Page Content
Secretary's Review
Table of Contents
Our industries
Innovation
International environment
Reviews
Natural resources
Internal management
Industry leadership
Conclusion
The devastating drought presented a great challenge to rural Australia as well as the department in 2002-03.
The Drought Taskforce, established in October 2002, brought together expertise from across the department to provide a focal point for drought-related issues and coordinate a comprehensive departmental response to this debilitating event.
Of particular significance was the department’s role in implementing the additional drought assistance package announced by the Prime Minister on 9 December 2002. The package provided short term income support and interest rate relief to those farmers most severely affected by the drought, while State governments prepared Exceptional Circumstances (EC) applications – the main form of assistance during major drought events. This interim arrangement proved to be very effective as 25 EC applications were received during the six months of its operation. The Australian Government expects to spend more than $1 billion on drought and recovery assistance.
The introduction of a prima facie assessment process for EC applications was another important initiative providing immediate and practical assistance to drought-affected producers whilst EC applications were being assessed.
The need to keep pace with the high volume of EC applications put great pressure on the taskforce and our two bureaus - the Bureau of Rural Sciences (BRS) and the Australian Bureau of Agricultural and Resource Economics (ABARE). All involved rose to the demands placed on them.
A critical initiative involving the Department during the year was its lead role in Exercise Minotaur, Australia’s largest disease simulation. Held in September 2002, this week-long, nation-wide simulation demonstrated what governments and industry can achieve working together and heightened Australia’s level of preparedness in dealing with a potential catastrophe such as foot and mouth disease (FMD). Importantly, many of the insights and lessons of Exercise Minotaur have been incorporated into a wide range of animal disease preparedness activities better enabling Australia to respond to a range of pest and disease emergencies.
The department’s FMD/ Bovine Spongiform Encephalopathy Taskforce worked with Emergency Management Australia, the states and territories, local government, industry and various Australian Government agencies over 18 months to develop the simulation. More than 1,000 participants were directly involved and another 2,000 indirectly. Domestic facilitators and evaluators, as well as international observers from the United Kingdom, United States, New Zealand, Canada and the World Animal Health Organisation, oversaw the simulation and judged it an outstanding success for lessons learnt and as a training opportunity.
Our industries
The dairy and sugar industries continued to adjust to their new operating environments with the support of programs to help them become more economically viable, ecologically sustainable, innovative and internationally competitive in the face of domestic and international challenges.
Parliament passed legislation on 27 March 2003 to convert the Australian Dairy Corporation (ADC) and the Dairy Research and Development Corporation (DRDC) into Dairy Australia – an industry-owned Corporations Act company. The new company came into being on 1 July 2003, assuming the functions of ADC and DRDC other than the export control functions, which returned to Government. The new egg services company, Australian Egg Corporation Ltd, commenced formal operation in conjunction with the new egg promotion levy.
On 3 April 2003, the Minister for Agriculture, Fisheries and Forestry, the Hon Warren Truss MP, announced that funding of up to $500 000 would be provided during 2002-03 under the AAA-FarmBis program for a wine business and marketing skills improvement program for small to medium sized wineries. The program, to be known as WineSkills, was a response to an independent report on wine tourism and exports, Pathways to Profitability for Small to Medium Wineries, which identified the critical importance of such businesses having sound business and marketing planning skills for their long-term sustainability. The Minister announced the first projects to be funded under the National Food Industry Strategy (NFIS) Food Innovation Grantsprogram on 28 April 2003. Eight companies received funding totalling $4.45 million, with the companies themselves contributing a further $6.25 million.
In April 2003, together with Invest Australia, we released a Forest and Wood Products Industry Capability Statement to help governments and industry promote Australia's forest and wood products industry's strengths and sell investment opportunities in this sector.
Under the stewardship of the Minister for Fisheries, Forestry and Conservation, Senator the Hon Ian Macdonald, there was significant progress made in protecting our fisheries from illegal activities. The Government agreed to an ongoing campaign to protect Australian fisheries in the Southern Ocean, particularly around Heard and the McDonald Islands. The strategy for combating illegal, unreported and unregulated fishing includes the use of armed enforcement patrols and more patrols in the area.
Following the announcement of the four-year, $281 million Increased Quarantine Intervention (IQI) Initiative, the Australian Quarantine and Inspection Service (AQIS) continued to work on increasing its capability to achieve 100 per cent intervention rates. AQIS, in conjunction with the Australian Customs Service, is on track to achieve the Government’s targets.
