House debates

Monday, 19 June 2017

Private Members' Business

Craft Brewing Industry

6:47 pm

Photo of Brian MitchellBrian Mitchell (Lyons, Australian Labor Party) Share this | Hansard source

Deputy Speaker, I know that you and the member for Goldstein are passionate beer drinkers. First, can I say this: beer is 90 per cent water, so why doesn't it qualify as a health drink? In fact, back in the medieval times, around when the member for Goldstein and others were forming their political views, beer was, as a result of boiling the wort, safer to drink than water. In parts of my electorate that still suffer boiled water alerts under the Tasmanian Liberal government, it arguably still is.

My colleague Darren Clark tells me that, back when he was at primary school in 1978, he could buy from the school canteen Cascade shandy in a can, alongside a meat pie and sauce. I can imagine the kids in the playground; lolly cigarettes in one hand and gold cans of shandy in the other. They were the good old days. As much as I want to support the craft brewers in my electorate, I will not be advocating just yet for the pilsners or the pale ales to take their place alongside orange juice and choc milk at the school tuckshop.

But I do happily rise today to support the member for Grayndler's motion calling for a fairer deal for Australia's craft brewers, who have more than doubled in the past five years alone, and now number, depending on who you talk to, more than 400 nationwide. They are growing all the time. In my electorate, I am proud to host to Two Metre Tall in the beautiful Derwent Valley; Van Dieman, outside Evandale; Ironhouse on the north east coast; T-Bone in Kempton; and Seven Sheds in Railton. I am sure that more are on their way. Visit these places and the first thing that you are struck by is the heady aroma of hops, yeast and malted barley. The second is the passion that drives the brewers. They are not doing it for the money. They are doing it for the love of beer. They are artists. Just like the whisky and gin distillers in my state, Tasmania's craft brewers are increasingly recognised on the world stage. Last year, Ashley and Jane Huntington at Two Metre Tall reimagined those Aussie classics, cider and beer, for the extravagant opening of Noma Australia in Sydney. While guests at such soirees are traditionally offered a glass of champagne, this time their bubbles and fizz were elegant glasses of Snakebite, described as 'barrel aged, yet fresh and aromatic.' Tasmanian beer and cider replacing champagne at a major Sydney event—that surely puts Tasmanian craft beer on the map.

In the north of my electorate is Van Diemen, where brewer Will Tatchell is keen to source everything that goes into his beer from within his own local area. He is from a farming family, and his brews are keenly sought after. He does his hops and his barley himself—he does it all—and he still does much of the running around, trying to flog the beer to local hotels and local pubs. As the member for Hunter said, these beers go into local shops, local taverns and local hotels—they do so much to support the local tourism industry. Brewers like Ashley, Will and their families are so passionate that it is a joy to be in their presence, preferably with one of their brews in hand. They are pioneers of an industry that has the potential to make a very valuable economic and social contribution to regional communities like mine.

Deloitte estimates that craft brewing already contributes well over $160 million into the Australian economy, I think it was, back when they did the report, but we hear from the member for Brisbane that it is now $650 million. And the industry is only in its infancy. Global market researcher IBISWorld estimates craft brewing will grow five per cent a year per year for the next five years. While the imagery of craft brewing might be of bearded vegans with ponytails bottling a small number of piquant ales in a rustic converted barn, there is much more to it. It is potentially very big business.

The potential for craft brewing to make a significant contribution to the national economy, and particularly to the local economies of regional communities, is there. But it is being held back by current tax laws. A little tweaking here and there just to make it a level playing field—no special treatment—will make all the difference. This motion notes there is an inequity between how Commonwealth excise is calculated for small and large brewers, which disadvantages the craft brewing sector. Excise costs more to produce a 30-litre keg than a 50-litre keg. It is absurd, and it needs to change. Excise is important, but it should not be used to disadvantage small brewers. We need to do all we can to give this industry the support that it needs to grow.

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