Glenn Sterle (WA, Australian Labor Party, Shadow Assistant Minister for Road Safety) Share this | Hansard source

I just want to clear the Hansard record first, after Senator Hanson's contribution, as she kept saying 'Senator Sterling'. I know you meant Senator Stirling Griff. Me being Sterle, I don't want to get bombarded by all the cranky South Australians listening to your contribution, looking for who to pull the nose of and finding the closest thing to 'Sterling' is 'Sterle'. It's Senator Griff. No worries. Hey, everyone in South Australia, it ain't me. I'm supporting Senator Hanson's matter of urgency.

Look, we do know. Our dairy industry faces existential threat. I know darn well, because I worked closely in the RRAT committee with the dairy farmers years and years ago during the Howard regime, and nothing has changed. For six years the Abbott-Turnbull-Morrison government has ignored the plight of our dairy farmers who are caught in a cost-price squeeze exasperated by drought. Labor does believe that government intervention is needed to save our dairy sector and our dairy farmers. It is why on 20 February of this year Labor sought to task the ACCC to test the efficacy of a minimum farmgate milk price and to make recommendations on the best design options. It is not acceptable for our farmers to be paid less than the cost of producing their milk, like our truck drivers. If Australia wants a thriving dairy industry, leaders must act. Business as usual needs to end, and directing the ACCC to assess, test and design a floor price is an important first step in giving our dairy farmers a fair go.

The Liberals and Nationals talk up a big game in Canberra, but they have done nothing to help our dairy farmers and they refuse to intervene in the market. If you don't believe me, you only had to sit in question time, like yesterday, and listen to the feeble attempt by the minister to try and answer some of the Senator Hanson's fair questions. It was pathetic.

The coalition government has had more than five years to implement a code of conduct and has miserably failed. The Morrison government has kicked the mandatory code down the road to 1 July 2020. Australia's $4 billion dairy industry supports more than 5,500 farming families, which we've heard, and creates around 42½ thousand jobs. It is also a key exporter of quality Australian dairy product. This is not a new issue that we are discussing in this Senate.

On 14 September 2016, the Senate undertook an inquiry into the Australian diary industry in order to establish a fair, long-term solution to Australia's dairy crisis, with particular reference to fresh milk security. This inquiry was part of a general notice of motion where the Senate noted the Australian dairy industry is facing an unprecedented crisis, with the retail cost of bottled milk per litre often less than the retail cost of bottled water—go figure that one out. Australian milk production, since deregulation over 15 years ago, has decreased from 11 billion litres per year to nine billion litres per year now—a 20 per cent decrease. Meanwhile, New Zealand milk production has almost doubled.

In 2011, a report of the Senate Economics References Committee recommended that producer contracts with dairy farmers should offer a clear and consistent formula for milk pricing, with unambiguous conditions. I was on that inquiry. I chaired the Perth end of it. I know. Five years later, the livelihoods of up to 40 per cent of Australian dairy farmers are under threat because of imposed retrospective debt helped by unclear, inconsistent milk pricing contracts with ambiguous conditions. Australia's largest dairy producer and milk price setter, Murray Goulburn, has been allowed to force onto its suppliers unprecedented milk contracts or agreements, ensuring that dairy farmers are burdened with retrospective debts ranging from tens to hundreds of thousands of dollars. Australian rural and regional communities face losing millions of dollars and thousands of jobs if a fair, long-term solution to Australia's dairy crisis is not found.

I shouldn't be delivering this speech. It should be that mob over there. I can't believe this. No, I can. The mental and physical health of dairy families and workers is being unnecessarily and unfairly placed in jeopardy as these politicians and legal and industry experts argue about possible solutions to the dairy crisis. The Senate must not forget the lack of action by the Turnbull-Morrison government following the Murray Goulburn dairy crisis. Farmers need political leaders and farming representative groups to stand up for our dairy industry.

