The Bush Telegraph - Issue 1 by Senator Barry O'Sullivan

THE

THE FIRST

100+ DAYS

BATTLE LINES THE FIGHT FOR RURAL AND REGIONAL QUEENSLAND SENATOR BARRY O’SULLIVAN

JUNE/JULY 2014

QUEENSLAND SENATOR, BARRY O’SULLIVAN, REFLECTS ON HIS FIRST 100 DAYS IN THE JOB. Dear Readers, Welcome to the first edition of ‘The Bush Telegraph’. The intent of this publication is to give our constituents in Queensland an idea of some of the issues we have campaigned upon since my induction to the Senate some 100 days ago. The stories in ‘The Bush Telegraph’ are designed to give people an idea of the depth and breadth of the issues their Senators progress for the people of their State.

Publications like ‘The Bush Telegraph’ are not only designed to inform but are also there to generate people’s interest in various public affairs and show them that there is a path through their State Senators to give voice to issues that are of special interest to them. I want to acknowledge the work of two of my Senate support team members, Samantha Muller and Troy Rowling in the preparation of ‘The Bush Telegraph’. Their contribution has been invaluable. We collectively hope you enjoy the read and find the contents informative.

In my case, my governing party, the Liberal National Party of Queensland (LNP), has seated me with the National Party of Australia. You will no doubt note from my activities that much of my time as a Senator is devoted to the affairs of rural and regional Queensland, with particular interest in the sectors of agriculture, resources and primary production.

BARRY.

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

“MAIDEN ADDRESS” SPEECH By Senator Barry O’Sullivan Federal Parliament Senate Chamber 19 March 2014 Mr President, I feel proud for the honour and privileged by the opportunity to serve in this government in the chamber of this Senate. I am grateful for the endorsement of my Liberal National Party and humbled by their faith in my capacity to represent the interests of my fellow Queenslanders in this, the State’s chamber. I know that our party’s inaugural presidency team of Bruce McIver and Gary Spence are in the gallery today, along with their President’s Committee colleague Bernard Ponting and so I would be indebted to them if they would convey my sincerest thanks and gratitude for my endorsement to those thousands of party members and LNP supporters at home. I would also like to acknowledge my family and friends who are here in Canberra to support me and celebrate with me the occasion of this first speech. It is of special significance to me that my six grandchildren are in the gallery today. They are, I suspect, one of the main reasons that I am here in the first place. I want to acknowledge the the Ngunnawal and Ngambri people here in Canberra and the Darumbal people of Central Queensland, recognising them as the traditional owners and peoples of this place where I now work and that place where I was born. Mr President, I want to begin my speech by acknowledging and thanking my predecessor, Barnaby Joyce – previously a Senator for Queensland, now the Hon. Member for the Federal Division of New England and our Minister for Agriculture. I want to particularly thank Barnaby for his service to my party, the Liberal National Party of Queensland, and also to the people of my home State. Those people who know Barnaby well Mr President, know that he is a man who possesses great character, a character tempered by principled values, a character governed by deeply held convictions and he was, and remains, much loved and respected by the people of Queensland. To the extent I am entitled Barnaby, I extend to both yourself and your wife Natalie my thanks and appreciation. As an aside Mr President, I can say that the good people of Queensland voted for Barnaby and now they have me. For some – this fact will be almost too much to bear! Notwithstanding, I do hope to bring to this position the same level of energy, commitment and dedication as displayed by Barnaby with a view to realising just a fraction of the outcomes achieved by him for Queenslanders during his terms in office. Mr President, it is no accident that I sit here on behalf of the LNP with members of the Federal National

Party. In Irish folklore, those blessed with the surname O’Sullivan were known as troublemakers who from time to time caused disruption and strife – sometimes even for the Government of their day. Accordingly, I feel my involvement in their ranks to be a good fit. Mr President, my paternal lineal heritage in Australia commenced in 1857 with the arrival of my great, great grandparents Timothy and Mary O’Sullivan – I DO HOPE TO subsistence farmers from the south-west coast BRING TO THIS district of Ireland. POSITION THE

SAME LEVEL OF ENERGY, COMMITMENT AND DEDICATION AS DISPLAYED BY BARNABY.

Timothy and Mary and nine of their twenty-one children were delivered to this country aboard a vessel named the Hastings, the very first immigration ship to dock at Morten Bay in Queensland.

The youngest of the accompanied children on that voyage, a 5 year old boy named Faugh, was my great grandfather. His journey to the colonies had taken 93 days. The clan who arrived at Morten Bay set about joining many of the original pioneers to open up and settle large tracts of regional and country Queensland. To this day there remains an unbroken line of decedents in the Ipswich, Miles, Roma, Alpha and Clermont districts of my state, where hundreds and hundreds of descendants of Timothy and Mary have made and continue to make a contribution to our nation through the practice of farming and pastoral activities. Mr President, my reference to my forebears is not simply an act of reminiscing – but more an exercise of staking my case of interest, declaring a personal and historical nexus if you like, to all things that affect regional, rural and remote areas in my State of Queensland. My own lineal line now represents no less than seven generations of my family who have had a direct and unbroken affinity and relationship with the land. The occupations of my paternal grandfathers and father in order were as a shepherd, a pastoralist, a drover and, in the case of my father, saddler/tent maker, core and important professions of their respective times. Having said that Mr President, and in the interests of full disclosure, I should note that for one infamous moment in time, my grandfather the drover, apparently thought he was my grandfather, the shepherd, as in the late 1800’s he was found in the possession of two sheep, which apparently were not his own, in a mustering camp on the Drummond Range on the Great Divide.

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

In another fine O’Sullivan tradition my Grandad did apparently spend some time trying to convince the attending troopers that the sheep were in fact feral goats but alas it would seem from historical court reports that the troopers eventually proved too wily for the drover. Having said that Mr President, I can say that I have long since forgiven my Grandfather for his indiscretion as I found the more that I become involved in politics the more difficulty I too have been having in distinguishing between woolly sheep and feral goats myself! Mr President, putting matters of light heartiness aside if I might; I want to say that the pioneering story of the O’Sullivan family is almost the identical story of thousands of other dynasties who have contributed to the development of my State and indeed our nation. From a base of abject poverty, most of these forebears of ours endured almost unimaginable difficulties, courageously facing what would now seem like insurmountable hardships and challenges to commence the new development of an ancient nation. I qualify this statement with recognising Indigenous occupation during this phase in time – acknowledging the conflicts of two cultures where one was motivated by improving the lot of their family and their future – whilst the other responded by defending what was already theirs.

Mr President, these things that were done were a bequest from these pioneers to future generations, arguably amongst them, this current generation. Again and importantly I also realise the valuable contribution of Indigenous Australians in this process west of the Great Divide – a contribution which is often not as well recognised as it could or should have been. Mr President, these people I speak about knew this – they knew there was no economy in the world – indeed not one single facet of any one economy – that did not have its genesis deeply rooted in the activity of primary production. It does not matter where you live or where you work, or what the relevant premise is made of; or indeed any consumable or fixed item within that premise – the elements that make up those things started with primary production. Even the things you can’t see Mr President, the electronic transmissions that our modern communications networks rely upon to function, the energy that powers our lights and appliances and the nation’s transport, health, education and social services networks – all rely on fundamental elements that start out in life from primary production.

Mr President, it is important to reflect for just a moment the success of the effort of these pioneering people.

Whilst in my own personal case it is an article of faith – it matters not where you believe the genesis of life’s functions have been architecturally created; be it God or be it nature – the base truth is that we have to eat and drink, we choose to be clothed and we need protection from the elements.

These people developed entire communities which were planned and designed to deliver every essential component of social and municipal amenity for their time. They built their own schools, churches, court houses and the likes – with their own money as opposed to appropriated public funds.

Without the primary production of food and fibres for the necessities of life, the transformation of the magical properties of some plants for medicinal purposes and the extraction of the earth’s elements and natural resources – we would be sitting here in a virgin forest – hungry and naked.

These were eventually very stable, settled and increasingly happy communities.

The historical investment by our nation in these communities, and more importantly, the people of these communities has to date been returned to our nation in spades Mr President. The phrase that the wealth of this nation was built on the sheep’s back alone is not quite true as singularism, but there is no doubt that without primary production; this nation would not, and indeed could not, have prospered to the point that it has.

As my state of Queensland went into the 20th century, and we entered into the post federation period, more organised government structures partnered with the people of regional and rural communities of my state and we started, now as one, now as a part of a Commonwealth of States, to develop infrastructure. Together Governments and their pioneering partners constructed road and rail networks, and these communities received assistance in the areas of health, education and law and order. Later, as technologies allowed, Government invested in a national network of communications, expanded the likes of aviation services and upgraded and expanded trunk road, rail and energy networks which in turn served our primary producers and allied agricultural and pastoral industries well for a number of decades. Rural economies were able to properly and sustainably exploit that phenomenal system of underground rivers, lakes and oceans that make up one of our most magnificent natural gifts, the Great Artesian Basin. 4/

Primary production contributes a foundation element to this nation’s economy. There is a direct and irrevocable link between the good economic health of primary producers and the good economic health of the nation. These two things are symbiotic. Sadly though Mr President, there is, I think, an argument that we have in some ways failed our original pioneers and are continuing to fail some of our contemporary communities of rural and regional Australia with respect to fundamental issues that go to the heart of the prospects of their future. The progressive restructuring of government agencies with an emphasis on a corporatised model

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

– compounded by the overarching principles of economic rationalism – have seen us significantly and aggressively reduce government based and government funded services to many parts of regional and rural Australia since the 1960’s. Whilst all levels of Government acknowledge community services obligations and a responsibility to distribute the wealth of our nation evenly amongst its citizens, we tend to struggle in the delivery of these commitments the further it is we get away from places where the postcodes end in three zeroes. Whilst I must admit that some governments were more efficient at introducing these regressive measures than others, they have all made a contribution of sorts, demonstrating that bad public policy shows little or no respect for the philosophical or ideological bent of its political host. This culture, this public policy culture of rationalising community services and support for regional and country communities eventually and inevitably gave a social licence to the private sector to follow suit. Banks, stock and station agencies, accounting firms, solicitors and the like all progressively left these communities over the past three or four decades because, in many cases, populations had become so THE TRUE WEALTH depleted that there OF OUR AUSTRALIA was an insufficient IS NOT FOUND critical mass to continue to make SINGULARLY their businesses IN FINANCIAL commercially viable.

TERMS, BUT IN THE ENTERPRISE OF PEOPLE WHO EACH AND EVERY DAY MAKE A CONTRIBUTION TO THE WELLBEING OF OUR COUNTRY.

I personally believe these things were the unintended consequences of poorly considered public dogma.

I contend that decades of rationalisations have gone much further than intended Mr President and this in turn then saw cuts to social services that were much deeper than was ever prudent or required – thereby leaving some communities’ mere casings of their former selves. The net result of these transitions is that incentives have disappeared for some future generations to make their lives in our regional and rural areas. Where generational transition of businesses and pastoral holdings was once the rule in these places, it is fast becoming the exception. If we are not careful, the profile of ownership and operation of large tract rural and regional holdings will change and what might replace family owned enterprises and corporations might not be in the interests of the national economy.

In fact, Mr President this might not even be in the national interest in the longer term. Mr President, having said all that I have said it is important to make the point that the future outlook for Australian agriculture and primary production is positive. Increased access to trade and export markets in our region looks very promising. Mr President, this Senate knows that we have some of the best bio-security and food health standards in the world. Access to sustainable and environmentally responsible production of good quality produce is at the heart of almost every food security discussion in the world, particularly in those emerging economies on our doorstep. Australian producers meet, and in most instances exceed any accepted key performance indicators or world’s best practices in those regards and so we are well placed to serve these volume market demands as their middle classes expand. However, some of these positive forecasts are a cold comfort to communities who see themselves as mere shadows of themselves from just 20 or 30 years ago. These are communities who had expected to have positive growth trajectories like their city cousins; indeed they had anticipated growth in services and infrastructure that actually reflected their contributions to the foundations of our national wealth. Sadly, Mr President, for many – the opposite has happened. Mr President, on their behalf, I can tell you these things. Force majeure in the form of floods, droughts, fires and general storm and tempest events cannot in and of themselves kill these sectors and these regional and rural communities. These people want us to know that they have survived these elements for the last 250 years and that they will not buckle to them now. They want us to know that the swings and roundabouts of currency fluctuations that impact trade exposed and export markets come and go and that they in agriculture are not on their own with having to deal with that challenge. It is a market force that they will accommodate. They want us to recognise their proven ability to compete against heavily subsidised competitors on a global scale. They have been doing this successfully since time began. They want us to acknowledge that their capacity to embrace and implement innovations in technology, adjustments to labour practices and changes that favourably impact on general productivities is amongst the best in the world. What I sense is that these things alone cannot slay the resilience of these tough and ever irrepressible Australians. What can and will kill them Mr President is if their Governments, all levels of their Governments, make

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

decisions; or in some instances fail to make decisions over time that impact directly and irrevocably on their ability to generate fair and reasonable standards and conditions of living for themselves. All they want to do is to compete and prosper in commercial environments that contribute to the downstream economies upon which the rest of us rely for our standard of living. This Government recognises the challenges I have highlighted Mr President and they are starting the long return haul to support the viability of our communities in rural and regional Australia. On that front, the Prime Minister’s commitment to the development of Northern Australia will in the fullness of time be seen as one of the big bang decisions of this 21st Century.

family corporations – particularly those in agriculture and allied support industries. In short, I intend to support businesses that underpin this Nation’s wealth and economic security. Those enterprises that directly impact on the fortunes of our standard of living. Mr President, the Senator in me will wake up to this challenge each and every day that I’m in this role to meet that objective – and if the Senator in me finds the going a bit too tough in reaching these goals it will give the troublemaker in me a crack. Hopefully, between the two of us we’ll be able to make a small impact. Through you Mr President, I thank the Senators for allowing me the indulgence to make this, my first and maiden speech.

