David Bushby (Tasmania, Liberal Party) Share this | Hansard source

It's a great pleasure, as always, to follow Senator McGrath, who brings a wealth of experience as a senator for Queensland. Queensland is obviously a great agricultural state and one which contributes very much to the overall effort of agricultural production in Australia. But, of course, Tasmania is also a great agricultural state and also contributes greatly to the nation's agricultural production.

As Senator McGrath said before me, the coalition is a longstanding friend of regional Australia and farmers in this country. Acting Deputy President Williams, as a member of the National Party and thereby a member of the coalition, you would know better than most people that, between the two parties that the coalition represents, we look after those who live in regional Australia and those who are involved in agricultural production in a way that no other party does and in a way that is absolutely outstanding.

The Regional Investment Corporation Bill 2017 is seeking to deliver on yet another promise by the coalition government from the 2016 election. It is a bill that has the potential to be of enormous benefit to farmers right across the country, particularly farmers in my home state of Tasmania.

Tasmanian farmers are innovative and resilient. The facility which will be set up by this bill will be of great use to them, as it will be to agricultural producers right across the country. Some of the best and most innovative farmers in Australia are in Tasmania, right across the highly-productive red soils of north-east Tasmania, whether it be dairy, vegetable, beef, wool, sheep meat or crops such as poppies—a very innovative product that was pioneered, in terms of growing it in Tasmania, some decades ago and that is of immense value to the Tasmanian and Australian economy. That fact supports the observation that Tasmania is a net exporter of goods and services. A large part of the exports that make up what we send out of Tasmania are agricultural products which our great farmers produce.

There is no doubt that investing in infrastructure helps farmers in all sorts of ways, whether it be the roads they require to get their produce to market or whether it be the dams which assist to provide the irrigation that is required, particularly for innovative approaches to agriculture. Investing in infrastructure that is well thought out and appropriate assists in the productivity of farmers, the capitalisation on new ideas and the use of land that is available to farmers for the best possible outcomes.

One of the classic examples of that is in Tasmania. Some decades ago, under the Liberal Premier Robin Grey, a significant investment was made in the Craigbourne Dam in the Coal River Valley. Coal River runs through Richmond, which, as a lot of Australians would be aware, is a historic sandstone town about 25 minutes out of Hobart. It also runs through Campania and Colebrook—a number of small towns. Prior to the investment in the dam, this was very marginal farming country—so much so, it was really only suitable for superfine wool production. As those who understand agriculture would understand—I'm sure you would Acting Deputy President Williams—superfine wool production is possible because it is marginal country. The merinos that graze there need to be kept right on the edge. If it's nice and green and lush their wool grows too thick. If it's fine and they get it perfect, you get good strong wool that's not tender but is superfine. You need that marginal country to do it. That highlights the marginality of the country that existed in the Coal River Valley prior to the dam going in.

Nobody really knew what would come out of it but, following the dam being put in, Coal River Valley has turned into a magnificent area that produces stone fruit and vines for fine wine production. Innovative farmers have taken the water that was provided from the dam and they've put that land to its best use. That led to the creation of hundreds, if not thousands, of extra jobs as a result, and to a huge increase in terms of the gross state product that now comes out of the Coal River Valley. It is a magnificent example of how investment in infrastructure can lead to huge growth.

A similar thing has happened more recently with the Meander dam that was put in under the Liberal premiers Ray Groom and Tony Rundle. There was a lot of opposition to that one, in particular, from the Greens. That dam has similarly helped develop the Meander Valley, which is a much bigger valley than Coal River Valley. It has seen huge improvements in terms of the production, the productivity of the area and the overall output that contributes to economic growth and the employment of people in Tasmania. Those two examples highlight the value that investing in infrastructure can have in terms of growing agricultural production and wealth for communities that are related to those communities where the infrastructure is made.

Another example of an innovative Tasmanian farmer that just may well benefit from the proposals that are contained in this bill—not everybody would know—is Lindsay Bourke in northern Tasmania, who is a honey producer. Recently, he was named the producer of the best honey in the world at a North Korean honey event. I've tried his honey, and it's pretty good. But he's very innovative. He's been involved in the industry for decades and he has taken the steps that are required to ensure that he makes the best honey in the world. That has been proven. I could go through countless stories of innovative Tasmanian farmers and how this particular bill will support innovation in Tasmanian agricultural products, and who knows where that will end up?

