Dana Wortley (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is the Minister for Innovation, Industry, Science and Research, Senator Carr. Can the minister—

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Just wait a minute, Senator Wortley. I know people are excited about this question but I do nonetheless need to hear it.

Dana Wortley (SA, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Mr President. Can the minister respond to suggestions on ABC radio that the food and grocery industry may no longer have a future in Australia, thanks to rising imports?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

I thank Senator Wortley for her question. I am aware of some misleading reports circulating about our food-processing sector. Some reports have suggested that Australia will be a net importer of food. Today’s report stems from the Australian Food and Grocery Council’s 2010 State of the Industry report, a document that says Australia is a net importer by value of food and grocery products. Some people might think that ‘grocery products’ just means ‘food’. It does not; it includes soap, toothpaste, nappies and other household items. The report actually says that the grocery sector saw real growth of 3.2 per cent in 2006-07 and 2007-08, of which medical and pharmaceutical products made up 48.6 per cent of total turnover.

The Food and Grocery Council report does not take into account food commodities not purchased directly by consumers—such as wheat. The report shows that in the food and beverage category we are in fact a net exporter of food to the tune of some $6 billion. The picture gets clearer when you look at other commodities. In the period of 2009-10 Australia exported $24 billion worth of food products. Food imports in the same year were worth $10 billion. We should be proud of the fact that this is a country that produces 1.1 per cent of the world’s total food. But when you look at the amount traded, we produce three per cent of the total of food traded in the world. No-one is denying that there are serious challenges facing the food industry, but there are enormous opportunities— (Time expired)

Dana Wortley (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Is the minister aware of speculation that 300,000 jobs in the food processing sector could move offshore?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

I am disheartened by the appearance of these irresponsible comments. This is a government that does understand that there are serious challenges. But we will not deal with those challenges by indulging in the doomsday prophecies of those opposite, and we do not have to deal with those challenges by turning off international investors or encouraging people to think of this country as a place which is not good to invest in. We need businesses in this country to stay strong. They are critical to the provision of quality jobs and quality exports, and they are the lifeblood of communities right across the country. That is why this government is in the business of transformation. That is why we are in the business of ensuring that this country stays ahead of the curve. Our competitors may have the edge in low-value, low-tech, labour-hungry manufacturing, but we want to ensure that we retain a competitive advantage, that we—(Time expired)

Dana Wortley (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I thank the minister for his answer and ask: does the minister believe Australian manufacturers can remain competitive in the volatile global economy?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Without any help from those opposite, Australia throughout the economic crisis outperformed just about every other advanced economy in the world, and Australian manufacturing in particular stood up well to the challenge. In Germany, for instance, manufacturing gross value added slumped by 24 per cent and in the United States it fell by 17 per cent, but in this country there was a fall of 10 per cent. Australia also recorded one of the lowest falls in manufacturing employment. Employment in the sector declined by 6.7 per cent compared to 13 per cent in the United States and 11 per cent in the United Kingdom. The effects of the global economic crisis have, of course, subsided. Manufacturing is making a sustained recovery across advanced economies. Australian manufacturing gross value added has increased by some 5.6 per cent since June last year. (Time expired)