House debates

Monday, 24 November 2014

Questions without Notice

Dairy Industry

2:37 pm

Photo of Andrew BroadAndrew Broad (Mallee, National Party) Share this | | Hansard source

My question is to the Minister for Agriculture. Will the minister outline for the House what the historic Australia-China Free Trade Agreement will mean for our dairy industry?

Photo of Barnaby JoyceBarnaby Joyce (New England, National Party, Minister for Agriculture) Share this | | Hansard source

I thank the member for Mallee for his question. The member for Mallee, obviously, is very aware of the benefits of dairy because Cohuna, in his electorate, is a dairy area, but more so, because of the people who supply the dairy industry—supply it with grain and supply it with all the support that it needs.

Opposition Members:

Opposition members interjecting

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

The member for Wakefield will leave under 94(a).

The member for Wakefield then left the chamber.

Photo of Barnaby JoyceBarnaby Joyce (New England, National Party, Minister for Agriculture) Share this | | Hansard source

The agreement that the coalition has provided has got to be seen for more than just the fact that it reduces the tariffs on liquid milk from 15 per cent over nine years to zero; the fact that it reduces the tariffs on skimmed milk powder from 10 per cent over 11 years to zero; on whole milk powder from 10 per cent to zero over 11 years; on dairy fats from 10 per cent to zero over four to nine years; on cheese from 12 to 15 per cent to zero over four to nine years. The have to see beyond the fact that this was an agreement that was negotiated by the coalition, and I commend the work done by the Minister for Trade and Investment, Andrew Robb. It was a brilliant piece of work.

It is also going to bring real money back into the streets of regional towns—real money back through the farm gate. That money is going to be provided to the mums and dads who own the farm because they are the real benefactors of this. Of course, the question that they will be asking is about this: whilst they were waiting for this, surely someone else in a previous government would have seen the advantages that New Zealand received from their negotiations of a free trade agreement and what happened with dairy in their industries and the benefits to their farmers. Surely they would have thought that if this is happening across the ditch, we could do it here. But, no, what the government at that point in time was worried about was cash for clunkers, massive debt, Fuelwatch and GroceryWatch. They were doing all of the things but helping farmers. They were doing all of the things but bringing a fair return back to the farm gate.

Mr Snowdon interjecting

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

The member for Lingiari will desist!

Photo of Barnaby JoyceBarnaby Joyce (New England, National Party, Minister for Agriculture) Share this | | Hansard source

Now, with over 4,000 dairy farmers in Victoria, we are going to see a real increase in investment. That investment is happening already. It is happening already. Hope Dairies have put half a billion dollars on the table. They have put half a billion dollars on the table to expand dairy in an area where it is currently closing down in the Burnett. We see that Murray Goulburn is expanding their dairy production. Norco has just got a new contract for 90,000 litres over three months. This is a great return.

Opposition members interjecting

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

If the member for Hunter wishes to join the member for Wakefield then keep it up.

Photo of Barnaby JoyceBarnaby Joyce (New England, National Party, Minister for Agriculture) Share this | | Hansard source

They are already exporting. They are already exporting over 10,000 litres of fresh milk a week. Of course fresh milk, also, is going to have its tariff reduced. All this means one thing; it means a better return. It means more jobs in the agricultural sector—38,000 new jobs last year. And the Council of Deans of Agriculture in universities have said that for every graduate there are five jobs. So all round this is a great return and all around this is a great outcome.