Senate Rural and Regional Affairs and Transport Legislation Committee

Senate Estimates hearing, 10 Feb 2026

Searchable transcript of the Senate Rural and Regional Affairs and Transport Legislation Committee, 10 Feb 2026 Senate Estimates hearing, with chapters: Opening Statements and Secretary Introduction, Industry Engagement and Stakeholder Relations, Staffing Increases and Trade Volumes, Cost Recovery…

Chapters

Opening Statements and Secretary Introduction (0:01)
The committee opens the hearing for additional estimates. New Secretary Victoria Anderson provides an opening statement highlighting industry growth, production forecasts, and support for farmers facing environmental challenges.
Industry Engagement and Stakeholder Relations (6:08)
Senator Canavan questions the Secretary on her initial meetings with agricultural representative groups, including the National Farmers Federation, and plans to repair relationships with the sector.
Staffing Increases and Trade Volumes (10:05)
Discussion regarding a significant increase in departmental headcount, which officials attribute to rising cargo and traveler volumes requiring more frontline biosecurity staff.
Cost Recovery and Efficiency Dividends (14:24)
Senators examine why efficiency dividends are not applied to cost-recovered activities and how the department ensures minimum efficient costs for industry-funded services.
Budget Savings and Deprioritization Process (18:15)
Officials explain the 5% deprioritization process and election commitment savings targets, including potential impacts on policy decisions and departmental funding.
STEPS Program and IT Modernization (21:13)
A detailed look at the Simplified Targeting and Enhanced Processing System (STEPS), a $145 million project to digitize biosecurity import processes and modernize digital infrastructure.
RDC Funding and Special Accounts (29:44)
Examination of financial tables relating to special accounts, matching funds for Research and Development Corporations like GRDC and Wine Australia, and fluctuations in levy revenue.
Workplace Culture and Staff Attrition (35:15)
Discussion on reports of unacceptable workplace behavior, bullying, and harassment. Senators also query staff attrition rates and matters referred to the Fair Work Commission.
International travel frequency and regulatory costs (44:16)
Discussion regarding the high frequency of international trips for regulatory services, offshore inspections, and the total financial cost of travel.
Advertising for live sheep export transition (49:15)
Officials clarify the expenditure on advertising campaigns used to promote grants under the live sheep export ban transition plan.
Implementation of the APS AI plan (50:12)
The department provides an update on its adoption of artificial intelligence, mandatory staff training, and the use of Microsoft 365 Co-pilot.
Public holiday work and local arrangements (55:52)
A review of enterprise bargaining agreements allowing staff to swap public holidays and the management of operational requirements on days like Anzac Day.
Cost recovery for live animal exports (57:55)
Discussion on the transition back to full cost recovery for live animal exports and the projected impact on industry fees over four years.
Drivers of increasing export regulatory costs (1:15:31)
Officials explain the factors driving up export costs, including inflation, volume demands, and the complexity of importing country requirements.
Digital Systems and Capital Cost Realization (1:24:24)
Examination of the STEPS program and why digital and regulatory improvements have not yet fully realized anticipated reductions in the department's cost base.
MICoR System Sustainment and Cost Allocation (1:27:31)
Debate over the cost recovery of the MICoR database and whether industry should bear the full cost of a system used by both exporters and government agencies.
Regulatory Efficiency and Process Improvements (1:32:03)
Analysis of the $2.3 million regulatory efficiency charge intended to fund ongoing process improvements, such as electronic certification and audit systems.
GRDC Levies and Regional Investment Funding (1:35:49)
Inquiry into industry levy settings for the GRDC, state-by-state levy contributions, and funding allocations for the Regional Investment Corporation.
China Beef Export Tariffs and Notification (1:42:18)
Review of China's decision to impose a 55% tariff on beef exports exceeding a specific quota and the Australian government's diplomatic response to the safeguard measure.
Beef Quota Mechanics and Economic Impact (1:47:58)
Discussion on the mechanics of the first-come, first-served beef quota in China and the potential economic displacement effects on global markets.
US Beef Market and Global Competition (1:53:07)
Comparison of the US beef market demand against China, focusing on historically low herd levels in the US and competitive tariff treatments for Australian product.
