John Williams (NSW, National Party) Share this | Link to this | Hansard source

My question is to the Minister for Indigenous Affairs, Senator Scullion, representing the Minister for Agriculture.

Honourable Senator:

An honourable senator interjecting—

John Williams (NSW, National Party) Share this | Link to this | Hansard source

I have not asked it yet! Will the minister update the Senate about the benefits of the China-Australia Free Trade Agreement for Australian farmers?

Nigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Link to this | Hansard source

I thank the honourable senator for his question. It is vital to highlight that China is now the world's largest importer of agricultural food and fishery products, worth well over US$115 billion, and that was in the 2013 calendar year. This means there is fierce competition to supply the Chinese market and, with this agreement, Australia is well placed to meet that challenge.

The FTA is a very good result for agriculture in Australia. It will be good for all the food and fisheries producers and exporters. It closes the gap between Australia and those who already have FTAs with China, such as New Zealand, Chile and the ASEAN nations. The agreement struck by this government provides a significant advantage over our major competitors, such as the US and the EU, who do not have FTAs with China. The signing of the China-Australia Free Trade Agreement last week is a significant milestone for Australian agriculture, and now we can work towards this agreement coming into force later this year.

The significance of this market for Australian primary producers lies in the fact that we exported around $9 billion worth of agricultural products to China in 2014 at tariffs of up to 30 per cent, which makes us less competitive and our producers less profitable. This FTA agreement eliminates tariffs on many key products, mostly within four to eight years, including key growth commodities like beef, sheep meat, hides, skins, livestock, dairy, horticulture, wine and seafood. That means that the blockages on the other end of our supply chains are being removed by this agreement. This is proof that this government is truly committed to achieving real outcomes for rural and regional Australia.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister explain how the government's white papers on northern Australia and on agricultural competitiveness will deliver for rural and regional Australia?

Nigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Link to this | Hansard source

I certainly can, as last week, in a further sign of our commitment to regional and rural Australia, this government released the white paperon developing northern Australia. We are investing $700 million in transport infrastructure, including $100 million to upgrade cattle roads. In addition, we are investing $75 million to establish a northern cooperative research centre with a focus on agriculture to help solve some of the issues that have impeded development in the past. We have set aside $200 million for water infrastructure capital spending in the north and additional funds to fund water development studies. Having water available in the right area is crucial for economic growth. The measures outlined are but a few of the initiatives contained in this landmark document, and it will be complemented with a further vision for agriculture more broadly when the Minister for Agriculture releases the agricultural competitiveness white paper in the coming weeks.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the minister aware of any alternative policies for rural and regional Australia and, if so, what would be their effect?

Nigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Link to this | Hansard source

As it happens, I am not aware of any alternative policies that would support regional and rural Australia—at least, none from those opposite, certainly. In six or so years under the previous government, we saw agriculture become nothing more than a policy afterthought. Slashing of the agriculture department's budget, shutting down of trades and complete lack of interest in or understanding of rural and regional Australia typified their time in office. By contrast, we have two white papers, three free trade agreements and six new live export markets, which are the tip of the iceberg when it comes to this government's commitment to agriculture. We on this side believe our prosperity as a nation is intrinsically linked with the fortunes or rural and regional Australia. We will continue to ensure we do our best to deliver better outcomes for our primary producers and our rural and regional communities into the future.