The Government’s pending White Paper on Agriculture is also a once in a generational opportunity for Government to redesign the policy architecture of how we factor rural and regional Australia into the consciousness of our policy thinking and decision making. The Queensland State Government’s current plans to decentralise the base of some government agencies to regional areas and to set an objective to promote people’s interests in living outside of the south-east corner of that State; are two more solid initiatives that will go towards the rehydration of the regions and the bush. However Mr President, more is needed. Governments, this Government included, need to continue to redefine their relationship with regional and rural Australia. We need to do whatever we can to provide them with fundamental social services and base infrastructure to underpin their growth; at which time I promise you Mr President – they will do the rest. The true wealth of our Australia is not found singularly in financial terms, but in the enterprise of people who each and every day makes a contribution to the wellbeing of our country. Their contributions are many and they are varied and they are all of equal importance, which in turn demands that you and I consider them on equal terms when we make our decisions in this place. In closing Mr President I want to say that for my part, I will, to the limited extent I am able, and in line with my obligations as a Senator for the State of Queensland – be factoring in the interests of all Queenslanders as decisions are made in the Parliament. In particular though, I will be applying the test of fairness and equity to policies and legislation that has the potential to impact the great people of regional and rural Queensland. I will be particularly looking for things that support the rejuvenation of non-metropolitan communities, things that will help small family businesses and the 6/

“RURAL DEBT LOADS AND THE BANKS” SPEECH By Senator Barry O’Sullivan Federal Parliament Senate Chamber 27 March 2014

Mr President, this speech will be the first in a series I intend to make regarding the grim forecast confronting rural communities across Queensland. We must do all we can to get people in the cities to understand these issues. Generations of communities across the northern half of Queensland, who have made contributions towards building the wealth of our nation, are currently suffering every day from an aggregation of unprecedented challenges. Family farms are desperately seeking water and feed to tend stressed and starving stock whilst at the same time, family-owned small businesses are shutting their doors – their enterprises no longer viable. There is a sense of hopelessness and depression for many across this once productive region. Seriously adding to their woes Mr President is the fact that there is seemingly no detailed plan

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

announced to gather the information that is required to understand the depth and the breadth of their circumstances, particularly with respect to their industry’s debt profile, which in turn could assist in the formulation of pragmatic public policy. Mr President, it is my view that immediate action must be taken to understand the full extent of the problem of rural debt in Queensland, and for that matter, under separate cover, the rest of Australia. I am using this opportunity before the senate chamber today, the first since my maiden speech, to call for a survey into the conditions of rural debt across my state of Queensland. Mr President, I urge the Australian Bureau of Agricultural and Resource Economics and Sciences and the QRAA to engage with the Australian banking sector to undertake this work. The Queensland Government’s rural adjustment authority itself has traditionally conducted a survey of rural debt in Queensland at two year intervals since 2000. However, it has been confirmed to my office that QRAA did not undertake its survey in 2013 because the major banks declined to be involved in a state specific survey – in this case relating to Queensland. In fairness, the banks had indicated at that time that they would be prepared to consider co-operating with a “national” survey initiative. However, if the data to determine the debt profile of beef producers in the northern part of Australia was buried in a national survey, then I respectfully submit that its usefulness to develop policy or make decisions to assist or save stakeholder participants in northern Australia would be lost. The Australian Bankers’ Association’s policy director Stephen Carroll is on the public record as saying, as recently as last month, that there is no crisis in rural debt loads in this country. This organisation claims that rural businesses are in no worse shape than other businesses. Such a statement ignores the alarming trend revealed in the most recent QRAA rural debt survey in 2011, and other empirical evidence published from various sources on this subject. Mr President, alarmingly, the 2011 QRAA survey results found debts are growing faster than revenue for many Queensland farmers, with beef industry borrowers who are considered as nonviable increasing from less than 1 per cent to 6.9 per cent of the total pool in just two years. The survey found the level of rural debt for the beef industry had increased by 17.2 per cent between the 2009 and 2011 surveys, to a total of

$9.18 billion. These increases occurred when there was evidence published by ARARES that gross farm incomes were declining. Some figures have been presented that show that as a percentage of gross receipted income, the pro-rata impact of debt for many producers has risen from 10 to 20%. A massive increase of 100%. The equation of more debt and less revenue is simply not sustainable for our beef industry. In fact, it is not sustainable for any industry, but particularly those who had their ability to sell their goods taken away from them without notice.

IT IS MY VIEW THAT

According to IMMEDIATE ACTION Queensland farm industry group MUST BE TAKEN Agforce, these TO UNDERSTAND current impacts THE FULL EXTENT have occurred as OF THE RURAL the result of the DEBT PROBLEM IN decision to suspend live exports, the QUEENSLAND. condition of ongoing drought and the periodic interventions, for some, of floods and fire. This real underlying debt position is expected to have deteriorated since 2011 whilst the potential for significant industry debt reduction in the shortterm is likely to be limited. However, the issue for some is not that they don’t know what the problem is Mr Acting President; it’s that they don’t know what they don’t know. Given our focus on signing free trade agreements with our Asian neighbours, our ambition to collaborate a white paper policy platform to develop northern Australia and the expansion of our live export trade means we must take action. If we are to truly capitalise on the increasing demand for food and fibre in this ‘Asian century’ then we must thoroughly investigate the true economic state of our rural sector so that we can ensure there is a productive, stable and profitable agriculture and primary production industry. Given the facts, it is simply irresponsible for the banks to simply dismiss the concept of a rural debt crisis, and even more irresponsible for them not to test their position. Their posture on this question simply nets off some of the good work that banks are doing in the space of distressed lending. It is imperative at this time that the banks and the bank’s clients accurately see the circumstances the same, because Mr President, whether they like it or not, their fortunes are irrevocably linked. I understand that the New South Wales government

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

Estimated Debt and Value of Farm Production—1990 to 2016 70,000

60,000

$ million

50,000

40,000

30,000

20,000 Note: Estimated debt includes pastoral, government and other. Production excludes off farm income

2015(f)

2016(f)

2012(f)

2013(f)

2010

2011(f)

2007

2008

2005

2006

2004

2001

2002

2003

1999

2000

1997

1998

1995

1996

1994

1991

1992

1993

1990

10,000

Financial Year Ending Total Farm Debt Value of Farm Production

Source: ABARE/ABS/RBA Revised: December 2011

has previously undertaken plans to conduct its first-ever rural debt survey. In 2012 they too have had difficulties in convincing the banks to partner with them in a debt survey arrangement. I also understand some rural lobby groups are contemplating launching their own debt survey among their members and cattle producers across north Queensland are also discussing plans to raise money and to fund the task.

has a responsibility to these producers and the Australian banks have a responsibility to their clients and to their shareholders to establish the true state of affairs. Drought and poor government decisions are not just an economic disaster for our farmers – it attacks the very social fabric of our rural and regional communities and undermines the viability of almost every business in my remote and rural Queensland. Whilst there are countless people in agriculture who are on their knees because of these circumstances, there are also many of the producers across northern Australia who are face down. These are proud men and women who don’t want us to tell them that things are white when in reality they are black. Mr Banker, they want you to know that they will swap their debt problem for your debt problem. These people just want the truth Mr Acting President; because they know that the truth will guide their government and their banks to implement policies that will guide us out of the quagmire of debt.

Similarly, at the global food forum in Sydney yesterday, Queensland Agriculture Minister John McVeigh importantly declared Australian farmers needed a ‘fair dinkum’ national rural debt survey.

Through me Mr Acting President, this is their call for help.

Dr McVeigh is probably the most qualified agriculture minister in the country, a minister who is overseeing the most unprecedented and prolonged drought circumstances for his producing constituency in over 100 years – and I say that when he speaks – we would all do well to listen.

SPEECH

Enough is enough Mr President. These people are sick and tired of hearing us talk Mr President. They are sick and tired of hearing Queen Street, Pitt Street and Collins Street tell them that they don’t have a problem. They want solutions. Their government took away their livelihood in one foul swoop and they want their government to assist them to weather the resultant storm. They don’t care what colour or creed the government was that took their lives away and they don’t care about the colour or creed of the government that helps to put their lives back. To them the government is the government is the government. Mr Acting President, there is already clear support in the rural sector for a national rural debt survey to gain an accurate picture of the state of play across the industry. So I respectfully submit Mr Acting President that the federal government and the banking sector must act. The government 8/

“THE NEXT ECONOMY” By Senator Barry O’Sullivan Regional Leaders Forum, Boonah 2 May 2014 I was pleased to accept the invitation today on behalf of the Federal Government to highlight some of the cornerstone work we are doing to path the way for the private sector, in particular the agricultural industry and its allied sectors, to develop prosperity across our nation. It is of particular interest to me to note that it seems, for the first time in many years, regional and rural areas are finally being given the attention they require and deserve by their Federal Government. Australia has two senior cabinet ministers, in the Deputy Prime Minister Warren Truss and the Agriculture Minister Barnaby Joyce, who clearly understand our key economic drivers of agriculture and infrastructure. Additionally, these ministers are aware of the obstacles that must be overcome in delivering relevant public policy to these sectors. Importantly, these ministers have acknowledged that government has failed these sectors on some levels in the past, and that there is an acute need for consultation to ensure government makes informed policy decisions that, at the very least, reflect the consideration of industry input.

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

Both of these men have enjoyed an upbringing steeped in rural enterprise.

are often as complicated as playing chess with a blindfold on.

Barnaby’s professional history of providing accounting services to hundreds of small, medium and large agricultural businesses has deeply etched into his psyche and attitude an understanding of the challenges that have been presented to these businesses.

The election of the Abbott Government in September has provided every rural and regional MP in the Coalition with a crucial and prominent seat at the Federal decision-making table.

His knowledge of what needs to be done in agriculture is arguably unparalleled for a minister in this position when compared to personalities in the same post during the past twenty or thirty years. He certainly presents a once in a generational opportunity to bring positive change into a sector that he clearly understands. Warren Truss had a long history in agriculture as a farmer and producer and he also had a distinguished career in local government.

THE ELECTION OF THE ABBOTT GOVERNMENT IN SEPTEMBER HAS PROVIDED EVERY RURAL AND REGIONAL MP IN THE COALITION WITH A CRUCIAL AND PROMINENT SEAT AT THE FEDERAL DECISIONMAKING TABLE.

Again, a combination of these life experiences have impacted on a Deputy Prime Minister, who is acutely aware of the need for the nation to supply trunk infrastructure needs that underpin the networks that will help deliver the anticipated increases into the agricultural sector. Without road, rail and port infrastructures it will be impossible for agriculture to deliver the productivity gains that will be required for our private sector to be competitive in what is widely believed to be a burgeoning array of market opportunities in the Asia Pacific and beyond.

Both men have been schooled in the knockabout world of country politics. Both are graduates of the University of Country Life. And Truss and Joyce continue to live and breathe, every day, the debates and challenges facing these important sectors. Challenges like the management of complex live animal exports. Challenges like maintaining some of the best biosecurity arrangements for agriculture in the world. Challenges like supporting our producers as they often compete on un-level playing fields across the global stage. And importantly, facing the challenges associated with the development of free trade agreements that

I have been a Senator for less than 100 days, yet as I travel across Queensland and the wider nation, I truly feel a sense of renewed vigour in rural and regional communities because finally they sense that the people pulling the levers of government understand and sympathise with the challenges and opportunities that lay ahead for areas outside the major metropolitan and high population centres. This Government recognises that there certainly are challenges, but we are starting the long return journey to support and enhance the viability and capacity of our communities in rural and regional Australia. You would have noted that the Prime Minister has repeatedly told the world that Australia is open for business. Some people have mistaken that declaration by the Prime Minister to mean that Australia is up for sale. I believe that was not the intended message. Whilst all in government have an open mind with respect to foreign ownership, particularly the nuances associated with ownership in the agricultural and processing sector, I am of the opinion that the statement related to a commitment on the part of government to work with trade partners in a modern, globalised economy that has, as its collective objective, fair and equitable trading arrangements that bring mutual prosperity to the participating nations. This goal cannot be achieved unless the government demonstrates a commitment to working in partnership with the private sector in your communities to pursue and realise these significant economic development opportunities. Having said that, no man is an island and no government can expect to formulate successful public policy without first engaging with those on the frontlines who face the daily issues that need the focus of politicians and the focus of public policy. After all, your government should be there to develop and administer your chosen policy – not one driven from the top down. Ministers Truss and Joyce are arguably two of the most experienced grassroots politicians in our coalition. These men have devoted a lifetime to developing policies from the ground up because they understand that the broader base that underpins an idea; the greater the potential has the idea to transform into reality. It is at this point that ideas intersect with policies, policies intersect with initiatives and initiatives intersect with time-lined programs.

