POTATO INDUSTRY

The Hon. J.S.L. DAWKINS (15:09): I seek leave to make a brief explanation before asking the Minister for Agriculture, Food and Fisheries a question about the South Australian potato industry.

Leave granted.

The Hon. J.S.L. DAWKINS: The Australian potato industry is currently under threat from a federal government proposal that will result in the importation of fresh potatoes from New Zealand into Australia, subject to quarantine conditions. This proposal is another federal government backflip on the import ban on New Zealand potatoes, and growers are fearful that the imported potatoes could carry the devastating tomato-potato psyllid disease. This disease is a vector for the complex condition known as zebra chip. Zebra chip is destructive. Following an accidental incursion into New Zealand in 2006 the tomato-potato psyllid had spread across the country by 2009 and caused an estimated loss of $120 million in 2011.

South Australia produces over 385,000 tonnes of potatoes per year and is the nation's largest producer of fresh potatoes, with 80 per cent of the nation's total production. This equates to a farm gate production worth $206 million. The South Australian industry is also a significant contributor to the processed market, employing over 2,000 people. Consequently, the local industry has the most to lose if the importation of potatoes from New Zealand does not remain suspended.

I might add that I grew up in an area where there were many potato growers and processors, and of course most members in this chamber would know that the potato industry has now spread from being centred on the northern Adelaide plains and the South-East and is in many parts of the Riverland and the Mallee. It is a significant employer in many regions of the state. My questions are:

1. What is the South Australian government's position on the Australian government's proposal to reverse the import ban on New Zealand potatoes?

2. Is the minister aware of the devastating impact a tomato-potato psyllid infection would have on the South Australian potato industry?

3. What, if any, biosecurity risk management plan is in place in this state to protect the local potato industry if an outbreak were to occur?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (15:11): I thank the honourable member for his important question. Indeed, it might be the humble chip, but it has very significant economic ramifications in relation to surrounding biosecurity issues.

I can assure honourable members that this matter has been considered very carefully. The commonwealth released a draft report earlier this year, entitled 'Draft report for the review of import conditions of fresh potatoes for processing from New Zealand'. The Department of Agriculture, Fisheries and Forestry's draft report proposed that the importation of fresh potatoes for processing from New Zealand be permitted subject to a range of very strict quarantine conditions.

The quarantine conditions recommended are that the potatoes have been washed and/or brushed to remove soil and trash, and have been subjected to quarantine inspection by both New Zealand and Australian officers. The potatoes must come only from farms free from the potato cyst nematode and potato black wart. I am advised that it is the soil and other organic matter around potatoes that this particular disease travels in, rather than the potato itself.

Transport in Australia will be in secure containers, and all potatoes must be sent for processing under quarantine control. All waste must be disposed of under quarantine approved treatment, that is, incineration or deep burial and, again, there are conditions around that. Fresh, whole potatoes from New Zealand will not be available for retail sale in Australia. I repeat: fresh, whole potatoes from New Zealand will not be available for retail sale in Australia.

Zebra chip-infected potatoes are not commercially acceptable and traded, as I understand that the processed product tastes burnt and is discoloured. Thus there is a commercial imperative to source zebra chip-free potatoes for processing.

Zebra chip can only be spread by a small insect and the tomato-potato psyllid insect lives and feeds on leaves and stems, not the potato tuber itself. That was the distinction I was trying to make earlier on. Given the proposed zero tolerance for trash, there is no viable pathway for this insect to enter Australia. That is what I have been advised.

A second safety net exists because the only New Zealand potato available to Australian consumers will be processed into fries or crisps. This measure removes the pathway for the actual zebra chip bacteria to enter Australia in any viable state. The SARDI scientists have examined the DAFF biosecurity risk assessment process and support the proposed risk management procedures and systems.

The importation of potatoes into Australia is obviously a commonwealth government responsibility, and the final decision will be based on the best available science and will be consistent with international trade rules. The potato industry is, I agree with the Hon. John Dawkins, a very important industry here in South Australia with a farm gate value of around $102 million in 2010-11, and South Australia is the nation's largest potato-producing state.

There was a 60-day stakeholder consultation period which closed on 3 December. It provided stakeholders with an opportunity to identify any deficiencies in that risk management process I have outlined. All submissions received will be analysed in full and taken into consideration before the policy will be finalised on import conditions. The Australian Senate, I understand, has referred the matter to the Rural and Regional Affairs and Transport References Committee for consideration and report by 21 November 2012.

The PRESIDENT: The Hon. Mr Dawkins has a supplementary question.