Central Bulletin A newsletter from Central ’s only Senator, Matthew Canavan

SUGAR INDUSTRY AT IMPASSE OVER MARKETING AND TPP

AUSTRALIA NEEDS GALILEE BASIN MINES ASAP MURRAY-DARLING WATER USE MUST BE SMARTER TIME TO REINVIGORATE COMPETITION POLICY Central Bulletin Number 3, November 2015 Number 3, November 2015 Coalition agreement benefits the bush Families, small business between Warren Truss and accessing higher education for operators and people in rural . rural and regional and remote and regional Australia are set students; to benefit from a new Coalition Big businesses should not be • supporting the commitment agreement between the able to act in ways that damage to the Northern Australia and Nationals and Liberals signed in competition and get away with the Agricultural White Papers mid-September. it. That’s exactly what has and our dams implementation been happening at the moment policy; The change of leadership in the because our competition laws • maintaining the existing policy federal parliamentary Liberal have been mired in a morass of to refer the same-sex marriage party – and hence the change legal dispute. issue to a plebiscite of the of Prime Minister – necessitated people in our next term; and a new agreement between the As Warren Truss announced, • transferring responsibility for Nationals and Liberals. the new agreement also covers the water policy outcomes a broad range of other key policy of the Department of the I am particularly pleased to see issues, including: Environment and the Murray- in the agreement an extra $1,000 Darling Basin Authority to the a year for 140,000 families with • maintaining the existing agriculture portfolio. stay-at-home mums and dads policies in relation to climate and agreement to push ahead change, carbon taxes and These are important measures with reforms to competition laws emissions reduction targets; which identify some of the policy that will protect small business. • ongoing funding for issues and how we will deal with communications technology, them in the term ahead. I have been campaigning for more including for mobile phones support for single-income families and television black spots; The Nationals are delivering for since I was elected as a Senator • the establishment of a new jobs regional Australia. two years ago. This is great news program to address areas of for families throughout Australia. high regional unemployment; We have an agenda in the new • support for the Government’s Coalition Government that will Also, support for changes to infrastructure investment enable us to work constructively introduce an effects test were program, including a major on those things that matter to included in a side letter to a new commitment to inland rail; people who live outside the Coalition agreement concluded • reducing financial barriers in capital cities.

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Nationals help stay-at- home parents Stay-at-home-parent families with a child below the age of one will benefit from an increase in Family Tax Benefit Part B payments

under the re-negotiated Coalition Picture:Strange Ray agreement.

This is an issue I’m passionate about and worked with my Nationals colleagues to ensure Prime Minister Malcolm Turnbull it was included in the new (centre, holding grandson Jack) shortly after being agreement. It is likely to mean sworn in and (from left) Daisy Turnbull Brown, Lucy an extra $1,000 a year for Turnbull and son-in- law James Brown. around 140,000 families across Australia, many of them in rural and regional areas. C ash for mothers in PM’s $4b Nats bribe to bind Coalition

