House debates

Tuesday, 26 November 2019

Matters of Public Importance

Dairy Industry

4:09 pm

Photo of Daniel MulinoDaniel Mulino (Fraser, Australian Labor Party) Share this | Hansard source

The debate today on this important MPI is emblematic of the government's failure in so many policy areas. Its response to this issue is the same as its response to other long-term, complex issues: it's piecemeal, it's reactive, it's short-term and it's ad hoc. Let's look at the way it responds to the economy. All we hear is, 'headwinds, headwind, headwinds.' It's like we're getting a weather report every question time rather than an economic update. Let's look at energy policy. All we get is hand-wringing about increasing prices and prices going through the roof when, in fact, the reason prices are going through the roof is their failure to have a plan. And that's exactly what we've heard today in relation to a lack of a plan on giving price stability to the dairy industry: 'It's all too hard. There'll be rivers of milk poured down the drain.' They wring their hands at increasing prices for farmers with no strategy other than, as speakers on our side have said, more and more debt piled on this industry. Let's look at this government's strategy—or lack of strategy—when it comes to the trials being faced by the dairy industry. When Murray Goulburn cut farmgate milk prices in 2016, as the member for Hunter indicated, this government stood by and watched with no long-term strategy. All we get now are piecemeal, short-term responses. All we get now is more and more debt for this industry and no long-term strategy.

The Victorian dairy industry produces $1.8 billion of raw milk, most of which is processed into powdered or fresh milk, cheese and other dairy products. It represents 65 per cent of national dairy production and generates $1.85 billion in exports. Global demand for dairy is increasing, yet, since peak production of 11.27 billion litres in 2002, Australia's total milk production has shrunk to 8.7 billion litres. Australia's share in the global dairy market fell from 16 per cent in the 1990s to six per cent last year. This is having a terrible effect in Victoria and around the nation. Since that time, New Zealand has doubled production. That shows what can happen when there is a long-term strategic, positive plan in place. What we have from this government in relation to the dairy industry, in relation to economic policy, in relation to energy policy, in relation to every area of long-term policy where there is a need for complex, long-term planning is reactive, short-term policies. What we've seen is a long-term decline in the dairy industry, as we've seen in so many other areas of our economy and as we've seen in so many other areas of our society.

People are getting wise to this government. It's all about rhetoric, all about hand-wringing, all about saying, 'We really care,' and all about saying, 'We really listen'—but there's no action. I have so much more to say on this but I will cut my time short so we can hear the great wisdom of the member for Kennedy. This is yet another example of this government's failure.

Mr Katter interjecting

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