Federal Agriculture Minister hoping to spread costs of biosecurity

Speaking at a Rural Press Club of Victoria breakfast, held in Melbourne, Senator Watt said the government had taken a range of decisive steps to protect the agriculture sector from what were "really serious" and growing biosecurity threats.

The government has flagged a new levy from July 1 next year, intended to collect around $50 million per year.

"We have asked producers to pay a small biosecurity protection levy - our farmers should absolutely not bear the full cost of biosecurity operations," Senator Watt said.

"But I do think, as direct beneficiaries of the biosecurity system, it was reasonable to ask producers to make a small contribution towards the cost of those services that do protect their livelihoods."

Farmers have expressed fears the money will vanish into department coffers, rather than deliver tangible outcomes.

All of the National Farmers' Federation member groups voted to formally oppose the biosecurity levy, which will be "equivalent to 10 per cent of the 2020-21 levy rates".

Senator Watt told guests a dairy farmer would pay an extra 0.7 cents per kilogram of milk protein, for apple growers it was 0.18 cents a kilogram, while egg farmers would be asked to pay an extra 3c per laying chick.

"What that means is farmers will be only paying 6 per cent of the total cost of our biosecurity services, with the vast majority being borne by taxpayers and importers," he said.

"I think it is a pretty small contribution we are asking producers to make."

Senator Watt said the model the government had come up with was to share the cost of providing biosecurity protection between taxpayers, risk creators and the direct beneficiaries of the system.

"Biosecurity is a shared responsibility, and that does apply to how we fund the system, going forward, as well," he said.

Overseas travellers would pay an extra $10 a ticket, in recognition of the risk created when they returned to Australia.

Fees for incoming mail had also been adjusted, he said

"We have lot more weird and not very wonderful stuff coming through our mail system," Senator said.

"Importers are paying a lot more than they have, in the past as well - we all have to pay our share.

"I really listened to the calls from producers groups about the need to make sure that importers do pay their fair share - the reality is, as much as they might try, they do create risks by bringing things in from overseas, in shipping containers and in other ways."

Importers were not paying the full cost of the services they received and taxpayers were picking up the bill.

"Cost recovery from importers has now reached $83.3 million, it's not about price gouging, or charging too much, it's about making sure they pay the full cost of the services they receive," Senator Watt said.

Consultation on the new levy closed last week.

Senator Watt also called for clarity around Canadian dairy giant Saputo's plans for its Australian processing plants.

Saputo head Lino Saputo recently outlined plans to reduce the number of the company's Australian sites.

"Saputo absolutely needs to be clear, as quickly as possible, about what their plans are, so people know what they are dealing with," Senator Watt said.

"I was really concerned to see those remarks, about what their plans might be - probably their plans to close down processing facilities, but then he appeared to be walking back from those comments.

"I do believe it is important they provide clarity, as soon as possible."

Senator Watt said that was taking place in the backdrop of the Australian Competition and Consumer Commission inquiry into Coles proposed acquisition of plants in Sydney and Melbourne.

"There is obviously a major process around that and I don't want anything else to get in the way of that process," he said.

"I know there is a lot of concern around the future of processing.

"We want to see more processors, not less."

That was part of the reason behind investment in a national construction fund, to revitalise manufacturing and value adding in Australia.

"The sooner we can get that clarity, the better," Senator Watt said.

The Minister said he would also like to see agriculture included in the broad competition review, currently being undertaken.

The review was looking at several sectors of the economy, where there were concerns around a lack of competition and market concentration.

There was also a review of the Food and Grocery Code of Conduct underway.

"It's something we are beginning to take action on," Senator Watt said.

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