Our tax and welfare system has tilted the playing field too much against parents who choose to stay home with their children. It is MUM’SSIMON BENSON THE WHAT THE NATS GOT inefficient, unfair and ignores the MALCOLM Turnbull has been forced to splash out $4 billion on a raft of »$1000 extra for stay-at-home mums promises to the Nationals to »No change to climate change policy development benefits of stay-at- guarantee Coalition unity following the political assassination of Tony »No change to gay marriage plebiscite Abbott, including a $600 million »Youth allowance for bush kids home parenting for children. package for stay-at-home mums. »Water ministry goes into agriculture FULL COVERAGE PAGES 4-11 WORD »Road black spot funding I recommended changes in a formal submission to the NSW Nationals Senator John extra $1000 a year to care for children Commonwealth Government Williams said the shifting of the water under the age of one as part of family discussion paper on taxation portfolio was a significant move. “If tax benefit B payments. earlier this year. Because a they want us to support them, then regional Australia has to have its fair “I was not happy that the families working couple can access two share of the cake, too,” he said. “We package ignored stay-at-home parent tax-free thresholds, whereas a insisted we have a written and signed families,” he said. “I believe the single-income family can access agreement so that in the future it tax system should not be biased to only one, a single-income family couldn’t be misinterpreted.” one form of parenting rather than earning $120,000 pays $10,000 another.” a year more in tax than a double- One Nationals MP said Mr Turnbull income family also earning a total had not said “no” to anything they A senior Liberal MP said the deal had demanded as the price of loyalty. “showed Malcolm is prepared to work of $120,000 a year. with people”. “Those who said the Queensland Nationals Senator Matt sky would fall in because the Nats Our tax system subsidises both Canavan secured the deal for families wouldn’t cop Malcolm have been parents to go to work. That’s under which families earning less proven wrong,” he said. exactly the wrong way around. than $100,000 a year be given an We should be encouraging more The Nationals’ deal securing $1000 a year for families with a child under the age of people to stay at home with their one made front-page news in “The Daily Telegraph” on September 16 children, particularly when they are young. I firmly believe that the current imbalance. is an important issue for young we must move our tax system to families throughout Australia but one based on the family, not the I have had firm support for a particularly in regional areas, individual. The increase in Family better deal for single-income where single-income families Tax Benefit Part B payments will families from many of my Liberal tend to be more common than in go some way towards redressing and Nationals colleagues. This some city areas.

Central Bulletin Number 3, November 2015 3 “Effects test” big win for small business

Agreement by the Liberal and Government Senators voting The motion was: “That this National party leaders to push against the motion. Federal Conference calls for ahead with reforms to competition section 46 of the Competition and laws that will protect small While some argue that Consumer Act to be amended business is an important benefit introducing an effects test would to include an ‘effects test’ as from the new Coalition deal. chill competition, the facts are recommended by the Harper that we already have an effects Review to stop large corporations The effects test has been a test in telecommunications law with substantial market power controversial proposal but it’s and many other countries (such from engaging in conduct that clear something needs to be done as the United States, Europe and damages competition.” to the current law, which is simply Canada) have competition law not working. Without strong systems based on the effects of The LNP State Council had also competition laws, big business actions by dominant firms. previously supported a motion will be protected from being to introduce an effects test to, threatened by new competitors The change is not only about in particular, help protect dairy and savvy consumers. protecting small business and farmers and get a better deal in farmers, it is also about ensuring the marketplace. The Nationals party is proud to competition remains vigorous stand up for small business and because competition is the best It’s another reason it is important this change would likely not have recipe to deliver lower prices and to be a member of a political happened without the support better products for consumers. party. Motions supported by and advocacy of the Nationals. grassroots members at the The win for small business also Nationals conference became Three Nationals Senators comes after the Nationals passed crucial elements of an historic supported the introduction of a motion at Federal Conference Coalition agreement just days an “effects test” in a vote in the in support of introduction of an later. Senate recently, despite other effects test.

An effects test can deliver lower prices and better products for consumers

4 Central Bulletin Number 3, November 2015 TPP deal disappointing for sugar

The Trans-Pacific Partnership and food would deliver more Addressing a meeting of cane growers in (TPP) deal will substantially than 60 per cent of the potential Tully. benefit Australia but it has missed gains from trade liberalisation, between growers and millers. The some substantial opportunities, a remarkable result given that arrangements allowed growers to especially for Queensland sugar. agriculture accounts for less than maintain a degree of choice and 10 per cent of global trade. control over the sugar supply Analysis by the US Department of chain. Agriculture before the TPP deal I would like to see the next round was reached showed that the of world trade negotiations focus Canegrowers deserve a choice removal of barriers to sugar trade on agriculture. That is where the about who markets the sugar had the potential to increase trade largest potential gains lie and that that determines the price they in sugar between TPP members is where developed countries get. Choice is the best way to by a whopping 48 per cent – the have the most to gain. ensure that people get the best second biggest potential increase deal, whether they are choosing in any agricultural product. You can contrast this focused which restaurant to eat at or who approach with the failed Doha to supply a product to. The TPP will provide Australian round of trade talks, which sugar producers an additional rested on the big idea of an all- That’s why earlier this year a 65,000 tonnes of access to the inclusive grand bargain. I believe Sugar Industry Taskforce that I United States, and the US will also we should return to a renewed was a member of recommended provide Australia with 23 per cent focus on achieving progress in introducing a code of conduct of future additional WTO quota discreet areas of trade reform, that gave canegrowers that allocations. Australia’s exports to not shooting for the stars or choice. Growers and millers the US are likely to double: from the grand bargain. This would have been locked in negotiations around 100,000 tonnes a year to concentrate minds on the specific and mediation since but without 200,000 tonnes. gains in particular areas. resolution.

