Anne Ruston (SA, Liberal Party, Assistant Minister for Agriculture and Water Resources) Share this | Hansard source

I too rise to speak on the Primary Industries Levies and Charges Collection Amendment Bill 2016 that makes legislative changes to the Primary Industries Levies and Charges Collection Act 1991, which will allow the Department of Agriculture and Water Resources to provide levy and charge payers, which are commonly known as levy payers, information to the rural research and development corporations for the purposes of developing levy payer registers.

As it currently stands, the act only permits the distribution of levy payer information to the wool and dairy RDCs. This bill remedies this by allowing the government to provide levy payer information to the 13 other RDCs. Levy payer registers allow RDCs to identify and consult directly with levy payers who fund the research and development system in Australia, and ensure accuracy in the allocation of voting entitlements. Through greater levy payer engagement in their work, RDCs will be able to better align their research investments to industry priorities, improve returns to farmers, fishers and foresters, and contribute to a more profitable, competitive and sustainable agricultural sector.

The bill removes the legislative impediment to the development of levy payer registers. However, recognising that a one-size-fits-all approach is not appropriate given the diversity of Australia's agricultural sectors, the bill allows for the distribution of levy payer information to an RDC to occur only when an RDC, in consultation with the industry, requests it and that request is approved by the Minister for Agriculture and Water Resources. The bill further allows an authorised person to provide levy payer contact information and details of the levy payer or the levy payable to an eligible recipient. The bill sets out the purposes for which the information provided to the eligible recipient can be used. The bill also allows the secretary of the department, via a legislative instrument, to provide further information relating to the production or processing of a commodity to be given to an eligible recipient, and this will allow additional industry-specific data which may be collected by the department to be distributed to the relevant RDCs or to the ABS—such information in relation to reduction, inputs or production or processing methods used in relation to a particular commodity.

The bill does not permit secondary disclosure of information included in levy payer registers by an eligible recipient to a third party, except where expressly permitted by the secretary in writing. The administrative arrangements will enable levy payers to opt out of receiving information from industry representative bodies, should they choose to do so.

The bill maintains current practices for the distribution of the name and address of the persons or body that lodges levy returns with the department to the RDC's industry representative bodies and others. The bill also makes consequential changes to the Australian Meat and Live-stock Industry Act 1997 and the Dairy Produce Act 1986. These amendments repeal similar limitations on the use of levy payers information by the dairy and meat and livestock RDCs, as these are now captured in section 27B of the bill.

The Australian government believes that the value of research and development to this nation's profitability is unparalleled anywhere in the world. Australia's position as a world leader in agricultural production is based on our high quality and world-leading R&D sector. The purpose of this bill is to deliver better farm gate profitability to our farmers but also our R&D sector. Because of the position R&D holds within industry, it is also a greater attractor of co-investment from other sectors to ensure that Australia's R&D sector provides a great service to our agricultural sector more generally.

As you would be well aware, Acting Deputy President O'Neill, Australia has a very high standard of living and consequentially the cost of doing business in Australia is a lot higher than many of the countries for which we compete with our agricultural produce. The cost of compliance in Australia is very high, our environmental standards are very high and our occupational health and safety standards are very high. It is for these reasons that we will never, ever be the cheapest producer in the world. But we can be the best and we are the best because we have such a highly advanced research and development industry in Australia.

This government invests massively in research and development alongside our industry sectors with matching dollar for dollar funding. The Abbott Turnbull governments of the last three years also provided additional research and development funding through the Rural Research and Development for Profit initiative to ensure that our research and development is particularly targeted at making sure profitability at the farm gate is its primary purpose.

It is also essential that we deliver what the industry wants. Therefore, the RDCs need to know what the levy payers want and the only way that they can do that is if they know who they are. This bill seeks to deliver the ability to directly connect the research and development corporations in Australia and the levy payers that pay those levies. In the process of doing this, we will ensure the privacy of that information so that it is only used for positive and beneficial outcomes.

A further possible benefit of this type of legislation is for use in the event of a biosecurity incursion. By knowing where our growers are through this levy-payer collection method, we will be able to better target our responses should we be unlucky enough to have a biosecurity incursion. The other thing that we need to remember is the importance of our clean, green and safe image in maintaining our very important international markets. It is through the constant and diligent use of research, development and innovation that we are able to maintain that image and our competitive advantage in international markets.

The development of the levy-payer register has been identified by a number of reviews and inquiries as being important to strengthening Australia's agricultural sector. The Senate Rural and Regional Affairs and Transport References Committee inquiry into industry structures and systems governing the imposition of and disbursement of marketing and R&D levies in the agricultural sector recommended legislative amendments to allow for the development of levy-payer registers to improve consultation with levy payers and ensure accurate allocation of voting entitlements.

