Senate debates

Wednesday, 20 March 2013

Questions without Notice

Industry Fees and Charges

2:29 pm

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Fisheries and Forestry) Share this | | Hansard source

My question is to the Minister for Agriculture, Fisheries and Forestry, Senator Ludwig. I refer to the import clearance program industry equalisation reserve, which is industry money held by the government to buffer fluctuations in cost recovery mechanisms and reduce the need to constantly change industry fees and charges. At additional estimates we were informed that the import clearance program industry equalisation reserve would be 'around $10 million in surplus' by the end of the financial year. That was a projected decrease of just over $14 million for the year. Last week we were advised that there was an area in the statement made at estimates and the estimated balance of the IER at the end of the financial year would actually be a deficit of $10 million, a deterioration of over $24 million. What is driving this drastic reduction in the Industry Equalisation Reserve? What is the money being spent on? Is the money being spent on out of control cost overruns on the development of new government IT systems?

2:30 pm

Photo of Joe LudwigJoe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

I thank Senator Colbeck for his question. Again, when you look at the work this government has done in insuring export certification, ensuring that we can smooth the way for exporters to access overseas markets, this government has done more. Senator Colbeck has asked a very long and detailed question and I will—

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Fisheries and Forestry) Share this | | Hansard source

Mr President, I have a point of order on relevance.

Photo of Jacinta CollinsJacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | | Hansard source

Oh for goodness sake!

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Fisheries and Forestry) Share this | | Hansard source

I was asking about the import clearance certification scheme, not the export certification schemes—completely different programs. I do have a point of order on relevance, if you were paying attention, Senator Collins. Mr President, I ask you to bring the minister to the question.

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order. I do draw the minister's attention to the question. The minister has one minute and 37 seconds remaining.

Photo of Joe LudwigJoe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

As I was saying, Mr President, it was a very long and detailed question, and those parts that I do not deal with now I am happy to take on notice to make sure Senator Colbeck is fully informed in this area. This government has done more in export certification and ensuring that we have full cost recovery of the fees and services that we provide right through this portfolio in agriculture, where we then look at cost recovery from the 2005 era. This government has continued to maintain a cost recovery dealing with those guidelines that the Howard government put in place. We have continued to do that. What we have done is made sure that we can smooth the transition and remove the red tape for agriculture—unlike those opposite. We can take a leaf out of a recent report from the IPA about what those opposite would stand for. That IPA report was about ripping money out of agriculture, ripping money out of the areas and, of course, they had consulted with the coalition MPs. I wonder whether they had consulted with Mr Colbeck.

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

You need to come to the question, Senator Ludwig.

Photo of Joe LudwigJoe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

In dealing with the question, as I said at the beginning, those areas that I have not been able to deal with in this time I will certainly take on notice to ensure that we can provide a confident answer to those opposite. (Time expired)

2:33 pm

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Fisheries and Forestry) Share this | | Hansard source

Mr President, I have a supplementary question. When questioned further at estimates, a government official said that they had, 'No confidence in how the IER might be returned to credit'. Can the government explain how this black hole will be filled? You might like to tell us what is causing it in the first place. And will the industry be slugged, yet again, to pick up the tab for this government's failures?

Photo of Joe LudwigJoe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

I thank Senator Colbeck for his interesting question. It was a very detailed question. Senator Colbeck had asked at additional estimates about the IER which had dropped approximately $24 billion. The answer that he got at additional estimates was that the opening balance of the reserve was $14.3 billion and this would put the reserve into $10.4 billion deficit position. But department budgets have updated that since the additional estimates, and the forecast operating deficit has reduced from $24 billion to $10 billion. They have been doing very good work there, and the result of the reserve balance is forecast—which Senator Colbeck left out—at a $3.4 billion surplus. Ah! So, we have over there— (Time expired)

2:34 pm

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Fisheries and Forestry) Share this | | Hansard source

I suggest the minister spends more time reading his brief before he starts making accusations. I have a further supplementary question. Given the government's completely abysmal track record on agriculture including the failures on the export debacle, huge increases in our AQIS export, export fees and charges, failures in fisheries, the carbon tax we were not supposed to have, and the complete capitulation on forestry in Tasmania—how can industry have any confidence at all in this government and its management of the agriculture portfolio?

2:35 pm

Photo of Joe LudwigJoe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

I thank Senator Colbeck for allowing me to be able to explain to him why the agriculture community has more to fear from the policies of those opposite than ours. You have already demonstrated the inability to be able to hold a question on the IER. You did not even go to the next bit. Your questions have been, quite frankly, misleading when you look at the actual document itself. It forecasts a $3.4 billion surplus. You are trying to convince those here that it would be a deficit and, in other words, to paint a negative picture. Again, you do not provide all of the truth in this. What you have actually been able do is use reports like the IPA to rip money out of horticulture and rip money out of research and development. That, is what you stand for. (Time expired)