Darren Chester (Gippsland, National Party, Parliamentary Secretary to the Minister for Defence) Share this | Link to this | Hansard source

I rise to speak in support of the Australian dairy industry, particularly in the context of two critical initiatives which will develop jobs and stimulate economic growth in Gippsland. The ongoing negotiations for a free trade agreement with China and the proposed upgrade of the Macalister irrigation district are important opportunities for the federal government to deliver benefits for dairy farmers in Gippsland. By way of context, the dairy industry is a major contributor to the social, economic and environmental wellbeing of Gippsland. It is an enormous contributor to the wealth of our nation, with an estimated 23 per cent of Australia's dairy economic activity coming from the Gippsland region.

At its heart in Gippsland is the Macalister irrigation district, which I have spoken about many times in the past. The MID is the largest irrigation area in southern Victoria, which produces about $500 million of economic value to the Gippsland region. The modernisation of the Macalister irrigation district is a critical infrastructure issue for the future prosperity of Gippsland but also for the dairy industry more broadly throughout Australia. For those members who are not familiar with the MID, it is one of the most productive agricultural areas in the nation, but the irrigation system itself is antiquated and in urgent need of an upgrade.

I am pleased to say that the first stage of that work had been undertaken by Southern Rural Water, by the irrigators, in partnership with the Victorian state government. In the order of $32 million will be spent up until 2016. The future phases of the modernisation program have not been funded yet and I think they are perfectly suited to a joint government initiative between the state and federal government and also local irrigators again. I am very pleased that the Minister for Agriculture, Barnaby Joyce, has visited the region and consulted with my local dairy farmers in relation to this issue and I am keen to see that consultation continue into the future.

In a similar vein, I am keen to support the dairy industry in its bid for a better deal under the proposed China free trade agreement. I am very proud to support the industry in its most recent social media campaign which, I note for the benefit of Hansard, is hard to explain. It is hashtagged 'FTA4dairy'. The Australian dairy industry currently trades at a competitive disadvantage with the New Zealand dairy giant Fonterra, when it comes to the Chinese market, and we need to do everything we can to help level the playing field in the future.

I have had the opportunity to meet with dairy industry leaders and I support the Australian Dairy Farmers President, Noel Campbell, who recently told the Weekly Times in Victoria that a China-Australia free trade agreement has the opportunity to place Australian dairy on a level footing with New Zealand's industry and will provide benefits for 'everyone'. I quote from Noel:

A positive China FTA will help to bolster economic growth, provide jobs, encourage industry investment, and provide Chinese consumers with the clean, green and fresh dairy produce they deserve.

This is a great opportunity for the Australian dairy industry. It is a great opportunity for the federal government to deliver for our rural and regional constituents. I am encouraged by the comments from the trade minister, Andrew Robb, who said earlier this year that he is after a 'New Zealand plus' deal when it comes to the dairy sector. I look forward to a positive outcome from the negotiations with China.