Genetically Modified Crops Management (Designated Area) Amendment Bill

Second Reading

The Hon. D.W. RIDGWAY (Minister for Trade, Tourism and Investment) (00:49): I move:

That this bill be now read a second time.

I seek leave to insert the second reading explanation into Hansard without my reading it.

The PRESIDENT: Leave is sought; is leave granted? Leave is not granted.

The Hon. D.W. RIDGWAY: I am very pleased to introduce the Genetically Modified Crops Management (Designated Area) Amendment Bill 2019. The 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 or non-genetically modified crops, and to provide for the segregation of genetically modified food crops, and to provide certain protections with respect to the spread of genetically modified plant material.

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 and currently applies to the whole of South Australia. 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 the moratorium.

This government came to power with a clear commitment to undertake an independent expert review of the moratorium to determine its true economic merits and enable a decision on its future to be made, based on evidence. The government has undertaken an exhaustive process to fulfil this commitment, which I would like to explain to demonstrate that we have been open and transparent and have 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—I stress, no evidence—that South Australia enjoys better access to the European Union non-genetically modified grain market. It also found that there has been no premium for South Australian non-genetically modified grain when compared with neighbouring states and, importantly, that 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 who wish to continue to access non-genetically modified and organic markets, the review also found that the experience in other states shows that segregation protocols ensure successful coexistence of genetically modified and non-genetically modified crops.

The government released the findings 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 areas 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 extensive statutory consultation, a process 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 provided for public notice to be given on the Primary Industries and Regions South Australia (PIRSA) website and for a public notice in the newspaper, as required by subsections 5(3)(a)(i) and 5(9) of the act. It invited 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 convened 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. 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. The 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 that 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 (Designated 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 by regulations.

As a disallowable instrument, the parliament had the opportunity to scrutinise, debate and vote on these regulations. This occurred on 27 November 2019, when the regulations were disallowed by resolution of this council. During the debate in this council, members expressed views that the areas to which the moratorium applies should be designated in the act and not the regulations.

The government was invited by members in this chamber during the debate to bring forward a bill to provide the parliament with an opportunity to consider and debate the merits of lifting or changing the moratorium. To fulfil the wishes of this chamber and the parliament, I introduce this bill into the chamber today to enable this to happen.

The 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 here 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. The bill 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 that 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 who 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. The bill will enable the growth of 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 council and look forward to the debate.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause is formal.

2—Commencement

The measure commences on 1 January 2020.

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—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 Hon. I.K. Hunter.

At 00:59 the council adjourned until Wednesday 4 December 2019 at 11:00.