House debates

Wednesday, 25 February 2015

Constituency Statements

Sugar Industry

9:38 am

Photo of George ChristensenGeorge Christensen (Dawson, National Party) Share this | | Hansard source

I rise to update the chamber on the sugar marketing code of conduct task force, which I have been asked by the Minister for Small Business and the Minister for Agriculture to chair. As a quick background to the situation, three milling companies—namely, Wilmar, MSF Sugar and COFCO—announced last year that they will cease sugar marketing arrangements with Queensland Sugar Limited, or QSL, from 2017. There is concern amongst canegrowers that this will deny growers the choice to market their grower economic interest, sugar, through their industry owned and not-for-profit marketing body, QSL. We have set up this task force, and I have to give high praise to the Minister for Small Business and the Minister for Agriculture for allowing this to happen and taking an active interest in it.

To date, I have gone and personally talked to a number of different canegrower groups. We have established the committee, set a terms of reference and set a process in place. We are on the verge of publicly advertising for submissions from the industry about what should be in a possible sugar marketing code of conduct. We are asking that people make particular reference to the concept that growers have an economic interest in the sugar they supply to the mill, growers' ability to choose a marketing entity for their economic interest, transparency of sugar marketing activities, the mill supply contract negotiation process and protecting growers from discrimination by millers, amongst other things.

I actually got a note saying that the shadow minister has expressed an interest in having Labor Party members on the committee. It is a government task force, but I do extend an invitation to the Labor Party. If they want to have input into that process, I am more than happy to meet with interested members and the shadow minister about that. I have already extended that invitation to the member for Kennedy as well, who has an interest in sugar.

Where to from here? We will have briefings with peak bodies, the ACCC, growers groups, QSL and the millers. The outcome will be to deliver stability and security for can growers, millers, sugar marketing entities and the entire sugar industry. We hope to report back to the Minister for Small Business in May.

This is a matter of urgency, and one thing that members of the Labor Party can do, especially those from Queensland—and I note one is here in the chamber—is to impress upon the new Queensland Labor government the urgency of this issue. The fact is that they could make changes to Queensland's Sugar Industry Act which would address this situation and provide some stability for the industry.