Genetically Modified Crops Management (Designated Area) Amendment Bill

Second Reading

The Hon. D.W. RIDGWAY (Minister for Trade and Investment) (16:21): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation and detailed explanation of clauses inserted in Hansard without my reading them.

I am 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 strengthen the South Australian—and in particular, the regional—economy by giving 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 (GM) food crops. This is commonly referred to as the GM moratorium. 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 GM moratorium and to enable evidence based decisions to be made.

The Government has undertaken an exhaustive process to fulfil this commitment. This process will be well known to Members of this Chamber, but I will outline again as it is important.

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 GM 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 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.

The review also found the GM moratorium had discouraged public and private investment in research.

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.

After considering the report and public feedback on its findings, the Government decided to lift the GM 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 GM 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.

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 GM 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 Government then made the Genetically Modified Crops Management (Designation of Area) Variation Regulations 2019 which amended the area where GM crops were prohibited to just Kangaroo Island.

Those regulations were later disallowed by the Legislative Council on 27 November 2019. 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, the Government introduced a Bill to enable this to happen in December 2019—the Genetically Modified Crops Management (Designated Area) Amendment Bill 2019. That Bill did not pass the Legislative Council 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.

As a result of the Bill failing to pass, and in order to allow farmers choice of crops for the 2020 sowing season, the Government introduced new regulations effective 1 January 2020 to lift the GM moratorium on the South Australian mainland, in the same terms as the 2019 regulation. These regulations were introduced recognising the intent for the Government to introduce and seek passage of this Bill.

The new regulations have also been disallowed by the Legislative Council and have since been replaced by largely the same regulations.

That is the process, which has led to the introduction of this Genetically Modified Crops Management (Designated Area) Amendment Bill 2020.

The Bill being introduced to this Chamber is different to the Bill introduced to the House of Assembly, as a result of amendments which were agreed in that Chamber. It is therefore worthwhile outlining the provisions of the Bill.

The Bill gives effect to the Government's position that the GM moratorium should continue to 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 provides the ability for the Minister, by notice published in the Gazette, to designate a council area as an area in which no genetically modified food crops may be cultivated. This would occur upon application from a council—which also includes the Outback Communities Authority for the purposes of the Bill—after the council has consulted its community, including consulting farmers and food manufacturing businesses. The Minister must consult with the GM Crop Advisory Committee and consider the Committee's advice in relation to any application, prior to designating a council area.

The ability to designate a council area is time limited to within six months of the date the Bill is assented to. A notice to designate a council area published in the Gazette after six months from the date of assent is void.

The Bill also provides the Minister with the ability to revoke a designation of a council area upon application from the council.

The intention of the Bill is to prohibit cultivation of crops within a designated council area and specific exemptions are provided in the Bill which will enable the transport of GM food crop material through and research into GM food crops to occur within designated council areas.

When the Bill was originally introduced to the House of Assembly, it included a clause for the GM moratorium on Kangaroo Island to expire on 1 September 2025, as well as a clause requiring a review of the GM moratorium on Kangaroo Island to be conducted by 1 September 2024. These provisions no longer form part of this Bill. As a result, for the GM moratorium to be lifted on Kangaroo Island or in a designated council area (except where a council requests the moratorium to be revoked), a future Bill will be required to be considered by Parliament.

Unlike the Government's proposal to lift the GM moratorium on the South Australian mainland, the proposal for the Minister to be able, upon application, to designate council areas is not a policy which has undergone wide community consultation, nor has the GM Crop Advisory Committee been consulted on this matter.

However, Grain Producers South Australia has been consulted on this measure. The proposal is supported by the Government as an initiative which will enable a majority of Members of Parliament to support passage of the Bill. The proposal will enable local communities to have some say in whether or not there is value to South Australia for the marketing of GM food crops to maintain a GM moratorium in specific council areas, and for any such application to be considered by the GM Crop Advisory Committee.

The measures in this Bill will enable South Australia's grain producers to have certainty and confidence to sow the crops they believe are best for their business in time for the 2021 season.

The measures in the Bill will give confidence to industry, researchers and universities to invest in GM variety research and development here in South Australia, knowing there is a potential pathway to commercialisation for growers in our state.

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 GM 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 GM moratorium's negative impacts on research and development investment in South Australia.

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 and climate variability.

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.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause is formal.

2—Commencement

Certain provisions of the Act commence on assent and certain specified provisions commence 6 months after assent.

3—Amendment provisions

This clause is formal.

Part 2—Amendment of Genetically Modified Crops Management Act 2004

4—Amendment of section 3—Interpretation

One amendment is consequential.

The other amendment amends the definition of cultivate to exclude the transport of a genetically modified food crop or any plant or plant material that has formed, or is to form, part of a genetically modified food crop from the definition.

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.

Proposed new subsection (1a) provides that a person who cultivates a genetically modified food crop on a limited scale under, and in accordance with, a GMO licence authorising the release of the relevant GMO into the environment for the purposes of an experiment is exempt from the operation of section 5(1).

6—Insertion of section 5A

New section 5A is inserted:

5A—Designation of council areas

This section empowers the Minister, on application by a council, to designate (by notice in the Gazette) the area of the council as an area in which no genetically modified food crops may be cultivated.

A notice doing so must be published before the commencement day and takes effect from the commencement day (which is a defined term).

Provision is made relating to notices under the section and to give effect to the designation of an area under the section.

7—Amendment of section 6—Exemptions

One amendment is consequential on the insertion of new section 5A (Designation of council areas).

The other amendment (deleting section 6(2)(a)(i)) relates to the proposed insertion of subsection (1a) into section 5 of the Genetically Modified Crops Management Act 2004 (and proposed section 5A(8) under the measure).

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 Hon. J.E. Hanson.