While these and other changes Sugar marketing If the matter can not be are welcome, they are far from resolved soon the Government the potential gains that could The sugar industry remains will need to respond to the have been achieved, and they in limbo as a deal on future Taskforce’s recommendations do little to amend the distorting arrangements of the marketing of and possibly introduce such a impact of the US sugar program. sugar remains unresolved. code to guarantee choice for canegrowers. I recognise Australia’s negotiating The uncertainty was created team did all they could to get the last year when Wilmar, the I spoke on this issue in the Senate best outcome for Australia. largest owner of sugar mills on October 18 and my speech in Queensland, announced can be viewed on my website Global trade in agriculture is it wanted to move away from at: http://www.mattcanavan.com. the most distorted sector in marketing arrangements which au/trade_in_agriculture_trans_ world trade. Previous economic saw export sugar marketed pacific_partnership modelling has shown agriculture through a company jointly owned

Central Bulletin Number 3, November 2015 5 Galilee Basin coal mines should be developed ASAP

One of the best things Australia could do for the environment, many of the world’s poorest communities and our own economic wellbeing is to develop coal mines in places like the Galilee Basin as soon as possible.

Black coal from Queensland is the most energy efficient in the world in terms of energy output per unit of coal burned. Therefore, the most efficient outcome for the environment is to use more of Queensland’s coal and less coal from overseas countries.

I hope the Abbot Point coal terminal will be getting even busier, soon. Australian thermal coal exports are of the highest quality coal is not independent and, in this million tonnes over the next five found anywhere in the world, instance at least, it clearly does years and will boost our national with an energy content above not accord with the facts. Their income by $200 billion. Australia is 5,500 kilocalories per kilogram, story on coal is a fairy tale. forecast to overtake Indonesia as which compares favourably to the world’s largest coal exporter Indonesian coal, which has a The figures are all out there for in 2017. That does not mean that range of between 4,200 and everyone to see that our coal growth is always smooth or that 5,200 kilocalories per kilogram. sector is not in decline. Last year, prices will not fluctuate. Global in fact, we produced and exported coal prices have been at multi- Recently, Greens leader Senator a record volume of coal. When it year lows but they remain much Richard Di Natale gave a comes to this record performance higher than they were at the nationally televised address to the of the Australian coal industry, beginning of the century. That is National Press Club in Canberra. the Greens party are acting like a the world of commodity prices. bunch of deniers. They are volatile. Senator Di Natale said: “Thermal coal in Australia is in structural Australian coal production was Leading energy forecasters decline and no-one is more 491 million tonnes in 2014, an agree that the continued exposed than Australia. … the increase of almost 5 per cent on industrialisation and urbanisation Institute of Energy Economics 2013 levels. Production volumes of Asia will drive enduring growth and Financial Analysis reported have been steadily rising over the in coal demand. The International that our major export markets for past decade, with an increase in Energy Agency (IEA) estimates thermal coal are disappearing and the average annual rate of more the world will use one billion there are no new growth markets than 3 per cent over that period. tonnes more coal in 2019 than appearing on the horizon.” Total volumes increased from today. It explicitly states that the 363 million tonnes in 2004 to danger of stranded assets for the The Institute for Energy 491 million tonnes in 2014, an coal industry is “limited”. Economics and Financial average increase of around 13 Analysis is not an independent million tonnes a year. The IEA concludes that, even research body. It is a renewable under its most stringent climate energy think tank funded by large Australia’s coal export volumes change policy scenarios, no oil or trusts, such as The Rockefeller are expected to increase even gas field currently in production Foundation, with a history of further from this 400 million would shut down prematurely, opposing fossil fuels. Their work tonnes today to around 433 and only the oldest and least

