As the Meat and Livestock Authority splashes yet another pro-beef advertising campaign across regional media its detractors – angry at the way producer levies are being spent – are directing their frustration at politicians who have repeatedly failed to act in support of regional enterprise.
John “JR” McDonald is one of rural Australia’s great success stories. Heeding advice from his own mother that “love goes out the window when poverty comes through the door” he pulled himself up by the bootstraps to eventually pilot his own red meat empire – Bindaree Beef at Inverell, which pays wages to 1000 people and every day its doors are open spends $120,000 plus 40 per cent on-costs just to stay in the business.
So it comes as no surprise this beef entrepreneur is concerned that global trade will benefit those nations that produce more for less – like the US which processes a beast for $150, or half that of Australia.
During the long struggle for success he never lost sight of his producer roots and his defense of the breeding and backgrounding industry often lead to ostracism from main players in the processing game.
Now, the octogenarian and his staunch ally, his own daughter and former Queensland MP Tarnya Smith, are taking the bull by the horns in the lead-up to the May Federal Election.
Firmly in JR’s sights is the inaction by former Nationals leader and current Member for New England Barnaby Joyce, who has been on the receiving end of $50,000 worth of donations from Bindaree Beef. JR is a labor man, by the way, unlike his daughter who is a staunch Liberal National Party voter and who makes the point that funds directed at Barnaby were never intended to sway his opinion, but merely to give support to beef’s best voice in Parliament … or so everyone thought.
in fact, he says Mr Joyce has failed to act on numerous recommendations regarding the cost of levy payments to producers and processors.
In the meantime processing competition is diminishing along with opportunity for regional employment while domestic consumption of red meat continues to fall.
“Since 1998 when the average Australian consumed 43kg of red meat per person every year we are down to 24kg per person translating to 480,000 tonnes of product lost to the domestic consumer,” he says. “Since 1980 more than 100 abattoirs have closed their doors.”
Mr McDonald blames Meat Standards Australia for failing to stem the decline, making its grading system too complex for the consumer, with too many animals of dubious quality included in its grid.
“We need practical solutions, not rhetoric,” Mr McDonald said, taking aim at Barnaby Joyce’s lack of direction for rural and regional prosperity.
JR’s three point plan starts with accountancy and transparency of levy funds directed at peak industry bodies, like the Cattle Council.
“Root and branch reforms need to occur,” agreed Ms Smith, noting these actions were mentioned during the red-meat senate inquiry three and a half years ago with little to show for that exercise in the interim.
The next step in the McDonald family list of action is the immediate two year freeze on those fees and charges to the producer. Already the NSW Government has suspended land services tax in response to the drought but where is the Federal action? To this JR’s last point is to “hoist Joyce out” at the May election.
“For producers to continue to vote National at every election year in and year out and to expect change is a sign of insanity,” he said.
“Right now in this time of drought we need to come back to basics. The MLA is out of control. It’s primary role is to give marketing information to all producers and that should only cost $20 million, not $170m. Let’s get to the bottom of where this money is going and in the meantime let’s freeze all levy payments to peak bodies.”
Mr McDonald quoted the Hillman report from 2001 that recommended dropping levy charges or face consequences that would be detrimental to the industry.
“We are over-regulated in the red meat industry,’ he said. “We expect red meat o be promoted but after 20 years and untold millions upon millions of dollars spent from producer and processor levies what have they got to show for it?”
Mr McDonald said private industry did their own marketing and that MLA campaigns were mere white elephants.
“There should be one levee at the point of slaughter,” he said. “We have seen a failure of our representatives and until we have an investigation into the misuse of levy funds we need relief from fees and charges.”