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

Barry with Scenic Rim Mayor John Brent at the Regional Leaders Forum, Boonah in May

If government does not get this lineal function right, then initiatives developed, no matter how well intentioned, will follow the path of seeds that are thrown onto barren land. The vision repeatedly shared by the Prime Minister, Deputy Prime Minister and Agriculture Minister is for a stronger, better equipped rural and regional Australia, where the views of the people at the coalface of industry are reflected in those policy formulation processes. Our nation is confronting a critical juncture as we see mining revenues – which we have so heavily depended on in the early years of this century – commence their decline. This was inevitable. As this so-called mining boom comes to an end, we are again experiencing a shift in focus to the so-called soft commodities in agriculture. More and more we are hearing economists say that a vibrant, innovative and competitive agricultural sector will be one of the pillars essential to underpinning a diverse, world class Australian economy. Rural and regional Australia is poised to reap the benefits of this transition. The rise of agriculture as a major focus of the Australian economy is not a new concept. This is not a new economy. It is indeed an old economy that is returning to prominence. Whilst this nation has been trading and exporting commodities since British occupation, the terms and conditions that will frame this future trade opportunity will look very little like anything we have experienced previously. Modern markets demand the very best product and produce that we can deliver, where to the extent possible, the goods are free of traces of hormones, pesticides, herbicides and for some, the existence of genetic adjustment. The goods need to be fresh; delivered in pristine condition. 10/

Where our trade involves livestock, there have been demands of social licence made on our exporters that have continued to affect the traded commodity all the way through the downstream supply chain until the animals are humanely slaughtered. Long gone are the days when we can do what we like with our exports because we have them, and they don’t. These challenges will continue to demand that producers are innovative and capable of adopting cutting edge technologies and practices that, at the very least, meet base global standards. We have the additional challenge of restructuring a fair and equitable labour market that is productive and does not price us out of being competitive with our trading opponents. For government’s part, the challenge will be to provide infrastructure that allows the efficient transfer of produce and products to our ports and beyond. The government also needs the ability to support the private sector in labour market reforms enhanced and supplemented by underwriting an education sector that has an emphasis on delivering practical, as well as technical and academic outcomes. Skills are the peas in the pod of productivity. We also need to continue to do work to upgrade our communications systems. Importantly, in fact most importantly, the greatest gift the public sector can give to the private sector is to get itself completely out of your way. Small, non-intrusive government that allows the private sector to find its own balancing point is most definitely an ideal held by this administration. Before anyone makes the mistake of translating that into some sort of financial increases or extension of government services – the comment is directed more at the question of abolishing regulation, downsizing legislation, of empowering other levels of government – particularly local government – of more efficient delivery of existing services that create a productive and fertile environment for the private sector to do what they do best.

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

And that is to deliver jobs and underpin prosperity and wealth for their communities.

capitalise on the opportunities that are ahead in the coming decades.

There is perhaps no better illustration of the seismic economic shift taking place in the world market place than what we are witnessing in China and India.

To fully realise the significant opportunities that lay ahead of our nation, the coming years will require an almost obsessive focus from all tiers of government on delivering reforms that enable Australia to remain one step ahead of our international competitors.

This historical demographic shift in these neighbouring nations is being reflected every day in an increasing demand for high-end primary produce including, but not limited to, beef and dairy. Increased access to trade and export markets in our regions looks very promising. For example, beef exports from Australia to China rose by more than 370pc to 150,000 tonnes during the 2012-13 financial year. For a nation that exports more than half its beef produce, this is a significant opportunity for Australian graziers to continue to capitalise on this growing market. There is no doubt there is a plenitude of burgeoning opportunities, but first we must confront the government’s tough fiscal situation so that we can restore stability that increases business’ ability to plan. Long before I entered politics, I had detected that whenever there was a litany of complaints about our government – at all levels – central to these complaints was the issue of stability or, as described by the complainants – instability. Even when governments make poor or wrong decisions, there is an argument that they compound the impact of those mistakes when they bring about change that offends the planning and investment regimes of private sectors that had adopted their measures in good faith. So additionally, government has to be careful not to be disruptive in its development and implementation of policy. Having said that, for too long government has spent more than it has raised in revenue. For too long we have been borrowing the difference. This has resulted in a serious structural deficiency in the government’s budget planning and forecasting arrangements. You do not need to understand economics or accounting to realise that this type of approach to spending is unsustainable and must be cauterised.

THIS GOVERNMENT RECOGNISES THERE CERTAINLY ARE CHALLENGES, BUT WE ARE STARTING THE LONG RETURN JOURNEY TO SUPPORT AND ENHANCE THE VIABILITY AND CAPACITY OF OUR COMMUNITIES IN RURAL AND REGIONAL AUSTRALIA.

We must re-focus our economy, in part on agricultural and primary production and those sectors and communities that support these important deliverers of wealth. We must be prepared to be innovative.

We must continually question our methods in the search for the cutting edge. We must strive never to be complacent, but to always remain committed to being quality trend setters, not followers. We have a strong foundation to begin this next stage of economic development. Our agricultural output remains the envy of the globe and its demand is ever increasing. Australian farmers meet – and in most instances exceed – any accepted key performance indicators or world’s best practices and so we are well placed to serve these volume market demands as the Asian middle classes expand. All tiers of government must partner alongside these businesses to seek to ease the regulatory burdens that challenge our economic competitiveness. That hierarchy, though, must have the private sector at the top.

In less than ten days, the Treasurer will deliver a budget that will not be welcomed in the short term, but is designed to improve our collective fortunes in the long term.

It is my personal view as a businessman that the most important decisions need to be made by those who have their hands in their own pockets, because ultimately they will be the beneficiary or victim of the risk or reward strategies that are put in place.

There will be difficult decisions that must be made. Structural decisions.

Government must listen to the private sector as to how we can assist in their quest for a better return.

But, additionally, our focus and resolve must be on removing the road blocks to economic growth and laying the foundations to ensure that we fully

In terms of regional development, the Coalition Government recognises that local councils, businesses and community groups are the backbone of regional

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

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Australia and we will be working with them to ensure we deliver on our commitments. As a Senator, my role is to represent the interests of Queensland in the Federal Parliament, and so I am encouraged by the fact that whether it is Premier Campbell Newman picking up the phone and speaking with Tony Abbott or Barnaby Joyce meeting with Dr John McVeigh – the lines of communication between Brisbane and Canberra are strong and dependable. It is of interest to note that these governments both regard agriculture and trade as fundamental pillars for the future economy. I also note that the Ipswich-West Moreton community is well served by the development of the three year roadmap for the region. It sets out a strong vision with priorities that will facilitate economic growth, while at the same time protecting the great natural assets of the region. I am pleased to note that one of your regional priorities is to enhance food and agricultural productivity. This includes increasing the outputs from the agricultural sector, but also very importantly, increasing the quality of the product and the amount of higher value product being produced, and the introduction of technologies and innovations to improve productivity. The Ipswich and West Moreton region is one of the most productive food and agricultural areas in Australia and is home to iconic agricultural land like the Lockyer Valley food bowl. You live in a region that has been blessed with diversity within your local economy, transgressing tourism, beef production and horticulture. You are a community that has demonstrated a capacity to properly exploit your natural resources, leaving your region in a strong position to participate in this coming economic transition. Your region is a progressive dairying area, with about 67 farms producing in excess of 24 million litres in the last financial year. Our government recognises there are particular challenges unique to Queensland dairy farmers, and without disclosing the initiatives, I can reassure you that Minister Joyce is very active in this space at this point in time. I can also tell you that Senator Ron Boswell, Senatorelect Matt Canavan and I take a very keen interest in the dairy industry’s challenges. We are keen to work towards a resolution to some of the market issues confronting this sector. For the beef industry, JBS Australia employs 2000 people at the Dinmore meat processing plant, making it the largest private employer in the Ipswich region. This plant is, I am told, the largest beef plant in the southern hemisphere. 12/

The production of vegetables is also contributor to the local economy and opportunity is there to export more markets, especially during seasonal international production slows.

a significant I believe the to overseas times when

It is clear this region, just like agriculture and primary production on the whole, has a very bright future. Additionally, and without being a political partisan, I note that the greater part of your region is currently represented by members of the prevailing state and federal governments. I urge you to exploit that to its fullest extent. Even if it makes their lives a complete misery, you must continue to lobby them on every level, demanding of your government what you see as being needed to underpin this pending agricultural revolution. Just as your community has begun the process of evaluating its strengths and weaknesses, both the state and federal governments are equally developing strategies to ensure our region’s transition to the next economy. The development of the White Paper on the competitiveness of the agriculture sector is one area where the Federal Government is SMALL, NON focussed on long term INTRUSIVE improvement in this area. GOVERNMENT Since being officially launched by the Prime Minister and the Agriculture Minister late last year, this initiative has become a significant policy document for the Abbott Government and a key component to increasing opportunity across rural and regional Australia.

THAT ALLOWS THE PRIVATE SECTOR TO FIND ITS OWN BALANCING POINT IS MOST DEFINITELY AN IDEAL HELD BY THIS ADMINISTRATION.

It is a once-in-a lifetime opportunity for Government to redesign the policy architecture of how we factor rural and regional Australia into the consciousness of our policy thinking and decision making. History tells us that these structural redesigns only seem to occur every 15 to 20 years. We want people to think of the White Paper as the blank slate upon which we might build the 21st century policies that will bring a better return to the farm gate. Without a core objective of increasing on-farm profits, these initiatives will fail. Under the stewardship of Barnaby Joyce, the primary focus in the development process of the white paper has been to listen – listen often and frequently, at

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

every available opportunity – to the people on the frontlines of rural industry. As the Agriculture Minister himself has put it, the public submission process for the white paper is a chance for each and every person with a stake in the future of the industry – from beef producers at Winton to the vegetable growers in the Lockyer through to a road train operator at Charters Towers – to directly communicate their thoughts to government about how our rural industry can take full advantage of the improving opportunities and fortunes across Asia. The fundamental goal is to improve returns to the farm gate – this will mean greater resilience and long-term profitability for farmers, more jobs, more investment and stronger regional communities. A Green Paper is scheduled for release around the middle of the year, which will provide an assessment of the challenges and opportunities for improving Australia’s agricultural competitiveness and include some possible policy options for consideration. Once completed, that paper will be released for public comment. Comments received on the Green Paper will help shape the final strategic directions and policy commitments contained in the White Paper, which is expected to be finalised by the end of the year.

We have also extended the Roads to Recovery Programme, locking in its future for a further five years with $1.75 billion of funding. We have committed $300 million to the Black Spot Programme addressing road sites that are high risk areas for serious crashes. This is in addition to our new $300 million Bridges Renewal programme to restore dilapidated local bridges. Our $35.5 billion Infrastructure Investment Programme over six years will build the vital national road and rail projects to improve efficiency, boost productivity and drive Australia’s economy – your economy – forward. This significant investment includes three major projects for Queensland: • $6.7 billion to upgrade the Bruce Highway; • $1 billion to continue the Gateway Motorway North upgrade in Brisbane; • Importantly for this region, $700 million for the Toowoomba Second Range Crossing. • Also, government has allocated $300 million to finalise the planning and routing of the inland rail initiative, which will eventually provide massive opportunities to agriculture in this nation.

The White Paper will be a significant driver for the development of long-term policies to aide our transition to this next economy.

The combined efforts of these projects will better equip rural and regional Queensland to compete in the world marketplace.

Whilst increasing the efficiencies or yield of our agriculture sector is an essential element, it remains only a component of the shift to the next economy.

The shift to the next economy has already begun.

Better roads and improved access to infrastructure will enable more product to travel to our ports to provide food and energy to the ever-expanding global village. And we must be building the roads, rail and ports that are equipped to achieve our needs in this 21st century global economy. With this effort in mind, the Federal Government has encouraged Infrastructure Australia to work proactively alongside the states and territories to identify critical projects. This activity will be run in collaboration with the states and territories, as many of the states and territories have their own infrastructure advisory bodies. Warren Truss has previously announced an overhaul of Infrastructure Australia’s structure and priorities to better coordinate long-term projects, support better planning and give greater certainty to investors and the construction sector.

There is still much work to be done, but this government is focussed on laying the foundations so that future generations might benefit. In a resource-hungry world, our rural and regional areas hold the keys to Australia’s prosperity. And every one of us should, and indeed must, contribute to the implementation and strengthening of this vision. On behalf of my government, I pledge a commitment to you today that we will listen carefully to your input as the architects of change within government to make decisions conducive to both supporting and empowering you. Both Minister Truss and Minister Joyce have indicated to me that they are looking forward to any input you might want to contribute as we commence this journey and they have asked me to extend their best wishes during your deliberations and decisions at this forum.

The Deputy Prime Minister has also written to Infrastructure Australia about the Government’s infrastructure priorities, with plans for Infrastructure Australia to develop a 15-year pipeline of major infrastructure projects to be revised every five years based on national, state and local priorities. THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

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“REFORM & REJUVENATION”

Our major export commodities – such as iron ore and coal – that underpinned our economic resilience during the Global Financial Crisis are now experiencing a decline in demand, and as a result, in price.

SPEECH By Senator Barry O’Sullivan Ipswich Chamber of Commerce 22 May 2014 Long before I entered politics, I had detected that whenever there was a litany of complaints about any government – at all levels – central to these complaints was the issue of stability or, as described by the complainants – instability.

Even when governments make poor or wrong decisions, there is an argument that they compound the impact of those mistakes when they bring about change that offends the planning and investment regimes get Rhetoric Labor’s Deficits of private sectors that had adopted their measures in good faith.

The Australian business and economic community has carefully watched as China’s economy grew at its slowest pace in 18 months at the start of 2014, with some analysts predicting its growth could fall from its current seven per cent to as low as three or four percent over the coming decade. To give some perspective, during the peak of the Australian resources boom in 2011, the annual growth of the Chinese economy was about 10-12 per cent. No other sector in our economy is growing strongly enough to replace the contribution of the resources sector.

So additionally, government has to

$27.0B development and implementation

’s a surplus built on be careful not to be disruptive in its sciplined spending...’

The consequence is that federal and state government revenues are declining.

of policy.

Australian governments can no longer simply rely on the spoils from housing, consumption or resource booms.

he savingsHaving decisionssaid that, for too long government e have taken...will put us has spent more than it surplus has risen in revenue. For too n the path to y 2015-16.’ long we have been borrowing the

$54.5B

difference.

