Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to table an explanatory memorandum relating to the bill.

Leave granted.

I table the explanatory memorandum and I seek leave to have the second reading speech incorporated in Hansard

The speech read as follows—

NATIONAL ORGANIC STANDARD BILL 2024

The National Organic Standard Bill 2024 is about establishing much-needed clarity and fairness into the regulations which govern this crucial sector.

It's about giving consumers genuine confidence in the products that they buy.

And it's about increasing market access, and strengthening international trade, for Australian organic exporters.

From the outset, it's important to recognise the essential role that our national organic industry has within the $80 billion agriculture sector.

Organics is—both in a domestic and export sense—worth over $2.3 billion.

It has a massive footprint nationwide, and internationally. Currently, Australia has 53 million hectares of certified organic farmland—which amounts to 12.5% of all agricultural land in our nation, and about 60% of all organic land worldwide.

It's an industry that supports an estimated 6,000 Australian businesses.

Ultimately, this is an industry that needs, and deserves, the benefits of a mandatory domestic organic standard. This is what our producers, our operators, and our exporters in the sector have been calling for.

And that is precisely what this Bill will deliver.

Because currently, it's clear that the current regulatory framework in Australia is not fit-for-purpose.

It defies logic that domestic organic products are not required to be certified or comply with any particular organic standard—but still be designated as 'organic'.

In fact, products with as little as 2% organic ingredients can use the word 'organic' on their product packaging in Australia.

Meanwhile, for a product to be organic under OECD requirements, it needs to be certified. And under these certified organic requirements, 95% or more of the product needs to be comprised of certified organic ingredients.

Right now, this inequality is holding the sector back. And it's preventing the Australian organics industry from reaching its full potential.

After kick-starting the initial process in government to review the current regulations—the Federal Coalition has listened to the views expressed by the leading organisations who represent this sector.

We've consulted with industry about this, we've heeded their advice, and we've studied the detail of what needs to be done.

And today, we are proud to be taking decisive and effective action.

This Bill is the culmination of years of effort by the Federal Coalition. In the former Government, the then Agriculture Minister David Littleproud established an Organics Industry Advisory Group to provide advice on the regulatory framework. I acknowledge other colleagues who lobbied for this reform, including Senator Davey.. This Bill brings all of that work together to finish what we had started, and what the Labor Government has failed to finalise.

The National Organic Standards Bill 2024 will regulate the sale of organic products on the domestic market, as well as imports.

There is a pressing need to establish a mandatory domestic standard for organic certification, because at the moment it's voluntary. This puts Australia out of step—and out of line—with other developed countries.

When there is no domestic organics standard, there is a lack of consistency for our producers. Meanwhile for our exporters—it leaves them in a situation where they are hit with separate fees, to meet the different regulations which exist in each individual country that they export to.

This is not ideal.

The current system is messy, fragmented, and unfair.

It puts a handbrake on the sector's capacity for growth.

This $2.3 billion industry urgently needs the consistency and certainty that a National Organic Standard offers—and this legislation before the Senate will provide that. Taking this course of action will have significant and far-reaching benefits.

One of the most crucial is the boost that it will give to consumer confidence. Australians can be assured, and have the trust and knowledge, that when they purchase certified organic produce—that they are getting what they pay for.

The Federal Coalition believes that having a national standard in place will allow the community to gain a greater appreciation for what the definition of 'organic' truly means.

With mandatory regulation—we anticipate that consumer confidence in organic produce will rise.

For many organic producers, the certification process is a major commitment. And so, having a nationally consistent domestic standard will help create a more equal, fair, and economically sensible, playing field.

And finally for our organic exporters, the measures in this legislation will help increase their access to lucrative markets and boost international trade.

This is because Australia is the last remaining country in the OECD to not have a domestic regulatory framework for the use of the word 'organic'.

So, when we consider all these factors—the reality is that the current system is not fit-for-purpose.

It needs improvement. And this is how the Coalition's Bill proposes to do it.

For any person who wishes to sell organic goods in Australia, the National Organic Standard Bill 2024 will establish a requirement for them to first obtain an organic certificate.