I said when I first started speaking that the coalition is a fantastic friend of regional Australia and farmers. One example of that is how we have approached drought policy over years. I heard you, Mr Acting Deputy President Williams, talking tonight about how much rain you've had in your part of New South Wales, but you don't always get that rain. The fact is that farmers across the country don't always get the rain they need when they get rain. It is a feast and famine type of business. In the good times, when the rain falls in the right amount and when you want it, things go well, but, when it doesn't fall in the right amounts or when you want it, it makes it very tough to run a business. And so it is from time to time necessary for government to provide support for farmers through drought.

The reality is all parts of Australia have drought. Even the north-west of Tasmania, where it probably rains more than it does in most parts of our beautiful country, drought is a relative thing. If you have your farm set up on the expectation you are going to get a certain number of inches of rain in a particular year and you only get half or a third of that, even if that is a lot of rain compared to other parts of Australia, it's a drought for you because your farm doesn't deliver the output that it would if it had had the rain you were expecting. So drought occurs everywhere. It occurs in my home state of Tasmania, your home state of New South Wales and right across the country.

The coalition government has a strong record in delivering assistance to farmers who are doing it tough. To go through that: since we were elected, around $1.1 billion has been provided to support farmers and communities in hardship. Our policy program seeks to help build the sustainability and the resilience of farmers to help them prepare to manage through droughts and other challenges affecting the farming industries. When we came to office in 2013, the coalition inherited what was essentially an empty cupboard on drought policy.

That highlights the differences in approach between the coalition and those opposite when it comes to regional Australia and farmers. In fact, Labor had abolished the longstanding exceptional circumstances drought support policy. They cut the agriculture department's budget in half. They abolished Land and Water Australia and threatened the longstanding policy to match farmers' research and development levies. Many farmers would recall that former Minister for Agriculture, Fisheries and Forestry Tony Burke asked the Productivity Commission to review the rural R&D system. Labor wanted the R&D funds, which are matched by taxpayers. Every dollar put in by the farmers was matched by the taxpayers, so you get two for one. They wanted that money to go towards government priorities, in contrast with the policies identified by the farmers who actually paid the levies.

By contrast, the coalition has confirmed that the farmers' R&D funds should be prioritised by the levy payers towards projects with the intention of boosting farmgate returns. We have strengthened the rural R&D system with a $190 million rural R&D for-profit initiative and established $2.5 billion over 10 years for a farm business concessional loans program which is providing concessional loans at a 3.09 per cent variable interest rate for 10-year terms with interest-only terms for the first five years. There have been 1,402 farm businesses successfully approved for $764 million in concessional loans as at the end of August this year, and 7,621 farmers and their partners have been granted FHA from 1 July 2014 to 13 October 2017—only a few days ago. Currently there are more than 2,700 farmers and partners receiving FHA payments. The coalition is delivering $25.8 million for the control of pests, weeds and animals in drought-affected regions in recognition of the impact that pests can have on livestock during drought and the fact that weeds can crowd out pastures in drought conditions, as you would well know.

The government has provided security of future funding for the Rural Financial Counselling Service and provided additional resources to ensure farmers in drought-affected communities can access the support provided by the RFCS. It is delivering a $20.2 million managing-farm-risk program, a four-year initiative to encourage farmers to take up multiperil and single-peril farm risk insurance. For decades, farmers have been asking for multiperil-crop-insurance options and, as a result of this initiative, there are a range of commercial products now on the market. All of these measures highlight the belief that this government has in farmers, in the rural folk of Australia, and in what they add to Australia.

If you think about Australia, we are, as it turns out, one of the most urban countries in the world in terms of where the majority of our population live, but the true heart of Australia is outside the cities. It's the country of Australia. What makes Australia different to other countries is our outback and the flavour of the regional parts of our country. Sydney is a beautiful city and Melbourne is a beautiful city, but they're big cities and in a lot of ways big cities are all alike, no matter where you go in the world. What makes Australia Australia is the country. Our government recognises that, and that's one of the reasons why we put the money into supporting our regional Australians and farmers.

Looking more particularly at the bill: as I mentioned, it establishes the Regional Investment Corporation. It delivers on the 2016 election commitment announced by the Deputy Prime Minister, the Hon. Barnaby Joyce MP. The corporation set up under this bill will deliver up to $4 billion in concessional loans under the government's farm business concessional loans program and the National Water Infrastructure Loan Facility. It will also have the capacity to administer other programs in future. It's very forward-looking in terms of supporting the needs of regional and rural Australians and those who are involved in the agricultural industry.