It was quite clear that submitters to the inquiry on this bill welcomed the bill and supported its key elements. A large number of submitters outlined to the committee the many benefits that they believed would arise from the creation of a levy-payer register. Support came from both research and development corporations and peak industry groups. For example, the Council for Rural Research and Development Corporations offered up that the council:

… fully supports the principles of open, transparent and accountable processes for informing and engaging with levy payers. This Bill enables the establishment and use of levy-payer registers which in turn will mean the RDCs can have accurate, up-to-date information about levy payers. The Council supports the Bill being passed.

New South Wales Canegrowers Council and Sunshine Sugar explained how the changes proposed in the bill would benefit the sugar industry. They said:

… the amendments as proposed would allow SRA to better achieve its overall objectives resulting in improved returns to our growers and contribute to a more profitable, competitive and sustainable sugar cane industry in NSW.

Grain Producers Australia described the proposed reforms as a 'key to providing grain producers with a strong link' with research and development. The Grains Research and Development Corporation also indicated its support for the bill.

The Cotton Research and Development Corporation explained that a levy-payer register would:

Strengthen CRDC's capacity to consult with cotton farmers on their R&D priorities, improve the distribution and extension of research results as well as receiving feedback on CRDC's performance.

The Tasmanian Farmers and Graziers Association welcomed the bill, submitting that giving 'RDCs access to producer information will increase the ability of these bodies to distribute information in a more efficient and timely manner'.

The ABS welcomed the bill, observing that it 'has the potential to open up new opportunities for improving the quality and availability of agricultural statistical information for the benefit of both government and industry' and would support the government's public sector data agenda.

The Council for Rural Research and Development Corporations supported the proposal to share information with the ABS, observing that:

High quality statistical information about agricultural production in Australia and the number of active enterprises has also been an issue of concern for some time. Making information available as appropriate to support the functions of the Australian Bureau of Statistics, consistent with the government’s Public Data Policy Statement, is also expected to help improve this situation.

The committee's view was that the changes proposed in the bill would enable research and development corporations to better communicate with all levy payers in a particular industry not just those growers who are members of the RDC. The ABS would also have access to de-identified data. The bill is the first step towards improving the systems governing levies in the agricultural sector.

The committee went on to recommend that the Senate pass the bill and further made the recommendation that the Department of Agriculture and Water Resources continue to consult with research and development corporations and representatives of the agricultural industry as it implements the regulatory and administrative framework associated with measures contained in the bill.

So we stand here today with the unanimous support of the committee that undertook the inquiry into the bill. But this bill is but the first step. The RDCs will now need to talk with their respective industries and we also will be seeking for the RDCs, if they choose to go forward with development of these levy payer registers, to fund the development of those registers. Obviously, once they have made a decision that they see the benefit of being involved with the establishment of a register, they will need to seek the approval of the minister to establish that register. Then, obviously, the Department of Agriculture and Water Resources stands ready to assist the RDCs in the design of a system so that it meets their particular individual requirements as well as achieving the broader agenda of transparency, efficiency and farm gate returns to our primary producers. The department is already out talking with the RDCs and industry about what they need to collect the data efficiently, and once all those details are settled we will amend the regulation to formally mandate the collection of data. The bill also enables the department secretary to agree to provide levy payer register information to industry representative bodies—for example, for the purposes of consulting with levy payers on R&D priorities and the levies themselves.

In addition to the wool and dairy RDCs, this bill will incorporate the following RDCs under the new legislation: the Australian Egg Corporation Limited, the Australian Grape and Wine Authority, the Australian Meat Processor Corporation, Australian Pork Limited, Australian Wool Innovation, the Cotton Research and Development Corporation, Dairy Australia—which currently is already under this particular legislation—Forest and Wood Products Australia, the Fisheries Research and Development Corporation, the Grains Research and Development Corporation, Horticulture Innovation Australia Limited, LiveCorp, Meat & Livestock Australia—which is already under this particular legislation—the Rural Industries Research and Development Corporation and Sugar Research Australia.

Before I close, I acknowledge the support that Senator Leyonhjelm has pledged for this bill. Senator Leyonhjelm has made his views very clear about his lack of support for compulsory levies, but his acknowledgement that if we have these levies in place it is absolutely essential that we are able to communicate with everybody who is paying the levy is noted and greatly appreciated. I also acknowledge the support of the Labor Party for this amendment bill, because they too see the importance of making sure that we ensure the greatest level of transparency that we can with the view that we achieve the greatest level of efficiency in our agricultural sector and the best possible returns for our R&D dollar.

The government is committed to an Australian R&D system that is transparent, consultative and delivers tangible benefits to Australian agriculture industries into the future. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.