Grain Shipping Costs

The Hon. R.A. SIMMS (15:12): I look forward to hearing the response to that one, Mr President. I seek leave to make a brief explanation before addressing a question without notice to the Minister for Primary Industries and Regional Development on the topic of the cost of shipping grain interstate.

Leave granted.

The Hon. R.A. SIMMS: It was reported on the ABC online on 9 May that a West Australian grain exporter, John Orr, claimed it was cheaper and safer to send Australian grain to China than to drought-affected farmers in South Australia due to shipping rules. These rules make interstate shipping risky and expensive, I understand adding $60 per tonne to the cost compared to shipments made to China. Most domestic freight in Australia is transported via road or rail, and the nation has only nine Australian flagships, with the government aiming to increase the fleet.

Farmers in South Australia are struggling with feed shortages due to ongoing drought, and high freight costs which add $100 to $150 per tonne to their expenses. Farmers have been rationing feed and hoping for rain while expressing frustration over the lack of support that is flowing from the state government. I understand the commonwealth government has commissioned a Strategic Fleet Taskforce report to address the decline of the Australian shipping fleet, suggesting tax incentives and financial assistance to make Australian vessels more competitive.

The WA government, meanwhile, has formed a Shipping and Supply Chain Taskforce after floods disrupted railway lines in 2022, recommending collaboration with the commonwealth and other states to stimulate an Australian-flagged fleet. Grain Producers Australia calls for better access to domestic markets and more cost-effective bulk shipping to support growers who are facing tough conditions. My questions to the Minister for Primary Industries and Regional Development therefore are:

1. Given the ongoing drought and the high freight costs faced by farmers in South Australia, what immediate measures is the government considering to provide support and reduce the financial burden faced by these farmers?

2. What steps is the government taking to address the inefficiencies and high costs associated with interstate shipping?

3. How will the recommendations from the Strategic Fleet Taskforce be implemented?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:14): I thank the honourable member for his question. I am always concerned when I hear discussions referring to inefficiencies and high costs, when those matters might be due to Australian workers getting paid appropriately and having appropriate conditions. I am sure, of course, that wasn't the intent of the Hon. Mr Simms—at least I would certainly hope it was not—but I think it is something that we need to see within the global context.

There has been, according to my understanding, a decrease in Australian ships, because we obviously expect that there should be appropriate work health and safety standards, and they should be adhered to, and that workers should receive appropriate compensation through wages and other benefits. If, in the interests of becoming more competitive, there is a suggestion from any source that that should be achieved by reducing Australian workers' conditions or pay, I don't think those on this side of the chamber would be supportive of that.

In terms of the overall issue, as the member has referred to, there is some national work occurring. Once that work has been completed, then there will be, I would expect, a number of issues to consider from that point on.