that Australia does import meat from foreign countries and we do import meat particularly from places like Croatia where there has not been an outbreak of foot-and-mouth disease or BSE for a number of years. But the fear is that, if we were to drop the standards of control on our borders, the flow-on effect could be devastating, and no more so than with live exports too, particularly into Indonesia. This was about beef imports into Australia, but our export market and our domestic herd would be decimated should there be an outbreak of those two diseases. Ninety-four per cent of our live export goes to Indonesia alone.

This is not a cheap political swipe—this is a very serious issue—but I did note in one of the local newspapers over the weekend the concern from Australia's growers at the moment with some issues we have between Australia and Indonesia. There was a threat from a minister in Indonesia to seek live cattle from, I believe, India or Brazil. India is known to have foot-and-mouth disease, and that would not only be devastating to the domestic stock in Indonesia but also it would not take long for it to jump across the Torres Strait into Australia. We hope that that is just a threat from an Indonesian minister at the moment.

Going back to our inquiry, I would like to take the opportunity to thank the senators who always contribute to the rural and regional affairs and transport committee. Senator Macdonald is a regular RRATer, if that is a word I can use—sorry, Senator Macdonald! I would like to also thank Stephen Palethorpe, who was the committee's secretary at the time. Stephen has gone off to greener pastures somewhere in the Pacific. He is on loan to an island somewhere. We would welcome Stephen back, but as one door closes another door opens and, if there is a beauty in losing Stephen, it is that we have gained Tim Watling. We have poached Tim from another committee, but I have worked with Tim before—I think on the education, employment and workplace relations committee. He is now our gain.

Senator Cameron interjecting—

We are good at it. That is why we are the RRATs, you see. We are very good at that sort of stuff. I would like to take this opportunity to thank you, Tim, for your hard work, particularly this year. This is just one inquiry, but we have had some nine or 10 going on. Normally they are all at the same time and it is a mad, hectic pace. I would also like to take the opportunity to sincerely thank Tim's very hard and diligent working crew down there in the RRAT secretariat, none more than Trish, who is an absolute diamond. She has been around longer than me. She is younger than me—I just want to get that out! I also thank Kirsty and Lauren for their hard work. When we are dealing on this committee, there are a number of views, as you could imagine, but we treat each other with respect. We also afford ourselves every opportunity to speak to each other, because, as I said when I started my contribution, one thing about the RRAT committee is that we sincerely put the best interests of Australia first, whether it be in agriculture, regional development or transport.

Question agreed to.