House debates

Tuesday, 16 March 2021

Grievance Debate

Agriculture Industry

6:14 pm

Photo of Anne WebsterAnne Webster (Mallee, National Party) Share this | | Hansard source

In the north-west region of Victoria, which is most of my electorate of Mallee, growers produce 100 per cent of the almonds grown in Victoria, with a gross value of over $840 million. We also produce: 99 per cent of Victoria's table grapes, valued at $347 million; 98 per cent of Victoria's oranges, valued at $66 million; and 62 per cent of Victoria's nectarines, valued at $59 million. Many of the horticultural products produced in Mallee are labour intensive, and the sector is dependent on overseas workers to get product to our plates.

Clearly, COVID-19 has created significant challenges for the industry, largely due to international and national border closures. However, workforce challenges existed in the industry for many years prior to the pandemic and will undoubtedly persist into the future. While reopening our borders to international arrivals will continue to be the main determinant of our ability to get fruit off the trees and vines, the need for meaningful reform still exists in a non-COVID environment.

Many of our pre-existing visa programs are not suitable for the highly seasonal, sporadic, short-term and transient work that is characteristic of the horticultural industry. However, programs that do meet these requirements, such as the Working Holiday Maker program do not provide a sustainable solution for the sector. Greater capacity to access legal, sustainable sources of low-skilled workers for long- and short-term work is desperately needed for producers and employers in the industry. Whether it's through the extension of existing programs or the creation of new ones, greater access to low-skilled workers will be instrumental to the industry's growth in the future, reaching $100 billion by 2030.

The reality is that our industries are suffering. I've spoken to many local growers whose fruit has fallen to the ground or who fear it will. Many have already made the heartbreaking decision to plough their entire crop. One such farmer at Lake Boga is Ian McAlister. He aimed to pull off a fabulous crop this year, but is down to 25 to 30 workers. Shockingly, he had to plough in his entire peach crop valued at $300,000. Nick Muraca, a table grape grower from Robinvale, told me last week that a large majority of growers in his area are struggling. He said that the huge losses currently facing the industry are due to worker shortages and will have untold effects. Nick is appreciative of the work of the Commonwealth government to improve access to international markets for our nation's primary produce in trade, but he's worried these efforts could go to waste if we can't sort out problems with labour. He knows that we need a sustainable, long-term plan to tackle these issues.

I've also recently met with young innovators and farmers Dean Morpeth and Mick Young entrepreneurs and founders of SHARP Fruit in Woorinen. They have an impressive set up in their packing sheds, but they are currently down 20 workers, resulting in a shutdown of their entire packing line. This is lost revenue for the whole district. If producers don't sell their fruit and it can't be packed and sent in a timely manner, they lose it. This has a flow-on effect for all the cafes and businesses in town. Less locals can be employed in those businesses and more families are doing it tough. Mick and Dean expect next year to be worse if international borders don't open, as more people on Working Holiday Maker visas are forced to return to their home countries.

I've also met recently with Darren Minter of Minter Magic in Iraak. Minter Magic is famous for its asparagus, and I can tell you first hand, it's amazing. But asparagus is incredibly labour intensive. Darren can see the writing on the wall and is slowly transitioning away from asparagus and into less labour-intensive crops, such as almonds. Many producers across the country are facing these difficult decisions.

A report by the consultancy firm EY released in September last year painted a grim picture of expected workforce shortages. The analysis showed the industry could expect a shortfall of up to 26,000 workers between 20 June and December 2021. This translates to a net gap of 20 to 33 per cent over the 18-month period. Consequently, the horticultural industry is in crisis control. I've had countless conversations with growers, employers, workers, industry leaders, government officials and other experts about what needs to change for us to get the settings right. These conversations have led me to develop a seasonal workforce policy, which I've taken to the Nationals' party room and policy committee. In the document, I've made several recommendations. These include: making improvements to the Seasonal Worker and Working Holiday Maker programs; providing greater clarity and refinement of the Horticultural Industry Labour Agreement; and establishing regional hubs for the Department of Home Affairs to assist with labour and immigration issues.

But perhaps the two most significant recommendations are my calls for the development of a short-term low-skilled harvest visa and the implementation of a one-off visa status resolution for undocumented workers. These ideas are not new, and have been canvassed several times in the past. However, the current situation with COVID-19 provides the perfect opportunity to implement these reforms for the benefit of the horticultural industry. The creation of a dedicated ag or harvest visa is widely supported by industry, including national peak bodies such as the National Farmers Federation and the Australian Fresh Produce Alliance. It's also been a recommendation in two separate reports by two different parliamentary inquiries. Such a visa that would allow for greater flexibility for both workers and employers; decrease costs and regulatory burdens for government and industry; reduce instances of exploitation in the industry; and provide a consistent and stable supply of harvest workers.

To complement this visa, I am asking the party room to support the introduction of a measure to resolve the status of undocumented workers in the horticultural sector. It has been estimated that there are between 60,000 and 100,000 undocumented people working in industries. While the Australian border remains tightly closed, we have the optimal opportunity to resolve these domestic visa issues. The measure will allow Australia to confront exploitation in the horticultural industry; provide a level playing field for producers who sell the fruit at the market for the same price; reduce the risk of spreading COVID-19; and improve health and safety outcomes for this hidden population.

The point is that, currently, only employers who are willing to break the law and engage undocumented workers have access to this pool of labour. If these undocumented workers were to have their status resolved, it would open up this pool of labour to the vast majority of growers and employers who are doing the right thing. My call for a status resolution for undocumented workers has recently been supported by the National Agricultural Labour Advisory Committee and their new strategy Learning to excel. Recommendation 25 in the report calls for a one-off regularisation of undocumented workers. Tony Natale, another table grape grower from Robinvale, endorsed my position on this issue by saying 'it's a no-brainer'. To his mind, there are no negatives in this proposal. He wants to remind critics that a vast majority of these undocumented people were initially issued a holiday or student visa. They did not enter the country illegally, and their only crime is overstaying their welcome. Tony is of course spot-on with this assessment, and his points are confirmed in the Learning to Excel report. Not only would this measurement lead to a more productive horticultural industry and stronger regional economies; it's a moral imperative that we as a government must address.

While we continue to fight against COVID-19 and hope that the international situation becomes favourable enough to reopen our borders, we nonetheless need to focus on reforms that will strengthen our industries for the long-term. I aim to continue working with my colleagues to ensure we get the settings right for our horticultural labour industry.

Photo of Mike FreelanderMike Freelander (Macarthur, Australian Labor Party) Share this | | Hansard source

There being no further grievances, the debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.

Federation Chamber adjourned at 18:23