House of Assembly Fifty-Fourth Parliament, Second Session (54-2) 54 2 Parliament of South Australia House of Assembly published Bills Bills Genetically Modified Crops Management (Designated Area) Amendment Bill Genetically Modified Crops Management (Designated Area) Amendment Bill Genetically Modified Crops Management (Designated Area) Amendment Bill Introduction and First Reading Introduction and First Reading The Hon. T.J. WHETSTONE House of Assembly Chaffey Minister for Primary Industries and Regional Development The Hon. T.J. WHETSTONE (Chaffey—Minister for Primary Industries and Regional Development) (15:40): Obtained leave and introduced a bill for an act to amend the Genetically Modified Crops Management Act 2004, to repeal the Genetically Modified Crops Management Regulations (Postponement of Expiry) Act 2017 and to revoke the Genetically Modified Crops Management Regulations 2008. Read a first time. Second Reading Second Reading The Hon. T.J. WHETSTONE House of Assembly Chaffey Minister for Primary Industries and Regional Development The Hon. T.J. WHETSTONE (Chaffey—Minister for Primary Industries and Regional Development) (15:40): I move: That this bill be now read a second time. I seek leave to have the second reading explanation inserted in Hansard without my reading it. Leave granted. I am very pleased to introduce the Genetically Modified Crops Management (Designated Area) Amendment Bill 2020. This bill will enable the government to pursue an important reform that will give South Australian farmers on the mainland the choice to take up the opportunities that genetically modified food crops can provide them now and in the future. The Genetically Modified Crops Management Act 2004 provides for the designation of areas of the State for the purposes of preserving for marketing purposes the identity of certain food crops according to whether they are genetically modified crops or non-genetically modified crops. The Act therefore is in place for marketing and trade purposes and has been used to prohibit the cultivation of genetically modified food crops. This is commonly referred to as the moratorium on genetically modified food crops. I would like to stress that this legislation is not in place for the protection of human health and the environment, as these matters are dealt with through the national regulatory schemes and are not grounds for retaining a moratorium. This government came into power with a clear commitment to undertake an independent expert review to determine the true economic merits of retaining a moratorium and to enable evidence-based decisions to be made. The government has undertaken an exhaustive process to fulfil this commitment which I have explained previously but would like to reiterate to demonstrate that we have been open and transparent and provided stakeholders with ample opportunity to provide their views. An independent review was commissioned within six months of forming government. Public submissions were invited during the review which was completed in February 2019. In summary, the review found no evidence that South Australia enjoys better access to the European Union non-genetically modified grain market, that there has been no premium for South Australian non-genetically modified grain when compared with neighbouring states and importantly, the moratorium had cost South Australian grain growers at least $33 million since 2004 and if extended to 2025 would cost the industry at least a further $5 million. The review also found the moratorium had discouraged public and private investment in research. The only exception that was identified by the review was Kangaroo Island where there are some canola producers who have a specialised market in Japan based on its non-genetically modified status. In considering farmers that wish to continue to access non-genetically modified and organic markets, the review also found the experience in other states shows that segregation protocols ensure successful coexistence of genetically modified and non-genetically modified crops. I released the finding of this review shortly after receiving it for public comment to assist the government to determine the next steps. After considering this feedback and the findings of the review, the government decided to lift the moratorium across all of South Australia except Kangaroo Island. The government sought to implement this decision by following the process prescribed in section 5 of the Genetically Modified Crops Management Act 2004. The government undertook the extensive statutory consultation process as required by section 5(3) of the Act on the proposal to amend the Genetically Modified Crops Management Regulations 2008 to lift the moratorium in all of South Australia except Kangaroo Island. This third round of public consultation included releasing draft regulations and providing for public notice to be given on the Primary Industries and Regions South Australia (PIRSA) website and public notice in the newspaper, as required by subsections 5(3)(a)(i) and 5(9) of the Act; inviting the public to make written submissions to the government over a six-week period, as required by subsection 5(3)(a)(ii) of the Act; and convening two public meetings in areas to be affected by the proposed regulations, one in Kingscote and one in Adelaide, as required by subsection 5(3)(a)(iii) of the Act. The government also consulted the GM Crop Advisory Committee as required by subsection 5(8) of the Act. This fragment contains an image. Please open PDF version to view the image. The majority of views expressed in the statutory consultation supported the proposed regulations. A total of 218 submissions were received in response to this consultation, of which 128 submitters were in favour of the proposed regulations, one submitter being Livestock SA favoured lifting the moratorium across the whole of South Australia including Kangaroo Island, 75 submitters were opposed to the proposed regulations and a further 15 submitters were opposed to the proposed regulations referencing matters outside the scope of the Act. The GM Crop Advisory Committee also supported the proposed regulations. Lifting of the moratorium has been strongly supported by grain growers, their representative organisation Grain Producers South Australia, and the wider grains industry, as well as by Primary Producers South Australia, Livestock SA and the South Australian Dairyfarmers Association. Kangaroo Island farmers have supported the proposal to lift the moratorium on the mainland but retain it on the island, with some stressing the importance of having mechanisms to access any new pasture and crop varieties in future which may benefit local growing conditions. Submissions from many