Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Agriculture, Fisheries and Forestry. Minister, how will the government's $15 billion investment in the National Reconstruction Fund support the very important agriculture industry's ambition to exceed the $100 billion farmgate output by 2030?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Thank you, Senator Ciccone, someone who I know has a very deep and longstanding interest in the agriculture industry in our country. Well, today, Senator Ciccone, I have good news for Australian farmers, farm workers and all in the agriculture supply chain. Today's latest release of data from ABARES shows that the agriculture industry is well on its way towards its goal of exceeding $100 billion farmgate output by 2030. In the last financial year, the agriculture industry reached the $90 billion mark—an all-time record—and I congratulate every farmer, every processor, every worker and supply chain member for this achievement.

This was done off the back of what were, with some exceptions, great seasonal conditions, which have meant record farm cash incomes for broadacre and dairy farms over the past two years. But, of course, the context to this is that input costs for farm businesses are rising, impacting farm profits. Years of failed energy policies and chronic underinvestment in skills development have come home to roost. As a result of this and global factors, agriculture input costs have risen sharply since mid-2021, particularly the price of fertiliser, which has more than doubled, putting intense strain on farming businesses to balance the books. That's why the National Reconstruction Fund is so important. We need a future made in Australia, and that applies to agriculture just as much as every other industry.

We should be value-adding, and we should be making more things here. The ability to make things here is vital to not only reduce input costs but also increase the value of the final product that our agriculture industry rolls out. And that's exactly what the National Reconstruction Fund will do, co-investing with industry, including agriculture, to grow our primary industries and turn raw products into even higher value ones. The Albanese Labor government wants Australia to be a country that makes things again, and we are backing our agricultural manufacturing industry to ensure that that happens.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Ciccone, a first supplementary?

Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

I thank the minister for that answer, particularly given the number of farmers in town today given the ABARES conference being held today and tomorrow. Minister, how is the Labor government prioritising the agriculture sector in the National Reconstruction Fund?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Thank you, Senator Ciccone. I'm very pleased to say that the $15 billion National Reconstruction Fund—it even has the word national in it—a key election commitment from the Albanese government, has a $500 million portion sectioned out for investment in local manufacturing to support agriculture. Once established, that money will be available to co-invest in more food processing, in bringing down energy costs and more value-adding.

A great example of something that could potentially fit in that category, that we should be making here, is fertiliser. We have the raw materials here in Australia that we export to other countries, so why shouldn't we be making more fertiliser here in Australia and why shouldn't the government support industry to get it started? That's exactly what our National Reconstruction Fund would be available to do: co-invest with industry to boost value-adding.

I've been speaking about this with farmers and industry in recent weeks, grain growers, meat processors and many more. It's vital the NRF passes the House and the Senate, and we encourage everyone to get behind it. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Ciccone, a second supplementary?

Raff Ciccone (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Thank you for mentioning communities, particularly those right around regional Australia, Minister. How will the National Reconstruction Fund support those very communities that rely on the ag sector across regional Australia?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Thank you, Senator Ciccone. More jobs, more exports, more opportunities and a better bottom line for regional Australia—who wouldn't want that? Unfortunately, quite a few of those members opposite, it seems, are anti-manufacturing and anti-jobs. Whether it's Mr Dutton or Mr Littleproud, or the Liberals and the Nationals here in the Senate, the coalition only want to say no to this fund. More manufacturing in our regions? No. More value-adding in agriculture? No. More tax concessions for the top 0.5 per cent? Oh, yes!

I am surprised that the Nationals, in particular, are opposing the National Reconstruction Fund. Not only does it contain the word 'national' but in the past they've claimed to support Aussie manufacturing. In fact, it wasn't that long ago that Senator Canavan was saying, 'We've all seen during the coronavirus how important it is to have industries that can produce things in the medical field, to keep our food production and food security going, and after coronavirus we're going to need to have a strong manufacturing industry to recover.' Senator Canavan, have I got a solution for you— (Time expired)