6 Central Bulletin Number 3, November 2015 efficient coal mines would close. Greens MPs should hand in their smart phones It also expects coal to continue It is the height of hypocrisy for Greens Members of Parliament to to be the biggest single source steadfastly oppose mining in Australia but continue to use technology of electricity generation. In 2030, that can’t exist without mining products. coal is expected to fuel 10,200 terawatt hours of electricity, For example, smart phones contain copper, gold, silver, indium, tin around 31 per cent of global oxide, silica, cobalt, carbon, aluminium, nickel and magnesium, all generation and nearly twice as mined in Australia, and in fact require a total of 40 mined metals and much as hydro, four times more minerals. than wind and eight times more than solar. And Greens MPs better hand in their laptops too, because they have plastic cases made from coal. The best solution to help improve the environment all around the The Australian mining industry generates $138 billion per annum world is to make sure that other in exports to Australia’s economy, every smart phone depends on countries have access to such mining, and opposition to Australia’s mining industry would restrict the energy in affordable ways. We supply of these mineral resources and opponents should therefore have a choice. Either we can refrain from using these smart phones and tablets. have cheap energy, or we will have cheaper wages for some of The Greens might be happy with reverting to something like the fourth the poorest people in the world. millennium BC Sumerian cuneiform writing on clay tablets – though I personally would choose cheap that would still require mining of clay. Would they be alright with that, energy, high wages and coal. I wonder? Reptiles delay job creation in CQ A bureaucratic bungle involving gamed in the court process to a snake and a skink has been unnecessarily delay approval allowed to delay the creation of for a multi-billion-dollar project, thousands of new jobs in Central something has to change. Queensland. Activist litigation is on the The Adani Carmichael mine increase. Our environmental laws industry and continually building project is a $20 billion project and mean that well-financed green the power of the movement to it has been waiting more than groups and big environment win more.” 1,800 days now for the Federal groups get a bigger voice than Government to rule whether it can ordinary Australians who actually How they use the court system be approved. What other country live near coalmines and want the is very clear in their strategy would take five years to say yes benefits of their development. document too: “The first priority or no to a $20 billion project? is to get in front of the critical These activists have developed a projects to slow them down in the Loopholes in the law are being strategy to shut down coal mining approval process. This means abused by vigilante green in Queensland and indeed lodging legal challenges to five activists who have no interest in across the country. Their strategy new coal port expansions, two protecting the environment but document is called Stopping the major rail lines and up to a dozen simply want to stop coal mines. Australian Coal Export Boom. of the key mines. This will require Their acts are killing Australian significant investment in legal jobs. This document is very explicit capacity. While this is creating about its aim: “Our strategy is much needed breathing space, When a bureaucratic error about essentially to ‘disrupt and delay’ we need to continue to build the a report about two reptiles – key projects and infrastructure movement and mobilize to create reptiles that are not under threat while gradually eroding public pressure on politicians and from the mining proposal – is and political support for the investors alike.”

