Senate debates

Monday, 15 February 2021

Bills

Export Control Amendment (Miscellaneous Measures) Bill 2020; Second Reading

7:00 pm

Photo of Glenn SterleGlenn Sterle (WA, Australian Labor Party, Shadow Assistant Minister for Road Safety) Share this | | Hansard source

The Export Control Amendment (Miscellaneous Measures) Bill 2020 amends the Export Control Act and is designed to support the implementation of the new export control framework. The amendment seeks to clarify the circumstances where a fit and proper person test is required for an application to vary registration of an establishment or to approve an alteration of an establishment. The amendment also expands the discretion of the secretary with respect to export permits. There is no doubt that Australia's previous legislative framework for agricultural production and certification of exports was overly complex—in fact, there were 17 acts. However, farmers and this parliament must remember that the act we are seeking to amend here today was initially introduced to the House on 7 December 2017, but lapsed. The act did not pass until March 2020.

The failure to prioritise reforming the agricultural export framework is indicative of this government's attitude to farmers. They claim they are the government for farmers, but they are leaving our primary producers behind. Labor is glad that the government has finally decided to take steps to assist farmers with gaining and maintaining access to markets. However, farmers have been waiting for seven years for this government to do something for them. The minister has claimed that the new export framework is designed to ensure that Australia has appropriate regulatory settings to enable exports to grow and to help drive productivity and increase returns at the farm gate. But if the minister really cared about supporting the growth of agricultural exports and increasing productivity, he would not have abandoned farmers during this pandemic or waited three years to deliver this—for want of a better word—better framework.

Regional communities and our farmers have experienced extreme droughts. They've experienced floods. They've experienced bushfires and now a global pandemic. And if all that weren't enough, Australian agriculture's most high-volume and high-value market is under serious threat. Australian agricultural producers and exporters must be wondering: where are these new markets that Mr Littleproud promised? The answer is: Mr Littleproud doesn't know, because he hasn't put in the work. After three years of failing to legislate this new framework, it is not good enough that, when faced with the loss of high-volume and high-value markets, Mr Littleproud wiped his hands clean of the issue and told producers it wasn't his problem. To add insult to injury, despite the myriad challenges facing the agricultural sector, all this minister has to offer to deliver a $100 billion agricultural sector is a few dot points on a page. Farmers need and deserve more than a few dot points on a media release and obfuscation of responsibility. Farmers need the Liberal-National government to actually deliver outcomes, not just say they will. Mr Littleproud has been absent throughout this pandemic. He has refused to work with states to deliver the agricultural workers the sector so desperate needs. All this minister has managed to do is to pull together a workers' code that couldn't pass muster with chief health officers, and then blame the states when it didn't work.

Talk is extraordinarily cheap, and our farmers are suffering. Farmers deserve a government that will prioritise legislation designed to support the sector's growth. Labor supports growing agriculture to $100 billion by 2030, but we need a comprehensive plan to get there. A few dot points on a media release simply isn't good enough.

7:05 pm

Photo of Jordon Steele-JohnJordon Steele-John (WA, Australian Greens) Share this | | Hansard source

I rise, in the metaphorical sense, this evening to make some contributions in relation to the Export Control Amendment (Miscellaneous Measures) Bill 2020. The bill makes amendments to the Export Control Act 2020 and seeks to do a couple of different things: clarify the operation of the fit and proper person test when verifying the registration of export establishments; provide greater flexibility in the requirements for lodging a notice of intention to export; enable the rules relevant to providing guidance in relation to the approval of export permits; enable the rules to modify the provisions of the act and the Administrative Appeals Tribunal Act 1975 in relation to the review of the tariff rate quota certificate decisions; and, enable the rules to incorporate matters contained in agreements between Australia and other countries that relate to tariff rate quotas.

The Greens have a couple of serious concerns with the bill. While this bill claims to make minor, largely technical, amendments, the provisions which allow for changes to Export Control Act 2020 and the AAT Act are actually quite significant in nature. The function of these provisions is to limit the scope of the types of decisions that the AAT can make when reviewing tariff rate quota, TRQ, certificates. We are primarily concerned about the implication of narrowing the recourse for exporters to challenge the outcome of a review on their TRQ certificates. The aspect we are least comfortable with is the fact that this bill is seeking to constrain the types of decisions that both the AAT and the department secretary can make and are reviewable in relation to TRQ certificates. They will not be able to make decisions on TRQ certificates where Australia has reached its tariff rate quota for any particular goods.

