Jenny McAllister (NSW, Australian Labor Party, Assistant Minister for Climate Change and Energy) | Hansard source

I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

On 1 May 2028, Australia will end live sheep exports by sea. The Export Control Amendment (Ending Live Sheep Exports by Sea) Bill 2024 will amend the Export Control Act 2020 to prohibit the export of live sheep by sea from Australia from that date.

The Australian Government and the Australian people recognise that there are inherent risks in the export of live sheep by sea. Despite numerous reviews and subsequent reforms, the Australian public continues to hold concerns about sheep welfare.

The Bill will strengthen sheep welfare to better align Australian export law with community expectations. In 2023, 43,758 Australians signed a petition (Petition EN5323) calling for the Parliament to legislate an end date to phase out the export of live sheep by sea from Australia.

The Bill aligns with the recommendations of an independent panel, appointed by the Minister for Agriculture, Fisheries and Forestry to consult with stakeholders. The independent panel undertook extensive public consultations on how and when the phase out could occur, including engagement with more than 2,000 people in person and considering over 4,100 submissions and survey responses.

Legislating a firm end date is considered by the government as the best means for producers, businesses and markets to make business decisions with a level of certainty, and work within a clearly defined time frame for the closure of the trade.

A legislated future date provides clarity and certainly for all stakeholders and allows the market to determine when trade occurs during the transition period as producers move away from supplying the live sheep by sea trade.

Other measures, such as reducing trade through quotas or expanding the Northern Hemisphere summer prohibition, would add regulatory burden in comparison with a firm, legislated, future end date. This is the least trade restrictive approach for the phase out period.

The Bill will instate an absolute prohibition on the export of sheep by sea on 1 May 2028. There will be no capacity for an exemption from this ban.

The Bill only applies to the export of live sheep by sea and will not restrict the export of live sheep by air nor the live export of cattle.

This Bill will also ensure that offences and civil penalties will apply to a failure to comply with the ban, consistent with existing offences and civil penalties for the export of permanently and temporarily prohibited goods under the Act.

These penalties are necessary to ensure that they will act as a sufficient deterrent for the conduct of exporting live sheep by sea on and after 1 May 2028, particularly for corporations.

The approach to provide for a transition period is based on extensive consultation and strikes the right balance. Some in the community want to see the trade stopped tomorrow. Others continue to push for the trade to continue.

This is the right thing to do for sheep welfare outcomes, but the government recognises that it must be done in a way that allows for an orderly transition and cannot come at the expense of industry.

We say this because live sheep exports by sea have already declined to just 10% of what it was at the turn of the century, currently a market returning $77 million a year. It is expected that phasing out live sheep exports will see the sector adapt through more sheep meat processing in Australia. Value-adding can increase farm gate returns. It keeps jobs in Australia. It boosts regional development.

We all know Australians love their lamb, and now the rest of the world is catching on with demand for lamb and mutton products continuing to grow. Australia's lamb and mutton exports were worth $4.5 billion in 2022-23, and around $3.5 billion to domestic retail markets. There is every reason to feel optimistic about the future of Australia's sheep industry and those associated with the sector.

With certainty about an end date there is now time to consider and make decisions appropriate to circumstances. The government is providing assistance for these decisions with a $107 million transition support package announced in the Budget. The Bill will provide appropriate legislative authority for Commonwealth spending to implement complementary measures to assist sheep producers and the supply chain, increase processing capacity, enhance demand for sheep products in Australia and overseas and diversify agrifood markets in the Middle East. Additional programs may be implemented by the Minister under legislative instruments.

While those affected are making decisions on how to move away from the trade, there is regulatory stability during the phase out. Regulatory requirements for live sheep exports remain in place, and trade may continue without caps or quotas until 1 May 2028.

This Bill delivers on the Australian Government's election commitment to phase out live sheep exports by sea. Phasing out this trade marks a considerable step forward for sheep welfare, reflecting our nation's values of compassion and ethical treatment of animals. It has been done on the recommendations of an independent panel following extensive consultation. We have provisioned and the Bill supports the government to deliver the $107 million transition support package. Collectively these measures enable those affected by the phase out to be well-positioned, resilient and ready when the trade ends in 2028.