Jacqui Lambie (Tasmania, Independent) Share this | Link to this | Hansard source

I seek leave to amend general business notice of motion No. 3 standing in my name and also to add Senator Xenophon's name.

Leave granted.

I, and also on behalf of Senator Xenophon, move the motion as amended:

(1) The Senate notes that:

(a) the Australian dairy industry is facing an unprecedented crisis with the retail cost of bottled milk per litre often less than the retail cost of bottled water;

(b) Australian milk production since deregulation over 15 years has decreased from approximately 11 billion litres per year to 9 billion litres per year – a 20 per cent decrease, while New Zealand milk production has almost doubled;

(c) in 2011, a report of the Senate Economics References Committee recommended that producers' contracts with dairy farmers should offer a clear, consistent formula for milk pricing with unambiguous conditions;

(d) five years later, the livelihoods of up to 40 per cent of Australian dairy farmers are under threat because of imposed, retrospective debt, helped by unclear, inconsistent milk pricing contracts with ambiguous conditions;

(e) Australia's largest dairy producer and milk price setter, Murray Goulburn, has been allowed to force onto its suppliers unprecedented milk contracts or agreements ensuring that dairy farmers are burdened with retrospective debts ranging from tens to hundreds of thousands of dollars;

(f) Australian rural and regional communities face losing millions of dollars and thousands of jobs if a fair, long term solution to Australia's dairy crisis is not found; and

(g) the mental and physical health of dairy families and workers are being unnecessarily and unfairly placed in jeopardy as politicians, legal and industry experts argue about possible solutions to the dairy crisis.

(2) That the above matters be referred to the Economics References Committee for inquiry and report by 24 February 2017, in order to establish a fair, long term solution to Australia's dairy crisis, with particular reference to fresh milk security and:

(a) the legality of retrospective elements of milk contracts;

(b) the behaviour of Murray Goulburn; and

(c) any other related matters.

James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Link to this | Hansard source

I seek leave to make a short statement.

Stephen Parry (President) Share this | Link to this | Hansard source

Leave is granted for one minute.

James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Link to this | Hansard source

The coalition government strongly supports Australia's dairy farmers and dairy industry. We are delivering a $579 million dairy assistance package to help dairy farmers experiencing hardship as a result of low global dairy commodity prices and the decisions of major dairy processors Murray Goulburn and Fonterra to cut farm gate milk prices in the 2016-17 year. There was no assistance under Labor in 2009, when farm gate milk prices were lower. The ACCC is currently investigating the farm gate milk-pricing decisions of Murray Goulburn and Fonterra. ASIC is also investigating Murray Goulburn. The government has requested that the ACCC undertake a market inquiry into the Australian dairy industry. It will commence by November 2016. The ACCC will have powers to compel evidence.

Jacqui Lambie (Tasmania, Independent) Share this | Link to this | Hansard source

I seek leave to make a short statement.

Stephen Parry (President) Share this | Link to this | Hansard source

Leave is granted for one minute.

Jacqui Lambie (Tasmania, Independent) Share this | Link to this | Hansard source

As this motion notes, the Australian dairy industry is facing an unprecedented crisis, with the retail cost of bottled milk per litre often being less than the retail cost of bottled water. Australia's largest dairy producer and milk price setter, Murray Goulburn, has been allowed to force onto its suppliers unprecedented milk contracts and/or agreements, ensuring that dairy farmers are burdened with retrospective debts ranging from tens to hundreds of thousands of dollars. Australian rural and regional communities face losing millions of dollars and thousands of jobs if a fair long-term solution to Australia's dairy prices is not found. I urge all senators, particular those from the National Party, to stand up for the rural and regional communities that are doing it tough and vote for this motion to establish a Senate investigation in order to establish a fair long-term solution to Australia's dairy crisis.

Stephen Parry (President) Share this | Link to this | Hansard source

The question is that the motion, as moved and amended by Senator Lambie, be agreed to.

Question agreed to.