This has resulted in a serious in the planning and forecasting arrangements.

strategy that will see the structural deficiency udget return to surplus government’s budget three years time.’

$47.5B

You do not need to understand economics or accounting to We’ll be back in the realise that this type of approach lack by 2012-13, on to spending is unsustainable and me, as promised.’ must be cauterised.

$43.4B

his budget In delivers somea ways, in recent years, urplus this wecoming have again lived up to our ear, on time,reputation as promised, as ‘the lucky country.’ nd surpluses each year ter that.’ Unlike the US, the UK and Europe

$18.8B

- Australia has not been forced to confront a recession and we didn’t his Budgethave sets a any bank failures during * ensible pathway to the darkest days of the Global urplus.’ Financial Crisis.

$47.0B

Without policy change, the budget is projected to be in an underlying cash deficit for the next 10 years. If this situation came to pass, it would mean that the budget would be in deficit for 16 consecutive years, substantially longer than the 7 years of deficits in the early 1990s. – Martin Parkinson Treasury Secretary

Equally, Australian households can no longer remain accustomed to easy increases in incomes, lower taxation and ever-rising standards of living. Our nation spent the benefits of the resources boom as quickly as it came in, as if it was going to be with us forever. There is strong argument that says we should have saved more of this money. But we didn’t, and now we must face the consequences. We all know these recent years have not been an ordinary cyclical downturn.

The origins lie in the large and unsustainable economic Undoubtedly a factor in the Speech to The Sydney Institute, imbalances that were allowed to 2/4/2014 Australian economy’s general Source: Budget speeches and MYEFO 2013-14 accumulate over too many years. resilience over the in past few years * projected MYEFO 2013-14 was our good fortune in being These imbalances became geographically well connected to cemented in economic structures. the fastest growing part of the world economy at boom brought a massive misallocation of a time when its demand for mineral resources had The credit 11 resources in the previous decade. undergone a major expansion. However, even as I stand and deliver this speech today, we are still feeling the lingering impacts of the recent global downturn. 14/

This is why we face profound structural challenges in Australia and across the globe, which are now gradually being corrected.

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

• Low government debt (From 16th to 34th)

GLOBAL RANKINGS

Ranking under the Coalition

Deficit and Debt Wastefulness of government spending

Government budget balance

2007/08

56th

Ranking under Labor

2013/14

2007/08

75th

2013/14

Government debt

2007/08

34th

2013/14

Source: World Economic Forum Global Competitiveness Reports

THE CONSEQUENCE IS THAT FEDERAL AND R’S 07-13 LABOSTATE GOVERNMENT REVENUES ARE DECLINING. AUSTRALIAN GOVERNMENTS CAN NO LONGER SIMPLY RELY ON THE SPOILS FROM HOUSING, CONSUMPTION OR RESOURCE BOOMS.

MESS

To restore the foundations for sustainable growth and job creation, this process of economic reform and rejuvenation must continue. To live in blissful ignorance of these structural crinkles will only lead to increased uncertainty across the nation and further declines in business and consumer confidence. Among the top items in this agenda must be to establish sustainable public finances and productivity enhancing policy.

When he announced the budget last week, Treasurer Joe Hockey called on everyone and every business to contribute, to join or grow the workforce, to boost productivity and help build a stronger economy with more investment. He said the budget aimed to redirect taxpayers’ dollars from unaffordable consumption to productive investment. It was a call for every Australian to consider what was in the public interest. The harsh reality is the Australian community must share in a moderate reduction in our living standards

in the short term in order to prevent long term economic decay. As my friend and colleague Barnaby Joyce puts it, ‘if we do not make the tough decisions today to reign in our nation’s spending, in five years’ time we will be making the even tougher decisions about which schools and hospitals have to be closed.’ After an unprecedented two decades of sustained economic growth, this is indeed a bitter pill to swallow. No one questions this, but the days of government borrowing to spend must come to an end. When viewed in its specific pieces, the Coalition’s economic reform package is politically challenging. And the recent political polls reflect this fact. But the popular decision is not always the decision that is truly in the national interest. Financial crises are costly events, and one of the reasons they are so costly is that their effects can continue long afterwards. The after-effects of the latest crisis are still with us and, I expect, will continue to shape the business environment for some time to come. As a result, we cannot afford to shirk from our responsibility, willingness or ability to deliver reforms that are necessary to strengthen the economic fundamentals. Without action, Australia faced a decade of deficits growing to $667 billion by 2023-24, which would have led to the longest stretch of federal deficits since the Second World War.

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

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WE CANNOT AFFORD TO SHIRK FROM OUR RESPONSIBILITY, WILLINGNESS OR ABILITY TO DELIVER REFORMS THAT ARE NECESSARY TO STRENGTHEN THE ECONOMIC FUNDAMENTALS. HOWEVER, THIS WILL NOT AND CANNOT REPLACE OUR SUSTAINED EFFORTS TO PROVIDE BUSINESSES WITH THE ENVIRONMENT THEY NEED TO SUCCEED. Australia’s Terms of Trade (the price Australia During Labor’s time in

Squandering a Mining Boom

gets for its exports, relative to the price of its Government, there was a imports) were by far the most favourable in Our government recognises that whilst boom we can’t government services –modern the comment inmove demand for minerals history. is directed more immediately on significant reductions in expenditure, at the question of abolishing regulation, downsizing from the emerging Asian On average, Australia’s terms of trade were we’ve got to be smart about the way we address the legislation, of empowering other levels of government 55% higher during Labor’s time in Government economies. budget in the short-term and we’ve got to be brave - particularly local government - of more efficient compared to the Howard Government. delivery of existing services that create a productive Australia’s terms of trade so andWhen fertile environment for increase, the doessector the value Australia’s exports. private toofdo what they do best. In the four years after Labor’s election, the value of Australia’s exports increased And that is to deliver jobs and from Australia’s budget $216 billion to $315 billion – an of underpin prosperity and wealthincrease for issues have been $99 billion (or 43%). their communities. masked by the mining In 2010-11 and 2011-12, Australia’s terms Theof trade government willfor continue boom and the Global averaged 100 the only time since to support the private sector records began. Despite this, Laborindelivered Financial Crisis. We labour market reforms enhanced deficits of $47 billion and $43 billion – two of failed to realise that andthe supplemented largest deficitsby in underwriting Australia’s history. the income from the an education sector that has an emphasis on delivering practical, mining boom wouldn’t as well as technical and academic last. And we failed to outcomes. realise that spending

about the way we address the problems in the longterm. However, this will not and cannot replace our sustained efforts to provide businesses with the environment they need to succeed. No man is an island and no government can expect to formulate successful public policy without first engaging with those on the frontlines who face the daily issues that need the focus of politicians and the focus of public policy. After all, your government should be there to develop and administer your chosen policy – not one driven from the top down. Last week’s budget was fundamentally focussed on increasing the real factors of production and productivity, especially in our innovative capacity and commitment to developing a well-trained labour force.

increases through the GFC would last. – John Daley CEO Grattan Institute (speech to the National Press Club, 9/10/13)

We announced measures to cut red tape costs by $1 billion per year; we announced plans to lower company tax by 1.5 per cent from July next year and we announced the establishment of an ombudsman -13 LABOR’S 07 for small business. We are also abolishing the mining20tax and carbon tax.

This budget encourages more Australians – with particular emphasis on young people and those aged over 50 – to enter the workforce. We are also looking at the structural features of the Australian economy that might act as a bottleneck to investment and export opportunities.

But before we can fully capitalise on the burgeoning opportunities lingering on the horizon in this ‘Asian century,’ first we must confront the government’s tough fiscal situation so that we can restore stability that increases business’ ability to plan.

MESS

These measures will enhance the capacity of businesses to reduce expenses and plan for the future.

Importantly, in fact most importantly, the greatest commitment the public sector can make for the private sector is to announce it intends to get itself completely out of your way. Small, non-intrusive government that allows the private sector to find its own balancing point is most definitely an ideal held by this administration. Before anyone makes the mistake of translating that into some sort of financial increases or extension of

16/

Strengthening our growth potential through continued structural reform is important especially as external challenges to growth increase. Without tackling this challenge, we will continue on the path of annual deficits and economic instability, both domestically as well as in the global marketplace. Australia’s road to recovery will continue to require difficult choices and persistence. But it is now essential we stay the course of economic reform. And the Abbott Government will keep on making the case for this goal.

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

Labor’s Debt Interest Bill This year, Labor’s debt will cost taxpayers over $12 billion in interest payments and, as a result of Labor’s deficits, this debt interest bill is projected to increase further to $17 billion in just two years. Interest on debt is wasted money that can’t be used to deliver services for Australians and which could be put to better use.

government spends on aged care; • more than the government spends on universities.

This year’s $12 billion debt interest bill is equivalent to:

With this year’s interest bill alone, we could build a world class teaching hospital in every capital city, or finish the duplication of the Pacific Highway.

• around half of Australia’s Defence budget; • around the same amount the Interest on Government Debt ($ Billions)

Source: MYEFO 2013-14

Projected 17

2016-17

Labor

2015-16

Coalition

6 4

2008-09

2007-08

2006-07

2004-05

2003-04

2013-14

2012-13

2014-15

2011-12

2010-11

2009-10

2005-06

2002-03

2001-02

2000-01

1999-00

1998-99

1997-98

1996-97

3 the young, for they shall inherit the national debt” “Blessed BOR’S 07-1are LA 14

MESS

– United States President Herbert Hoover address to the Nebraska Republican Convention, 16 January 1936

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

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The Senator’s Circuit

February 2014 3RD • Meeting regarding Australia Post Senate Inquiry, Edgecliff NSW • Meeting with Minister Turnbull regarding Australia Post Senate Inquiry, Edgecliff, NSW • Travel from Sydney to Brisbane • Attend meeting with constituent regarding the rare disease aHUS, Brisbane QLD 4TH • Attend meeting with Dairy Industry Stakeholder and constituent, Brisbane QLD • Attend meetings with Enid Dowling Foundation Trustees, Brisbane, QLD 5TH • Drive Brisbane to Kilcoy, tour Kilcoy Meatworks Tour, Kilcoy QLD • Drive Kilcoy to Gympie • Attend Lunch in Gympie with Fishing Industry, Beef processors and Motor Traders, Kilcoy QLD • Drive Gympie to Bundaberg • Attend Dinner with local business reps, Bundaberg QLD 6TH • Visit to a Macadamia Nut farm, Bundaberg QLD • Attend Nationals Pre-Parliamentary Briefing, Bundaberg QLD • Attend Paul Neville Retirement Dinner, Bundaberg QLD 7TH • Attend LNP Hinkler Branch Breakfast, Bundaberg QLD • Drive Bundaberg to Toowoomba 10TH • Electorate office day, Toowoomba, QLD 11TH • Endorsed as LNP Senator in Queensland Parliament, Brisbane, QLD

18/

FROM MELBOURNE TO MOUNT ISA, BARRY’S FIRST 100 DAYS IN OFFICE HAVE BEEN BUSY • Travel to Canberra for Parliamentary Sitting 12TH • Parliamentary sitting day • Orientation with Usher of the Black Rod, Senate, Canberra ACT • Attend Liberal National Members and Senators Meeting, Canberra ACT 13TH • Parliamentary sitting day, Canberra, ACT • Attend Nationals Senators and Members lunch, Canberra ACT • Meeting regarding set up of Canberra Office • Welcome drinks in Whip’s office, Canberra ACT 14TH • Travel Canberra to Brisbane • Meetings in Brisbane QLD • Drive Brisbane to Toowoomba 17TH • Drive Toowoomba to Brisbane • Attend the LNP QForum Dinner, Brisbane QLD 18TH • Drive Brisbane to Toowoomba • Electorate office day Toowoomba QLD 19TH • Electorate office day • Meeting with stakeholders regarding Inland Rail, Toowoomba, QLD 20TH • Electorate office day • Teleconference with colleagues regarding Australia Post Senate Inquiry 21ST • Electorate office day 23RD • Travel to Canberra for Parliamentary sitting week

24TH • Additional Senate Estimates, Canberra ACT • Attend Rural and Regional Affairs and Transport Committee Estimates planning meeting 25TH • Additional Senate Estimates, Canberra ACT • Attend Rural and Regional Affairs and Transport Committee Additional Estimates Hearings, Canberra ACT • Attend Meeting with Alexion Pharmaceuticals, Canberra ACT regarding aHUS, Canberra ACT • Attend Meeting with Australia Post and colleagues re; Australia Post Senate enquiry, Canberra ACT 26TH • Additional Senate Estimates, Canberra ACT • Attend Senate Education and Employment Legislation Committee Estimates Planning Meeting, Canberra ACT • Attend Senate Education and Employment Legislation Committee Estimates Hearings, Canberra ACT • Attend Entitlements Briefing, Canberra ACT 27TH • Meeting with LNP colleague, Canberra ACT • Travel Canberra to Toowoomba • Travel Toowoomba to Dalby • Attend Pre selection for Condamine, Dalby QLD • Travel Dalby to Toowoomba 28TH • Attend LNP State Council Meeting, Toowoomba QLD • Attend multiple Corporate Observers Meetings, Toowoomba, QLD • Attend LNP State Executive Dinner, Toowoomba QLD