Sadly, the National Farmers Federation, whom I have absolutely no respect for—let me put it clearly on the record that it's me, not the Labor Party, saying that—put out a statement on the same day Labor made its announcement, stating:

The National Farmers' Federation says 'sure' ask the ACCC to look at a floor price for milk, but it remains highly cautious about simple solutions to the dairy industry's complex problems.

"Our dairy sector is under significant pressure, there's no doubt about that," NFF President Ms Simson said.

"We are always willing to listen to new strategies that might ease this pressure and to ensure a fair price for farmers; this includes hearing the ACCC thoughts on the merits of a minimum farm gate milk price."

However, Ms Simson said Labor's floor price idea appeared to be a nod to the past rather than a serious strategy for the future.

"We need a dairy sector that is strong, sustainable and competitive at home and on the world stage.

"As an export dependent industry, that exports two thirds of what we produce, prices for Australian agricultural products are largely determined by international market forces.

"We'd be really interested to see if and how a regulated floor price might enhance the dairy sector's global competitiveness."

"It's imperative that any such measures are considered in full consultation with, and with support from, the industry—most importantly farmers."

Ms Simson recognised that a move by Woolworths this week to scrap $1 milk was not the sole answer but said it was definitely a step in the right direction.

"A guaranteed return of an additional 10 cents per litre to farmers whose milk is sold to Woolworths is a real and tangible benefit to the hip pocket.

"We're calling all other major supermarkets to follow suit, with the same or ideally, larger increase."

Ms Simson said the NFF was keen to see the implementation of the Dairy Mandatory Code of Conduct, which was agreed to last year by industry and Government.

The Code includes making milk supply contracts subject to unfair contract legislation.

"The majority of dairy farmers are largely family operations who can be at a distinct disadvantage when negotiating with the might and force of large processors.

It appears that the National Farmers Federation does not understand the true pressure of dairy farmers and what they are currently facing. However, the NFF does agree that the Morrison government should implement the dairy code of conduct, but how long does it take to implement a code of conduct? For the sugar industry, it was less than 24 hours, when Senator Hanson threatened to withhold her vote on the government tax cuts, and so it should have been. I also worked hard with the sugarcane growers too—make no mistake about that. But for Australia's dairy farmers it appears to be on the never-never.

It also appears that Australian Dairy Farmers, ADF, continue to oppose dairy farmers receiving a fair farm gate price, putting out a media release today reaffirming their opposition. However, they then stated:

Clearly this is an extremely complex policy decision, particularly given our export exposure. However, it is important to note that the dairy industry is at a critical point and these issues must be addressed.

Wow! But ADF offer no hope or solutions to farmers who face the real challenge of being paid less than what it costs to produce their milk. ADF also continue to see no problem with the Morrison government's go-slow approach the implementation of a dairy code of conduct. This simply is not good enough for our dairy farmers.

Post Labor's announcement, the former agriculture minister, David Littleproud, announced that the Morrison government would review the milk price index. This has done nothing to assist dairy farmers and was just another tactic to do nothing. It appears that the Morrison government is hoping that our dairy farmers leave the land. How can they sit on their hands while our dairy farmers continue to suffer? How can the Morrison government not understand that dairy farmers need to be paid a fair price for their milk? Or should our dairy farmers take the advice given by former agriculture minister Mr Barnaby Joyce? He said on Sky News in response to criticism of the Morrison government's lack of action on drought:

We've got to support you in the drought, but if your place is just not viable, $36,000 just isn't going to make a difference and people have to answer their own question in their own mind if this is the job in their life for them.

Seriously, I'm not making that up! And then Mr Joyce said:

We don't want to keep people in potential poverty.

People who have not made a profit in the last 10 years really need to seriously think, what are you doing with your life? What are you doing on the land?

Does this callous comment also apply to Australia's dairy farmers, who are not receiving a fair farmgate price and who are not making a profit? The fact is Australians want to ensure that they have a prosperous and thriving dairy industry. Under this government—oh, my goodness me!—I absolutely feel sorry for them. (Time expired)