House debates

Monday, 23 June 2008

Wheat Export Marketing Bill 2008

Consideration of Senate Message

Bill returned from the Senate with amendments.

Ordered that the amendments be considered immediately.

Senate’s amendments—

(1)    Clause 3, page 2 (line 14), omit “responsive to”, substitute “advances”.

(2)    Clause 5, page 6 (after line 10), after the definition of foreign law, insert:

individual producer means a wheat producer who deals solely in wheat which that individual producer has grown himself or herself.

(3)    Clause 7, page 9 (after line 7), after subclause (1), insert:

     (1A)    Notwithstanding subsection (1), an individual producer may export wheat provided that it is wheat produced by that individual producer.

(4)    Clause 15, page 18 (lines 27 to 30), omit subclause (2), substitute:

(2) Paragraphs (1)(c) and (d) do not apply:

             (a)    to the export of wheat in:

                   (i)    a bag; or

                  (ii)    a container;

                      that is capable of holding not more than 50 tonnes of wheat; or

             (b)    to an individual producer exporting wheat produced by that individual producer.

(5)    Clause 21, page 25 (lines 19 to 22), omit subclause (3), substitute:

(3) Paragraphs (2)(a) and (b) do not apply:

             (a)    to the export of wheat in:

                   (i)    a bag; or

                  (ii)    a container;

                      that is capable of holding not more than 50 tonnes of wheat; or

             (b)    to an individual producer exporting wheat produced by that individual producer.

(6)    Clause 22, page 27 (lines 26 to 29), omit subclause (4), substitute:

(4) Paragraphs (3)(a) and (b) do not apply:

             (a)    to the export of wheat in:

                   (i)    a bag; or

                  (ii)    a container;

                      that is capable of holding not more than 50 tonnes of wheat; or

             (b)    to an individual producer exporting wheat produced by that individual producer.

(7)    Page 69 (after line 3), before clause 87, insert:

86A  Operation of certain State and Territory laws

        (1)    In this section:

corporation means a trading corporation formed within the limits of the Commonwealth.

sale contract means a contract for the sale of grain or for the growing of grain and the sale of the grain, being a contract to which a corporation is a party and which is entered into by a corporation in the course of, or for the purposes of:

             (a)    the export of the grain; or

             (b)    trade and commerce:

                   (i)    among the States; or

                  (ii)    between a State and a Territory or between Territories; or

                 (iii)    within a Territory.

service contract means a contract, agreement or arrangement for the storage, handling or transport of grain for a corporation, being a contract to which a corporation is a party and which is entered into by the corporation in the course of, or for the purposes of:

             (a)    the export of the grain; or

             (b)    trade and commerce:

                   (i)    among the States; or

                  (ii)    between a State and a Territory or between Territories; or

                 (iii)    within a Territory.

State or Territory enactment means:

             (a)    a State Act; or

             (b)    an enactment of a Territory; or

             (c)    an instrument made or issued under such an Act or enactment.

        (2)    A sale contract or a service contract is not rendered unlawful or unenforceable by any prescribed State or Territory enactment.

        (3)    A party to a sale contract or a service contract does not incur any liability, penalty or forfeiture under a prescribed State or Territory enactment by virtue only of having entered into the contract.

        (4)    Nothing in any prescribed State or Territory enactment operates to prevent a party to a sale contract or a service contract discharging obligations under the contract according to the terms of the contract.

        (5)    In the case of a sale contract, nothing in any prescribed State or Territory enactment operates to prevent the property in the grain passing to the purchaser according to the terms of the contract.

        (6)    A person who, under a contract (including a contract of service), agreement or arrangement with a party to a sale contract or a service contract, does anything on behalf of that party in the discharge of an obligation under the sale contract or the service contract does not incur any liability, penalty or forfeiture under any prescribed State or Territory enactment by virtue only of having done that thing, and the contract, agreement or arrangement between that person and the party is not rendered unlawful or unenforceable by any prescribed State or Territory enactment.

        (7)    A corporation does not incur any liability, penalty or forfeiture under a prescribed State or Territory enactment by virtue only of storing, handling or transporting grain for a purpose referred to in the definition of service contract in subsection (1).

