Senate debates

Monday, 25 November 2019

Questions without Notice

Dairy Industry

2:49 pm

Photo of Pauline HansonPauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | | Hansard source

My question is for the Minister for Agriculture, Senator McKenzie. Minister, your own department was worried about a mandatory dairy code driving down farmgate milk prices. As a consequence, they recommended further analysis be done in the form of an impact analysis before drafting instructions were prepared for the mandatory code you issued in late October. Was this additional analysis done, and what did it say?

Photo of Bridget McKenzieBridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | | Hansard source

Thank you very much, Senator Hanson. As you know, our government is absolutely committed to taking strong action to support our 5,200 Australian dairy farmers. On 28 October 2019, the mandatory dairy code of conduct exposure draft was released for its third round of consultations. Those consultations ended last Friday, on 22 November, and right now my department is considering those consultations and will be making appropriate adjustments to the exposure draft based on the feedback from our eight very, very distinct dairying regions around the country. As you know, Senator Hanson, your home state of Queensland has very unique challenges, as opposed to those dairy farmers in Western Australia or, indeed, to those dairy farmers suffering from excessively high water prices in my own home state of Victoria. Feedback has been sought from each and every one of those dairy industries. We also consulted with individual dairy farmers through online mechanisms, including a tele-town hall over the last two weeks. I've personally been speaking with dairy farmers from across the country to make sure that we get a mandatory code of conduct that actually delivers for our dairy farmers and ensures that the unconscionable conduct that dairy processors have been inflicting on our dairy farmers for way too long is regulated in a mandatory way. That is the promise that we took to the federal election, and it is what we are delivering on. Make no mistake: we will not be bringing in a mandatory code of conduct that the dairy industry in Australia does not support.

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

Senator Hanson, a supplementary question?

2:51 pm

Photo of Pauline HansonPauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | | Hansard source

Well, four and half years later and we're still trying to get this dairy code of conduct. I can't believe it—another 400 dairy farmers gone! I'm sure the last time that I asked you the question, it was—

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

Order! I did make the observation earlier, Senator Hanson, that questions don't need to be editorialised.

Photo of Pauline HansonPauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | | Hansard source

Minister, in view of the criticism, by farmers, of your department's exposure draft of the dairy code of conduct, why are you and your department forcing tomorrow's attendees of a mandatory dairy code of conduct stakeholders forum to sign a confidentiality agreement?

2:52 pm

Photo of Bridget McKenzieBridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | | Hansard source

Thank you, Senator Hanson. My department is undertaking to sift through and analyse the submissions that they got on Friday. They are working very, very hard to get this done because we want this code in place as soon as possible. We know that farmers across the country are right now looking to sign contracts for up to five years and locking in relationships with processors that could be better regulated through a mandatory code of conduct, so we want to get this done as soon as possible. We want to make sure that the conversations that we are having tomorrow with the department and representatives of the dairy industry from right across the country are confidential conversations so that they can be had in good faith. What results from those conversations will actually be put into a final draft of the code, which we will be taking to regulate as soon as possible and give our farmers a fair go. (Time expired)

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

Senator Hanson, a final supplementary question?

2:53 pm

Photo of Pauline HansonPauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | | Hansard source

() (): Minister, I have personally been contacted by farmers and representatives from the dairy industry—the Queensland Dairyfarmers, who represent 78 per cent of the dairy farms in Queensland, and New South Wales dairy farmers as well—supporting me on a farmgate floor milk price. If the mandatory dairy code does not lead to an improvement in farmgate prices, what will the government do, given that it will not support my proposal for a farmgate floor milk price or in fact any regulation? (Time expired)

2:54 pm

Photo of Bridget McKenzieBridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | | Hansard source

you might have missed it, Senator Hanson, but on Thursday we were able to deliver on another election commitment from our government to the Australian dairy farmers, to Dairy Australia, to provide for legal and financial literacy support for our dairy farmers as they negotiate contracts. We've got $10 million on the table to help them get their energy costs down. We've got a $22 million package we took to the election, outside of the mandatory code of conduct, to support our dairy farmers. Our dairy farmers are doing it tough right across the country and for a variety of reasons, despite a historically high dairy price. It's because of the input costs. Their water has gone up 300 per cent, their fodder prices have gone up 50 per cent, and, in states like your own home state, where the state government games the system on electricity prices, with a perishable product like dairy, that too is increasing the input cost and making it incredibly challenging. We stand with our dairy farmers and will continue to support them.