Western Australian Demersal Fishing Ban Notification (2:11:48)
Senator O'Sullivan questions the department on when they were notified of the Western Australian government's decision to ban demersal fishing and the extent of federal involvement.
National Standards for Fishery Stock Assessments (2:13:43)
Discussion regarding the lack of national standards for fishery stock assessments and the role of the Australian Fisheries Management Authority (AFMA) in Commonwealth waters.
Seafood Supply Chains and Import Reliance (2:15:08)
Examination of the impact of local fishing closures on domestic seafood supply chains and the increasing reliance on imported products from New Zealand and elsewhere.
International Fisheries Management and Catch Limits (2:18:48)
Officials explain the science behind sustainable catch limits for migratory stocks and Australia's role in international regional fisheries management organizations.
Laminated Veneer Lumber Import Data Trends (2:24:12)
Analysis of the significant increase in laminated veneer lumber (LVL) imports, primarily from China, and the corresponding drop in import prices.
Domestic Timber Processing and Economic Impact (2:28:19)
The department discusses the impact of imports on domestic timber processing capacity and the role of the Forestry Growth Fund in supporting the industry.
Sovereign Capability in Timber Manufacturing (2:33:08)
Senators raise concerns about Australia's sovereign manufacturing capability for essential construction materials and the risks associated with concentrated import sources.
Impact of EPBC Reforms on Forestry (2:40:00)
Officials discuss the impact of EPBC Act reforms and new national environmental standards on native forestry resource availability and state regulatory systems.
Forestry Accreditation Timelines and Standards (2:47:26)
The department outlines the 18-month timeline for accrediting state forestry systems and the potential impact on existing certification standards like FSC.
Record Forecasts for Agricultural Export Values (2:53:26)
ABARES provides a forecast of record agricultural export values, highlighting strong performance in red meat and crop volumes across global markets.
EU Deforestation Regulation Implementation Delays (2:57:23)
Discussion on the postponement of the EU Deforestation Regulation to 2026 and ongoing advocacy for exemptions regarding Australian skins and hides.
Queensland Agricultural Export Performance Analysis (3:00:14)
A detailed look at Queensland's agricultural export growth, driven by beef, mandarins, and mung bean trade with China, India, and the US.
Forestry Growth Fund and Industry Innovation (3:05:44)
Minister Chisholm discusses the $300 million Forestry Growth Fund and its role in modernizing the industry alongside the National Reconstruction Fund.
Beef Herd Management and Emissions Research (3:06:50)
Senators question the department on R&D investment for emissions reduction and the sunsetting of the beef cattle herd management methodology.
Emissions Reduction Pathways for Rangeland Producers (3:15:16)
Debate over the lack of financial incentives for rangeland beef producers to reduce emissions and the specific challenges of net zero transitions.
Prioritizing Ruminant Feed Emission Reductions (3:26:36)
Discussion on the potential for seaweed-based ruminant feeds to reduce emissions and increase productivity, and frustration over the lack of prioritization for assessment by the government.
Carbon Storage in Native Forest Management (3:30:44)
Senator Colbeck argues that active forest management and timber products store more carbon than simply locking up native forests, questioning the department's assessment methods.
Negotiating China Trade for Deer Velvet (3:31:58)
Officials provide an update on negotiations with China to reopen the market for frozen deer velvet exports, noting delays compared to New Zealand and the impact on Western Australian producers.
RDC Investment in Emissions Reduction Research (3:37:04)
A brief update on the number of Research and Development Corporation (RDC) projects focused on emissions reduction in the agricultural sector, totaling 320 projects worth $384 million.
South Australian Algal Bloom Response (3:38:14)
Senator Rustin questions the department on the severity of the algal bloom in South Australia and challenges the state government's public messaging regarding the bloom's existence.
Federal Funding for Algal Bloom Recovery (3:41:40)
Questioning regarding the $102.5 million joint funding package for algal bloom recovery and the level of federal oversight on expenditure managed by other departments.
Adjournment of Morning Hearing Session (4:00:44)
The committee formally suspends the hearing for a scheduled break, with plans to reconvene in the afternoon.
Inspector-General of Animal Welfare Vacancy (4:59:15)
Senator Faruqi questions the department on the delay in filling the vacant position of the Inspector-General of Animal Welfare and Live Animal Exports, which has been open for several months.