The organic certificate will cover the regulated sales of the product for one year—which is the same time that an audit is required by the issuing body for this certificate.

Given that an issuing body is one of the certifying authorities which is currently approved to audit businesses to facilitate the export of organic goods—this measure will make both the domestic and export process the same, and require only one audit to be conducted.

Meanwhile, an importer of 'prescribed' organic products would also be required to hold a copy of an organic certificate issued by the foreign country—or a body that performs a role that is similar to that of an approved certified body in Australia.

Importantly, this certificate will need to affirm that the organic produce meets the high standards and integrity of Australia's National Organic Standard—or similar.

Moving to the enforcement of these measures, this Bill outlines the strict imposition of a range of penalties for selling, importing, or intending to sell, an organic product—in the absence of an organic certificate. These penalties are based on the Export Control Act 2020.

However, it's worth noting that there will be exemptions in place for smaller operators.

Under the provisions of this Bill, I can advise the Senate that the compliance arrangements under the National Organic Standard framework have been intentionally designed to minimise cost.

This Bill also clarifies that the certifying authorities, approved by the Department of Agriculture, Fisheries and Forestry, will be able to issue an organic certificate, revoke it, or refuse to grant one, if the produce doesn't meet the national standard.

On this front, the Administration Review Tribunal will have the right to undertake reviews to examine the merits of any such decisions.

Within the Department, the Secretary will have the powers to require an audit. This could occur in a scenario where—for example—the Secretary wants to determine whether an organic product that is on the wharf being inspected for biosecurity reasons is covered by an organic certificate.

Meanwhile, the Australian Competition and Consumer Commission—the ACCC—will have the compliance and enforcement powers.

This legislation also stipulates that after six years, an independent review will be conducted—to ensure that the National Organic Standard framework is operating effectively.

This review will also be able to determine a valuable indication of the benefits that this domestic standard will provide to Australian exporters—as it applies to their access to new potential markets and gaining equivalency with the requirements of other nations.

Furthermore for businesses, the provisions in this Bill have been carefully and specifically designed to ensure that there is a seamless and efficient interaction with Australia's current export system—causing minimal disruption.

Ultimately, this legislation is about streamlining, modernising and simplifying the regulations that govern our national export organics industry.

Regulations that, if left untouched in their current form, are simply not up to scratch.

And as I've mentioned in my opening remarks, we know that the current regulations are not up to scratch, because this is precisely what the industry has been consistently telling government.

So, it's time not just to listen, acknowledge, and understand—but to act.

Because this has been an issue that has confronted the Australian organics industry for some time.

It's why, in December 2020—during the term of the last Coalition Government—that we established an Organic Industry Advisory Group, to review the regulations and advise how the system could be improved to allow this vitally important sector to reach its full potential.

It's precisely why, after considering the Advisory Group's advice, that the Coalition acknowledged that the system needed reform, and we committed to establish a Domestic Organic Standard at the 2022 election.

It's something that we—on this side of the Chamber—are serious about delivering.

So we urge the Albanese Labor Government to appreciate the expertise, the advice, and the knowledge offered from across the sector about the need for a National Organic Standard.

We urge the Government to support this sensible, industry-led solution to what is a real and longstanding issue.

In conclusion Madam President, the Coalition is proud to have introduced this Bill into the Senate.

We are proud to stand in solidarity with the Australian organics industry, which contributes so much to our nation.

We are proud to propose a comprehensive framework for a National Organic Standard.

A National Organic Standard which will directly benefit consumers, provide much-needed clarity to producers, and boost our trade capability.

We say to the Government, in the spirit of bipartisanship—that this measure is about the following priorities:

It's about listening to the voices of the sector, and taking action.

It's about embracing some regulatory common sense.

And it's about delivering a decisive reform which will help our organics industry grow, and thrive, into the future.

It's time to get this done, and we are seeking the Government's support to make it a reality.

I commend the Bill to the Senate.

I seek leave to continue my remarks later.

Leave granted; debate adjourned.