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

March 2014 1ST • Attend LNP State Council, Toowoomba QLD • MC for farewell dinner for The Hon Barnaby Joyce, Toowoomba QLD 2ND • Attend LNP State Council, Toowoomba QLD • Travel from Toowoomba to Canberra for Parliamentary Sitting week 3RD • Parliamentary sitting week, Canberra ACT • Attend Briefing on the National Health Amendment Bill, Canberra ACT • Attend Nationals party room meeting, Canberra ACT • Attend Meeting re: Artwork for APH Office, Canberra ACT • Attend Meeting with Queensland Local Government body, Canberra ACT 4TH • Parliamentary Sitting Day, Canberra ACT • Attend Joint Party Room Meeting, Canberra ACT • Attend Joint Senate Party Room Meeting • Attend Meeting with colleagues, Canberra ACT • Attend Senate Inquiry Public Hearing re Australia Post, Canberra ACT 5TH • Parliamentary Sitting Day, Canberra ACT • Attend Rural and Regional Affairs and Transport Legislation Committee private meeting, Canberra ACT • Attend Rural and Regional Affairs and Transport References Committee private meeting, Canberra ACT • Attend Joint Standing Committee on the National Disability Insurance Scheme private meeting, Canberra ACT • Senate Clerk briefing on Senate procedures, Canberra ACT • Attend Meeting with Banana Industry Stakeholders, Canberra ACT • Attend Meeting of Queensland Members and Senators in Parliament House, Canberra ACT 6TH • Parliamentary Sitting Day, Canberra ACT • Meet with Key Stakeholder of Mushroom Industry, Canberra ACT • Meeting regarding Beef Levy Inquiry, Canberra ACT • Attend private meeting of Senate Environment and Communication Legislation Committee, Canberra ACT • Meeting with I.T. Department, Canberra ACT • Meeting with Alexion Pharmaceuticals re aHUS, Canberra ACT • Meet with Independent Schools Council, Canberra ACT 7TH • Attend Rural and Regional Affairs and Transport Committee public hearing into Beef Industry Structures, Canberra ACT • Travel Canberra to Brisbane 9TH • Travel Toowoomba to Townsville QLD 10TH • Travel Townsville to Charters Towers • Attend Charters Towers Bank Meeting with Arthur Sinodinos, Charters Towers QLD • Travel Charters Towers to Townsville • Travel Townsville to Toowoomba 11TH • Electorate Office day, Toowoomba QLD 12TH • Electorate Office day, Toowoomba QLD 13TH • Electorate Office Day, Toowoomba QLD • Staff Strategy Day, Electorate Office Toowoomba QLD • Rural and Regional Affairs and Transport Committee Teleconference 14TH • Electorate Office Day • Attend Meeting with Minister John McVeigh, Toowoomba QLD

15TH • Visit to Scenic Rim with Mayor John Brent, Aratula QLD • Attend Wright FDC AGM Meeting, Boonah QLD 16TH • Travel Brisbane to Canberra for Parliamentary Sitting week 17TH • Parliamentary Sitting Day, Canberra ACT • Nationals Senators Meeting, Canberra ACT • Nationals Party Room Meeting, Canberra ACT • Meeting with key Cattle Industry Stakeholder, Canberra ACT • Meeting with colleague re Heart of Australia Project, Canberra ACT • Attend Senate Environment and Communications Committee Private Briefing, Canberra ACT • Attend Senate Environment and Communications Committee Public Hearing, Canberra ACT 18TH • Parliamentary Sitting Day, Canberra ACT • Joint Party Room meeting, Canberra ACT • Coalition Senators Joint Party Room meeting, Canberra ACT • Meeting with colleagues regarding Australia Post Senate Inquiry, Canberra ACT • Meeting with NDIS Committee Secretary, Canberra ACT 19TH • Parliamentary Sitting Day, Canberra ACT • Rural and Regional Affairs and Transport Legislation Committee Private Meeting, Canberra ACT • Rural and Regional Affairs and Transport References Committee Private Meeting, Canberra ACT • Meeting with colleague re Australia Post Senate Inquiry, Canberra ACT • Attend Electoral Matters Committee private meeting, Canberra ACT • Attend Joint Standing Committee on the NDIS private meeting, Canberra ACT • Meeting with colleagues re Australia Post Senate Inquiry, Canberra ACT • Maiden Speech, Canberra ACT 20TH • Parliamentary Sitting Day, Canberra ACT • Meeting with Senate Clerk regarding Senate procedure, Canberra ACT • Meeting regarding Mushroom Industry, Canberra ACT • Leaders Lunch Forum, Canberra ACT • Meeting regarding Bovine Johne’s Disease, Canberra ACT

CVO and His Excellency Mr. Michael Bryce AM AE, Canberra ACT 26TH • Parliamentary Sitting Day, Canberra ACT • Rural and Regional Affairs and Transport Legislation Committee Private Meeting, Canberra ACT • Rural and Regional Affairs and Transport References Committee Private Meeting, Canberra ACT • Attend Electoral Matters Committee private meeting, Canberra ACT • Attend Joint Standing Committee on the NDIS private meeting, Canberra ACT • Attend Nationals Senators Afternoon Tea, Canberra ACT • Attend Senate Environment and Communications Legislation Committee: Inquiry into Australia Post Public Hearing, Canberra ACT • Attend QLD Liberal National Members and Senators Meeting, Canberra ACT 27TH • Parliamentary Sitting Day, Canberra ACT • Attend Private Meeting for Parliamentary Standing Committee on Public Works, Canberra ACT • Environment and Communications Private meeting re: Australia Post, Canberra ACT • Attend Meeting with Colleague, Canberra ACT • Teleconference Call: Mt Isa State Electorate Council General Meeting by Phone • Deliver Adjournment Speech on Rural Debt, Canberra ACT 28TH • Meeting with Key Beef Industry stakeholders • Attend Meeting with Queensland Dairy Industry Stakeholder, Canberra ACT • Attend the Swearing-In of Governor-General Designate, General Peter Cosgrove AC MC (Retd) as the Governor-General of the Commonwealth of Australia, Canberra ACT • Attend Reception in honor of Their Excellences the Governor-General and Mrs. Lynne Cosgrove 29TH • Travel Canberra to Toowoomba 31ST • Travel Toowoomba to Mackay • Attend Joint Select Committee on Northern Australia Development Public Hearing, Mackay QLD

22ND • Skype meeting re Australia Post Senate Inquiry 24TH • Parliamentary Sitting Day, Canberra ACT • Attend Nationals Senators Meeting, Canberra ACT • Attend Nationals Party Room Meeting, Canberra ACT • Attend Meeting with Cattle Industry Stakeholder, Canberra ACT • Attend Meeting re: remote Telecommunications, Canberra ACT • Attend meeting re: Cement Industry, Canberra ACT • Attend Coalition Backbench Committee for Small Business, Canberra ACT • Attend Coalition Backbench Committee on Agriculture, Canberra ACT 25TH • Parliamentary Sitting Day, Canberra ACT • Attend Joint Party Room Meeting, Canberra ACT • Attend Coalition Senators Joint Party Room meeting • Meeting re Commercial Radio Industry • Meeting with Secretary for Public Works Committee, Canberra ACT • Attend Farewell reception for Her Excellency the Honorable Quentin Bryce AC

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April 2014 1ST • Attend Joint Select Committee on Northern Australia Development Public Hearing and Inspections, Bowen and Ayr QLD 2ND • Attend Joint Select Committee on Northern Australia Development Public Hearing and Inspections, Townsville QLD • Travel Townsville to Toowoomba

13TH • Travel from Toowoomba to Melbourne • Travel Melbourne to Geelong 14TH • Attended Joint Standing Committee on the National Disability Insurance Scheme Public Hearing, Geelong VIC • Travel Geelong to Melbourne

3RD • Electorate Office Day Toowoomba, QLD • Attend Art Show Opening, Newstead QLD

15TH • Attended Joint Standing Committee on Electoral Matters Hearing, Melbourne VIC • Travel Melbourne to Hobart

4TH • Attend LNP State Executive Council meeting, Brisbane QLD • Travel Brisbane to Toowoomba

16TH • Attend Joint Standing Committee on Electoral Matters Public Hearing and Inspections, Hobart TAS

7TH • Electorate Office Day, Toowoomba QLD • Attend Meeting with colleagues to discuss local infrastructure projects, Toowoomba QLD

17TH • Attend Joint Standing Committee on the National Disability Insurance Scheme Public Hearing and Site Visit, Hobart TAS

8TH • Electorate Office Day in Toowoomba QLD • Travel Toowoomba to Brisbane 9TH • Travel Brisbane to Sydney • Attend Senate Standing Committee on Education and Employment Public Hearing, Sydney NSW • Attend meeting with Alexion Pharmaceuticals re: aHUS, Sydney NSW 10TH • Travel Sydney to Toowoomba • Teleconference with colleagues re Australia Post Senate enquiry • Teleconference re: Sustainable Beef • Attend meeting re: Heart of Australia funding project, Toowoomba QLD 11TH • Teleconference re: Heart of Australia Project • Travel Toowoomba to Dalby • Visit to Dalby Show, Dalby QLD • Travel Dalby to Toowoomba

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22ND • Travel from Toowoomba to Brisbane • Attend meeting with constituent re: assistance with mortgage insurance/ valuation issues, Brisbane QLD • Lunch with colleagues, Brisbane QLD • Meeting with peak Agricultural Industry Group, Brisbane QLD • Travel Brisbane to Toowoomba 23RD • Electorate Office Day in Toowoomba QLD • Teleconference with Dairy Industry stakeholder • Attend meeting with Beef Industry stakeholder, Toowoomba QLD • Attend meeting re: Inland Rail, Toowoomba QLD

• Travel from Ballandean to Toowoomba • Attend Communications Strategy Office Meeting, Toowoomba QLD • Meeting with constituent re: Australia Post, Toowoomba QLD 25TH • Anzac Day Dawn Service and Ceremony, Highfields QLD • Anzac Day March, Highfields QLD • Anzac Day Service, Highfields QLD 26TH • Travel from Toowoomba to Kingaroy • Attend meeting with Kingaroy Dairy Farmers and farm visit, Kingaroy QLD • Attend the LNP South Burnett Branch General Meeting, Kingaroy QLD • Travel Kingaroy to Toowoomba 27TH • Travel Toowoomba to Brisbane 28TH • Travel Brisbane to Canberra • Attend the Joint Standing Committee on Electoral Matters Public Hearing and Meeting, Canberra ACT 29TH • Attend Electoral Matters Committee Private Meeting, Canberra ACT • Attend meeting with Wool Industry stakeholders, Canberra ACT 30TH • Attend Electoral Matters Committee Private Hearing, Canberra ACT • Attend Nationals Party Room Meeting, Canberra ACT • Travel Canberra to Toowoomba

24TH • Travel from Toowoomba to Ballandean • Attend Ballandean State School Anzac Day Ceremony , Ballandean QLD • Teleconference: Senate Environment and Communications Legislation Committee Australia Post Senate inquiry

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

May 2014 1ST • Electorate Office Day, Toowoomba QLD • Teleconference Senate Environment and Communications Legislation Committee re: Australia Post Senate Inquiry

19TH • Travel Brisbane to Mackay • Visit to Mackay to assess the current Sugar Industry and meet with Canegrowers and key stakeholders, Mackay QLD

2ND • Travel Toowoomba to Boonah • Guest Speaker at the 2014 Annual Regional Leaders Forum, Boonah QLD • Travel Boonah to Toowoomba

20TH • Visit to Sarina and surrounding areas to assess the current Sugar Industry and meet with Canegrowers and key stakeholders, Sarina QLD • Travel Mackay to Rockhampton

5TH • Electorate Office Day in Toowoomba QLD 6TH • Travel Toowoomba to Mt Isa • Attend Joint Standing Committee on Electoral Matters Site Inspections and Briefings, Mt Isa QLD 7TH • Attend Joint Standing Committee on Electoral Matters Public Hearing, Mt Isa QLD • Travel Mt Isa to Brisbane • Attend Joint Standing Committee on Electoral Matters Private Meeting, Brisbane QLD 8TH • Attend Joint Standing Committee on Electorate Matters Public Hearing, Brisbane QLD • Teleconference re: Public Works Committee • Travel Brisbane to Toowoomba 9TH • Electorate Office Day, Toowoomba QLD 10TH • Travel Toowoomba to Maleny • Guest Speaker at Maleny LNP Branch Lunch Function, Maleny QLD • Travel Maleny to Toowoomba 12TH • Travel Toowoomba to Canberra for Parliamentary Sitting week • Attend Nationals Senators Meeting, Canberra ACT • Attend Nationals Party Room Meeting, Canberra ACT 13TH • Parliamentary Sitting Day, Canberra ACT • Joint Parliamentary Room meeting, Canberra ACT • Coalition Senators Joint Party Room meeting, Canberra ACT • Nationals Budget speech function, Canberra ACT 14TH • Parliamentary Sitting Day, Canberra ACT • Attend Rural and Regional Affairs and Transport Legislation Committee Private Meeting, Canberra ACT • Attend Rural and Regional Affairs and Transport References Committee Private Meeting, Canberra ACT • Attend Meeting with Sugar Industry stakeholder, Canberra ACT • Attend Meeting re: Australia Post Senate Inquiry, Canberra ACT 15TH • Parliamentary Sitting Day, Canberra ACT • Cattle Industry Stakeholder Meeting, Canberra ACT 16TH • Travel Canberra to Brisbane • Travel Brisbane to Mackay • Attend Latitudes North, Mackay QLD • Attend Corporate Observers Meetings, Mackay QLD • Guest Speaker at LNP Cocktail Function, Mackay QLD 17TH • Attend Latitudes North, Mackay QLD • Meeting with constituent re: live cattle exports, Mackay QLD • Travel Mackay to Brisbane • Attend Fire Services Ball, Brisbane QLD