Implementation of Inspector-General Recommendations (5:01:19)
The department provides an update on the implementation of recommendations from previous Inspector-General reports, noting that 22 out of 48 recommendations have been closed.
Animal Cruelty Complaints and Regulatory Action (5:02:46)
Discussion regarding complaints from the Farm Transparency Project about animal cruelty at slaughterhouses and the specific regulatory actions taken by the Commonwealth in response.
Australian Animal Welfare Strategy Update (5:04:24)
An update on the development of the Australian Animal Welfare Strategy, including budget expenditure, consultation milestones, and the timeline for completion by 2027.
Animal Welfare Standards for Pigs (5:07:59)
Senator Faruqi raises concerns about the outdated 2008 model code of practice for pigs and the lack of progress by states and territories in renewing animal welfare standards.
Animals for Research Purposes (5:12:28)
Inquiry into the importation and exportation of animals for research, specifically primates, and the jurisdictional responsibilities for regulating these movements.
EPBC Act Reforms and Vegetation Regrowth (5:14:37)
Senator McDonald questions the department's input into the 15-year threshold for vegetation regrowth clearing introduced in the EPBC Act reforms and its impact on land management.
Impact of EPBC Changes on Agriculture (5:18:48)
Discussion on the potential impact of EPBC reforms on agricultural productivity and the department's role in representing the sector's interests during policy development with DCCEEW.
Food Security and EPBC Implementation (5:26:37)
The committee examines how food security and agricultural productivity are prioritized and measured within the context of environmental regulation implementation.
Regulatory Uncertainty and Landholder Support (5:29:01)
Discussion regarding the effectiveness of the departmental hotline for landholders and the lack of scientific modeling for new environmental thresholds.
Sheep Industry Transition Assistance Package (5:36:22)
Officials provide an update on the $139.8 million assistance package following the ban on live sheep exports, including expenditure and program construction.
Farm Business and Supply Chain Grants (5:44:48)
A detailed breakdown of applications and funding for farm business transition and supply chain capacity programs within the sheep industry package.
Western Australia Sheep Flock Estimates (5:50:23)
Senators question the accuracy of sheep flock estimates in Western Australia, comparing ABS data with state-level figures and discussing industry decline.
National Drought Agreement and Support (5:57:45)
An update on the implementation of the National Drought Agreement and support mechanisms, such as the Farm Household Allowance, for South Australian producers.
Regional Investment Corporation Drought Loans (6:01:52)
Discussion on the eligibility, interest rates, and historical context of drought loans provided by the Regional Investment Corporation to farmers in need.
Comparing Farmer Loans to Renewable Energy (6:06:07)
Senators question the government's priorities, comparing the interest rates offered to struggling farmers with lower rates available to large-scale renewable energy developers.
Loan Design and Demand Management (6:08:52)
Officials explain the transition from interest-free loans to repayment holidays, citing the need to manage application demand and ensure long-term business sustainability.
Wine Industry Structural Distress and Inventory (6:20:12)
The hearing shifts to the wine industry, highlighting acute structural distress, excess inventory of 70 million bottles, and high demand for financial counseling in the Riverland.
Support Packages and Vineyard Register (6:24:54)
Officials detail the $4.6 million viability support package and the development of a National Vineyard Register intended to provide transparency for growers and makers.
Inquiry Recommendations and Market Diversification (6:31:18)
Discussion on the government's response to the wine industry inquiry and efforts to diversify export markets beyond China, including agreements with India and the UK.
Funding Adequacy and Levy Structure (6:37:18)
Senators challenge the adequacy of the $4.6 million package for a $6 billion industry and discuss potential reforms to the wine levy structure to ensure long-term viability.
Grains Industry R&D Levy Mechanisms (6:46:02)
Inquiry into the mechanisms for setting and reconsidering R&D levies in the grains industry, involving representative organizations like GPA and Grain Growers Limited.
GRDC Reserves and Levy Reduction Proposals (6:49:04)
Analysis of the Grains Research and Development Corporation (GRDC) reserves and the proposal for a 20% levy reduction submitted to the Minister.
Grain Production and Levy Data by State (6:54:28)
Discussion on the breakdown of grain production and levy contributions by state, focusing on Western Australia's significant export share.
Alternative Protein Industry and Food Labeling (7:15:19)
Questions regarding the number of alternative protein companies in Australia and the government's approach to food labeling for plant-based products.