of our state's highly regarded research institutions have also clearly highlighted the moratorium's negative impacts on research and development investment in South Australia. The independent review findings, the feedback from the consultation undertaken following this review and the advice of the expert advisory committee do not provide economic grounds for retaining the moratorium. This process has instead shown the moratorium has resulted in costs to producers and the state, barriers to research and investment and if it continues will mean that our farmers do not have access to current and future important innovations in crops and pastures. It is also clear that the experience of other mainland states demonstrates coexistence is possible and that the sale of non-genetically modified food crops can continue where there is no moratorium in place. The government therefore progressed this reform and made the Genetically Modified Crops Management (Designation of Area) Variation Regulations 2019 which amended the area where genetically modified food crops were prohibited to just Kangaroo Island. This simple amendment was intended to retain the structure of the Act which makes it clear that the area where the moratorium is to apply will be designated in the regulations. As a disallowable instrument, Parliament had the opportunity to scrutinise, debate and vote on these regulations and this occurred on 27 November 2019 where the regulations were disallowed by resolution of the Legislative Council. During debate in the Legislative Council, Members expressed the view that the areas to which the moratorium applies should be designated in the Act not regulations. The government was invited to bring forward a bill to provide the Parliament an opportunity to consider and debate the merits of lifting or changing the moratorium. To fulfil the wishes of the Parliament, I introduced a bill to enable this to happen in December 2019—the Genetically Modified Crops Management (Designated Area) Amendment Bill 2019. The bill not passed after unworkable amendments were proposed which would have imposed such a regulatory burden on our farmers that they would negate the benefits of lifting the moratorium in the first place. Today, I introduce the Genetically Modified Crops Management (Designated Area) Amendment Bill 2020 to provide another opportunity for the Parliament to consider this issue. This bill is identical to the 2019 bill other than its commencement being by Proclamation and the inclusion of a mandatory review clause which acknowledges the debate in the other place. This clause requires a review of the operation and impacts of this reform to be completed by 1 September 2024 and tabled in Parliament within 6 sitting days. As was the case with the 2019 bill, this bill is not inconsistent with the recommendations of the recent Parliamentary Select Committee into genetically modified crops in South Australia with two of the Committee members stating that there was overwhelming evidence that lifting the moratorium on the mainland would benefit the farming sector. The bill gives effect to the government's position that the moratorium should only apply to Kangaroo Island. It removes the powers of the governor to designate by regulation the area for which the moratorium on the cultivation of genetically modified food crops may apply. The bill also respects the wishes of the 2017 Parliament in applying 1 September 2025 as a sunset date for the moratorium. It is past time South Australian farmers are provided with the same choices as their neighbours in other Australian states to use new and improved crop varieties and agricultural technologies to tackle the challenges they face. South Australian farmers should have access to choice in crop varieties that build resilience both financially and in their production systems to drought, climate variability and change. Farmers that do not choose to grow genetically modified crops will be able to continue to sell to non-genetically modified and organic markets as farmers have successfully done in other states using segregation protocols that have proven to be successful and reliable. The Marshall Liberal government has a strong reform agenda to strengthen and grow the state's economy. This bill will be an enabler to growing our agriculture and food sector. We are committed to supporting the grains sector to be vibrant, productive and competitive. I commend the bill to the house and look forward to further debate. I seek leave to have the explanation of the clauses inserted in Hansard without my reading it. Leave granted. Explanation of Clauses Explanation of Clauses Part 1—Preliminary 1—Short title This clause is formal. 2—Commencement The measure commences on a day to be fixed by proclamation. 3—Amendment provisions This clause is formal. Part 2—Amendment of Genetically Modified Crops Management Act 2004 4—Amendment of section 3—Interpretation This amendment is consequential. 5—Amendment of section 5—Designation of areas The power to designate by regulation areas of the State in relation to the cultivation (and prohibition of the cultivation) of genetically modified food crops is repealed and substituted with the provision that Kangaroo Island is designated as an area in which no genetically modified food crops may be cultivated. Provisions related to the making of regulations referred to above are also repealed. 6—Insertion of section 7A New section 7A is inserted: 7A—Expiry of Part This section provides that Part 2 of the Act expires on 1 September 2025. 7—Substitution of section 29 This section substitutes section 29 and provides that the Minister must cause a review of the operation and impact of the amendments made as a result of this measure and for the report on the review to be submitted to the Minster by no later than 1 September 2024. 8—Amendment of Schedule 1—Transitional provisions These amendments are consequential. One of them provides a power to make transitional regulations connected to the measure. Such regulations may operate from the commencement of the measure, or a later day. Schedule 1—Repeal and revocation Part 1—Repeal 1—Repeal of Genetically Modified Crops Management Regulations (Postponement of Expiry) Act 2017 The Genetically Modified Crops Management Regulations (Postponement of Expiry) Act 2017 is repealed as a consequence of the amendment to section 5 of the Genetically Modified Crops Management Act 2004. Part 2—Revocation 2—Revocation of Genetically Modified Crops Management Regulations 2008 The Genetically Modified Crops Management Regulations 2008 are revoked as a consequence of the amendment to section 5 of the Genetically Modified Crops Management Act 2004. Debate adjourned on motion of Ms Hildyard.