The implication we fear is that the context of this bill is primarily concerned with agricultural exports, and smaller, less powerful, less connected agricultural exporters risk being locked out of accessing and appealing TRQ certificate decisions where bigger exporters have been able to get access to them first. In principle, limiting the recourse for decisions made by government departments, where the department is empowered to make decisions on whether one private company can earn money over another, is of significant concern. As stated by the minister in response to the report of the Senate Standing Committee for the Scrutiny of Bills:

It is proposed that rules under section 386 of the Act, as amended by the Bill, will be made in equivalent terms to the current Export Control (Tariff Rate Quotas) Order 2019, which prevents a person making a decision to overturn an initial decision if there is an insufficient amount of quota available at that time. This means there will be no change to the current administration of tariff rate quota certificates or impact on related trade agreements.

While we acknowledge that this bill seeks to retain the status quo for how TRQ certificates are administered, we are taking a principled decision not to support the provisions which allow for regulations to make changes to the original Export Control Act and the AAT Act. We see that they limit the capacity of individuals or entities to access a fair hearing when a review of decisions is limited in scope. This issue was raised at the level of the Senate Standing Committee for the Scrutiny of Bills, and we do not see that the minister's response satisfactorily accounts for this provision.

The amendments which we will move are very simple. We are seeking to remove items 9 to 13 of this bill, which will allow for the modification of the Export Control Act 2020 and the Administrative Appeals Tribunal Act 1975. The function of our amendments is to ensure that exporters seeking to challenge the decisions around TRQ certificates and entitlements have access to the full extent of available recourse.

In closing I will reflect upon a very fine speech made in this chamber during the last sitting by Senator Carr, a distinguished and long-term member of this place. Senator Carr made a very compelling argument that, unless there was a very well articulated case made by the government and the Public Service—by the department—that legislative ability be put beyond the review or intervention of this chamber, such an act should not be taken. I will quote directly from the Bills Digest in relation to the comments made by the scrutiny of bills committee:

The Committee further stated that its concerns were heightened by the fact that the modifications may be in relation to review of decisions, and may therefore affect an individual's right to a fair hearing. It requested advice from the Minister as to why the provisions are considered necessary and appropriate, the circumstances in which it is envisioned the powers will be used, and whether they may trespass on the right to a fair hearing.

At the time of the production of the Bills Digest, the minister had not even deigned to answer. The answers that were subsequently given went in no way far enough to justify such a potential risk. In addition, the scrutiny of bills committee expressed concerns about the amendments which enabled delegated legislation to modify primary legislation. If I remember rightly, that was another key point made by Senator Carr in the previous sitting. The committee stated that such provisions, referred to as Henry VIII clauses, 'impact on the level of parliamentary scrutiny and may subvert the appropriate relationship between the parliament and the executive'. As such, the committee expected a sound justification for the use of a Henry VIII clause to be provided in the explanatory memorandum.

In this instance, the explanatory memorandum provides no justification as to why it is necessary and appropriate for rules to modify the operation of the act or the AAT Act. There's been no justification as to why they are necessary. In the absence of such a justification, I put it to the Senate that the only responsible legislative course of action is to remove such provisions, and that is what our amendments will seek to do. In the absence of the adoption of these amendments, we will proceed to vote against the bill, on the principle that such action should not be taken by the legislature without the relevant justification being made. We must draw a line in relation to the systemic, what now seems to be perpetual, undermining of this legislature. It is not out of any attempt to retain a sense of prestige or ego in ourselves but out of an acknowledgement that we are here, on behalf of our community, to do the work of scrutiny.

We are a house of review, so we should never, without good cause, diminish our ability to review. This legislation does that. Based on some evidence the department gave to the relevant committee, this is justified on the basis of removing unnecessary administrative burden upon the department. There was a not dissimilar argument made a couple of weeks back in relation to the trade legislation, which prompted Senator Carr's contribution. This argument that basically having to do your job—having to put a bit of work in, having to do the admin—is a justification for undermining the legislative purview of Australia's ultimate chamber of review should be roundly rejected as nonsense, absolute nonsense. So, as I said, should the amendments that we will offer fail to gain the support of the Senate, we shall vote against the legislation.

