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Tuesday, 25 November 1986
Page: 2687


Senator RYAN (Minister for Education)(4.54) —I move:

That the Bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows-

PIG INDUSTRY BILL 1986

The purpose of this Bill and the two associated Bills-the Pig Industry (Transitional Provisions) Bill 1986 and the Pig Slaughter Levy Amendment (No. 2) Bill 1986 is to restructure the statutory arrangements for the Australian pig and pigmeat industry. This Bill establishes an Australian Pork Corporation to replace the existing Pork Promotion Committee, and establishes an Australian Pork Corporation Selection Committee, to nominate suitably qualified persons for appointment to the Corporation, and an Australian Pig Industry Policy Council to provide a forum where matters of concern to the industry as a whole can be discussed and appropriate policy options developed.

During the past ten years the Australian pigmeat industry has made many significant advances. These are best illustrated by the increase in pigs slaughtered from 3.4 million in 1974-75 to an estimated 4.5 million in 1985-86. The gross value of production in the same period has risen from $197 million to $450 million. Domestic per capita consumption of pigmeat has risen from 12.9kg to over 16kg. These are growth rates of which any industry would be proud.

It is appropriate that such a dynamic industry should review its organisational structure to ensure that it is relevant to today's needs and the requirements of tomorrow.

The Australian pig industry has been concerned for some time that the legislation creating the Pork Promotion Committee has not been sufficiently broad to enable that body to become involved in marketing initiatives on behalf of the industry as a whole. This has included such developments as Computer Aided Livestock Marketing (CALM) and the development of a National Livestock Language (AUS-MEAT). In both these initiatives the interests of the beef and sheepmeat industries have been represented by the Australian Meat and Livestock Corporation (AMLC). If the pig industry is to be fully involved in either of these schemes it will be necessary to place the responsibility in the hands of a statutorily funded body.

In discussions with the industry on the most suitable structure for industry organisations, a number of options were put forward, one of which was to bring the marketing of pigs and pigmeat within the scope of the AMLC. Serious consideration was given to this option but in the end the pig industry decided it wanted to remain independent of the AMLC.

After lengthy discussion with the industry the package contained within this legislation was developed and accepted by the Australian Pork Producers' Federation as the most suitable that could be achieved.

The new Australian Pork Corporation will have a wider range of functions and powers than the present Pork Promotion Committee. This will enable it to become involved in marketing issues affecting the industry where it feels such involvement is necessary and desir- able. The Corporation is not intended to be a trading body or to involve itself in any form of price setting mechanism that would restrict competition in the market place.

The Corporation will have the power, on behalf of the pig industry, to participate in and contribute financially to marketing arrangements such as CALM or AUS-MEAT should, if in the commercial judgment of the Corporation, such schemes appear to be in the interests of the industry.

The Corporation will consist of seven members, there will be an independent Chairperson, a Commonwealth Government Member and five members selected for their expertise in such matters as pig production, pigmeat processing, product from promotion, marketing or appropriate commercial skills.

The five members will be selected by an Australian Pork Corporation Selection Committee. This Committee will have four members; an independent Chairperson, two members nominated by the Australian Pork Producers' Federation and one member nominated by the National Meat Processors Association (NMPA).

Policy development within the industry is to be strengthened by the formation of an Australian Pig Industry Policy Council. The purpose of the Council will be to enquire into and report to the Minister and the industry about matters affecting the well being of the industry and to develop recommendations and plans for measures to further the interests of the industry.

The Council will be made up of:

An independent Chairperson

The President and Senior Vice-President of the Australian Pork Producers' Federation

The President of the National Meat Processors Association

The Chairperson of the National Smallgoods Council

The President of the Stockfeed Manufacturer's Association of Australia

The Chairperson of the Australian Pork Corporation (APC); and

The Chairperson of the Pig Research Council.

The new arrangements are to be financed from levies collected on pigs slaughtered in Australia for human consumption. There will be no implications for Commonwealth finances arriving from the legislative changes.

The legislation governing the operations of the new bodies is in line with the guidelines laid down in the Governments policy statement ``Reform of Primary Industry Statutory Marketing Authorities'' which I tabled on 20 January 1986.

The accountability of the Corporation has been strengthened by requiring the Corporation to report at least once a year to the executives of the APPF and the NMPA. At such meetings the whole range of APC activities can be discussed. This accountability to industry is in addition to the usual requirement for an annual report to Parliament.

The APC is to be responsible for making recommendations to the Minister for Primary Industry on the rate of the pig slaughter levy for the APC. In making such recommendations the Corporation will be required to consult with the APPF and the NMPA and will be required to inform the Minister of the views of those bodies when requesting an increase.

The APC will be required to prepare and submit for approval by the Minister for Primary Industry a three to five year corporate plan setting out its broad objectives for the period and its proposed strategies for achieving those objectives.

In addition the APC will be required to prepare an annual operating plan setting out its strategies, programs and proposed resource usage for the year. Again this annual plan will need to be approved by the Minister for Primary Industry.

The sections of this Bill Associated with the selection of the members of the APC come into force on the day it receives the Royal Assent and the rest of the Bill will be proclaimed when the selection process has been completed and the new Corporation is ready to proceed.

In concluding I would like to pay tribute to those members who have served on the Pork Promotion Committee since its inception in 1975. The progress and achievement of the industry to which I referred earlier are, I am sure, in no small measure due to the work of the Committee and the promotional activities it has organised.

I commend the Bill to honourable senators.

PIG SLAUGHTER LEVY AMENDMENT BILL (No. 2) 1986

The purpose of this Bill which is associated with the Pig Industry Bill 1986 is to provide for the financing of the Australian Pork Corporation.

The portion of the Pig Slaughter Levy that, until now, has been paid to the Pork Promotion Committee will, in the future be paid to the new Corporation.

The Bill also raises from $1.00 to $1.50 per pig, the maximum rate of levy that can be collected for the new Corporation, although it is not intended to increase levies to that level at this time. The Bill has no effect on the operative rate of levy nor does it impact on Commonwealth expenditure or revenue.

I commend the Bill to honourable senators.

PIG INDUSTRY (TRANSITIONAL PROVISIONS) BILL 1986

The purpose of this Bill which is associated with the Pig Industry Bill 1986, is to provide a smooth transfer of functions from the Pork Promotion Committee to the new statutory structure for the pig industry detailed in the Pig Industry Bill 1986.

The arrangements will have no impact on Commonwealth revenue as the Bill provides that costs associated with selection of members for the new Corporation will be met by the Pork Promotion Committee which is financed solely by a levy on pigs slaughtered.

I commend the Bill to honourable senators.

Debate (on motion by Senator Lewis) adjourned.