Senate debates

Monday, 14 September 2015

Questions without Notice

Trade with China

2:55 pm

Photo of Sean EdwardsSean Edwards (SA, Liberal Party) Share this | | Hansard source

My question is to the Minister for Employment, Senator Abetz, representing the Minister for Agriculture. Can the minister inform the Senate how the Australian wine industry—particularly in my home state of South Australia, ably represented by good people from the south-east in the gallery here today—will benefit from the China-Australia Free Trade Agreement? Can he also provide some industry views on the need for this agreement to be ratified as soon as possible?

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

I thank Senator Edwards for his question and acknowledge his longstanding interest in this particular sector of the South Australian economy. It is astonishing that Senator Wong continues to demonise the China-Australia Free Trade Agreement knowing full well how it will positively benefit her winemaker constituents in South Australia. The South Australian wine industry, like the nation's more broadly, has had some difficult years. In August, the South Australian Wine Industry Association convened a meeting of 40 industry leaders to discuss how the industry can return to profitability, one of the key issues being demand for their product.

Before turning to South Australia, I note that the West Australian wine industry has also been experiencing difficult times. A report in The Australian on Saturday featured a small winemaker in the electorate of Canning, Mr Bernie Worthington, who says:

As far as I'm concerned, any-thing that's going to help exports into China should be welcomed. We are trying to build re-lationships with the Chinese, the market up there is just massive.

Indeed, China is now our third largest wine export market. ChAFTA's elimination of the 14 to 20 per cent China tariff will be a major stimulus to wine exports. The China-Australia Free Trade Agreement should be expedited.

Roger Sharp from Treasury Wine Estates, whose famous brand Penfold's originated in South Australia, says: 'The ChAFTA provides immense opportunities for Australian winemakers regardless of their size. It is imperative that it is ratified and ratified quickly.' Paul Evans of the Winemakers Federation said:

We estimate delays in implementation could cost the Australian wine industry over $50 million.

This is a good deal for the Australian wine industry. (Time expired)

2:58 pm

Photo of Sean EdwardsSean Edwards (SA, Liberal Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Can the minister inform the Senate of any additional support for the China-Australia Free Trade Agreement from the South Australian wine industry?

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

Yes, there are a number of others, including Mitchell Taylor of Taylors Wines in the Clare Valley. He says: 'The opportunities to the wine industry that ChAFTA brings are vital to compete with New Zealand and Chile, who both have existing agreements. Taylors Wines seeks the urgent ratification and implementation of ChAFTA to capitalise on this growing market. China represents the No. 1 destination for quality premium Australian wine and represents huge potential to grow in the future if we can take advantage of the good work of the government in signing up a free-trade agreement with China in this important market.' Warren Randall of Seppeltsfield wines in the Barossa says: 'The ratification of the China free trade agreement is vital to the growth of the Australian wine industry. We need to jump on this opportunity.' It is a regret Labor cannot see that opportunity.

2:59 pm

Photo of Sean EdwardsSean Edwards (SA, Liberal Party) Share this | | Hansard source

Mr President, I ask a further supplementary question. Can the minister advise the Senate of still further support for the China-Australia Free Trade Agreement from the South Australian wine industry? I urge you to listen, South Australian senators.

Honourable Senators:

Honourable senators interjecting

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Order on my left and on my right. Before I call the minister, I say to you, Senator Edwards, that it was unnecessary to add those final remarks to your question. Minister.

3:00 pm

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

Mr President, possibly unnecessary but a very good suggestion, especially for Senator Wong. There are even more South Australian winemakers in support of this agreement. Frank Nardone of Nardone Baker wines says: 'The free trade agreement will have some benefit for us and a benefit for all Australian wineries as it will enable us to compete. We will be employing in the next six months at least two more full-time people to work with the China office.' Stuart Mosman of Chalk Hill winery in McLaren Vale describes the agreement as 'a huge boost' given the 14 per cent tariff will fall to zero over four years. Dr Roger Sexton of Beston Global Foods, based in South Australia, says, 'The free trade agreement is critical to ensure that the Australian wine industry is able to compete on a level playing field.'

South Australian senators, especially Senator Wong, should listen to their constituents rather than the corrupt CFMEU. (Time expired)

I ask that further questions be placed on the Notice Paper.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

I remind senators, in relation to questions asked and answers given, to please direct their remarks through the chair and not across the chamber. It has been creeping in a little bit that senators have been addressing each other. Thank you.