        (8)    Nothing in any prescribed State or Territory enactment prevents a corporation storing, handling or transporting grain for a purpose referred to in the definition of service contract in subsection (1).

        (9)    A person who, under a contract (including a contract of service), agreement or arrangement with a corporation does anything for the corporation in, or in connection with, the storage, handling or transport of grain by the corporation does not incur any liability, penalty or forfeiture under any prescribed State or Territory enactment by virtue only of having done that thing, and the contract, agreement or arrangement between that person and the corporation is not rendered unlawful or unenforceable by any prescribed State or Territory enactment.

      (10)    Nothing in any prescribed State or Territory enactment operates to prevent a party to a contract, agreement or arrangement referred to in subsection (6) or (9) discharging obligations under the contract, agreement or arrangement according to its terms.

      (11)    Subsection (5) does not affect the rights of the holder of a security over grain for money owing.

      (12)    Subject to subsection (13), a reference in this section to a prescribed State or Territory enactment is a reference to:

             (a)    a State or Territory enactment declared by the regulations to be a prescribed State or Territory enactment for the purposes of this section; or

             (b)    a State or Territory enactment included in a class of State or Territory enactments declared by the regulations to be prescribed State or Territory enactments for the purposes of this section.

      (13)    The regulations must not prescribe a State or Territory enactment except in relation to the storage, handling and transport of grain or the marketing of wheat.

      (14)    The regulations may provide that a State or Territory enactment, or a State or Territory enactment included in a class of State or Territory enactments, is a prescribed State or Territory enactment only to the extent, or only in the circumstances, specified in the regulations.

      (15)    Regulations prescribing a State or Territory enactment for the purposes of this section must not be made unless the Minister has notified the Minister of the State or Territory responsible for the administration of the enactment of the subject matter of the regulations.

(8)    Clause 89, page 70 (line 2), omit “Before 1 January 2011”, substitute “By 1 January 2010”.

(9)    Clause 89, page 70 (line 17), at the end of paragraph (4)(b), add “before 1 July 2010”.

12:27 pm

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

I move:

That the amendments be agreed to.

It would be considered an outrageous thing to hear in this House, but it was actually interesting watching the Senate on Thursday night. When watching the Senate on Thursday night we saw a whole lot of things that I certainly never expected to see. The Liberal Party had indicated through the Leader of the Opposition in this House a number of amendments they were going to move. The key amendment was to remove access provisions across the board that were contained in this legislation. That amendment, notwithstanding having been raised by the Leader of the Opposition in this House as being critical to the amendments that would be moved by the opposition, was never moved. There were a number of amendments moved, though, and, for reasons which will become clear as I speak, the government are in a position to respond positively to each of them.

There was a change to the objects clause in the Wheat Export Marketing Bill 2008 which changed the obligation from being ‘responsive’ to growers to ‘advances’ the needs of growers. We have accepted that. Regarding the review date, there was some discussion where the government suggested to the opposition that it might have made more sense to have a later review date so that there were two harvests, so that the access provisions under this bill were able to be taken into account. If they were able to be taken into account that would make the review more worth while, but the Liberal Party were determined that the start date should be 1 January 2010. In the interests of having a constructive approach in the other place, the amendment was accepted. There was also a particular issue regarding transport and trying to make sure that state governments did not try to impose transport monopolies on the way grain is transported around the country. That amendment was put by the opposition and agreed to.

The bit that got really interesting, though, was an amendment about individuals. This was raised by the Liberal Party and was that any individual grower should be able to export their own wheat without any regulation on them whatsoever. You could describe this amendment as being the total deregulation of the wheat industry. The National Party voted for it. In the Senate on Thursday night the Liberal Party put an amendment forward that amounted to the total deregulation of the wheat industry—not moving from having a single desk to having the regulated but competitive system that the government is proposing but actually allowing every single grower the right to export their own wheat wherever they want and in whatever quantity they want, completely outside any international pool. The government was opposed to that amendment. We supported the system that we put forward. The Liberal Party put forward a system of total deregulation and the National Party on Thursday night voted for it.