7:16 pm

Photo of Sam McMahonSam McMahon (NT, Country Liberal Party) Share this | | Hansard source

I rise to speak on the Export Control Amendment (Miscellaneous Measures) Bill 2020. This bill is important as it will help modernise Australia's trade environment and ensure our farmers have continued and reliable access to overseas markets. The bill will amend the Export Control Act to make sure that it is fit for purpose. It will streamline and consolidate existing export controls. The bill will make five amendments to the act. Firstly, it will clarify the application of the fit-and-proper-person test to vary a registration of, or to approve an alteration of, an establishment. Secondly, it will enable the Secretary of the Department of Agriculture, Water and the Environment to make rules to enable a notice of intention to export a consignment of prescribed goods to be approved or refused. Thirdly, it will enable the secretary to make rules to prescribe requirements for determining whether to issue an export permit. Fourthly, it will modify how certain provisions apply to reviews of decisions for tariff rate quotas. Finally, it will clarify which instruments may be incorporated into the framework to calculate the tariff rate quotas for goods. Our farmers, producers and agricultural exporters are the lifeblood of our nation, and they must be provided with an environment that is easy to navigate and one that allows them to thrive, particularly in COVID, and hopefully post-COVID, environments.

This bill is particularly important to the Northern Territory, where our two biggest agricultural products, cattle and mangoes, have large export markets. We have a good reputation for high-quality produce. We can't compete on price—Labor and the unions have seen to that. We can't compete on quantity—most countries in the world produce cattle and most countries in the tropics produce mangoes. The only things we can compete on are proximity to markets in the case of cattle and buffalo, which are mostly going to Indonesia and Vietnam, and quality, again, with our cattle, and with our mangoes into Asia and the UAE. It is vitally important to ensure we continue to develop legislation to support these markets.

Labor don't support agriculture and rural Australia. This was evident in 2011 when they recklessly slammed a live export ban on the cattle industry. I can't tell you how devastating this ban was, particularly in the Northern Territory and certainly to my home town of Katherine. Producers overnight had no income. They had no capacity to buy or pay for goods or services. This immediately flowed on to associated industries, such as transport, feed producers, stock and station agents, and veterinary practices. In a small town the flow-on was immediate and severe. Suddenly a large proportion of the town could no longer go to a restaurant or a cafe, could no longer buy something from a retail outlet and could no longer afford to get something fixed on their home or property. It devastated our economy and it did so for many years.

However, we as a government do care and do support our agricultural industries. We must give them all the support and assistance we can and use the levers at our disposal to ensure they have the best possible opportunities to maintain and grow export markets. This bill will reduce some of the red tape and congestion that can be impediments to their trade. The Liberals and Nationals government has announced a sweeping set of reforms and investment in Australia's agricultural export sector to help drive economic recovery in rural, regional and remote Australia and the nation more broadly. The investment is a major drawdown payment on achieving a $100 billion agricultural sector by 2030. It currently stands at $65 billion. It is an ambitious target, but one that's very achievable.

Our investment and reform agenda is an opportunity to reimagine our services from an exporter's perspective. The government wants to get out of the way of business but provide a seamless service experience. By using advanced technology we will significantly transform how the Department of Agriculture, Water and the Environment delivers its services. In the meantime we will freeze fees and charges.

We are investing $328.4 million in the agricultural exports system, to modernise Australia's training environment and to lead a strong economic recovery. We have provided $222.2 million to transform our export systems, including contributing to a single digital one-stop shop, fast-tracking goods to international markets. We have invested $14.3 million to improve our regulation, particularly for the live animal and seafood industries, to provide greater access for exporters refocusing their businesses into new markets. Live animal exports have remained relatively strong, but we've all heard about the lobster industry and their suffering at the hands of the Chinese market.

The Liberals and Nationals government has also provided $10.9 million to reduce the regulatory burden on meat processors and maintain Australia's status as a leading source of premium animal products. Our friends in the opposite back corner would like to ban live exports today. I'm sure they will rejoice at this announcement, as increased processing will eventually replace live exports. But we are doing much more and have invested $10 million for streamlined plant export services, giving farmers quicker, easier and cheaper access to overseas markets. There is $71.1 million in direct cost savings to exporters, including immediate price freezes, plus $21.4 million in reform-driven fee reductions over four years. These investments are anticipated to return benefits of at least $236 million to the sector as we progress towards the target of a $100 billion agricultural sector by 2030—remember that ambitious but achievable target.

