Glenn Lazarus (Queensland, Independent) Share this | Link to this | Hansard source

Mr President, my question is to Senator Canavan, representing the Minister for Resources, Energy and Northern Australia. Given the recent downturn in the domestic meat processing industry and the stand-down of local workers at meat processing plants in Rockhampton and Townsville, can you outline what steps the government has taken or is planning on taking to protect the jobs of those affected in those communities?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

I thank the senator for his question. What has happened in our meat industry and for meatworkers in particular in the last year is unfortunate, and it is concerning. It is an unfortunate legacy of the most severe drought that we have had in Queensland for many years. During the drought there was not enough grass for our graziers and farmers and there was a large turn-off of cattle in North and Western Queensland. At the height of the drought, there were record numbers of cattle going through our meatworks. It peaked at more than 8½ million head through our meatworks a few years ago. That created a lot of work for our meat industry and a lot of work for meatworkers; but, of course, because so much production occurred back then, there is now a reduction in production, and that is having these impacts in terms of lower employment at our meatworks.

What this government will not do is help one group of Australians by penalising another group of Australians. The way to help this industry is not to hurt another group of Australians. One of the groups of people that have been most affected by the drought have been our graziers and producers. If we were to introduce caps or regulations which would hurt their ability to sell their cows—their heifers, their steers—for the best price possible, that would hurt the very people that have been hurt the most by this drought. So what this government is focused on is making sure that our red meat industry has access to markets, that it can maximise its price. The Chinese free trade agreement itself, which has just been concluded, will help remove an $800 million-a-year tax on our red meat industry. That is how much Chinese tariffs cost our red meat industry every year. Through the conclusion of the Chinese free trade agreement that tax will be removed from our industry. That is the way we are going to help our red meat industry. That is the way we are going to help to get more work for our meatworkers and support all of our Australian industries.

Glenn Lazarus (Queensland, Independent) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given that more than 8,000 Queenslanders are employed in meat processing in Queensland, what is the government doing to prevent further job losses in the industry in my home state of Queensland and across the country more generally?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Senator Lazarus is right that our meat industry, our beef industry, is a major employer in our north. Of course, it is not the only industry facing reductions in jobs in North and Central Queensland. The coalmining industry in my area alone has had job losses of 21,000 in the last two or three years—21,000. I have heard before Senator Lazarus call into question the merit of our coal industry and whether it should be supported. If we are going to support employment in North and Central Queensland, we need all industries to thrive. We need a diverse economy. We need a strong beef sector. We need a strong coalmining sector. We need a strong tourism sector. That is why the government is focused on initiatives like our north Australia plan, which is seeking to invest in all of those industries—more than $1.2 billion of initiatives, a $5 billion low concessional plan. That is how we are going to create jobs in North Queensland and across our entire economy.

Glenn Lazarus (Queensland, Independent) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. An employer involved in this downturn, Theiss Australia, has stated that increased demand for live exports has been a cause of this downturn. Does the government stand by the Prime Minister's statement that free trade agreements such as the TPP are the 'foundation stones of future prosperity for Australians'?

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

I note the comments that Senator Lazarus has made about one particular meat processor but that is certainly not the view of the entire industry. I might quote Senator Lazarus a submission from JBS, another major employer in my town, Rockhampton. They made a submission to a Senate red meat inquiry, which I would suggest the senator should get involved in. That submission said:

As an industry based on free market principles we do not need more government intervention or costs in the red meat supply chain. There is a role for government in ensuring the integrity of the red meat product for domestic and export markets. In addition, to drive competitiveness and profitability requires commitment, action and above all cooperation from all stakeholders in the supply chain–from the farm gate to processors and up to the Commonwealth Government.

I would suggest the best way we can help our red meat industry is that the entire supply chain work together, not to try and hurt some and penalise others to help some in Australia—that is not our approach. We reject what Senator Lazarus is suggesting.