21ST • Attended the Joint Standing Committee on Rural and Regional Affairs and Transport Public Hearing into the Beef Industry, Rockhampton QLD • Travel Rockhampton to Brisbane 22ND • Guest Speaker at Ipswich Chamber of Commerce and Industry Annual Federal Budget Breakfast, Ipswich QLD • Guest Speaker at the Recognition Ceremony for the Commonwealth funding for the Ipswich Region Trade Training Centre (IRTTC), Ipswich State High School, Ipswich QLD • Meeting re: bovine johne’s disease, Brisbane QLD 23RD • Squaretable for Sustainable Beef, Brisbane QLD • Travel Brisbane to Toowoomba 25TH • Travel Toowoomba to Canberra for Senate Budget Estimates 26TH • Senate Budget Estimates, Canberra ACT • Attend Rural and Regional Affairs and Transport Committee Estimates Planning Meeting, Canberra ACT • Attend Rural and Regional Affairs and Transport Committee Estimates Hearings, Canberra ACT 27TH • Senate Budget Estimates, Canberra ACT • Meeting with colleagues re aHUS, Canberra ACT • Attend Rural and Regional Affairs and Transport Committee Estimates Planning Meeting, Canberra ACT • Attend Rural and Regional Affairs and Transport Committee Estimates Hearings, Canberra ACT 28TH • Senate Budget Estimates, Canberra ACT • Attend Rural and Regional Affairs and Transport Committee Estimates Planning Meeting, Canberra ACT • Attend Rural and Regional Affairs and Transport Committee Estimates Hearings, Canberra ACT 29TH • Senate Budget Estimates, Canberra ACT • Attend Rural and Regional Affairs and Transport Committee Estimates Planning Meeting, Canberra ACT • Attend Rural and Regional Affairs and Transport Committee Estimates Hearings, Canberra ACT • Meeting with Beef Industry Stakeholder, Canberra ACT 30TH • Travel Canberra to Brisbane • Joint Select Committee on Northern Australia Development Public Hearing, Brisbane QLD 31ST • Travel Brisbane to Forest Hill • Attend AGM of the LNP South West Queensland Region, Forest Hill QLD • Attend Queensland’s Conservative Future Event with Senator Cory Bernardi, Brisbane QLD • Travel Brisbane to Toowoomba

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THE SQUARETABLE HOW THE WWF’S ATTEMPT TO INTRODUCE A CERTIFICATION SCHEME FOR AUSTRALIAN PRODUCERS WAS STOPPED

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THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

THIS PROCESS WILL SAVE TIME AND MONEY WHILST PROVIDING DEFINITIVE EVIDENCE THAT BEEF PRODUCERS ARE ALREADY BALANCING ENVIRONMENTAL OUTCOMES WITH THE DRIVE TO IMPROVE FARM GATE PROFITABILITY. Senator Barry O’Sullivan, May 2014 Purposely reactionary and provocative, the ‘Squaretable’ was announced by Senators Barry O’Sullivan and Ron Boswell in May as a highly-publicised response to vocal constituent opposition to Australia’s participation in the Global Roundtable for Sustainable Beef (GRSB). The GRSB was initiated by the WWF in response to McDonald’s USA headquarter’s announcement that its stores worldwide would buy “verifiably sustainable beef” from 2016. While Australia was a participant in the GRSB, the involvement of the WWF in the process raised a red flag for many producers. The WWF has a long track record of enforcing its definitions of ‘sustainability’ on industries (including seafood and timber) and introducing costly certification schemes. Some producers were concerned the GRSB process would ultimately result in family-owned farms being forced to shoulder additional regulatory costs and certification requirements just to maintain access to existing markets. With Queensland carrying 66 per cent of the national herd, Senators O’Sullivan and Boswell were concerned the global roundtable would become another cost burden that graziers could not afford, given years of drought, fire, flood and the live export ban. Thus the ‘Square-table’ was born. The ‘Square-table’ initiative intended to act as a steering committee consisting of grassroots beef sector organisations that would facilitate a unified stance to confront the significant challenges confronting the beef sector posed by the attempted intervention of WWF in the daily operations of Australian producers. The three hour ‘Square-table’ forum, held in Brisbane on May 23, focussed on the opportunities that exist for the industry to engage with its customers and the broader community to share information about the industry’s world leading sustainability credentials. There was unanimous acknowledgement that Australian beef’s customers have become increasingly interested with the processes employed across the agriculture supply chain and the sector had a responsibility to respond. All participants agreed that a national, industry-driven initiative would be the most effective method to ensure the sector was able to direct what information is needed to be collated, how it would be presented to customers and how to ensure it remained relevant to the future strategic direction of the red meat industry.

Under the plan developed, the new sustainability framework proposed at the ‘Square-table’ meeting would be governed by the Red Meat Advisory Council (RMAC). RMAC is the peak body representing the collective interests of Australia’s red meat and livestock industry. The specifics of the strategy would be steered by a taskforce consisting entirely of industry representatives. The WWF would not participate or contribute. It is expected the development of a sustainability framework that demonstrates the industry’s credentials will be incorporated to the strategic themes of the red meat and livestock industry’s 4th Meat Industry Strategic Plan (MISP4), which is due to commence next year, and provides strategic direction for the industry to 2020. The work to develop the sustainability framework is expected to be funded with existing levy collections from each of the RMAC peak industry body members. The marketing and research capacities of MLA, as the industry services company, will play a prominent role in the development of the framework. “This Square-table meeting has shown that our industry bodies are in furious agreement that we must meet and exceed the expectations of our customers,” RMAC chair Ross Keane said. “The framework we have committed to developing makes good business sense and with our levy system, it should not create any additional cost for producers. “The entire beef supply chain should be proud of the work it undertakes every day to provide a worldclass, sustainable product to its customers. “Our industry has a great story to tell and I am looking forward to us sharing it.” Senator Boswell said the ‘go it alone’ strategy would differentiate our produce from the global standard. The ‘Square-table’ forum saw a gathering of leaders from: Cattle Council of Australia (CCA), Red Meat Advisory Council (RMAC), Australian Lot Feeders Association (ALFA), Australian Meat Industry Council (AMIC), National Farmers Federation (NFF), AgForce, NSW Farmers Association, Northern Territory Cattleman’s Association (NTCA), Animal Medicines Australia (AMA), Hughes Pastoral, Meat and Livestock Australia (MLA) and the Federal Government. The meeting was chaired by former AACo managing director David Farley.

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“BEEF CENTRAL OP-ED” By Senator Barry O’Sullivan 7 May 2014 The Australian beef industry sits at a critical juncture. We are experiencing the decline of the so-called mining boom, and, at the same time, an everincreasing focus on the so-called Asian ‘dining boom.’ More and more we are hearing economists say that a vibrant, innovative and competitive agricultural sector will be one of the pillars essential to underpinning a diverse, world class Australian economy. There is no doubt there are major opportunities ahead for our beef sector. To fully realise these opportunities will require more investment, better infrastructure, some labour market reform and increased emphasis on research and development. But, perhaps most importantly, it will require a significant reduction in the red and green tape that impedes the growth of the agriculture and primary production sector. Just as the Federal Government is attempting to reduce its dependence on unsustainable borrowings, so too must every beef property across this nation. As a consequence, we should be wary of those who seek to tie this industry up in more red and green tape. Adding another, superfluous level of regulation to our already strongly-regulated beef sector can only further challenge farm gate profitability. I stood on the Federal Senate chamber floor recently and spoke out against the inaction of the banking sector in providing relevant and accurate data detailing the true extent of farm debt across Australia, particularly our northern regions. I believe this information shortfall hampers the ability of governments to formulate relevant public policy for the rural sector. It also limits the ability of not for profit organisations, such as social and financial counsellors, to accurately allocate resources across rural regions. I would argue that making farm debt more manageable and increasing farm gate profitability are among the biggest structural challenges confronting the rural sector as its prominence increases on the national agenda. In order to maintain Australia’s proud tradition of the family farm, it is imperative that these debt and profit issues be addressed. And quickly. However, it must equally be an imperative that government continually works towards reducing the burden of cost imposts on rural industry. The greatest gift the public sector can give to the private sector is to get itself completely out of your way. 24/

Small government that allows the private sector to find its own balancing point is most definitely an ideal held by the Federal Government. In line with this ideal, there are thousands of pieces of legislation and other regulations that are in the process of being repealed with large volumes under active consideration. Accordingly, before any further interaction with this Global Roundtable for Sustainable Beef is undertaken, the Australian beef sector should consider how this roundtable process jeopardises the long term ability of industry to decide its own fate when working towards environmental and sustainable outcomes, as well as its interaction with its customers. The concerns over the roundtable are focused on the future ability of businesses to make independent decisions and formulate their own, grassroots, industry-driven solutions to tackle a perception that the beef sector has not fully made its case regarding environmentally sustainable production practices.

I WOULD ARGUE THAT MAKING FARM DEBT MORE MANAGEABLE AND INCREASING FARM GATE PROFITABILITY ARE AMONG THE BIGGEST STRUCTURAL CHALLENGES CONFRONTING THE RURAL SECTOR AS ITS PROMINENCE INCREASES ON THE NATIONAL AGENDA.

At best, there may be an argument that industry needs to better share its efforts towards sustainability. The National Party has recently become involved in this debate because of our collective concern that there could be more work undertaken to ensure the relevant beef sector representative groups seek a collective industry stance. However, the beef sector should, and must, be the drivers of this process.

There is no doubt that consumer purchasing decisions have increasingly focused on animal welfare and environmental concerns in recent years. This is in no small measure due to the sensationalist claims of animal rights extremists and sympathetic sections of the media. However, the beef sector must never forget the environmental movement is not driven by concern over profitability of family farms or the long term viability of the industry. The argument by those advocating for, and organising, the national ‘Squaretable’ alternative is that there is already a strong case to be made for the Australian beef sector’s ongoing drive for sustainability.

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

The Australian beef industry spends hundreds of millions of dollars every year in the effort to provide a world class product. Australian producers meet – and in many cases exceed - any measure of global best management practices. No one doubts this. If McDonalds – or any of our other major beef customers – want evidence of industry’s drive for world class practice, then let our industry provide the evidence. If a national, industry-driven alternative can be found to the global roundtable, why not investigate it? If we can avoid creating additional costs burdens on our producers, why not explore these options? The drive for branding a product does not require the intervention of third party groups when a sophisticated industry already exists, which is more than ably represented by a prolific number of peak industry bodies and government agencies, all of whom are trying to maintain world’s best practice so the sector remains competitive on the global and domestic marketplace. Any debate over sustainability should equally consider profitability as well as important environmental issues. Bluntly put - agenda-driven, third party groups seeking to add further regulation need not apply to this space. Many with a seat at the global roundtable are also not there as a result of grassroot elections.

The WWF is not there because it has been democratically elected to the roundtable. The WWF is not representative of any particular demographic in society. It is an activist group that uses its well-known panda logo as a bargaining tool when pushing its policy agenda on multi-national corporations. Yet, sitting with organisations such as the WWF at the global roundtable, firstly gives a legitimacy to this group’s opinions on the rural sector and secondly, provides the WWF with, at the very least, an equal voice and an equal opportunity to impinge its policies on the future direction of the Australian beef sector. I have recently met with representatives from the WWF at my Toowoomba office and their responses to my simple questions did not leave me with any confidence in this group’s long term intentions. The WWF could not answer how an international definition of sustainability could avoid becoming a certification scheme. The WWF could not answer how any measures could be undertaken to ensure the full cost of a certification scheme would not be passed down the supply chain to producers. My research into previous WWF-inspired global roundtables, such as the Sustainable Roundtable for Palm Oil, only further supports the belief that the roundtable process will end up being an annual

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Senator Barry O’Sullivan supports State LNP Candidate for Condamine Pat Weir on the campaign hustings.

IF MCDONALDS – OR ANY OF OUR OTHER MAJOR BEEF CUSTOMERS – WANT EVIDENCE OF INDUSTRY’S DRIVE FOR WORLD CLASS PRACTICE, THEN LET OUR INDUSTRY PROVIDE THE EVIDENCE.

certification scheme that forces individual producers to employ third party groups to carry out regular inspections. However, there are already alternative options to the global roundtable that should be considered by the Australian beef industry.

When the Australian dairy industry was confronted with one of its major customers, the multi-national corporation Unilever, partnering with the WWF for sustainability, it was able to develop an industry-driven solution that both reassured its supply chain customers that our milk producers were ‘sustainable’ whilst still managing to keep the WWF away from the policy formulating table. The beef ‘Squaretable’ aims to provide a forum for the representative bodies that govern our national beef sector to collectively collate and promote the outstanding work the industry is already undertaking in the drive to meet consumer and supply chain expectations. We already have numerous pieces of legislation – across the states as well as federally – and a large body of ever-expanding programs, reports and collected data. This ‘Squaretable’ process will save time and money whilst providing definitive evidence to Australia’s beef purchasers that there are strong efforts already in place that balance environmental outcomes with the drive to improve farm gate profitability. The Australian beef industry has much to be proud about. It is simply a matter of providing a more definitive summation and explanation of these endeavours to our major customers.

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“BUSH MATTERS OP-ED” By Senator Barry O’Sullivan 30 May 2014 It is astounding the pace at which the Australian sugar milling industry was able to swiftly become mostly foreign owned. From a starting point of less than 20 per cent in 2010, the level of foreign investment has soared to more than 75 per cent by the end of 2013, particularly following the sale of one of our largest milling companies, Sucrogen, to the Singapore-owned sugar giant, Wilmar. It is clear how and why this industry transformation occurred. Globally depressed sugar prices and poor climatic conditions through the early 2000s led to long term underinvestment in our milling sector. Most of the nation’s mills were at least a century old, cooperatively owned and struggling with ongoing underinvestment. Significant annual capital investment was required to maintain production efficiency across our 24 sugar milling facilities. But, at the same time, there was strong growth in sugar consumption across Asia, which BUT AT WHAT POINT was experiencing DOES FOREIGN eight per cent annual consumption growth INVESTMENT – more than four BECOME FOREIGN times the global INTERVENTION? average. Australia was regarded as supplying a consistent, high quality product. We were also the world’s third largest exporter. There was huge opportunity and potential. It is little wonder overseas companies viewed our sugar industry with hungry eyes.