International environment
Australian exports average around 65 per cent of agricultural production, and about one in four jobs in regional Australia depend on exports. Maintaining and increasing export market access is therefore vitally important to the continued expansion of Australian agriculture. The department continued to work closely with Australian industry, other government agencies and our bilateral trading partners to improve the international trading environment, open new markets, create new opportunities and reduce barriers in existing markets.
Following the smooth implementation of the 2002 United States beef quota allocation arrangements, the quota allocations were finalised for 2003 and the independent Quota Management Panel reappointed to advise on discretionary quota allocations for 2003.
Through the department’s work, Australia’s beef, sheep and goat meat producers recently gained virtually unrestricted access to the Chinese marketplace. The signing of new market access protocols in June 2003 marked the end of a three-year negotiation process. The greater access arising from these protocols is expected to lift the value of Australian meat exports from about $69 million in 2002 to around $100 million in future years. The new meat protocols demonstrate the important work that the department is undertaking in securing improved access for Australian agricultural exporters to international markets.
The department contributed to negotiations on agricultural aspects of the World Trade Organisation (WTO) Doha Round and was also involved in the negotiations with the United States, Thailand and Singapore on free trade agreements. Bilaterally, there was substantial focus on the Asian region, with market access issues being raised with Japan, Indonesia and China among others. Minister Truss participated at the Australia-Indonesia Ministerial Forum meeting in March 2003 and raised a number of market access issues with his counterparts, including in relation to restrictions on cattle weights and approvals on meat works.
We also commenced projects under the Australia-China Agricultural Cooperation Agreement relating to harmonising Chinese plant breeding legislation with Australian standards, foot-and-mouth disease risk mitigation activities in Southeast Asian markets, and the selection of exchange missions to both countries. Progress on technical market access issues for Australia were also made on a veterinary agreement with Russia and technical requests for access to the United States.
AQIS’s work on human quarantine issues increased in line with the global health warning on Severe Acute Respiratory Syndrome (SARS). AQIS continued to work closely with the Australian Government Department of Health and Ageing and other agencies to develop and implement appropriate human quarantine arrangements at Australia’s passenger entry points.
Natural resources
The department continued its significant work on water issues, working with other Australian Government departments and states and territories to further progress reform to water management and use through the Council of Australian Governments (COAG) water reform framework. Particular attention was given to improving water access and property rights, improving the effectiveness of water markets and trading arrangements, and developing guidelines for adjustment assistance. Bedding down the National Action Plan for Salinity and Water Quality and the extension of the Natural Heritage Trust was another key focus during the year.
The Parliamentary Secretary for Agriculture, Fisheries and Forestry, Senator the Hon Judith Troeth, and the New South Wales Minister for Agriculture, the Hon Richard Amery MP, furthered the Australian Government’s natural resource management agenda with the launch in November 2002 of Australia’s National Framework for Environmental Management Systems (EMS) in Agriculture. Funding of $8.5 million was announced in April 2003 for 15 projects across Australia under the EMS National Pilot Program.
ABARE and BRS provided a socio-economic assessment of a proposal to immediately halt clearing of ‘of concern’ vegetation and phase out clearing of remnant vegetation in Queensland that is now central to the ongoing debate surrounding this significant issue.
Industry leadership
A key milestone was celebrated during the year when Senator Macdonald and the Minister for Immigration and Multicultural and Indigenous Affairs, the Hon Philip Ruddock MP, opened the Indigenous Aquaculture Unit. The unit is a joint enterprise between the department and the Aboriginal and Torres Strait Islander Services. The unit is responsible for implementing the National Aquaculture Development Strategy for Indigenous Communities - providing expert advice on aquaculture matters, assessing applications for aquaculture proposals, and negotiating with other agencies and organisations to increase Indigenous involvement in aquaculture.
On 6 March 2003, Senator Troeth presented the Rural Industries Research and Development Corporation (RIRDC) Rural Women’s Awards for 2003 and scholarships under theIndustry Partnerships Program - Corporate Governance for Rural Women. There were seven RIRDC award winners and 13 scholarship winners, with both awards recognising successful rural women in portfolio industries.
ABARE’s regional Outlook conference series has made its mark in regional and rural Australia and continues to grow in popularity. The conferences are an excellent opportunity to gain a better understanding of emerging trends in primary production and the opportunities available when our customers take an innovative approach to their business.
