19 March 2009
DAFF09/220B

The National Party is criticising the Rudd Government for upholding a decision made by the Coalition when it was in power.

Minister for Agriculture, Fisheries and Forestry Tony Burke said it was hypocritical for the National Party to now argue against its own decision to abolish an export subsidy.

The Coalition decided not to fund a 40% subsidy on the certification of agricultural exports by the Australian Quarantine and Inspection Service (AQIS) beyond 30 June 2009.

The Beale Review on Australia’s biosecurity system supported the Coalition’s decision not to renew the subsidy beyond that date.

Mr Burke said he sought additional advice when he received the Beale Report from the Australian Bureau of Agricultural and Resource Economics.

“The advice showed that the subsidy has the same impact as a half a cent movement in the Australian dollar,” Mr Burke said.

“But the dollar can fluctuate by that much on an almost daily basis.

“We will maintain the Coalition’s decision to allow that subsidy to lapse and will instead get more value for industry by investing in a better biosecurity system for Australia.

“If the National Party believes there is no need to reform our biosecurity system, they should say so.”

Mr Burke also said no decision had been made on AQIS charges and consultation with industry was continuing.

“AQIS is trying to make the system fairer for everyone, because some sectors are paying a higher share of the costs involved in exporting meat, dairy and other produce,” Mr Burke said.

“In the meat industry for example, everyone benefits from the export industry, from growers through to abattoirs, boning rooms, cold stores and finally the exporters themselves.

“But the costs of certifying meat for export are not evenly shared between all those sectors, under the current system.

“AQIS is talking to industry about adjusting these costs to make it fairer – and that includes proposing to increase some charges, abolish or reduce around 15 charges and streamline others to make the process more efficient.

“The National Party is deliberately trying to scare exporters by giving them the wrong information.”