Mr SECKER (4:44 PM) —Mr Speaker, being in my neighbouring electorate you would know of all the wonderful wineries I have the privilege to represent. I represent Coonawarra just across the border from you. I represent the Padthaway area, the Wrattonbully, the Mount Benson area, the Lower Murray, the Barossa and the Riverland. I have the privilege and pleasure to represent all those famous names in those areas. I represent 40 per cent of Australia's winegrowing areas and wineries and over 80 per cent of Australia's wine crush. Many grapes are shipped into the area of the Barossa for their crushing. It is a great privilege, but they are going through some hard times. When I went to the 2001 election I said against advice that I wanted to do something about the WET. I was told by so many people, including the Treasurer, that I had not much hope of getting any changes to the WET, but we all know we did deliver on the WET. Over 90 per cent of Australia's wineries no longer pay any WET, and that has certainly been very good for the wine industry.

The wine industry is very important to my electorate. We export some $1.7 billion worth of wine every year. About 10 years ago it was virtually nothing, so you can see how much it has grown and how much it is worth to our economy. But we do have a problem with falling prices for the grape growers. In fact, it has got to a very desperate stage. I have been speaking with the Riverland Winegrape Growers Association, which is the largest grape growers association in Australia and represents some 1,200 growers. They are suffering the effects of some pretty bad prices. Mr Chris Byrne, the executive officer of the Riverland Winegrape Growers Association said that the fact that Australia's second largest wine company is crushing growers' grapes before finalising prices is disgraceful. He said that, if McGuigan Simeon's board is permitted to continue with what appears to be calculated and irresponsible behaviour, growers will unfairly bear the brunt of what amounts to a restructuring of the Australian wine industry by stealth. The prices offered are up to 40 per cent less than last year and this may place a number of Riverland growers in serious financial trouble.

It is the second successive year McGuigan Simeon have tried to lower prices significantly. McGuigan have refused to negotiate and have referred growers to a third party to set prices. McGuigan Simeon have systematically abandoned the supply contract systems with growers, and their motives have now become clear. Our communities are really suffering and the industry is suffering. Politicians need to know that we will have no trouble filling halls full of people facing financial crisis and those numbers will include winemakers. Just prior to coming into the chamber, I was speaking to another grower. He cannot even get a price for his grapes. He has been told by McGuigan Simeon that they no longer want his grapes, and he does not know what he is going to do.

Mr Byrne also said that the banks should be alerted to the impact of these actions by McGuigan Simeon Wines and the inevitable domino effect on other wineries. If those tactics go unchecked, you can be sure that their competitors will follow. In fact, it is already happening. Other major wineries are hunting for uncontracted grapes and offering growers what can only be described as opportunistic prices. If that continues to happen, many independent wine-grape growers will be forced out of the industry. It is that serious. I wish to raise this very desperate situation with the parliament. (Time expired)