Innovation
Following the release of the Prime Minister’s national research priorities in March 2003, Senator Troeth announced the Australian Government’s complementary rural research priorities. Senator Troeth also tabled the 2002 edition of the Research and Development Corporation Outcomes Report Innovating Rural Australia. The report is the second in the series and showcases the valuable work of rural research and development corporations and companies, highlighting the importance of investing in research and development (R&D) and innovation to advance our agricultural, fisheries, forestry and food industries.
The department finalised several projects to help industry make informed decisions about biotechnology adoption and appropriate supply chain management arrangements for genetically modified (GM) and non-GM products. The projects covered issues such as gene flow, GM testing, stewardship of GM canola, GM stockfeed, legal liabilities and the development of an agricultural biotechnology website. These initiatives have been very well received nationally and internationally and some have made a substantial contribution to industry’s preparations for the possible introduction of commercial GM crops and appropriate supply chain management arrangements for their responsible introduction.
The department released Australian Agriculture, Fisheries and Forestry at a Glance 2003, a pocket-sized book produced by BRS that provides users with an easy reference for facts and figures on Australia’s agricultural, fisheries, forestry and food industries and supports the Government’s policy of communicating more broadly with its key stakeholders.
In August 2002, Minister Truss announced the 17 young Australians to receive up to $8000 each as winners of the 2002 Science and Innovation Awards for Young People. These awards aim to encourage people between the ages of 18 and 35 years to use science, technology and innovation to advance the future of agriculture, fisheries, forestry, food and natural resource management industries.
Reviews
The Joint Committee of Public Accounts and Audit (JCPAA) tabled its Review of Australia's Quarantine Function on 5 March 2003. The JCPAA concluded that Australia’s quarantine function is in good shape and complimented quarantine staff for their enthusiasm, professionalism and performance. This was evidence of the impact of the important work being done by staff who are at the cutting edge of keeping Australia free of pests and disease. The report provides reassurance to Parliament that earlier recommendations by the Auditor-General to improve quarantine arrangements are being implemented. The committee identified some areas for further improvement in relation to import risk assessments, marine pests and containerised cargo processing, and we are now reviewing and developing responses to these areas.
Internal management
During the year, the department received an Australian Public Service Workplace Diversity Award under the regional category award for its Guidelines for Reaching our Clients – Young People. The guidelines are an initiative of the Young People in Rural Industries Program that helps to ensure young people are aware of, and have access to, opportunities to develop their skills. This publication was complemented in July 2002 by the release of Guidelines for Reaching our Clients – Indigenous Australians.
In our drive to become more business orientated and customer focused, the department adopted a Business Excellence Framework – linking our processes to outcomes and delivering results for our customers.
Conclusion
The year has been a varied one for our industries – dealing with the human, economic and environmental crisis of drought; bedding down structural changes for some of our industries; developing and advancing ways for our industries to better manage their natural resources; and continuing to protect our industries through quarantine intervention – particularly in the face of recent world events and the potential threats that may arise.
In 2003-04 we will continue to build on these important achievements. Assisting farmers and rural communities to cope with, and recover from, the drought will continue to be a high priority. Positioning industries to cope with future events will also be a focus and the department will maintain its emphasis on building the business capacity, risk management and self-reliance of portfolio industries.
Secure access and efficient and sustainable water use will remain an important issue. The department will continue its work with other Australian Government departments and the states and territories to deliver more efficient and sustainable water management. Particular outcomes sought include improved access entitlements, enhanced water trading and better environmental outcomes.
Trade is vital to economic growth in rural and regional Australia and the next 12 months are shaping up to be one of the most defining periods for the future of Australian agriculture. Outcomes from the ongoing trade liberalisation negotiations under the WTO Doha Round in particular are likely to shape agricultural policies in WTO member countries for the latter part of this decade and beyond. Combined with this, Australia is pursuing free trade agreements with key trading partners and will be involved in a number of ongoing international disputes. The international environment for 2003-04 offers both opportunities and challenges for our industries and the department will have a particularly busy year in representing Australia’s interests in these areas.
The continued commitment of staff to business excellence and achieving results for customers underpins our success in supporting portfolio industries towards our mission of more profitable, competitive and sustainable Australian agricultural, fisheries, food and forestry industries. I would like to commend all staff for their diligence, professionalism and integrity throughout the year.
Michael J Taylor
SECRETARY