Central Bulletin Number 3, November 2015 7 CLOSE THE PUBLIC PURSE TO LAW-BREAKING ECO-WARRIORS have all recently taken steps to Tax deductions should not be available to address the gap between the stated environmental groups to assist paying fines purpose of some organisations and their activities. MATTHEW CANAVAN We should consider adopting some of the overseas approaches, providing their purpose is to protect or which include prohibiting: unlawful enhance the natural environment, or activities; the soliciting of donations to provide information, education or to pay for fines; the making of research on the natural environment. demonstrably misleading statements; Donors to registered organisations and supporting or opposing political can receive a tax deduction for the parties or candidates. Greater donations they make. About 600 transparency on the activities of registered organisations and As far as parties go, it sounded like environmental organisations are a big one. In July 2012 green activists registered and or than $100 million enforcement of existing regulations is organised a “Lizard’s Revenge of donations are made to these needed too. protestacular” at BHP Billiton’s organisations every year. A current House of Representatives Olympic Dam uranium mine site. Most registered organisations are inquiry into environmental The pictures show the more than 500 organisations eligible to receive tax- “brave souls” sure seemed to have a focused on practical actions to protect good time — except possibly for those and improve the natural environment. deductible gifts is considering these poor souls who got arrested. However, more than 100 of issues. Nothing to worry about though, the these organisations would appear to At the heart of this issue is an greenies had a plan. They put out a be more focused on campaigning for imbalance in our democracy. call to supporters after the event: “To political change than directly helping Some of these organisations are support arrestees, please make a tax- the environment. Such activities have deductible donation …” Thankfully highly active in political debates such the protest event even had its own increased. In recent state elections, as what size coal industry we should bank account in the name “Lizard’s some organisations asked for tax- have, should we irrigate northern Revenge”. deductible donations so they could fund Australia and should we permit further On my weekends I would prefer to ‘‘doorknockers’’ targeting marginal tourism developments on the Great ride in a golf buggy than in the back of seats. Barrier Reef. Some have also tried to a paddy wagon, but each to their own. Reviewing the scores of how-to-vote influence the decision of UNESCO on Then again, I don’t expect anyone cards distributed by these organisations the potential listing of the reef as “in to make a tax-deductible donation danger”, using misleading advertising towards my green fees. is like listening to variations on a theme about the health of the reef. Greenpeace, another recipient of — in e-flat: dead possums, dead koalas, tax-deductible gifts, was recently turtles, dark clouds, traffic lights and These are all legitimate policy asked on radio, “That range of tactics stars. How many different ways can debates but our democracy will be includes breaking the law?” Its we rank Greens first, Labor second and weaker if one side of the debate can response was emphatic: “Absolutely, Liberal-Nationals last? have its voice amplified through when necessary.” In a submission to I have examined the activities of generous tax treatment. the Australian government a few years ago, Greenpeace justified such illegal more than 100 of these organisations. However public-spirited the man activities by arguing they “have never More than 80 per cent of them in the koala suit may think he is, he been for any purpose except the public have promoted or been involved in deserves no louder voice than the benefit”. demonstrations, and half support man in the hi-vis shirt or the man in How did we end up in a situation divestment initiatives or legal action the Akubra. It’s time tax concessions where self-appointed environmental against certain developments. for the environment should return to organisations get to decide when a funding actions of practical benefit to breach of the law is in the “public At least 12 per cent of organisations benefit”, then ask for tax deductions have been involved in unlawful the environment, not to fund partisan to fund their self-described activities of some form. The activities political debate. philanthropic, unlawful acts? of these groups have moved away from Under the Income Tax Assessment the original purpose of the register. Act some organisations can apply The trends in Australia have been to be placed on the Register of observed in other countries too. New This article was published in The Environmental Organisations, Zealand, Canada, the US and Britain Australian on 9 July 2015