Voluntary Code for Plant-Based Meat Labels (7:19:09)
Debate over the development of a voluntary industry code of practice for plant-based protein labeling following the "Don't Mince Words" inquiry.
Agricultural Access in EU Trade Negotiations (7:26:03)
The committee discusses ongoing negotiations for the EU Free Trade Agreement, focusing on agricultural market access and the impact of European subsidies. Officials explain the level of industry consultation and the current status of the offer.
Impact of Gilnet Fishing Bans in Queensland (7:32:01)
Senators inquire about the termination of gilnet fishing in the Gulf of Carpentaria and Great Barrier Reef. The discussion covers the lack of data on threatened species interactions and the jurisdictional split between state and federal management.
Seafood Imports and Illegal Fishing Surveillance (7:35:23)
The department addresses concerns that domestic fishing bans lead to increased seafood imports and illegal fishing activity. Officials discuss ADF operation Broadstaff and the challenges of maintaining surveillance flights in northern waters.
Indigenous Rangers and National Fisheries Statistics (7:42:10)
Officials highlight the role of Indigenous rangers in biosecurity and border protection. ABARES provides data on national fisheries production, noting that while wild catch remains flat, aquaculture has driven overall growth in the sector.
Financial Support for South Australian Algal Bloom (7:45:33)
The committee examines the federal response to the algal bloom in South Australia, including the availability of loans and grants for affected fishers. Discussion focuses on communication between state and federal departments regarding the severity of the bloom.
ABARES Report on Land Sequestration Targets (7:56:37)
ABARES presents findings from a report on land sequestration required for net zero, estimating that 18 million hectares may be needed. The discussion identifies specific local government areas that could see significant impacts on agricultural production.
Sequestration in Productive Agricultural Zones (8:00:47)
The committee discusses the concentration of carbon sequestration in high-rainfall and wheat-sheep zones, which account for a disproportionate amount of land use compared to pastoral areas.
Impact of Carbon Farming on Production (8:00:48)
The hearing concludes with a debate on the coexistence of carbon farming and traditional agriculture. Officials discuss the potential for $9 billion in sequestration profits by 2050 versus the risk of complete removal of agricultural production in certain regions.
Revenue Losses and Employment Impacts (8:05:52)
Analysis of the estimated $2.8 billion reduction in agricultural revenue and the potential second-round effects on rural employment when farms transition to carbon forestry.
Food Security and Sector Productivity (8:11:02)
The committee debates the impact of carbon sequestration on national food security, comparing agricultural revenue loss to other industry shutdowns like live sheep exports.
Government Assistance and Net Zero Plans (8:16:57)
A heated exchange occurs regarding the government's responsibility to provide adjustment packages for rural communities affected by the agricultural net zero plan.
Corporate Land Acquisition and Market Modeling (8:22:26)
Examination of corporate land acquisition for carbon credits and the potential for regional limits to prevent excessive land-use change and community disruption.
Net Zero Projections and Carbon Pricing (8:32:21)
Discussion on the modeled carbon price of $106 per ton and the lack of a formal cap on land conversion under the government's long-term net zero projections.
Carbon Price Discrepancies and Treasury Estimates (8:46:06)
Comparing ABARES and Treasury carbon price estimates, historical modeling impacts on agricultural land, and the role of shadow pricing in policy.
Briefing the Minister on Carbon Reports (8:50:17)
Details on briefing the Minister's office, DCCEEW, and the National Farmers Federation on ABARES carbon sequestration reports.
Marine Protected Areas and 30 by 30 Policy (8:51:37)
Examination of the 30 by 30 policy for marine protected areas, current protection levels, and preliminary consultation with the fishing sector.
Impact of No-Take Zones on Fisheries (8:56:53)
Analysis of how no-take zones and marine parks affect commercial fishing productivity, displaced effort, and the science behind exclusion zones.
Marine Spatial Squeeze and Offshore Wind (9:05:17)
Addressing the spatial squeeze between offshore wind farms and managed fisheries, including stock health assessments and resource certainty.
EU Free Trade Agreement and Dairy Concerns (9:14:28)
Concerns regarding geographical indicators, compliance costs, and tariff rate quotas for the dairy industry within the EU Free Trade Agreement negotiations.