Topics: Australian cattle exports to Indonesia, Clean Energy Finance Corporation, renewable energy.
E&OE…
KIERAN GILBERT
First though, for some reaction to this, we’ve got Labor frontbencher Matt Thistlethwaite and Liberal frontbencher, Parliamentary Secretary for Education, Scott Ryan.
Senator Ryan, first to you, your thoughts on this? Because normally this industry is seen as somewhat of a barometer of the relationship between the two countries; this is a shock to the industry and the Government’s been surprised by it as well.
SCOTT RYAN
This is an important industry, and a particularly important industry for northern Australia, so I don’t want to understate the disappointment that some feel at the reported announcement from last night. But, it’s also important to note that this is not a final statement, as we understand it this is an initial report of the fifty thousand head and the government will be making strong representations to ensure Australian farmers, particularly in northern Australia, continue to play a critical role in Indonesia’s food supply chain that they have for many years.
GILBERT
Ok. Matt Thistlethwaite, your thoughts on this? Given there was a complete suspension of the trade during Labor’s time, it’s not been without its problems, its hiccups, in recent years.
MATT THISTLETHWAITE
It’s a disappointing result for live cattle exporters, there’s no doubt about that Kieran. Look, Labor when we were in government put in place one of the world’s best export assurance schemes; ensuring that throughout the whole supply chain was quality assurance there. But it is a competitive market and Australia competes with other nations, and I think that underscores the fact that we do need to be competitive and we do need to have a diversified beef export industry within Australia. And that includes the processing of meats, Halal certification of those exports, but also ensuring that we’ve got a diversified industry and I think this outcome today highlights the importance of that diversification.
GILBERT
Ok. We’re going to have to take you live now, we’ll interrupt that discussion, we’ll continue in just a moment. Here’s the Opposition Leader Bill Shorten in Melbourne.
(Bill Shorten Press Conference)
(Interview with Alison Penfold, Australian Livestock Exporters’ Council)
Scott Ryan and Matt Thistlethwaite with me this morning. Scott Ryan, your thoughts there on what you heard for Alison Penfold?
RYAN
Well I think Alison made the point that it is disappointing to farmers, but it is the first stage in a process; this is not the final word as we understand it. The Government and the industry will keep talking to the Indonesian Government, and we think we will have a long-term role in the in the Indonesian food supply chain and we hope we can continue that role. So this is a work in progress, conscious that this morning’s news is a bit of a disappointment.
GILBERT
Matt Thistlethwaite, the Chief Executive of the Livestock Exporters’ Council, pretty sure you heard what she said about that she’s confident that it’s not anything to do with the bilateral relationship between Canberra and Jakarta.
THISTLETHWAITE
Well I agree Kieran; I don’t think that we should be speculating on the reasons behind this decision despite the fact that Australia, over the past couple of years of the Abbott Government, has had its difficulties in terms of the relationship with Indonesia. We shouldn’t put words into the Indonesians mouth about the reasons for this decision. We’ve got to get on, recognise that this is a competitive industry, and work to ensure in the future that not only our live export industry, but our processed meat industry, is as competitive as possible.
GILBERT
But isn’t that what Bill Shorten was saying effectively when he says that he hopes it’s not a political reason driving this reduction? I thought he was inviting us to speculate on that very point?
THISTLETHWAITE
Well we do hope that it’s not a political reason, but nothing has been announced by the Indonesian government about the reasons behind this and I don’t think we need to be speculating about that. Certainly the relationship between Indonesia is at one of its lowest points that it’s been for many, many decades. But the thing that we need to do now is get on with it, and ensure that the industry is as competitive as possible.
GILBERT
Senator Ryan, is this just the nature…
(Interrupted)
You go on.
RYAN
Can I say that Labor, Matt and Bill Shorten have to be very careful when they talk about the Indonesian relationship; I mean after a Four Corners program and a GetUp twitter campaign they shut down the live export industry which threatened the important part of the food supply to our good friends in Indonesia. But to go to the point you were asking about then, it is important that we understand that this is a deep and multi-faceted relationship; this is a commercial arrangement. We hope to ensure Australian exporters continue to have the opportunities they’ve had in the past, and that’s a priority for the Government over the coming days and weeks.
GILBERT
Let’s turn our attention to some other issues now and, Senator Ryan, you heard Bill Shorten focussing again on this issue: the renewable energy industry. Saying that the Government needs to back the jobs of the future. There’s been a lot of criticism from the renewable sector about the Government’s shifting focus when it comes to the Clean Energy Finance Corporation. If you’re going to be stuck with this organisation which, you wanted to get rid of it, but if you’re stuck with it why not let the experts decide where the money goes?
RYAN
Well look, bumper-sticker Bill’s all slogan and no policy or plan for Australia. I mean he just announced a few bumper stickers there, but let’s go back to what the Clean Energy Finance Corporation is and what it was intended for. It borrows money that Australian taxpayers are on the hook for, and then lends it out to other people. It’s not being funded out of surpluses; it’s being funded out of additional borrowings. It was part of Bob Brown’s price for Julia Gillard to form government, and in debate after debate in the Senate, because we did oppose this, I heard Labor MPs talk about how the role of Clean Energy Finance Corporation was to support those technologies and those sectors in the industry that couldn’t access private investment funds. Now, there is no lack of investment in wind farm technology; the Government and the Labor Party came to an agreement on the Renewable Energy Target which supports that investment in the last session of Parliament. But it is not the role of the taxpayer to support particular industries through borrowing, for which it’s going to have to pay interest and pay back money in the future, and give it to certain preferred industries. The role of this was not to be a public bank subsidising preferred industry sectors, it was to support those emerging technologies and energy sectors that couldn’t access private sector funds. There is no shortage of private funds for rooftop small-scale solar or for wind farms, and Bill Shorten is just throwing slogans around here but he won’t answer the question as to why should Australian taxpayers be subsidising a particular industry? This is not about an industry being allowed to build wind farms; it’s about a subsidy for some areas.
GILBERT
Matt Thistlethwaite, your reaction to that? And that’s been the basis of the Government’s critique on this: that the small and medium-scale solar, the rooftop solar, is very popular but that it can now stand on its own two feet, as can the wind industry that has been around for decades.
THISTLETHWAITE
Well Scott’s answer then, Kieran, completely highlights this Government’s approach to renewable energy. They don’t believe in promoting a credible renewable energy sector in this country and that’s why they sought to attack the Renewable Energy Target, and that’s why they’re trying to get rid of bodies such as the Clean Energy Finance Corporation. The Clean Energy Finance Corporation is meant to operate on a technology-neutral basis. So, its mandate is to work with technologies that may not get over that commercial threshold and need assistance to establish themselves. In doing that, the body’s been very successful and on average it’s returned a seven percent return to the budget bottom line. So, it’s fulfilled its mandate and Australia would have to be the only nation in the world where our leader actively attacks the renewable energy industry and doesn’t want to see us grow the renewable energy in this country as a preference for coal-fired power, and we’re moving backwards on important issues and the jobs of the future as Bill Shorten says.
GILBERT
Gentlemen, we’re out of time. Matt Thistlethwaite, Scott Ryan, appreciate it this morning. We’ll chat to you soon.
(ENDS)