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

Initially, foreign investment enabled much needed capital to enter the industry and, it could be said, has allowed our sugar sector to regain its global footing following several tough years. But at what point does foreign investment become foreign intervention? Wilmar caused uproar within the Australian sugar industry in recent weeks after it announced intentions to exit the current QSL export marketing arrangements and set up its own commercial model, tied to its global trading operation. While Singapore-owned Wilmar claims its business decision will only impact a handful of growers that use eight of its mills across the Burdekin and Herbert region in North Queensland, there is little doubt within industry that this proposed business model will shake the entire Australian sugar supply chain to its very core. Wilmar’s proposal has the potential to remove two million tonnes – or more than two-thirds of all exported Australian sugar – from industry’s collective annual export pool. It will weaken QSL’s dominant marketing position in the global sugar export business, leaving the bulk of Australia’s millers and growers worse off. Some question whether QSL could survive this scenario. We have already seen the looming threat to the rest of the Australian sugar industry’s sales base and structure, with credit ratings agency Standard & Poor’s this week downgrading QSL from A/A-1 to BBB-, following the Wilmar announcement. More than 1200 of the nation’s 4000 canegrowers have written letters of objection to Wilmar and Canegrowers have called on the Australian Competition and Consumer Commission to investigate, labelling the move ‘anti-competitive’ and ‘predatory.’ Even cane growers in the Wilmar controlled areas will have little option but to sell their sugar to the Singaporean agribusiness giant. The average distance cane is transported from farm to mill is only 30km, anything further than 100km increases costs dramatically. Even more concerning is Wilmar’s gradual purchasing of almost 6600 hectares of farmland within the Herbert, Burdekin, Proserpine and Plane Creek milling regions. An average cane farm is about 70 hectares. At a total of only about four million tonnes of sugar produced annually, we are a relatively small industry compared to the rest of the world.

ENABLING A FOREIGN OWNED BUSINESS TO COMPLETELY RESTRUCTURE AN INDUSTRY’S LANDSCAPE AT THE EXPENSE OF THE REMAINING, LARGELY AUSTRALIAN OWNED BUSINESSES, IS NOT IN THE NATIONAL INTEREST. However, Australia well and truly punches above its weight in providing sugar to the world, with more than 80 per cent of all our sugar produced destined for export. The recent submission by Canegrowers for the Federal Government’s White Paper on the development of Northern Australia displays the overwhelming opportunity in coming decades, with proposals for more than one million hectares of sugarcane to be developed in West Cape York. If this opportunity could be capitalised on, it would provide much needed national revenue at a time when global consumption of sugar is expected to almost double to 257 million tonnes by 2030. I am of the opinion that any encouragement from Australia towards foreign investment must commit to working with trade partners and overseas businesses to achieve - as its collective objective - fair and equitable partnerships that bring mutual prosperity. Enabling a foreign owned business to completely restructure an industry’s landscape at the expense of the remaining, largely Australian owned businesses, is not in the national interest. By removing itself from QSL, Wilmar will instantly undermine a century of gains and prosperity for thousands of family-owned sugarcane farms. As such, I do not believe the Wilmar proposal meets the national interest test. And I believe there are many, many people out there who would agree.

Lower Taxes Cutting Red Tape A Stronger Economy Get more information on the Budget at www.budget2014.com.au

Australia’s

To give some perspective, our two major export rivals are Brazil, which produces about 39 million tonnes annually (which half is used for ethanol production) and Thailand, which produces about 11 million tonnes.

Budget 2014

ECONOMIC ACTION STRATEGY: SMALL BUSINESS

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News

Senator fights for graziers ‘ ’ NEWLY-appointed Queensland Senator Barry O’Sullivan says rural MPs must continue to work hard to bridge the citybush divide if sustainable and practical drought policy is to be achieved. Senator O’Sullivan, who sits in The Nationals Party room, said he entered the federal arena this week with a firm commitment to push for an immediate increase in drought assistance across Queensland. ‘‘Like most rural and regional

There are countless people in agriculture who are on their knees because of this drought.

BARRY O’SULLIVAN

Queenslanders, I have watched with great concern as the drought has burned its way across the state,’’ he said. ‘‘The Prime Minister has said he recognises the struggle facing

the agriculture sector and he is working with Agriculture Minister Barnaby Joyce and the rest of The Nationals Party room on measures to aide industry. ‘‘He believes every city-based

MP must understand the hardship facing rural communities as the drought intensifies.’’ Senator O’Sullivan said it was only a matter of time before the economic impact from having 70 per cent of Queensland drought declared would reach the cities. With a lifelong involvement in rural industry, Senator O’Sullivan said easing the immediate financial and social burden of drought, especially on Northern graziers, must be

among the top priorities of the federal government. ‘‘There are countless people in agriculture who are on their knees because of this drought, but the producers across Northern Australia have fallen flat on their face,’’ he said. ‘‘The government cannot make it rain but we can do more to give farmers and rural communities the tools they require to weather these tough seasonal conditions.’’ Senator O’Sullivan was sworn into federal parliament today.

Candlelit dinner Man to speak 30/ BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION way to romance atTHE Women’s Day event SEVERAL Mount Isa restaurants are sharing the love this Friday, offering sweet

of heart of raspberry cheese cake. Livingstone’s Restaurant is fully booked

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

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32/

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

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SEEKING CLARITY: Barry O’Sullivan

Banks won’t take part in debt survey THE unwillingness of banks to participate in a rural debt survey is bad news for Queensland beef producers. Queensland Senator Barry O’Sullivan said unless the government had a clear picture of the ‘‘rural debt crisis’’ in northern Australia, it would not be able to address the issues. However, the Australian Bankers Association chief executive officer Steven Munchenberg said a number of banks had raised questions about the survey’s effectiveness. ‘‘Generations of communities across the northern half of Queensland, who have made contributions towards building the wealth of our nation, are currently suffering every day from an aggregation of unprecedented challenges,’’ Mr O’Sullivan said. ‘‘It is my view that immediate action must be taken to understand the full extent of the problem of rural debt in Queensland, and for that matter, under separate cover, the rest of Australia.’’ Mr O’Sullivan said his office had been advised major banks declined to be involved in a state specific survey usually conducted by the Queensland government’s rural adjustment authority. Mr Munchenberg said banks were well aware of the particular challenges faced by the northern cattle industry. ‘‘We are also very aware of the impacts of the drought across Queensland and the need to work with our customers who are facing difficulty,’’ he said. ‘‘Banks have previously participated in the QRAA survey, however, a number of banks have raised questions about its effectiveness, particularly given the considerable investment banks need to make to contribute data.’’

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INQUIRY ADDRESSES VOTER CONCERNS Senator Barry O’Sullivan has joined all participating members of the Joint Standing Committee on Electoral Matters (JSCEM) in welcoming an interim report into all aspects of the 2013 Federal Election. Senator O’Sullivan was among a team of politicians who journeyed around the nation for the inquiry, including the dates: • 15th April Melbourne • 16th April Hobart • 28th April Canberra • 29th April Canberra • 30th April Canberra • 6th May Mount Isa • 7th May Mount Isa • 8th May Brisbane The report has highlighted and confirmed widespread community concern in relation to the current Senate voting system. In particular, the Committee received a significant number of submissions regarding the perceived ‘gaming’ of Senate preferences. There was also widespread acknowledgement that many voters were unaware of where their preferences would eventually flow; the result being the election of some candidates with a very low first preference vote. The interim report provides guidance to Government in regards to possible changes to the Senate voting system and the registration of political parties which the Government will consider.

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

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“PENALTY RATES ON FARMS”

WEIGH

y Andrew Marshall B 21 April 2014 THE weighty burden of penalty interest rate charges on Australia’s ballooning rural debt problem is becoming a spotlight issue for the financially-stressed farm sector. Penalty rates are an “absurd financial contingency that only make a bad situation much worse” say critics of the harsh lending policy. Banks are under increasing pressure to impose a moratorium on penalty charges for rural enterprises and farms caught by the protracted impact of debt, drought and the continuing fallout from the 2011 suspension of live cattle exports to Indonesia. While the official Reserve Bank of Australia cash lending rate remains at historic lows of 2.5 per cent, penalty rates on farm mortgages can typically take the interest burden well above 12pc. Penalty rates can also apply to outstanding debts with farm service suppliers. “Just as the farmer or business operator is struggling to pay their loan payments, the banks penalises them by rapidly and quite catastrophically increasing the level of interest rate,” said harsh critic of the lenders and Queensland Senator Barry O’Sullivan. “This only makes a bad situation worse and in some cases is singularly responsible for putting an economic recovery out of reach for borrowers.” Although banks are downplaying the extent of the nation’s farm debt blow-out, the reality of the problem hit home in southern Queensland this week with prominent rural debt campaigner Rowell Walton himself becoming a victim of a bank foreclosure. Borrowings worth about $13m in drought years prior to 2008 have blown out to debts totalling $30m for Mr Walton, compounded by an estimated $7.5m crop loss to flooding in 2010, and further borrowings to replant the next season’s crop. The Walton family’s five-property, 12,000-hectare cropping and livetock enterprise based on “Yullumbilla” at Condamine was put in control of receivers by the Australian and New Zealand (ANZ) Banking Group last weekend.

ANZ acquired the Walton family’s debt when it bought Landmark’s loan book for $2.4 billion in early 2010 – a national deal which put the bank at the top of the farm lending table in Australia. Mr Walton said his situation was similar to that of a number of people he personally knew of, and another multi-enterprise receivership in his district last month. He conceded ANZ had been “quite patient” with him, but rules applying in lending markets today were a complete turnaround to the situation lenders had promoted when they were heavily focused on land value capital growth prior to 2008. The Liberal-National’s Senator O’Sullivan is seeking a freeze on use of penalty payments, describing the current lending policies as “an absurd financial contingency”. “If necessary, I will explore ways to introduce legislation that pushes for regulatory arrangements that prevent banks from applying these insidious conditions,” he said. “Personally, I don’t think this provision is in the interests of the bank because it will guarantee the collapse of the contractual arrangements and comes at a time when people are facing one of their most vulnerable challenges where everything they own in life is on the line. “When they need their banks the most, they get them the least. The Australian Bankers Association said banks already had a long history of working with the farming sector and provided financial hardship assistance to customers who may be experiencing financial difficulties. Banks worked with agribusiness customers to assist them manage their businesses and the volatility of cash flows which may be the result of prolonged drought, natural disasters, or changes in trade conditions. Mr Walton said his experience with other farmers facing penalty payments and his own debt troubles extreme rate hikes were “a sign that the banks want you to get out right away”. “Unfortunately selling up has not been an option for most landholders in the past few years – very few sales have been taking place,” he said.

Mr Walton is chairman of the national rural debt roundtable working group set up, with support from the federal Labor Government, to highlight the financial risks piling up on many farms after the past decade’s drought. Liberal bank lending policies prior to the global financial crisis were followed by tough new debt and cashflow rules, including tougher risk penalties, which have complicated landholders debt pressures and farm equity positions. Prominent rural debt campaigner Rowell Walton. 34/

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

“CALL FOR FARM DEBT SURVEY” y Andrew Marshall B 11 April 2014 BANKS are deliberately stonewalling farm sector efforts to release up-to-date figures on Australia’s rural debt problem for fear the flood of red ink surrounding many of their clients could badly erode lenders own balance sheets, says Queensland Senator Barry O’Sullivan. The Liberal National Party (LNP) Senator wants the federal government to initiate a national survey into rural debt because the banking sector is refusing to divulge State-specific or regional breakdowns. He said an organisation such as the Australian Bureau of Agricultural Resource Economics and Sciences (ABARES) needed to examine regions or sub-sectors of the farm economy so public policy and business strategies could properly understand and plan around such financial trouble spots. He believed lenders already had the information at their finger tips but with some debt problems now blowing out equating to almost the entire value of rural properties, particularly in parts of Queensland, it was not in the finance industry’s commercial interest to spell out how bad the problem had grown. And it was a problem not just limited to farmers.

to lose “too many years of corporate and industry knowledge and experience” vital to helping the economy capitalise on agriculture’s export growth potential. “It’s not that we don’t know what the problem is,” he said. “The issue is we don’t know what we don’t know.” Government responses to help drought-squeezed producers also had to recognise how to effectively target any financial packages, not make the problem worse with short-term loans that often compounded debt. “If we’re to truly capitalise on our focus on signing free trade agreements and the increasing demand for our food and fibre in this Asian century, we must thoroughly investigate the true economic state of our rural sector,” he said. “We need to ensure there will be a productive, stable and profitable primary production industry.” Senator O’Sullivan said the debt crisis could not be generalised, and it was biting far harder in some regional areas while other industry sectors were in a solid position with lenders. Queensland’s Rural Adjustment Authority (QRAA) was blocked from undertaking its usual survey last year because banks declined to be involved in a State-specific initiative for the first time since 2000.

“Rural service providers who’ve been around for two or three generations have clients owing big sums for fuel, fertiliser, or herbicide which is in turn putting pressure on their own financial position with their bank, or their ability to cover GST liabilities,” Senator O’Sullivan said.

But Senator O’Sullivan said QRAA’s earlier 2011 survey found the number of Queensland beef industry borrowers considered non-viable was up alarmingly from less than 1pc to almost 7pc in two years.

“If bank penalty rates kick in because your debt levels become a risk, loan costs can jump from seven per cent to 12pc, which obviously only compounds the issue further.

It was irresponsible for the Australian Bankers Association to dismiss the concept of a rual debt crisis or to bury important data in generalist information, he said.

