Wine Industry

The Hon. N.J. CENTOFANTI (Leader of the Opposition) (14:32): I seek leave to make a brief explanation before asking a question of the Minister for Primary Industries on wine industry research.

Leave granted.

The Hon. N.J. CENTOFANTI: There has been much public discussion about concerns with the reduction in funding to the Adelaide-based Australian Wine Research Institute (AWRI). Given the pain being felt across South Australia's grapegrowing and winemaking businesses at present and the declining demand for traditional commercial wines, the need for change and innovation across the wine sector is critical at present. The AWRI has been internationally recognised as an exemplary model of wine research development and extension and has a track record of groundbreaking research, while the national wine advocacy body Australian Grape and Wine is the prescribed industry representative body that advises wine research priorities to the federal government body Wine Australia.

However, there has been public concern raised that the level of funding support to the AWRI has now dropped below a critical sustainable level. The AWRI has seen a 38 per cent reduction in headcount and the management and board has expressed concerns that at this rate it is no longer viable. It is important to note that the reduction in funding to the AWRI has been much greater than the reduction in research levies coming from the reduction to the annual crush. My questions to the minister are:

1. Is she concerned about the viability of the AWRI being endangered by the current reduction in funding and of what that impact is likely to be on the research capabilities of the South Australian wine and grape industry?

2. Has she contacted her federal colleagues, Wine Australia and Australian Grape and Wine about this issue, and, if not, why not?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:34): If I remember correctly, AWRI receives project funding, largely from Wine Australia, and it largely runs through the federal government. As such, it is a matter particularly for the federal sphere. I understand that those opposite are frequently confused about what is within the scope of the federal jurisdiction and what is within the scope of state jurisdictions, but on this side we will continue to try to assist them in their understanding.

However, it is worth noting that, as have I alluded to previously in this place, during the agriculture ministers meeting in March this year I was successful in having a national working group established to look at the issues facing the wine industry, in particular the red wine oversupply. The engagement with the working group was very wide and a lot of matters were raised through that. I would encourage the honourable member to perhaps read the reports that are now publicly available, and that may inform her further.