Senate Rural and Regional Affairs and Transport Legislation Committee, , 6:31:18 to 6:37:18
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.
Topics: Trade policy, China trade
Speakers: Speaker 28, Speaker 18, Speaker 5, Speaker 2, Speaker 14, Speaker 12
Yeah, of course. >> Uh, thank you, Senator Rustin. Um, just you mentioned that the was it task force or working group? Sorry. >> A working group. >> Working group. Sorry. You mentioned they didn't recommend a uh consolidation package, but uh this committee did do a report on the industry and it made a recommendation that the government should consult with Australian Grape and Wine Limited to look at support packages including aid to help uh wine growers transition out of uh uh grapes to other crops. Has the government responded to that recommendation?
>> Uh when which recommendation was that?
which >> recommendation for uh February last
year. >> Oh, yes. Um no, has not responded to that um inquiry yet.
>> Right. Have you have you provided advice to the minister about the inquiry? >> That is um
>> brief the minister about. >> So the government the government is considering its response to that um inquiry. Um as as you know the other main recommendation there was around the the um uh making the voluntary code a mandatory code. So the focus has been probably um on that piece of work and so the minister has announced taking that recommendation forward. Um but the the broader response to that inquiry has not
been taken. >> Have you um have you spoken to Australian Grape and Wine Limited about the potential uh for a uh consolidation package?
>> Australian Grape and Wine was part of that original uh working group. Um so we meet with them regularly, speak to them
all the time. So, can I just check? You said February 25, didn't you? >> Yep. >> Yeah. A year ago. >> So, can I just understand this? We had a recommendation for a consideration for some sort of structural response to the catastrophic situation that we've seen in much of the wine industry and particularly in my home area that's a year old and they've been through a vintage and they're about to go through another vintage and we still don't have a response to that. Is that what you're telling us, Minister? Well, I think the
department talk through the work that they've been doing. Uh I'm surprised that you sit here. You seem completely oblivious to your actual record in government. Um when you shut down the market to China overnight, uh we've worked uh to stabilize and stabilize that relationship. They always take we exported $1.28 billion worth of wine to China. Fix it. Uh so I'm I'm actually uh surprised that you don't acknowledge your record in government uh which on these issues was a terrible one. The department have talked through the work the diligent work that they've been doing uh on these matters and the work that they've been doing uh with stakeholders as well.
>> I'm sure they appreciate your intervention. Um, so I'm just wondering um has the government done any modeling on how many great growers are at risk of closure um over the coming months um as a result of the situation they find themselves in? Do you have any idea of the 2,600 or whatever number >> wineries there are and however many grape growers there are? Um um how many are likely at risk? >> We haven't done that. >> Do you have any idea how many have closed up shop or shut down their
vineyards? >> I don't know if we've got that to hand, Senator.
>> So you don't know how many grape growers have exited the industry in the last 3 years since night. Um >> we don't we don't have it on hand. >> You don't have it on hand or you don't
have it? >> No. No. Mr. Lo is correct. We haven't done any work and unfortunately the wine industry is not part of our survey program. So we don't have detailed picture of a grape grower's financial performance but >> we are aware that grapes are starting to be removed. Um so there are a reduction in the amount of plantings which no doubt you're alluding to and been speaking about as well. So structural adjustment has begun as you say >> structural adjustment has begun. >> There's we're crushing those scrapes.
There's >> Okay. But there's not been no assistance but structural adjustment is just occurring because people are going broke. >> People are exiting. Yes. I don't think they're exiting because they want to. Um, so basically there's been no support, no consideration support to provide for a transition to sort of higher value, more sustainable crops, varieties or use of this. We're just leaving the grapes in the ground
because the farmers are stranded. There's been a range of supports um for um you know providing growers with information but not direct payments to you know remove vines.
>> So just um interested to know how many times um has the minister or any senior departmental officials visited the riverland in the past year? >> Did you sorry senator has so has in the
last year? in the last. >> We can take that on notice, Senator.
>> Okay. Um, so there's been, if you don't know how many times they've been there, has has there been any commitment in relation in writing to um to the growers in the region that they're committed to actually meeting with them? I mean, is there's been any process started in terms of a conversation with the region?
>> Well, there you go. a significant um engagement with the region um uh over the last two years really um by the department um and through the working group consultations um there's been um several meetings with with grower groups um
>> no I'm asking specifically about the Riverland that you in the Riverland grape growers okay and so who met with
them >> uh I I'm pretty sure I have met with them over not maybe perhaps not in the last couple of months Um but could take that on notice.