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Secretary's Review
In a year of significant events for the portfolio, the ongoing impact of the drought and trade issues continued to feature.
Assistance to farmers dealing with the effects of the worst drought in memory continued and the delivery of programs, particularly through the Agriculture - Advancing Australia (AAA) package, were again a priority.
The department was a major contributor to the trade agreements negotiated with the United States (US) and Thailand, and in representing Australia’s agricultural, fisheries and forestry interests in the ongoing World Trade Organization Doha Round negotiations. We were also involved in efforts to resolve the MV Cormo Express incident after Saudi Arabia rejected a consignment of live sheep from Australia.
The following review briefly highlights the areas we have worked across during the year to achieve more profitable, competitive and sustainable Australian agricultural, food, fisheries and forestry industries.
Profitable, self reliant industries
The Australian Government has developed and the department is delivering
a comprehensive drought assistance package with many farmers from over
60 per cent of Australia’s agricultural land being eligible for some form
of assistance.
At the same time, we are encouraged by how well many farmers have coped with the drought, demonstrating the effectiveness of the Government’s AAA package which is targeted at developing farmers’ business capacity, risk management and financial self-reliance so that they are in a better position to manage exceptional circumstances.
The effectiveness of AAA was validated by a comprehensive evaluation of the package and its components. Of particular significance is the success the package has had in building self-reliance and a risk management approach in the rural sector, highlighting the importance of the successor package announced in early 2004.
Throughout the year the department continued the Government’s program of transferring greater responsibility to regional and rural industries to manage and control their own affairs.
With the creation of Dairy Australia on 1 July 2003, management of export controls for cheese products to the European Union and United States reverted to the department, and we worked with industry to develop and implement new regulations and guidelines for the 2004 shipping year. Parliament passed amendments to the Dairy Produce Act 1986 in the autumn session, concluding the legislative processes associated with dairy statutory reform. The amendments are expected to benefit the dairy industry through better ownership and control over its research, development and promotion activities.
The passage of the Wheat Marketing Amendment Act 2003 established a charge on exports to fund the Wheat Export Authority (WEA). The Act also changed the 2004 review of wheat marketing arrangements, so they could be undertaken by an independent panel, and includes the operation of the WEA.
During the year the Government announced the $444.4 million Sugar Industry Reform Program 2004. The four-year program incorporates and extends the 2002 reform package and provides comprehensive measures to help the industry reform and to assist individual cane farmers and their families who are in need.
Competitive industries
Over the course of 2003-04 we played a key role in assisting the process leading to a successful conclusion of the Australia-US and the Australia-Thailand Free Trade Agreements (FTAs).
A meeting of the Australia-Indonesia Ministerial Forum Working Group on Agriculture and Food Cooperation, held in Medan, North Sumatra, progressed a range of bilateral agriculture and quarantine issues. The Working Group also reviewed a range of cooperation activities and signed a revised memorandum of understanding (MOU) on collaborative animal and plant health and quarantine activities to facilitate and improve market access.
The department hosted another successful event in February, the visit of a delegation led by the US Department of Agriculture (USDA) Under-Secretary Jim Moseley to inspect the operation of landcare and explore landcare’s corporate connections. The delegation was interested in Australia’s landcare model as a means of achieving better conservation outcomes on-farm without the need for direct production-related subsidies.
Our involvement in training activities and exchange visits also helps strengthen trading ties. During the year a successful Crawford Fund Master Class in Agricultural Biosecurity, which the department had a major role organising was held. The event was an opportunity to show senior officials from 12 Asia-Pacific and Latin American countries how Australia takes a science-based approach to managing biosecurity risks in accordance with international standards.
Biosecurity Australia released the revised Import Risk Analysis (IRA) Handbook in hardcopy, compact disc and on the Internet. The handbook, which explains Australia’s IRA approach and promotes the transparency of the process, is one of the most comprehensive and thorough in the world.
The Keniry Inquiry into Australia’s live animal export trade reported to Minister Truss in December 2003 and recommended reforms to the billion-dollar export industry to help avoid a recurrence of the Cormo Express incident.
In May, the Australian Government and state ministers finalised and approved the Australian Animal Welfare Strategy. The strategy will provide direction for future policies and for revising existing approaches to animal welfare. It will also clarify roles and responsibilities and enable governments and stakeholders to set standards, priorities and goals.
In accordance with the Council of Australian Governments (COAG) agreed guidelines to establish the Trusted Information Sharing Network, the department helped establish an industry-led Food Chain Assurance Advisory Group. The group will provide leadership and coordination in addressing potential gaps and vulnerabilities in the food supply safety and security system in the new global security environment. The work of the group will enable industry to support and maintain its competitiveness in a market increasingly concerned about security.