Interestingly, when you go to the reasons they gave, the most telling comment came after Senator Minchin had described the fact that he believed this bill would be unacceptable to the government and said:

So I suspect we will be talking about this bill once more next week ...

To that, Senator Joyce said:

I understand completely the tactics.

What would possess the National Party to decide on Thursday night that they would support the total deregulation of the wheat industry?

Photo of James BidgoodJames Bidgood (Dawson, Australian Labor Party) Share this | | Hansard source

Spell it out!

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

I will spell it out—I respond to the interjection favourably—because it is an easy thing to spell out. You spell it this way: A-W-B. There was a late request that was going through the corridors of this house with respect to having a particular set of rules that would cause the one port in Melbourne, part owned by AWB, to have a set of rules different from those that would apply to every other port in the nation. AWB was never named in the debate—no, no, no. It kept being referred to as the ‘joint venture matter’. AWB sort of became the Voldemort of the Senate debate on Thursday night: everyone knows what you are talking about but you dare not speak its name. It was said by Senator Minchin in these terms:

In the meantime, the government will have the opportunity to further consider its position with respect to the joint venture matter.

(Extension of time granted)

An incident having occurred in the gallery—

Photo of Ms Anna BurkeMs Anna Burke (Chisholm, Deputy-Speaker) Share this | | Hansard source

The people in the gallery will please respect the House.

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

Senator Minchin said:

In the meantime, the government will have the opportunity to further consider its position with respect to the joint venture matter. But certainly at this stage, it is the position of Liberal senators that we concur with the remarks of Senator Sherry on that matter.

So, to try to get the special deal for AWB, amendments were put forward, and so determined were each of the coalition parties to make sure they could delay the legislation that we saw the National Party on Thursday night vote for the total deregulation of the wheat industry.

As it happens, they made a mess of their own amendment that they put forward for the total deregulation of the wheat industry. I will start a step back from that. The objections and the barriers to individuals exporting their own wheat directly occurred in two places: one, in the principal bill, the Wheat Export Marketing Bill 2008 and, secondly, under the Wheat Export Marketing (Repeal and Consequential Amendments) Bill 2008, which had an amendment to some of the regulations contained under the Customs Act. The Senate amended the first bill but never read the second bill. So the House is in a situation now where, because there are no amendments to the second bill, it is impossible and not open to us to send those bills back to be corrected because one of them has now been approved in identical forms by both houses. That option is not open to the parliament now.

The amendments were done in a lazy fashion by the opposition when they went for total deregulation. The attempts by both coalition parties to completely deregulate the wheat industry have fallen over, thankfully, because the one thing standing between protecting growers from total deregulation and it happening was competence from coalition senators in the other place. That did not happen and therefore we have the protection. There was not competence; we have the protection that the bill before us now cannot provide for individuals to export their own wheat because the second amendment to the other bill was never carried.

These decisions and recommendations from the government have to be made on one question, and one question only—not on the basis of what tactical games the opposition tried to play, not on the basis of how bizarre it was to see National Party senators voting for total deregulation, but on the basis of: does the legislation before the House match government policy? And the answer to that is yes. What we have before us is legislation which ends the AWB monopoly on exports. It includes amendment to the objects clause, the review date and to transport systems which are acceptable to the government. What it has actually done in a legal sense with respect to individuals is take away any barrier to individuals exporting their own wheat in the principal legislation but left a regulation in place, which could conceivably be changed by a minister in the years to come, should a minister choose to make that change—I certainly will not be choosing to—to allow individuals to export their own wheat directly, by removing a customs prohibition.

With that in mind, the legislation which we have before the House accords with the policies of the government. The government is not interested in providing a special deal on a commercial matter to a particular company exporting wheat. With that in mind, I commend the motion to the House, which is that the amendments be agreed to. That takes us into a new era of wheat export marketing.

An incident having occurred in the gallery—

Photo of Ms Anna BurkeMs Anna Burke (Chisholm, Deputy-Speaker) Share this | | Hansard source

The people in the gallery will be quiet or I will have the attendants remove them. The question is that the amendments be agreed to.

Question agreed to, Mr Forrest dissenting.