With about two-thirds of Australia's agricultural products being exported, it is vital that we support these exporters and create an environment in which they and Australia, as a whole, benefit, and that is exactly what we have done. We've invested $72.7 million to help Australian agribusinesses expand their export markets as part of the Agri-Business Expansion Initiative. There is $669 million to address air freight shortages and disrupted supply chains for agricultural and fisheries exports through the International Freight Assistance Mechanism, $11.4 million to enhance the international competitiveness and profitability of the horticulture sector, $6.14 million to extend the Package Assisting Small Exporters grant process and $5.1 million to reduce the impact of non-tariff measures by funding industry based analysis. These initiatives build on the $51.3 million commitment under the growing Australian agricultural exports measure from 2018-19 to expand our agricultural exports and seize market access opportunities in global food chains. This includes funding for the overseas agriculture counsellor network and expansion into new locations such as Mexico, Chile and the UK.

As I mentioned, the government has also beefed up its Agri-Business Expansion Initiative, which is a targeted measure being put in place to help Australian farming, forestry and fishing exporters expand and diversify their export markets. We understand only too well how important that is in the face of what's become very apparent to us with regard to the Chinese markets.

As I said, and it's worth repeating because it is such a good initiative, the government is investing $72.7 million to help Australian agribusinesses expand their export markets as part of the Agri-Business Expansion Initiative. This includes $42.9 million to support 2,000 agrifood exporters through the Australian-led accelerate program, providing targeted advice and trade missions to help exporters grow in new and existing markets. We have also invested $18.4 million to extend the Agricultural Trade and Market Access Cooperation Program to develop strategic partnerships with industry to support trade expansion and diversification; $6.8 million to accelerate the negotiation of technical agreements to provide food safety, animal health and biosecurity protocols with trading partners by boosting our scientific and technical capabilities; $3.5 million for three new short-term agricultural counsellors, able to be rapidly deployed to pursue market access priorities with the greatest commercial prospects to complement the work of our existing 22 agricultural counsellors; and $1 million for marketing intelligence and analysis to assist in identifying opportunities for exporters.

This bill is important not just to our farmers and agricultural exporters but to the whole of the country, because if our farmers thrive the rest of the country thrives too. This is a government that is committed to making the right choices to help our farmers and exporters to maintain and grow their markets and contribute to Australia growing a strong and healthy economy. We know that, when our rural industries thrive, when the bush is doing well, the nation as a whole does well. Certainly for the Northern Territory, where export is such a vital part of our agricultural industries, streamlining the process—removing the red tape, making it easier for exporters to do business—is an absolutely vital function of this government. This government, unlike those on the other side, has shown that it cares for rural areas, regional areas, primary producers and exporters. This government will continue to support all those industries now and well into the future. I am very happy to commend this bill to the Senate.

7:31 pm

Photo of Anne RustonAnne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | | Hansard source

The bill that is before us, the Export Control Amendment (Miscellaneous Measures) Bill 2020, is required to amend parts of the Export Control Act 2020. The bill addresses issues identified since the Export Control Act received royal assent on 6 March 2020, following consultation with key industry stakeholders. The bill will clarify the application of a fit and proper person test for variations of registration of, or to approve an alteration of, an establishment. It will enable the secretary to make rules to enable a notice of intention to export a consignment of prescribed goods to be approved or refused. Furthermore, the bill will modify how certain provisions apply to reviewable decisions for tariff rate quotas and will enable the secretary to make rules to prescribe requirements for determining whether to issue an export permit. The bill will also clarify which instruments may be incorporated in the framework to calculate the tariff rate quotas for goods. The bill will support the implementation of the new export control framework and minimise the administrative burden for Australia's agricultural export industries and stakeholders. The bill will support the initiatives of the Morrison-McCormack government to bust congestion in regulation and ensure that agricultural industries come out firing after the threat of the coronavirus has passed. I commend the bill to the chamber.

Question agreed to.

Bill read a second time.