Mr CAMERON THOMPSON (3:02 PM) —My question is addressed to the Minister for Trade. Would the minister advise the House what actions the government is taking in light of the devastating outbreak of foot-and-mouth disease in Europe and the continuing BSE crisis?

Mr VAILE (Minister for Trade) —I thank the honourable member for his question. The Australian government is very sympathetic to the plight of the farming communities in the European Union and Great Britain with the outbreak of both BSE and foot-and-mouth disease. Australia, as has been announced, is providing veterinary assistance to the UK to help manage the foot-and-mouth disease outbreak, and we have offered further assistance.

This morning I convened a meeting of representatives of the major meat industry groups in Australia to discuss the opportunities that may exist to increase our exports of both beef and sheepmeat as a result of the plight that has beset the European Union and Great Britain. Present at the meeting were representatives from Meat and Livestock Australia, the Cattle Council, the Sheepmeat Council, NMPA, Livecorp and the Australian Meat Council. The first point that was unanimously supported is that we, as a country, must ensure that BSE and foot-and-mouth disease do not enter Australia and affect our industries in Australia. Of course, the government is absolutely committed to ensuring that. We have already committed to providing AQIS with the required resources to maintain Australia's disease-free status. This morning's meeting also indicated that Australia would easily fill the quotas we already have into the EU for beef, which is 7,000 tonnes, and sheepmeat, which is 18,650 tonnes. We will be making representations to see if we can expand the opportunities in both those sectors for access into the European market that are restricted in that regard. We will continue to lobby, on behalf of those industries, for more access into the European Union.

At the same time, we have given an undertaking that we will work with industry in gaining improved market access to some of the third-country markets where EU product has been banned. About 70 countries across the world have banned the importation of beef products from the European Union. Some of those countries have already expressed interest in sourcing product from Australia. We want to ensure the Australian industries take advantage of that. Certainly, as far as some of the trade policies that exist that limit our access to those markets go, we will be working to ensure that we remove those impediments to trade as quickly as possible.

The overall issue is focusing new attention on some of the policies in the European Union, particularly the common agricultural policy that I know the Prime Minister referred to in question time earlier this week. An article in today's Australian Financial Review indicates that the benefits would accrue not just to exporting countries by the reform of those policies. The article by Alan Mitchell reads:

We concur with that view. As a government, we will continue to work with industry in not just arguing for better access, and access with fewer impediments, to that market and other markets of the world but also creating an economic environment in Australia in which they can be far more competitive.

We have heard today about reforms that have gone through the parliament with regard to workplace relations, particularly in the meat industry in Australia. They are well and truly overdue, as you would well know, Mr Speaker, in making those industries more internationally competitive. We have heard today of a reduction in interest rates. Australian farmers, and particularly beef producers, still bear the scars of the high interest rate regime that was overseen by previous Labor administrations in Australia. Our government has vigorously worked towards reducing those interest rates and keeping them down over the years that we have been in office.

We have seen a further reduction in interest rates today, which will significantly strengthen the position of Australian exporters. The good news released last week by ABARE in its forecast is that rural exports will increase by 15 per cent this year, further strengthening the economy and rural and regional Australia. We will be actively working with the beef industry and the sheep meat industry in getting access into those markets.