THE Opposition appears to be without industry support in its move to block a $40 million Government reform package designed to cut red-tape at AQIS.
In what is becoming a quickly evolving situation, the Opposition and The Greens had earlier signalled they could block the package in the Senate, which was brokered by industry to compensate for the abolition of inspection fee subsidies.
While many export industries were reportedly pleased with the reform outcome, Opposition and Greens Senators were worried the removal of the 40 per cent inspection rebate before the reforms were completely rolled out would impose massive costs on industry that would invariably get passed back to farmers.
Tasmanian Liberal Senator, Richard Colbeck, and Tasmanian Greens Senator, Christine Milne, both listed separate disallowance motions which could effectively block the Government's package.
However, The Greens have this morning changed tack, and now say they are working with Agriculture Minister Tony Burke and industry representatives to develop an appropriate solution to the mess caused by the lapsing of the 40 per cent subsidy to primary producers to assist with the costs of compliance with export protocols.
In a statement to the press, the Greens said that "rather than use the blunt instrument of a disallowance motion which would disadvantage some industry sectors, the Greens are working to reach an agreement on a reform agenda to reduce long-term costs for growers, with dates for implementation, whilst ensuring ongoing assistance to cushion the impact of changes in the middle of the global economic downturn".
And now both the meat industry and the horticulture sector have signalled they want the Senate to pass the legislation, leaving Senator Colbeck without any industry - publicly at least - supporting his disallowance motion.
In a letter to all Senators this morning, Horticulture Australia Council chief executive Kris Newton sought support in assisting the passage of the Export Fees and Charges regulations currently before the Parliament.
"Horticulture strongly opposes the removal of the 40 per cent Government co-contribution to the current fees and charges model – we believe this is a blunt instrument in policy terms, and poorly-timed (without adequate warning to industry)," the letter states.
"It will initially create significantly increased costs for many exporters.
"However, industry as a whole has accepted the model of the proposed fees and charges structure – as an interim measure, to commence the 2009-10 Financial Year only – to ensure AQIS' program costs are covered in the transition to a more responsive, efficient and cost-effective Export Inspection and Certification program."
This afternoon the Australian Meat Industry Council issued a statement saying its support for the passage of the legislation was "based upon a commitment by the Federal Government to implement a ground-breaking suite of reforms to the meat inspection system in Australia".
"AMIC's commitment to full cost recovery remains hinged to the successful delivery of the reform agenda," AMIC chair Gary Burridge said.
On Friday Minister for Agriculture, Tony Burke, announced that "after exhaustive discussions with Australia's agricultural export industries" the Government had agreed to provide $40 million to fund the reforms to cut red tape at AQIS.
Mr Burke said the red meat, grain, horticulture, live exports, fish and dairy sectors had been pushing for major improvements to make the export process more efficient.
"It represents the biggest reforms in this area in a generation and would achieve a world-class Australian agricultural export sector," Mr Burke said.
"The process of certifying food for export is in desperate need of modernisation, with an outdated IT system and a heavy reliance on time-consuming paperwork rather than electronic processing.
"The legislation has not been updated in more than two decades and there are concerns about recent difficulties with recruiting new staff to the inspection workforce."
Mr Burke said the reforms were developed through six industry taskforces established by him.
They include increasing the use of electronic processing, rather than inefficient paperwork, with more than 89 per cent of the 33,000 clearance certificates to be issued in the next financial year to be done electronically.
The reforms would also remove duplication in auditing and inspection requirements between State, Commonwealth and customers.
Mr Burke said additional help would be provided to expand access to trade markets and to promote the new and improved certification systems to international trading partners.
Mr Burke said the Government has also finalised the new fee structure for export certification following the scrapping of the inspection fee rebate.
He said the meat, dairy, grains, fish and live export sectors have already supported the revised fees.
"If the new fee structure is blocked in the Senate, there will be a $40 million hole in the budget which can only be filled by abandoning the reform package.
"I am astonished the Liberal and National parties would thumb their noses at industry in this way."
Senator Colbeck was not satisfied with the position some industries would be left in by the removal of the rebate, and remained unconvinced these sectors would be better off from the gains made by cutting red tape.
"The Government is removing the 40 per cent rebate and will provide some efficiencies down the track," Senator Colbeck said.
"The beef industry, for example, will wear a $34m impact from the removal of the subsidy but cannot quantify the savings are there from this new system.
"Those costs will just get passed back to farmers because processors can't absorb them."
Senator Colbeck said in addition a new $30m cherry export deal into Japan could be wiped out by the new fee structure.
"The Government should be putting the new reforms in place then building the new fee structure around it."
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