The growing recognition of the contribution that women, Indigenous Australians and young people can and do make to regional and rural Australia was reflected in our programs to develop their skills and increase their participation in industries and government decision-making processes.
Sustainable industries and resource management
Natural resource management (NRM) issues increasingly dominate the national agenda, and the lingering effects of the drought drew attention to the urgency of the need to better manage the nation’s scarce water resources. Our contribution to the historic National Water Initiative (NWI), agreed by COAG in June, was significant, and one of which I’m especially proud.
COAG’s agreement to the historic NWI in June was a major achievement for the portfolio and other Australian Government and state agencies. The initiative will improve security of access to water and extend water-trading markets. The NWI’s objective is to make water use more productive and efficient in rural and urban Australia, and to ensure river and groundwater systems remain healthy. COAG also agreed to a $500 million program to address water over-allocation in the Murray-Darling Basin.
The Commission for the Conservation of Southern Bluefin Tuna (CCSBT) heralded a positive step forward in the global management of southern bluefin tuna during the year. The participation of Korea and the Fishing Entity of Taiwan, and the interest of Indonesia, the Philippines and South Africa in joining, shows that the CCSBT is expanding and evolving as a multilateral forum. The Commission reached agreement on a total allowable catch and national allocations for each member for the first time since 1997.
We maintained our leadership role in strengthening Australia’s capacity to respond to emergency animal and plant pests and diseases that could threaten our agricultural and aquaculture industries, and natural environment. The Office of the Chief Veterinary Officer continued to oversee Australia’s response to the global spread of Bovine Spongiform Encephalopathy (mad cow disease) and to the threat of Avian Influenza (bird ‘flu) following new outbreaks in Asia. The Australian Quarantine and Inspection Service strengthened screening of passengers and mail from countries with Avian Influenza and raised awareness of the disease threat.
Business excellence
In the year, we were honoured to receive a Comcover award for excellence in risk management for our coordinating role in the 2002 Exercise Minotaur, which simulated a national response to an outbreak of foot-and-mouth disease in Australia. The exercise led to the establishment of a national rapid response team to deal with a serious pest or disease outbreak.
We were pleased to be recognised again as an Australian Public Service leader in program development and for our work with Indigenous Australians, winning the 2003 Australian Public Service Workplace Diversity Award for the work of the ‘Indigenous People in Rural Industries’ team. The department was also recognised in program development and implementation for its work in natural resource management and quarantine.
It also gives me pleasure to recognise the outstanding contribution of our staff. Ms Meryl Stanton, Deputy Secretary and Executive Director of AQIS, Mr Bernie Wonder, Deputy Secretary, and Ms Barbara Waterhouse, Botanist with the Northern Australia Quarantine Strategy, were awarded the Public Service Medal in the 2003/2004 Queen’s Birthday Honours and the Australia Day Honours lists. Many other staff, too numerous to mention individually, were recognised with the awarding of Australia Day Achievement Medallions and Quarantine Export Advisory Committee Australia Day Awards. I congratulate them all again on their outstanding achievements within the department and the Australian Public Service.
In our pursuit of business excellence, we continually look for ways to improve our performance and how we measure and report on it. In March this year, the department undertook a minor review of its performance information with the aim of shifting our performance reporting to a more strategic approach. The shift is reflected in this report through the Overall Effectiveness indicators and the Output indicators where a lead (future performance) and lag (current performance) reporting approach has been initiated.
Conclusion
Some of the activities involving the department during the year were significant turning points, not only for our portfolio industries but for the nation overall. The National Water Initiative will have far-reaching implications, particularly for our irrigation industries and the health of our rivers.
Our work on natural resource management assumes ever-increasing importance as producers – and Australians in general – realise that we must sustain our soil, water, vegetation and fisheries for our future prosperity, and for future generations.
The Free Trade Agreements negotiated with the US and Thailand also promise to bring substantial benefits to our regional and rural industries. In the year ahead, the department expects to continue its major contribution to the WTO negotiations on opening up international markets for agriculture.
Changes being implemented to the live export trade will help secure this valuable industry, and we will press on with our work to strengthen Australia’s ability to manage the increasing threats from pest and disease incursions resulting from the growth in international trade and travel.
With the drought continuing to impact on many primary producers in many parts of the country, and weather predictions indicating that relief may be slow in coming for some areas, the department will remain committed to responding quickly to meet the needs of drought-affected farmers and communities.
We will maintain our commitment to business excellence, continuing to refine our management and delivery structures to ensure we provide a highly effective service to our portfolio industries and the Australian community. For this, we depend on the dedication and professionalism of our staff, and I commend all of them for their significant contributions and achievements during the year.
Michael J TaylorSECRETARY