Susan McDonald (Queensland, National Party) Share this | Hansard source

It is an honour and a privilege to serve in the Australian parliament. It is particularly an honour and a privilege to serve and represent the agricultural industry and farmers of Australia, but that is not a privilege that I take lightly. Too often I have had complaints of the amount of regulation and legislation that is choking this country, and one of the reasons that I stand here is to not be a part of that overregulation.

There is no more important industry in Australia than agriculture in growing the food and fibre that feeds the nation and feeds a good part of the world. Dairy is indeed an important part of that industry. They are doing it as tough as anybody at this moment—as tough as pork producers, as tough as feed lotters and as tough as anybody who is having to pay a dollar a kilo for feed, who are struggling to get water in the face of a deep drought. But these are not things that can or should be solved by this legislation.

I want to recognise Senator Hanson's well-placed passion and support for this industry and for these farmers who are, as we've already talked about, doing it tough. But, as I've already said, this legislation will not protect farmers. It will not protect farmers from unconscionable buying habits from supermarkets. It will not protect farmers from the actions of industry practice, of trading milk swaps and of not paying a fair price.

I cannot believe that the Labor Party is going to support this legislation. How tragic it is that there is only a handful of them here in the parliament to hear this debate and to make up their own minds about what is appropriate and what is right for our very important dairy industry.

Despite being Australia's third-largest agricultural industry, dairy faces significant challenges. This government knows that, if left unchecked, these challenges will threaten the long-term viability of dairy production in this country. The fact is that raw milk pricing is determined by processors and incorporated into supply contracts entered into with farmers. These contracts aren't uniform; they depend on milk quality, volume supply, timing of supply and the premiums attached to the length of a supply contract. The reality is that it is challenging to compare milk supply agreements and contracts. That is why we're acting on the ACCC's recommendation to introduce the dairy code of conduct. Right now, industry has the opportunity to have a say. Consultation closes on 22 November. We're seeking feedback on the best form of contractual terms and pricing, too.

The other issue that I am most concerned about is that, less than one month ago, Senator Hanson launched a Senate inquiry which sought to assess the performance of the dairy industry since deregulation. This inquiry was to give farmers an opportunity to provide their evidence. It was an opportunity for dairy organisations who, I believe, have not been deeply consulted on this and an opportunity to come and publicly explain the issues that they have, and yet we are rushing ahead with legislation which is not complete. We have had amendments to this legislation this morning. I cannot support legislation that is drafted so hastily, with unintended consequences that could potentially affect dairy farmers more adversely than the problem we are seeking to solve. The inquiry even goes so far as to specifically address alternative approaches to supporting a viable dairy industry and the merits of tasking the ACCC to investigate how it can regulate the price of milk per litre paid by processors to farmers.

As a Queenslander I strongly support dairy in my state of Queensland. Whether it be on the tablelands or in the south-east, this is an industry that is under enormous pressure. But this bill is premature. It lacks support from industry. It is not based on fact. I particularly disagree with the comments that the National Party is not standing and fighting for farmers right across this nation. As a party, we live in regional areas. We come from these regional areas and we speak, daily, to farmers and processors and producers, who are all part of the agricultural supply chain. Can we do better for the industry? Of course we can. Senator Hanson named one processor in particular who I agree is not doing the right thing for its farmers, and it should be called out for it. But it has to be said that Norco as a co-op and a genuine representative of their farmers is doing a very good job at increasing prices, taking supermarkets to task and increasing the amount that they are being paid for their farmers.

I cannot support this legislation. It is not well thought through. I agree completely that there are dairy farmers who are on their knees, who are considering the ultimate solution. That is appalling and tragic, and I will fight every day for them. But this will not solve their problems and, what's worst of all, it gives them hope when it will not provide it.