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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2022-07-06 Daily Xml
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Wine Exports

The Hon. H.M. GIROLAMO (16:04): When people think of South Australia, they think of the beautiful landscapes and our amazing wine. It is no secret that our state produces magnificent wine that is sought after across the globe. I have often enjoyed spending time at wineries across our state and learning about how South Australian grapes are turned into world-renowned products. A few of my favourite spots, which I would highly recommend you visit if you have not already, are Rockford in the Barossa Valley, d'Arenberg in McLaren Vale and Majella Wines in the Coonawarra.

Regions in our own backyard contribute billions of dollars in exports every year. It is imperative that this continues, which can only be done through government supporting our key wine exporters to succeed. When we were in government, we understood the importance of the wine industry for our state's economy. We accelerated the growth of the industry by supporting exporters to grow their business internationally and create jobs.

We established overseas trade offices, including Tokyo, Seoul, New York and Dubai, to provide support and assistance to exporters where they need it most. Currently, these offices provide more benefits than ever as our exporters face increased challenges and hikes in the cost of doing business right across the globe. During our term in government, we also introduced the $5.4 million Wine Export Recovery and Expansion Program, which was created to help South Australian wineries by providing the tools and connections to target international markets—an excellent program that I hope continues under the current government, although I fear that continued cuts to trade and investment are likely.

Additionally, the United Kingdom's free trade agreement, signed virtually on 17 December 2021, is a gold standard trade agreement that represents a once-in-a-generation deal for Australia, an historic moment in our relationship with the UK. This free trade agreement is about creating new opportunities and jobs for businesses by reducing tariffs on Australian goods exports to the UK. The uncertainty surrounding the UK free trade agreement has created unease amongst our wine exporters, and it is only fair that the current governments, both federal and state, deliver their positions on these arrangements.

Unfortunately, the potential reforms to the UK alcohol duty may cause negative impacts on Australian wine exports to the UK, in turn creating additional challenges for our South Australian wine export market. Concerningly, since the Labor government has been tasked with supporting the wine industry, all our hard work has been undone, and little to no support has been provided to the industry.

Recently, the Minister for Trade and Investment announced that the Malinauskas government would not proceed with opening South Australia's trade office in Paris. This is a huge blow for wine exporters as they now solely rely on the London office to export their wine all across Europe. This is a difficult task to impose on the London office, considering the trade impacts of Brexit. Additionally, it was written in The Advertiser that, 'Australia's fractured relationship with France has taken a further hit with the state government abandoning plans for the trade office in Paris'.

The minister also announced that relief funding will be reduced through cuts to the wine export and delivery program. It was stated that the program would take a downward path as we dealt with the challenges faced with the Chinese market; however, no additional plan to assist wine exporters was released. This is extremely disappointing. It is irresponsible of the government not to consider additional support for this key industry.

South Australian wine exports have been incredibly resilient through some very challenging times; however, it has recently been reported that wine export figures have inevitably declined in South Australia. Additionally, our wine industry is being impacted by the high deposit tariffs on Australian wine exported to China. Unfortunately, the Premier has only committed to 'turning his mind' to what can be done to improve this going forward. What this means for our wine industry and exporters is yet to be confirmed.

Now is not the time just to think but to act. Peter Malinauskas needs to come up with a plan to continue to support and grow South Australia's wine exports. There is still no plan or commitment from the government to help reassure and support this critical industry. I am calling on Premier Peter Malinauskas to commit to continuing support programs for the wine industry or to introduce additional support to ensure that our wine industry is supported.

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