House debates

Wednesday, 29 March 2017

Bills

Primary Industries Research and Development Amendment Bill 2017; Second Reading

11:03 am

Photo of Luke HartsuykerLuke Hartsuyker (Cowper, National Party, Assistant Minister to the Deputy Prime Minister) Share this | | Hansard source

I move:

That this bill be now read a second time.

Proactive industries are the future of Australian agriculture, fisheries and forestry—industries that see an opportunity to promote their product, grow their business and become more profitable. This bill will help a range of rural industry sectors to make it happen.

In the late 1980s, industry and government established the Rural Research and Development Corporations under the Primary Industries Research and Development Act 1989. Since then, the R&D corporations have helped to keep rural industries productive and profitable by conducting research, development and extension which is practical and relevant to each industry sector. Industry and government both invest in R&D corporations. Industry invests through levies on production and the Australian government invests by matching industry's R&D levy expenditure. According to ABARES estimates, for every dollar invested in broadacre agricultural R&D farmers generate a $12 return within 10 years.

Strong agriculture, fisheries and forestry industries are good for all Australians. ABARES forecasts our farm exports to be around $47.7 billion in 2016-17 and $48.7 billion the next year.

There are 15 rural R&D corporations, of which 14 can carry out marketing activities. Only 10 do, however, and they provide a valuable service to their industry sectors. Marketing has helped to build our pork, wool and red meat industries, to name just a few, and expanded Australian access to international markets.

Four statutory R&D corporations are still governed by the 1989 legislation—the fisheries, cotton, grains and rural industries R&D corporations. Unlike most R&D corporations, they must have a statutory levy attached to the corporation in order to undertake marketing. This change was made in 2013 following wide consultation which led to the passage of the Rural Research and Development Legislation Amendment Act 2013.

The process to impose a statutory levy is often time consuming and its collection can be expensive. The Fisheries R&D Corporation and its industry bodies say that smaller industries cannot afford the cost of establishing and collecting a statutory levy.

This bill provides that the fisheries, cotton, grains and rural industries R&D corporations will be able to carry out marketing activities using voluntary contributions—for example a gift, grant or bequest. This will add to their existing ability to conduct marketing with statutory levy funds.

The R&D corporation will have to report on the marketing activities it carries out each financial year in its annual report.

The bill will expand the definition of 'marketing activities' to include matters incidental to marketing. This will allow R&D corporations to scope, plan and coordinate marketing activities without having to use funds provided to them for R&D purposes. The expanded definition mirrors the definition of R&D activities to make it easier to apply and understand.

The affected R&D corporations support the provisions in this bill, and I commend the bill to the House.

Debate adjourned.