Senate debates

Wednesday, 8 February 2017

Bills

Competition and Consumer Amendment (Country of Origin) Bill 2016; Second Reading

12:15 pm

Photo of Ian MacdonaldIan Macdonald (Queensland, Liberal Party) Share this | Hansard source

Thank you, Deputy President. Again, I repeat that this is a debate in the chamber. I am simply answering something another senator raised and agreeing with that senator that this chamber should prioritise its work; it should move onto important issues—issues that are really important to all Australians; and it should not be diverted by periphery issues such as same-sex marriage, which would have been over and done with in a month's a time had this chamber not denied Australians the opportunity of expressing their views.

Can I again congratulate the government on bringing forward this bill about country-of-origin labelling for Australian produced products. Under the current regime, the definition of what is made in Australia or the country of origin is somewhat confusing and some of the tests that were in place were even more confusing and less helpful. This bill addresses those issues. It provides businesses with increased certainty about what activities constitute and do not constitute substantial transformation, which is the test for what is made in Australia and what is not. It will make it clear that importing ingredients and undertaking minor processes that merely change the form or appearance of the imported good, such as dicing or canning, are not sufficient to justify the 'made in' wherever claim. The 50 per cent production cost test that currently applies is an unnecessary burden on business and it means little to consumers. The test is difficult to administer, given the complexities of sourcing components through the global supply chain and the variability due to currency fluctuations. These tests in the former bill will become redundant for food products, with the introduction of labels showing the percentage of Australian ingredient.

Senators will be aware that the Country of Origin Food Labelling Information Standard 2016, which was made under the previous bill, came into effect on 1 July and is being separately tabled in a disallowable instrument in this parliament. That standard, which is the one we have been waiting for for some years, requires mandatory country-of-origin labelling for food that is sold, offered or displayed for sale in Australia. Unfortunately, it does not, for various reasons, impose labelling requirements on food sold outside Australia. This new label will help Australians, almost at a glance, work out how much of the particular product is Australian made or sourced.

Through the information standard, most Australian foods will need to carry a label with a clearly defined box containing a kangaroo-in-the-triangle logo to indicate that the food is grown, produced or made in Australia. It will also have—and this is the bit I like—a bar chart that indicates the proportion of Australian ingredients in the food and the box will also have a statement summarising the visual information. That bar chart will show us at a glance, as we go to the supermarket, how much of a product really is Australian.

I do not see that as a protectionist policy, because many people—and I accept this—will buy their food on price. Many people who do not have big incomes or who are on welfare or who have big families will say, 'I choose that because it's cheaper,' but they will do it in the full knowledge of just how much of the particular product is really Australian and how much is not. I think that is a wonderful step forward. It has been, as one other senator in this debate commented, a long time coming.

I know in our party—and, I suspect, in the other parties as well—we have had debates over many years. I am sure the Labor Party would have been through this because they did nothing in the six years they were in government. But they would have come across the same complexities that we have confronted over the last 20 years that I have been here, and we have been talking about it all that time. It is a difficult situation to get right without pricing the product out of the reach of anyone through complexity of regulation. It has been difficult. I guess some will say, 'It's not perfect; we can do better.' I know the government is always keen to get any views on this. I think the place where we have landed is pretty good. I think you will find that most Australians will appreciate the ability to make an informed choice now on what food they buy.

I conclude by agreeing with the committee that Senator Xenophon said has looked at this and has recommended the bill be passed. I also agree, as I explained before, with Senator Xenophon and Senator Lambie that we have to do something about seafood not in supermarkets. Thanks to a very good minister several years ago, that is already in place in the supermarkets. But in fish and chip shops, hotels, clubs and restaurants, I think we can do it without placing an unrealistic burden on those retail institutions. I wish Senator Ruston all the best as she takes that argument forward. Clearly, I support the bill. I think it is a real step forward for Australia.

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