Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

My question is to the Minister for Agriculture, Senator McKenzie. Minister, your department released an exposure draft of the competition and consumer industry code dairy regulation 2019 in the last week of October. The exposure draft differs dramatically from the earlier draft clauses for a dairy code workshopped with dairy farmers in early 2019. In particular, there is a new provision: circumstances beyond the control of the milk processor which permit unilateral price reductions in milk contracts contrary to the recommendation of the ACCC. Would the minister please explain how the new provision concerning circumstances outside the control of the processor came to be put into the exposure draft?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | Link to this | Hansard source

Thank you, Senator Hanson, for your question. Our government is taking credible action to support our dairy farmers and it's been doing that since day one. When Fonterra and MG clawed back money from dairy farmers, it was the National Party in government—Barnaby Joyce was the ag minister at the time—that called the dairy industry to Melbourne. I was actually in the room. We got the ACCC inquiry up and going. That was one recommendation of that. Anyone in this room who thinks a dairy code is going to solve every problem for the dairy industry in this country is kidding themselves. It is one part of a suite of initiatives to support this industry.

Right now, we have historically high dairy prices, but our dairy farmers are doing it tough because they have incredibly high input costs. Electricity in your home state, Senator Hanson, for this perishable product is controlled by the Palaszczuk Labor government. So go and knock on their door for that one. Then there are water prices for those of us that have irrigated dairy. It's an incredibly high input cost. And the drought has driven the cost of fodder through the roof—

Scott Ryan (President) Share this | Link to this | Hansard source

Senator McKenzie, please resume your seat. I have Senator Hanson on a point of order.

Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

I'm listening to the explanation, but my question was on the new provision concerning circumstances outside the control of the processor. How did it come to be put in the exposure draft? That is all I want to know. How did that get into the code?

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Hanson, you've reminded the minister of part of your question. The minister is allowed to be directly relevant to any part of the question. In my view, a discussion of the code that you referred to in your preamble does make her answer directly relevant.

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | Link to this | Hansard source

We as a government took to the election a commitment to deliver a mandatory code for the dairy industry to address the egregious behaviour of processors to farmers. We know that it's not the only issue. Prior to the election, the eight dairy regions in this country were heavily consulted through two consultations right across the country—not just with our dairy farmers but with the whole supply chain. The exposure draft of the code that is before the public now is actually the result of how those nine principles were consulted on with the dairy industry more broadly. It is not the endgame here. That's why we are out talking to industry and— (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Hanson, a supplementary question?

Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

Minister, you didn't even answer the question, because you don't know the answer to it. The exposure draft that was drawn up in a matter of days has been widely criticised as poorly written, with concerns about who actually wrote it. If my assumptions are not correct, can you assure the Senate that the exposure draft in its current form is the same as the one provided to you by the Office of Parliamentary Counsel? If not, who made the changes?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | Link to this | Hansard source

Senator Hanson, the department and the Office of Parliamentary Counsel drafted the code on the basis of the consultations undertaken prior to the election—full stop. There were no revisions in my office; there was nothing. So you can rest assured that the consultations with the processors and with the dairy farmers across eight very specific and unique dairy regions in this country all come to bear in the code that is out as an exposure draft now. And I am rapt to see people engaging with this process. I'm speaking to farmers in WA who—

Scott Ryan (President) Share this | Link to this | Hansard source

Order! Senator Hanson on a point of order?

Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

A point of order: the minister is not answering the question. I asked: is it the same exposure draft that was drawn up previously—

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Hanson, there are opportunities for debate. I remind all senators: a point of order is not simply a chance to re-ask a preferred part of the question or to simply re-ask it. It must relate to whether the answer is being directly relevant. I've been listening carefully to the minister and I believe she was being directly relevant to answering about the preparation and release of the code that you asked about. Senator McKenzie.

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | Link to this | Hansard source

Sorry, Senator Hanson—I forgot you're actually new to this issue, so you probably don't appreciate the history. So why don't I walk you through pre-election on the dairy code development. As I said, departmental officials visited eight regions. The first round of consultation was in late 2018 and it identified views. Then we went out again— (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Hanson, a final supplementary question?

Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

Still I don't get a direct answer and neither do the people of Australia or the dairy industry. The exposure draft shifts the financial risk from milk processors—and many are foreign owned—to Australian dairy farmers. Why?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | Link to this | Hansard source

The National Party has been at the forefront of changes to competition and consumer law for decades. It is something we take very, very seriously. It is why we were the party that developed the sugar code and we are also the party that has promised to bring forward a mandatory dairy code, because we back our farmers and we also appreciate that, when they don't have market power against processors and against retailers, that sometimes you need to govern that relationship. This is something we do in the normal course of business, and this is exactly what we're doing. Now, we've consulted, as I said, excessively. The draft code is an expression of those consultations. It is now out there to hear from industry, and I'm getting direct feedback to the department from right across Australia on what changes we can make to the code so that it is the right code. It's got to be the right code for all our dairy farmers. (Time expired)