These are critical initiatives—make no mistake—encouraging growth, investment and resilience in Australia's rural and regional communities. The corporation will streamline the administration of farm business loans, delivering national consistency and ensuring loans are prudently and speedily assessed to help farmers in need. It will provide independent advice to government on projects for consideration under the National Water Infrastructure Loan Facility and then deliver approved grants of financial assistance to the states and territories to fast-track the construction of priority water infrastructure projects.

I've already mentioned to you the example of Craigbourne Dam, in Tasmania, and the incredible transformation that that valley went through over the subsequent decades after that money was invested in that dam. I think that is an outstanding case study to show what can come from forward-thinking investment in a dam. It was a very, very marginal valley. The farms in it were really only suitable for very marginal undertakings, but, with the introduction of a sure supply of water, farmers innovatively tried all sorts of things. Some things worked; some didn't, but it has ended up now being one of the primary stone-fruit-growing areas in Tasmania and also a very, very fine wine-growing region. That's an example of how investment in water infrastructure can actually deliver hugely positive outcomes for local communities, for job opportunities, for the overall productivity of farms and for contributing to gross state products. That has been a great thing for Tasmania.

The major elements of the bill include establishing the corporation as a corporate Commonwealth entity with a skills based board to ensure the proper and efficient performance of the corporation's functions. It describes the functions of the corporation, including administering farm business loans and, on behalf of the Commonwealth, administering grants of financial assistance to the states and territories for water infrastructure projects. It identifies two responsible ministers who will appoint the board and issue the corporation with an operating mandate.

It provides a power for rules to be made by the two responsible ministers to prescribe future programs to be delivered by the corporation. It provides for the operating mandate to direct the corporation about the performance of its functions, including on the objectives it is to pursue; expectations in relation to the strategies and policies to be followed; eligibility criteria for loans or financial assistance; management of funding; and other matters. It allows responsible ministers to also direct the classes of farm business loans, individual water infrastructure projects and the location of the corporation but prevents them from directing in relation to individual farm business loans, which I think is appropriate. It requires the board to appoint a chief executive officer responsible for the day-to-day administration of the entity and entering into loan agreements on behalf of the corporation. It allows the corporation to employ staff to assist in performing its functions. It requires a review of the operation of the act before 1 July 2024. Clearly the bill is comprehensive in terms of what it seeks to do to set up the corporation in order to do the task that it needs to do. It covers everything from responsible ministers and the degree to which they're involved to its remit and setting up the staff.

The key messages that come out of this bill are that the coalition is introducing the legislation to establish the RIC, which was a promise. We're delivering on that promise. It means that, in the future, farmers will be able to access farm business concessional loan funding quickly and easily with a streamlined and nationally consistent application and approval process. The RIC will administer up to $2 billion in concessional loans designed to encourage growth, investment and resilience in our rural and regional communities.

Concessional loans support the long-term strength, resilience and profitability of farm businesses by helping them to build and maintain diversity in the markets they supply. One of the reasons why that's required is—as I've already discussed and as you would understand, Mr Acting Deputy President Williams—the cyclical nature of events that can impact on farmers. That's one of the differences that set these businesses aside from many other businesses: you really are held hostage to things that are outside your control, particularly weather events and so forth.

The RIC will also deliver the $2 billion National Water Infrastructure Loan Facility. This provides concessional loans to the states and territories to fast-track priority water infrastructure projects. These loans will provide an incentive to states and territories to break ground on priority water infrastructure projects. Eligible water infrastructure projects will increase agricultural productivity, generate local jobs and create more opportunities for regional communities, which is a very effective summary of what I have seen with the Craigbourne Dam, in the Coal River Valley.

Once established, the RIC will provide flexibility for the Australian government to respond quickly and efficiently to emerging issues like drought or an industry crisis. Subject to passage through parliament—and I would encourage all senators to support this bill because it is a bill of immense importance to regional Australia—the RIC is expected to open for business in 2018, with the coalition government making it a priority to get it up and running as soon as possible. The RIC will be established in Orange, New South Wales.

Until the RIC is operational, farm businesses will be able to continue to apply for farm business concessional loans through their relevant state delivery agency. Farm business concessional loans are currently open in Queensland, New South Wales, Victoria, South Australia, the Northern Territory and my home state of Tasmania. The government is negotiating agreements with Western Australia to deliver 2017-18 concessional loans. State and territory governments can apply for water infrastructure loans through the department at agriculture.gov.au/waterloans.

My time is rapidly running out. In conclusion, I would again acknowledge the importance to Australia of our regional friends, particularly those who are involved in rural and agricultural production, and commend this bill to the Senate.