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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-05-15 Daily Xml
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CITRUS INDUSTRY

The Hon. CARMEL ZOLLO (14:40): I seek leave to make a brief explanation before asking the Minister for Agriculture, Food and Fisheries a question about the citrus industry.

Leave granted.

The Hon. CARMEL ZOLLO: The citrus industry is one of South Australia's important rural industries and a source of export income, as South Australian grown oranges, lemons, limes and mandarins are shipped interstate and overseas. Can the minister advise the chamber about recent developments in the representation of the citrus industry?

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) (14:41): I thank the honourable member for her most important question, and the honourable member is correct in stating that this is an important industry. I am advised that the industry is worth about $49 million from farm gate revenues and $348 million in gross food revenues; and, obviously, it is a major employer, particularly in the Riverland.

Members may be aware that there has been considerable division and disunity in the representation of the citrus industry for some time, and this division has not served the industry well in recent times. An industry which has particularly experienced extended drought, unfavourable exchange rates and market pressures should speak—and needs to be able to speak—with a united voice. Unfortunately, this is not the situation.

When I became minister I was, indeed, very reluctant to intervene, and I have only done so because the industry has demonstrated that it is unable to come together under its own steam. My predecessor had commissioned a highly respected former judge of the District Court, Mr Alan Moss, to investigate and provide recommendations and a blueprint for the future for an industry representative group. However, it was important that the citrus industry itself consider the practical steps it needed to take to unite and move forward.

I therefore asked Mr Neil Andrew, a citrus grower and a former speaker of the House of Representatives, to head up a group with representation from considered leaders within and across the industry to help map the way forward. This group, the Citrus Industry Transition Working Party, recently provided its recommendations to me, and I have accepted its recommendations in total.

I have accepted those recommendations and will work with the industry to establish the South Australian Regional Advisory Committee (SARAC) as the regional arm of Citrus Australia Limited (CAL). The transition working party made it clear that the industry was not happy with the duplication of administrative matters, nor was it happy about the amount payable in terms of two levies to two different industry groups. Instead of the two levies payable by citrus growers, under the new arrangements the contribution rate for the citrus scheme under the Primary Industry Funding Scheme Act will be set at $1 per tonne of citrus produced. That is a saving of $2.85 per tonne for oranges and a $1.85 saving per tonne for other citrus, such as lemons and mandarins.

The new body will be skills based and include a minimum of four growers (I think up to seven members constitute SARAC), which will enable others, such as packers, processors and wholesalers etc., to be involved. The expenses of the body will be kept to a minimum with the chair receiving remuneration while the members' expenses will be reimbursed. So it will be a very streamlined structure.

The new SARAC will have the important role of developing and consulting on a five-year management plan for the use of grower contributions which will only be able to be spent for the purposes aligned in the five-year plan. The funds will be paid to CAL but only for the purposes identified by the South Australian industry.

Only a small amount of fruit produced in South Australia is actually sold to consumers in South Australia currently. Many of the issues facing the industry such as access to new markets, biosecurity and promotion are national issues, so the working party believed an association with CAL was essential. At the same time, the working party recognised the industry will be faced with local issues and must be able to adequately respond to those.

The changes will take time to implement. The current Citrus Industry Development Board, which is established under the Citrus Act, will be disbanded. I propose to introduce legislation to make the necessary legislative changes. These changes are intended to benefit local representation and strong linkages to the federal body while reducing red tape in the industry.

Last week I travelled to the Riverland and met with citrus growers (those who pay voluntary levies to gain representation and services for their community) to discuss my decision. The meeting which I attended at Loxton and Ramco on Thursday were attended by citrus growers and other leaders and key stakeholders in the industry. In addition, the working party chair, the Hon. Neil Andrew, hosted a further two meetings in Renmark and Mypolonga on Friday last week and at the Adelaide Wholesale Markets on Monday 14 May.

I know from correspondence and feedback that I have received that the industry has been awaiting the announcement and is obviously very keen to move forward. The mechanics of this change will take a few months to implement, and I appreciate the patience shown by citrus growers. It will be up to the industry to seize this opportunity and to unite to support their new representative organisation.

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