“There’s a locust plague of problems emerging in some areas where business ranging from small post offices to car dealerships have been devastated as their district’s cashflow dries up.”

“Their posturing on this question simply nets off some of the good work the banks are doing in the distressed lending space.”

Total debt for the sector had increased 17.2pc to $9.1b.

He said banks were understandably worried information about debt levels in specific areas could further erode land values as potential buyers stepped back to wait for sellers in distressed areas to accept property deals at fire sale prices. Any big hit to local property values would spread to hurt other borrowers’ equity levels and their lenders, too. Senator O’Sullivan last month told federal parliament there was an urgent need to understand the true extent of Australia’s farm debt, which is variously quoted at being between $60 billion and $70b. Without understanding the size of the problem, particularly in specific industry segments or regions, and doing something to halt it, Australia was set

Liberal National Party Senator Barry O’Sullivan wants federal government to initiate a national survey of farm debt.

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

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“SENATOR WARNS: CHANGE TAKES TIME”

Senator O’Sullivan agreed saying a “voluntary code” was “almost an oxymoron”.

By South Burnett Times 29 April 2014

“I believe we need to come to a mandatory code and we need to give it some teeth,” he said.

South Burnett dairy farmers angry about the state of their industry – and the impact of Coles and Woolworths on their livelihoods – found a sympathetic ear on Saturday from Queensland Senator Barry O’Sullivan.

Senator O’Sullivan said the only place where farmers could turn to get relief was the Australian Competition and Consumer Commission (ACCC).

Senator O’Sullivan, who only recently took up a seat in the Senate, met with the farmers at Gary and Brian Tessmann’s property “Hillside” at Coolabunia. He said he had been a politician “for only 20 minutes” - he was appointed by Parliament on February 11 to fill a vacancy caused by the resignation of Barnaby Joyce – so he could still admit the perception Federal and State politicians can “fix all your problems” was not right. Queensland Dairyfarmers’ Organisation president Brian Tessmann quizzed Senator O’Sullivan on his position on the “market failure” in Queensland for drinking milk which started the day Coles started selling milk for $1 /litre (Australia Day 2011). Senator O’Sullivan said the concentration of the market, ie two retailers buying 80 per cent of the product, could not be described as a “free market”. “I declare in my view there is no free market for milk in Queensland,” he said. But he said the $1 / litre move had been a brilliant marketing strategy by the supermarkets. No matter what the store’s layout, milk – a fundamental staple – was always placed at the furthest corner from the entry point, forcing customers to walk through the store and be tempted to buy other goods. “The other partial motivation is that they’ll be happy the day that branded milk can’t compete with them and they are only selling generic milk,” Senator O’Sullivan said. And milk wasn’t the only commodity which didn’t have a “free market”. There was “not a single thing on the supermarket shelves” including meat and vegetables, which were not adversely affected by what Coles and Woolworths wanted. Senator O’Sullivan gave the example of Queensland banana growers dropping perfectly sound fruit to the ground because they were too big to pass the supermarkets’ “lunchbox” requirements. “And I don’t think we have truly free markets for beef in the saleyards, either. It’s not due to Coles and Woolworths but is to do with the concentration of processors,” he said. Mr Tessmann suggested the supermarkets’ voluntary Code of Conduct (264kb PDF) introduced last year to regulate standards of business conduct in the food and grocery supply chain should become mandatory. 36/

However at the moment, the onus would be on them to prove “unconscionable conduct”, funding their own case against the supermarket giants. “Coca-Cola Amatil tried to do just this but eventually pulled out because of the costs involved,” he said. However if an “effects test” was applied instead – the legal notion of “res ipsa” (ie “the thing speaks for itself”) – there would be a transfer of onus from the farmers to Coles and Woolworths which would be forced to defend their positions. Senator O’Sullivan warned “it takes an awful long time to get anything done” in Canberra. “I am not going to tell you that when Parliament resumes we will get ‘effects testing’ through,” he said. However, he was trying to get together a coalition of MPs and Senators with rural constituencies to effect change. “Of the 225 members of Parliament, there are less than 40 across the country who wake up and think about the agricultural sector,” he said. “There is a big load to lift with just a few people.” He urged everyone to “keep their feet on the pedal”, work with their producer groups and write letters to their MPs. Senator O’Sullivan said another problem faced by dairy farmers was the fact milk processors were not necessarily on their side. “I’d bet London to a brick that processors think about themselves before they think about you,” he said. He said until dairy farmers had “market options”, Coles and Woolworths had “all but nationalised dairy farms”. Cr Damien Tessmann asked Senator O’Sullivan whether some sort of “collective bargaining” was an option for dairy farmers. He replied that farmers sometimes had trouble keeping a united front if one could see a marketing opportunity opening up, however a “war council” of 10 of the most aggressive agricultural sectors could challenge the supermarkets. Senator O’Sullivan said he was also concerned about foreign ownership of agricultural processing. He said foreign-owned processors exporting to wholly owned subsidiaries overseas would be “entering figures” at the docks which would ensure they paid less tax. He believed profits were leaving the country, particularly with sugar and beef.

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

“If there could be more profit in the line, some of that should come back to the farm gate,” he said. He said farmers had also discussed the effects of Free Trade Agreements with him. He agreed the results for dairy and sugar had been disappointing. An FTA with China would be significant but “they will be putting the heel of their boots into our adam’s apple and it’s going to be a tough fight for our people at the table”.

Despite all this, Senator O’Sullivan was optimistic about the future, saying he believed Australian agricultural sectors showed great promise over the next 20, 30 or 40 years due to the emerging middle class in Indonesia and China. “If every one of them had just a thimble full of milk more and a mouthful of meat, it would be more than we could supply,” he said.

Coolabunia farmers Gary, Damien and Brian Tessmann with LNP Senator Barry O'Sullivan, second from right; Brian Tessmann is also president of the Queensland Dairyfarmers' Organisation

Cr Damien Tessmann with Senator Barry O’Sullivan and Member for Nanango Deb Frecklington

Senator O’Sullivan addresses the group of farmers at the Tessmanns’ property

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

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“MLA QUIZZED BY SENATORS OVER CONTESTABILITY OF CCA FUNDING” By James Nason 29 May 2014 Why Meat & Livestock Australia (MLA) entered into a $450,000, 12-month service agreement with Cattle Council of Australia (CCA) without a competitive tender was a key focus of inquiry at a Senate Estimates hearing in Canberra last night. In questions to senior MLA managers Christine Gilbertson and Dr Peter Barnard, Queensland Nationals senator Barry O’Sullivan said producers had raised concerns that the cross-funding arrangement between MLA and CCA potentially compromised CCA’s independence in its oversight role of MLA. Senator O’Sullivan questioned whether the contract had been offered by MLA on a contestable basis, to which Dr Barnard replied that MLA had provisions within its guidelines that enabled it not to put contracts out for tender if it had “cogent reasons” not to. Commenting on the background to the issue, MLA board member and current interim managing director Christine Gilbertson said MLA had entered into an agreement with CCA to undertake consultation with grassfed producers on MLA’s behalf in May 2013. MLA had a commitment under its constitution to undertake consultation with its producer constituents, and CCA, in its capacity as a peak industry body, was uniquely positioned to be able to provide those consultation services with grassfed producers on MLA’s behalf, she said. The 12-month service agreement struck between MLA and CCA in May 2013 was worth up to $450,000 (depending on how much of the work CCA was able to complete) and expires at the end of May 2014 (technically at the end of this week). Under the agreement CCA has run a series of forums with cattle producers across Australia, which have been designed to inform producers about how their R&D and marketing levies are being spent by MLA, and to provide a channel for producer feedback to flow directly back to MLA. Ms Gilbertson said that soon after she took on the role of interim MLA managing director following Scott Hansen’s resignation in March, CCA approached MLA to negotiate a new funding agreement for the 2014-15 period. She said she reviewed MLA’s statutory funding agreement at the time to check MLA’s capacity to provide funding to peak councils. She said the agreement quite clearly said MLA could pay for consultation services that were on an “arms length, contestable basis”. “It clearly says that on an arms length, contestable basis; on a value for money proposition for levy 38/

payers, we can contract with peak industry bodies, if they are providing an arms length service that we would otherwise be going to the market if you like and paying market rates for,” Ms Gilbertson told last night’s Estimates hearing. She said that in that light, she told CCA she was prepared to renegotiate a new service agreement only until the end of December this year. MLA would then use that time to explore the range of consultation mechanisms available to it, and would then encourage all parties to participate from that time “on a fully contestable basis”. In response to further questioning by Senator O’Sullivan about whether the original service agreement was put to tender, Ms Gilbertson said she understood that it had not, but work had been done to ensure the work schedule was transparent and passed a “reasonableness test”. The MLA executives were then asked by Senator O’Sullivan whether MLA was bound by governance guidelines to put contracts above a certain amount of money to tender, noting that $450,000 was a significant contract. Dr Peter Barnard, MLA’s general manager for trade and economic services, told the Senator that MLA had provision within its guidelines not to put a particular contract out to tender if there were cogent reasons not to. “Management and the board formed the view that the services being provided by Cattle Council of Australia in terms of advising input to MLA on its programs and activities, both R&D and marketing, were unique services that the CCA was in a unique position to provide,” Dr Barnard said. “Normally for a contract of that size, yes it would go out to tender, but if there are cogent reasons not to put it out to tender it is always open.” Senator O’Sullivan asked the senior MLA managers if they could see where MLA’s decision to give funding to CCA on a non-contested basis could feed producer concerns about transparency between MLA and their peak bodies. Dr Barnard said he believed MLA was an “incredibly transparent organisation”, and told the Senator that MLA had been transparent and upfront about entering into its service agreement with CCA. “I believe that we have met the conditions of transparency for an organisation like MLA,” he said. The Senator asked the MLA executives to provide the committee with written material explaining the governance guidelines under which MLA operates, particularly with respect to the tender process and the discretionary provisions that allow MLA “to step away from contestable contracts”. Drought, not demand, to blame for low cattle prices A large part of the 30-minute estimates hearing involving MLA last night centred upon questions about

THE BUSH TELEGRAPH WITH SENATOR BARRY O’SULLIVAN – JUNE/JULY EDITION

whether mandatory price reporting as legislated in the United States would deliver greater transparency and competition if introduced here in Australia. Dr Barnard said that while he did not believe it would generate greater competition, he said mandatory price reporting could deliver greater price transparency. However, it would also involve a potentially significant financial cost. He estimated that the US Government spent tens of millions of dollars each year on the provision of daily mandatory price reports to industry. The voluntary-price reporting system currently in use in Australia is funded by producer levies through MLA at a cost of around $2m per year. Dr Barnard said the driver of low cattle prices in Australia at present was drought and not demand, which remained at strong levels. If the market was not under enormous supply pressure, cattle prices would be well above $4/kg, he predicted. Labor Senator Glen Sterle said it was clear there was “a real imbalance” between the prices producers received and prices beef sold at through Coles and Woolworths. “It just gives me grief, we can’t keep running the open market, free for all, slash and burn, as far as I’m concerned, because what do we do when there is no one left on the land?” he asked. Senator Sterle then questioned Dr Barnard on why Meat & Livestock Australia had spent $350,000 on the development of a slaughter box for Indonesia in the wake of the June 2011 export suspension. In response Dr Barnard said the industry was in a state of crisis at the time and the Mark I slaughter box, which he said had been funded entirely by Government with no funding from industry, was “now being viewed as an inappropriate slaughter box”.

In further questioning Senator Sterle turned the spotlight onto an independent review conducted into MLA’s performance by Arche Consulting in the late 2000s. Senator Sterle said there had been suggestions that MLA had made varying changes to the final report before it was released publicly, which suggested the final report was not truly independent. Christine Gilbertson said she was not aware that any interference had occurred, adding that she was not with MLA at the time, but understood it was an independently commissioned review. “So you can tell the committee it was absolutely independent, there was no input, MLA never saw it, there was no suggestions of changing anything out of it, you saw it and what you saw was the final report that went out?,” Senator Sterle asked. “All I know is that it was an externally commissioned report and they are a professional consulting organisation that delivered that report,” Ms Gilbertson said. Senator Sterle asked the MLA managers to take a question on notice that the report was truly independent and had no influence from MLA, which they agreed to do.

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“We needed to act quickly, and (we needed) an insurance policy, because there was a great state of uncertainty,” Dr Barnard said. “We didn’t know which way the Government was going to head, we didn’t know what was going to be legal or not legal or deemed appropriate or not appropriate. “We thought as an insurance policy that another box was needed.” Mr Barnard said he fully supported the decision to build the box. “You can blame me. My name wasn’t on the bottom of the contract but you can blame me because I absolutely supported the design of that box, and if I was faced with the same circumstances today I would do exactly the same thing. “With an insurance policy you hope you never need to use an insurance policy. “…I’m glad we didn’t haven’t to go in that direction because industry, through other boxes that we designed and through stunning, sort of outpaced us on the issue. “I’m willing to go anywhere and debate our record during that period because we worked our backsides off to get that trade up and running.”

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TOOWOOMBA OFFICE Suite 8, 195 Hume Street PO Box 3135 TOOWOOMBA QLD 4350 Phone: (07) 4638 7555 Fax: (07) 4638 7199 CANBERRA OFFICE Suite S1.114 Parliament House CANBERRA ACT 2600 Phone: (02) 6277 3103 Fax: (02) 6277 5751 Email: senator.o’sullivan@aph.gov.au STAFF Samantha Muller Office Manager Mobile: 0437 115 883 Email: samantha.muller@aph.gov.au Troy Rowling Media and Policy Adviser Mobile: 0400 386 666 Email: troy.rowling@aph.gov.au

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