8 Central Bulletin Number 3, November 2015 GST CARVE UP NEEDS A SHAKE UP MATTHEW CANAVAN

You learn early as a parent that young children have only a concept of themselves, every toy is “mine”. It is a phenomenon that the Premiers attending last week’s Council of Australian Governments meeting would be well-familiar with. The selfishness and parochial bickering of state Premiers risks doing serious harm to our national fabric. two products, any changes they make to their The major sticking point last week was the royalties can have a large impact on their GST share. distribution of the GST. The distribution of the GST For example, if Queensland were to increase its coal is meant to be “policy neutral”. States should not be royalty rate it would lose somewhere between 30 to able to affect their distribution of the GST simply by 50 per cent of the increased revenue. So much for changing their policy settings. It’s a nice theory but policy neutrality. hard to achieve in practice. Second, the GST calculations fail to properly factor Reading Commonwealth Grants Commission in the costs of developing a mining or gas sector. reports is to enter into a dense, almost-Rawlsian, Queensland is the only state to have had the guts to philosophical world. The “veil of ignorance” develop a CSG industry. It’s been politically difficult descends: what if we did not know whether we were but the decision is meant to deliver $850 million in a rich Western Australian or a poor Tasmanian? royalties every year. What would be the fairest rule to divide wealth? Under the current formula, however, Queensland Would we seriously design the scheme that the stands to lose around half of this amount. What Commission ends up with? incentive then is there for a state to develop its gas industry? New South Wales has just as good CSG Every year the average Australian pays around resources as Queensland but it will get bailed out $2,300 in GST. Western Australians will get back $714 thanks to a subsidy from Queensland CSG royalties. per person next financial year, less than a third of what they pay. This transfer from WA mainly goes to This is not a “veil of ignorance” it is simply plain South Australia (an extra $1000 per person per year), ignorance. Tasmania (an extra $2,000 per person per year) and I live in central Queensland. The CSG industry has the Northern Territory (an astonishing extra $11,000 brought many jobs and investment but it has also per person per year). brought housing stress, road damage and inflated The Commonwealth Grants Commission estimates costs for local governments. that WA gets $7.2 billion in mining revenues a year Western Australia and Queensland have been but, under the existing formula, they lose about $4.6 arguing for years that these costs need to be factored billion, more than 63%, to other States. in when splitting up the GST. In 2005, Canada Some argue that the grants formula is sacred, adopted a 50 per cent discount to mining royalties in has not been changed since the early 1980s and response to similar concerns in their federal division therefore should be left alone. That is bunkum. of revenues. The Commonwealth Grants Commission regularly The current approach is in effect a mining tax by changes its methodology with major reviews stealth and reduces incentives for states to develop released in 2004, 2010 and this year. their own industries. This makes us poorer as a This year changes to methodologies changed the nation with fewer good job opportunities. direction of payments by $640 million. The method Tony Abbott has pointed out that we have 16 changes actually reduced payments to Western months until another state or federal election in Australia because the Commission decided to use Australia: a unique opportunity to put political specific royalty calculations for different minerals squabbling aside and come together in the national rather than a grouped approach. interest. He has invited Premiers to come together for Queensland and Western Australia have long a “Camp David” style retreat in July to work matters argued that there are two main flaws with the out. For our interests, let’s hope that the Premiers approach as it relates to mining. use the next few months to grow up. First, coal and iron ore royalties are assessed This article was published on www.onlineopinion.com.au on separately from many other royalties. Because 22 April 2015 Western Australia and Queensland dominate these

Central Bulletin Number 3, November 2015 9 Water allocation must be smarter... and fairer

We must be smarter about the It is clear from the inquiry that the approach so far has been too way we recover water from the Murray Darling Basin Plan is not concentrated on buying water Murray-Darling system or some done and there’s still a lot more back and “just adding water”. communities will be irreparably work to do, particularly in the damaged. Northern Basin. It is time greater As someone said at the hearing reality was brought to bear on in St George, we have got to get The current approach is causing the Northern Basin, which is over that “two-minute noodle” distress to a number of local completely separate from the approach to the Northern Basin economies, and this was brought Southern Basin. – thinking that just adding water home to me at a hearing of the into the system and letting it go Senate inquiry into the Murray- The Northern Basin is a flatter, is going to deliver us a result. It Darling Basin Plan held in St less-regulated system but the won’t. George in late September.

We must start looking at how we can protect the environment in a range of ways, not just taking water away from farmers and with it productive resources of regional communities like St George. If you just take that water away, it will pull the economic rug out from under these communities and potentially destroy vibrant regional towns like St George.

The Plan was signed into law in late 2012 carrying a baseline target of 2,750 gigalitres (GL) in Sustainable Diversions Limits (SDLs) or environmental water flows, with an additional 450 GL allocated for South Australia.

The St George hearing focused on an upcoming review of the Northern Basin in 2016, where the Basin Plan’s SDL targets could be adjusted via recommendations made by the Murray Darling Basin Authority (MDBA). During a recent visit to St George, I held meetings – indoors and out – to learn more about water issues in the region.

