Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

My question is to the Minister for Employment, Senator Abetz, representing the Minister for Agriculture. Will the minister update the Senate on the government's commitment to restoring the sustainability and the profitability of Australia's agricultural sector, particularly in northern Australia and in relation to the live animal export sector?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

I thank Senator Canavan for his question and acknowledge his strong interest in the fortunes of northern Australian agriculture. Prior to the last election, the coalition outlined a plan to reinstate agriculture as the fifth pillar of the Australian economy and our plan to boost farm gate returns. Those were not empty words. Since coming to office we have delivered for our nation's primary producers through the abolition of the carbon tax and through massively increased market access opportunities in the red meat sector.

The Minister for Agriculture just last week announced the finalisation of the health protocol with China, which signifies the seventh market this government has opened for live animal exports. China is an important and expanding live cattle market for Australia, with exports worth $245 million in 2014. Market access in this industry is critical—as we all witnessed the massive impact that the previous government's policy backflip had on this sector.

But we have not stopped there. We are ensuring that our high-quality produce is being delivered to markets in the most competitive way possible through free trade agreements with Korea, Japan and China. We are also facilitating production here at home with the delivery of a raft of initiatives in the agricultural competitiveness white paper which are already unleashing the productive capacity of agriculture in Australia. This is our plan in action. Beef producers in northern Australia are all experiencing record prices for livestock, and this government is dedicated to helping them to capitalise on the opportunities on offer.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Will the minister inform the Senate how the government's commitment has benefited northern Australia in terms of strengthening our trade relationships with our closest neighbours?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

We on this side of the chamber understand that our relationship with Indonesia is vital to the prosperity of northern Australia and the nation as a whole. We have a $3.8 billion trade relationship with Indonesia, and this government is committed to see that grow for one simple reason: it means more jobs. This government was left a legacy of mistrust and suspicion following the actions of those opposite while in office. However, we are repairing that relationship. In fact, since coming to office we have experienced a massive 120 per cent increase in the volume of live cattle exported to Indonesia from 2012-13 to 2013-14. What does this mean for producers in the North? According to ABARE, these increases in cattle sold for live export and the higher cattle prices have resulted in farm cash income increasing from $143,000 to $277,000 per farm. (Time expired)

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Minister, I think there might still be some threats to this important trade presence.

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

Barnaby is the threat.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

What is your view? Are there any threats to this important trade relationship?

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Barnaby Joyce.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

That is a very good question, and the Labor Party interjections tell us what the threat is—namely, the Labor Party. In fact, the biggest threat to the live export trade is the same as it was in 2011 when a senator opposite, who was then agriculture minister, implemented the ban on live cattle export to Indonesia, which destroyed the viability of Australia's northern cattle producers and dislocated our bilateral trade relationship with Indonesia.

A week ago, this former minister had the gall to criticise the government on the handling of the live export trade with Indonesia, accusing us of talking big but being found wanting. Incredibly, he claimed that as a former agriculture minister he understood more than most about the issue. This was most unfortunate timing for Senator Ludwig, as the very next day Indonesia announced plans to increase its third-quarter quota by 50,000 head. (Time expired)