Sandy Macdonald (NSW, National Party) Share this | Link to this | Hansard source

My question is to the very distinguished minister representing the Minister for Agriculture, Fisheries and Forestry, Senator Abetz. Will the minister update the Senate on the current drought situation facing Australian farmers and how the government is assisting these farmers? Further, will the minister inform the Senate how workplace reform is helping our rural sector through this continuing difficult time?

Eric Abetz (Tasmania, Liberal Party, Minister for Fisheries, Forestry and Conservation) Share this | Link to this | Hansard source

Can I thank Senator Macdonald for his question and salute his genuine interest in the plight facing many of our drought stricken farmers, especially in the region that he represents. Unfortunately, despite an improving rain situation, there are many areas of Australia still in the grip of one of our more severe droughts, especially in the states of Victoria and New South Wales. To date, the coalition have invested over $1.8 billion in assistance to help farmers and small businesses affected by this drought, and we have budgeted for a further almost $700 million in the coming year. We can do all that because we have a strong economy.

In addition to this practical emergency assistance, the Howard government has made significant policy decisions to keep our farmers competitive, such as freeing up our waterfront from obscene union domination, removing Mr Keating’s unfair, job-destroying, so-called unfair dismissal laws and introducing AWAs and allowing workers and employers to negotiate working conditions underpinned by a strong safety net which suits both parties. So now farmers can employ workers on terms which suit both parties.

Just last Friday an independent report by Econtech verified the importance of workplace reform to the agricultural sector. Significantly, this report found that, if all the workplace reforms undertaken since 1993 were removed—including abolishing AWAs and reintroducing unfair dismissal laws, as Mr Rudd is proposing—output from the agricultural sector would fall by a massive seven per cent, representing a total loss of $2.4 billion per annum. Amongst the host of other things that my colleague Senator Minchin has identified today, the report also found that, due to the inflation outbreak, the removal of these reforms would cause interest rates to be 1.4 per cent higher. We all remember the 20 per cent plus interest rates Australian farmers were forced to endure under Labor. Just imagine what would happen to our farmers facing an ongoing drought and Labor’s higher interest rates. It would be utter devastation.

I note with interest that Labor is reconsidering its rip-up threat against our job-creating workplace laws. Mr Rudd’s ‘me-too-ism’ seems to know no bounds. But this cynical reconsideration needs to be seen in the light of Mr Rudd and Labor voting against these job-creating reforms over 40 times. Our rural communities are precious. The coalition unreservedly supports them with sound policies, whereas Mr Rudd and his union cronies would deliver the worst ever drought policy to the rural sectors.