10 Central Bulletin Number 3, November 2015 Existing water infrastructure in that water is actually going to be Nationals welcome the Northern Basin must be used used for. cap on buybacks smarter and more efficiently to meet the Basin Plan’s Right now, the shared reduction Nationals Senators have environmental watering targets. amount has no specific welcomed the introduction of a environmental target so I would cap on water buybacks in the For example, weirs can be used question the need to proceed with Murray-Darling in September. and infrastructure upgraded to that shared reduction amount. I better direct environmental water am certain that is something the This is a policy that the Nationals to environmental assets where Senate Select Committee and fought for in opposition and it’s needed, and therefore potentially Northern Basin review will be great to see this protection for use less water but achieve the looking at very closely. communities come into law thanks same environmental outcomes. to the Coalition Government. We need to maintain faith with I am concerned there is a clear the community and make sure In September, the Senate passed lack of science around the shared that we’re open to changes the Water Amendment Bill 2015, reduction targets for the Northern where environmental science or which ensures that no more than Basin. The 140GL figure does not economic impacts clearly show 1,500 gigalitres of water will be have a lot of science around what that there needs to be a change. bought back from farmers under the Murray-Darling Basin Plan. Around 1,160 gigalitres has been My new office open in Rockhampton bought back so far.

After 12 months of occupying Brisbane. Central Queensland is This will mean that communities temporary office accommodation now home for me and my family. will have certainty about the in Rockhampton, my permanent adjustment that they are facing office is now open for business. Rocky is the perfect place to and can plan for their future. establish my office. It is more This is a responsible decision, Warren Truss, Deputy Prime than just central to Queensland unlike that of the previous Labor Minister and Minister for in a geographical sense. Government, which spent $303 Infrastructure and Regional Rockhampton is the beef cattle million of taxpayers’ money Development, officially opened capital of Australia, it is a gateway buying water from the Twynam the office in the heart of the city to vital mining enterprises and it Group for no obvious benefits. on October 2. has terrific tourist attractions, and so plays a significant role in three Labor also funded the then NSW Since first considering a career of the pillars of the Queensland Labor Government back in 2008 in politics, I always planned to and Australian economies – and to turn Toorale Station from a establish my office in regional there is potential here for growth gazing block into a national park. Queensland rather than in in all three. I am concerned there has been a disproportionate amount of water bought back in southern Queensland.

Farmers deserve the certainty provided by the Coalition water plan. Despite the drought, farmers in the Murray-Darling have shown they are committed to water efficiency and the certainty provided by our cap on water buybacks from the system will be welcomed by communities Deputy PM Warren Truss performed the official duties during the opening of my new office in Rockhampton. throughout the basin.

Central Bulletin Number 3, November 2015 11 All roads led to Rockhampton Rockhampton was the focus of Australia’s beef industry on October 2, when it hosted a roundtable for the $100 million Northern Australia Beef Roads Programme.

Led by Warren Truss, Deputy Prime Minister and Minister for Infrastructure and Regional Development, the talks brought together leaders in the beef Fellow federal Parliamentarians Michelle Landry, Warren Truss, Natasha Griggs and Ken industry to help identify investment O’Dowd were among the many stakeholders attending the first Northern Australia Beef priorities for beef roads. Roads Programme roundtable meeting in Rockhampton recently.

This was the first of three roundtables held in northern Australia, with the remaining two to be held in WA and the NT.

As Warren said on the day, Australia’s beef industry injects billions of dollars into the national economy and investing in key infrastructure to help make it more efficient will boost our national – and local – prosperity. push for Federal Government efficient loop road to take cattle support to co-fund a loop road road trains off the new bridge Feedback from industry players project in Rockhampton to stop in Rockhampton to the beef is an essential part of getting the trucks having to inefficiently processing precinct is vital to best result possible. decouple at Gracemere. fix a major kink in the nation’s valuable beef production line in Close to home, I will be supporting As the beef capital of Australia, Central Queensland. fellow MP Michelle Landry in her having a safer and more Red meat inquiry comes to Queensland The Senate inquiry into the effect direct sales and online auctions, prevent new entrants into the of market consolidation on the plus the regulatory environment meat processing industry. red meat processing sector has covering livestock, livestock come to Queensland. agents, buyers and meat These are important issues for processors. the beef industry. We have had This inquiry is examining the valuable input from a number impact of the red-meat processor Beef prices are at record highs of industry participants, both consolidation on competition, at the moment but only a couple in Roma and at the other two creation of regional monopolies of years ago were at record lows hearings held so far, and and returns to farm gate. despite high prices overseas. I believe the report of the inquiry will make important It will also consider the existing There are continuing issues with recommendations for improving selling structures and processes measuring fat trim, the application farm-gate returns to cattle at saleyards, particularly pre- and of Aus-Meat standards and producers when it is presented in post-sale weighing, as well as regulatory imposts that seemingly March 2016.

