Mr FORREST —My question is addressed to the Minister for Primary Industries and Energy, on behalf of the many livestock producers in Mallee. Can the minister provide his assurance as to how the streamlining of the services and promotion activities of the meat and livestock industries will improve ownership and accountability in a commercial environment? Also, how will the new industry structure give more autonomy to the sheep meat and meat sectors?

Mr ANDERSON —I thank the honourable member for his question, which is of great importance to Australia's red meat industries. When we were elected to government some 12 months ago, we found no less than three statutory authorities underpinned by Commonwealth legislation. We had the Australian Meat and Livestock Corporation, the Meat Research Corporation and, overarching them and telling them what to do, we had the Meat Industry Council, which of course had been the previous government's very inadequate response to their own Industry Commission's major inquiry into the problems in the red meat industry in Australia.

It was unquestionably an awesomely cumbersome and inefficient set of arrangements. It was the subject of a great deal of criticism by producers feeling, of course, enormous economic strain with low prices about the lack of ownership, the lack of control and the lack of direction that they were able to exercise; and by processors as well, who, as heavy levy contributors, felt that they had no control over promotion campaigns that were of no relevance to them.

So I initiated a major review of the whole set of arrangements last year. I received that towards the end of last year. After a very extensive consultation—and that was important because this is a historic opportunity to get something right that has been seriously wrong—I announced today that all three statutory authorities will be wound up.

The Meat Industry Council will simply go. The Australian Meat and Livestock Corporation and the MRC will be replaced by a producer owned company. It will be a service provider—it is very important that its role be clearly understood at the outset—to industry, owned by and accountable to industry and producers, the levy payers in particular.

The policy direction and leadership for the industry must be, should be and will be increasingly provided by the appropriate bodies, that is to say, the peak industry councils and their state affiliates—without the confusion of recent years. That is important because the duly elected representatives that producers throw up ought to be able to do what they are put there for—that is, to lead.

This company will have separate operating units covering research and development, food safety and quality, the maintenance of Ausmeat and a range of other roles such as market access and residue management. On the issue of promotion and marketing, there will be separate institutions, or separate bodies, operating within the company for both beef and sheep meats—the so-called below the split line. There will be no more muddying of the waters, so long a cause of complaint. There really will be proper accountability, and levies contributed by sheep producers and by beef producers will be assuredly spent on promotion dedicated to each of those industries.

There will also be appropriate external performance audits, and a 66 per cent majority vote by levy payers will be enough to dismiss the board at annual general meetings. There will be a commitment to projects rather than program promotion efforts, and those efforts will be, over time, made fully contestable. At the same time, the new board will have a major new test and responsibility—

Mr Fitzgibbon —Is that your last page?

Mr SPEAKER —The member for Hunter! The minister will resume his seat. I invoke standing order 304A in respect of the member for Hunter. Remove yourself from the chamber forthwith!

The honourable member for Hunter thereupon withdrew from the chamber.

Mr ANDERSON —This is actually important to people who are concerned about what is happening in rural Australia and to the 70,000 or 80,000 workers who depend upon us reclaiming our international and, for that matter, domestic competitiveness. This is a model which will help Australia's red meat industries regain their place in the world. It hands control back to the owners, to the levy payers, back to industry, where it belongs. I have no doubt that they will make it work. This is first-class policy from a government committed to empowering industry so that it can perform to its best levels.