House debates

Monday, 17 June 2013

Private Members' Business

Food Processing Industry

12:06 pm

Photo of Yvette D'AthYvette D'Ath (Petrie, Australian Labor Party, Parliamentary Secretary for Climate Change and Energy Efficiency) Share this | Hansard source

I welcome the opportunity to speak on this motion brought forward by the member for Murray. We, on this side of the chamber, have no problems with the detail of the member for Murray's motion. In fact, the government is acting on one of the key points that the motion raises in relation to taking action on anti-dumping and has already put in place a number of anti-dumping measures.

It is important to have a balanced approach to this issue and to weigh up all of the sides. While there are challenges for manufacturers, including food manufacturers such as the canners referred to in the motion, it must be recognised and acknowledged that the food and beverage manufacturing industry is a growing and evolving industry. With over 227,000 employees in 2011-12, it comprised over 13,000 businesses at the beginning of that period, of which nearly 99 per cent were small and medium enterprises. The sector is also extremely diverse, covering: meat, dairy, fruit and vegetable, confectionary, beverages and baking, among others, with a wide variety of firm sizes and regional specialities. While it must be acknowledged that some firms are experiencing great challenges, others are expanding and responding to increased demand.

The government are clearly aware that a range of factors have contributed to uncertainty in the industry, such as: the current high value of the Australian dollar, increasing input costs, the small Australian domestic market, a lack of manufacturing scale in some sectors, availability of skilled labour and retail market concentration. That is why we, the Labor Party, believe in such a thing as having an industry policy. That is why we support acting to support industry and involving ourselves to assist manufacturers to overcome the challenges they face. For example, through a range of agencies under the industry portfolio including AusIndustry, Enterprise Connect, CSIRO, Cooperative Research Centres and the Industry Innovation Precincts, the Gillard government have a number of programs and policy initiatives aimed at lifting innovation, investment and productivity to help our manufacturers overcome the challenges they face.

Further, under our Australian jobs plan, we have a $504.5 million Industry Innovation Precincts Program. Through that program, the government are investing in an industry-led Food Industry Innovation Precinct to create valuable connections across the food industry value chain and help firms build the critical mass, business capacity and export readiness needed to take advantage of industry growth opportunities, especially in Asia.

However, the government have heard and understand stakeholders in the food industry who are concerned about the long-term viability of Australian food manufacturing. That is why we are particularly keen to encourage investment in research and development through tax incentives and other programs designed to increase the level of collaboration between business and public research institutions.

I have heard a range of reasons being mentioned by those opposite for the impact on the industry, not to mention that the carbon price always seems to be mentioned when we talk about manufacturing. A measured realistic reflection on this issue will recognise that the government is also providing substantial support to the food-manufacturing industry, to transition to a low-carbon future through the $200 million Clean Technology Food and Foundries Investment Program, with $150 million of that program dedicated specifically to the food-manufacturing sector over six years. This support is funded by the price on carbon pollution.

Since the introduction of the carbon price, businesses have started taking practical steps to improving energy efficiency, reducing their power bills and reducing greenhouse gas emissions. They improve the business bottom line and help tackle climate change by reducing greenhouse gas emissions. Carbon pollution can often be reduced with relatively simple technology. In my role as parliamentary secretary I have seen this firsthand around the country. The Gillard government is working with many companies to invest in clean and renewable technologies.

We have announced funding for 223 projects, using the carbon price revenue from the clean technology investment program to leverage over $338 million in total investment.

Global food markets will remain critical to the ongoing success of our export-oriented food, commodity products, as well as value added processed food, particularly as a result of Asian economic growth, population growth and technological change. Progressive food manufacturers are responding to these pressures and demands and it is important that we leverage off our clean and green image and embrace a bright future for food manufacturers.

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