Malarndirri McCarthy (NT, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Agriculture, Senator McKenzie. In the minister's letter to Senator Hanson committing to bringing forward the delivery of the dairy code of conduct, the minister said, 'I'm planning for that to happen by December 2019.' Yesterday the minister mentioned in passing, in an answer to a question, that the code 'is on track to be in place by 1 January 2020.' When was the decision made to delay implementation of the code from December to January?

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

Thank you very much, Senator McCarthy, and thank you on behalf of all the dairy farmers in the Northern Territory for your sudden interest in the dairy industry. We, on this side of the Senate, have long stood with our dairy farmers and our dairy industry to seek to assure that they have a sustainable and profitable future and that future generations of Australians can enjoy safe, nutritious dairy products produced right here in Australia. And it is why, at the last election, we committed to introduce a mandatory code of conduct on the back of the egregious behaviour of the milk processors against our dairy farmers, following the step-downs and clawbacks by Murray Goulburn and Fonterra back in 2015.

In 2016, the ACCC inquiry we conducted actually recommended the mandatory code, and we're fulfilling that. Along with our commitment around the mandatory code, we also have $22 million worth of initiatives—everything from improving financial and legal literacy of our dairy farmers, their energy efficiency, support for—

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

Order, Senator McKenzie. I've got Senator Wong on a point of order.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

A point of order on direct relevance. There was one question, which was: when did she decide to delay the implementation of the code?

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

On the point of order, you've reminded the minister of the question. Senator McKenzie's response can directly address issues around the timing of the code of conduct. I ask the minister to take note of that and call the minister to continue.

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

Thank you very much, Mr President. That $22 million of additional support actually addresses the reason why our dairy farmers are doing it so tough—the increased fodder prices, increased electricity prices and increased water prices, which are putting incredible pressure on the input costs for our dairy farmers despite them getting a historically high farmgate price from the processors.

In terms of bringing the dairy code forward and our election commitment to deliver that by June 2020, we have always been public in our statements that we will deliver the code as quickly as possible, because we know that right now milk processors are attempting to sign our dairy farmers up to contracts of in excess of five years, so, the sooner we can bring that in the better. But I've also said, we won't be introducing a code— (Time expired)

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

Senator McCarthy, a supplementary question?

Malarndirri McCarthy (NT, Australian Labor Party) Share this | Link to this | Hansard source

Yesterday the minister refused to explain why her own backbenchers were bypassing her and advocating for dairy farmers directly to the CEOs of major supermarkets Coles and Woolworths. I ask the minister: did Senator McDonald seek her advice prior to writing to the CEOs of Coles and Woolworths, or was she simply bypassed because her Nationals colleagues have no confidence in her?

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

Senator McCarthy, the National Party, both Senator McDonald and myself, Barnaby Joyce, Wacka Williams, Barry O'Sullivan, Matt Canavan—I could go through a raft of National Party MPs and senators over the eight years I've been here, and none of us have taken a backwards step when it comes to holding the duopoly of Coles and Woolworths in this country to account, not just for our dairy farmers but for our horticulture farmers, the beef industry and the like. They've been ripping off our farmers over time because of their excessive market power—

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

Senator Watt, on a point of order?

Murray Watt (Queensland, Australian Labor Party, Shadow Minister for Northern Australia) Share this | Link to this | Hansard source

On relevance—the question was seeking an answer as to whether the minister was consulted about the letter.

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

I might also say that the question contained other elements which I might refer to more broadly as commentary. I think the minister is entitled to be directly relevant and respond to that as well.

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

My point is that, as a political party, we talk all the time about how we hold the supermarkets to account with what they're actually paying our producers. Senator McDonald and I have been in conversations about that. Senator Canavan and I have been in conversations about that. A raft of National Party MPs and senators are actively engaged in working out how we can better evolve competition laws in this country. (Time expired)

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

Senator McCarthy, a final supplementary question?

Malarndirri McCarthy (NT, Australian Labor Party) Share this | Link to this | Hansard source

The Nationals member for Lyne, Dr Gillespie, has warned that the minister's draft code dudded farmers, and he refused to rule out a leadership tilt over the issue. Is the minister confident her dairy code of conduct will satisfy Dr Gillespie?

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

Thank you again, for your question. I will repeat what I have often said in this place and publically: this is not my code of conduct and it is not our government's code of conduct; it will be the dairy industry's code of conduct.

There are eight unique regions of dairying in this country, each with very unique challenges and opportunities. The mandatory code of conduct to govern their relationship with the processors has to be fit for all. So it is not up to David Gillespie or Bridget McKenzie or Susan McDonald or Perin Davey to devise a code of conduct that we think suits us. It is for us as a government to deliver a mandatory code of conduct that delivers for the dairy farmers in this country and actually assures them of a transparent model for dealing with their processes.

David Gillespie has been a strong advocate for a broader trading platform—a transparent trading platform and quite an innovative model of trading milk—which the dairy industry itself is examining. As I've said, we've put the draft code out for consultation and we're now dealing with the feedback. (Time expired)