12 Central Bulletin Number 3, November 2015 Live cattle exports from Port Alma a step closer Port Alma is a step closer to seeing its first shipment of live cattle, following its export registration by the Federal Department of Agriculture.

Everything is set to go for local live cattle exports from Central Queensland. Local producers tell me the only thing holding it up now is the high prices being paid for cattle on competing local markets – which is great news for Nationals MPs visiting CQ have inspected facilities at Port Alma with local cattle producers. the industry as a whole. facility with much lower transport costs. Senate support Port Alma – at the mouth of the Fitzroy River near Rockhampton The Coalition Government has The importance of Port Alma – is an excellent alternative export opened seven markets for live for future live cattle exports facility for CQ cattle as and when exports, including most recently has been acknowledged by the it’s needed. China, and signed four new free federal Senate. trade deals with Korea, Japan, I recently put up a motion noting Lowering transport costs by China and the Trans-Pacific the approval of Port Alma as a providing local export options, in Partnership between 12 nations live cattle export facility and the addition to the highly important benefit of providing new export processing industry, will deliver Strong international demand, a options to producers. better returns to CQ cattle lower Australian dollar and tighter producers in particular by giving cattle numbers have produced The Senate voted access to more markets. terrific prices for our cattle, but CQ overwhelmingly in support of that producers have the knowledge motion. The vote was 45 to 10 in Around a quarter of all the cattle that there is a local export facility favour. Only the Greens voted exported from Townsville come approved now and ready to go against it. The Greens would still from CQ and producers bear the at Port Alma if prices settle back ban live export of cattle, given costs of trucking them north. Port in future and this becomes an half a chance. Alma gives them a much closer attractive alternative. Town Hall meetings in Capricornia Recently I accompanied Locals raised the need for the economy and help increase Michelle Landry on a listening infrastructure projects to boost agricultural capacity. tour to Sarina, Clermont and Middlemount. We engaged with local communities to hear their concerns.

Overwhelmingly, the major concern in these communities is the state of their local economies. The downturn in the mining sector has had a severe impact, with many people leaving town and small businesses struggling to stay afloat. Michelle Landry and I at the Sarina Town Hall meeting.

Central Bulletin Number 3, November 2015 13 Time to reinvigorate competition policy

It is time to rediscover a national, consistent and broad-based approach to competition policy reform.

We have just seen the 20th anniversary of the signing of National Competition Policy (NCP) agreements between the State, Territories and the Commonwealth Government.

That broad-based national approach clearly delivered great benefits to our community. It provided effective incentives for governments to implement what were, at the time, difficult and tough reforms.

It also delivered enormous gains for the Australian people. Those It is time to examine the efficiency of our ports, which has declined in recent years. gains are still there. We could still more inefficient over the last But that was only one small make many gains in these areas few years, and to look into our component of the national for the Australian people. If we telecommunications sector as competition policy reforms. were just to return productivity well, to make sure it is acting At the time, those reforms did growth to the level we have as competitively as it should, make changes to the then Trade traditionally had – not the level particularly with the emergence of Practices Act as a result of the we have had in the last 10 years, the National Broadband Network. Hilmer review, but they did not which has been quite stagnant just stop there. – we would deliver in 10 years In the 20-year history of national to the average Australian an competition policy agreements, They did help make sure that we income $6,000 per year higher. we had 10 years of formal provide services to the Australian That is if we were only to hit those agreements, with financial people in the cheapest and historical productivity targets. incentives to comply, but then, in most cost-effective way. They the last 10 years, we have had did ensure that our regulations The only way we can hit those an uncoordinated and haphazard were well suited to the objectives targets is not by just setting a approach that has not delivered that they were seeking to fit and target. Setting a target does not the same kinds of clear, national did not unnecessarily restrain always work. It will take hard work and consistent benefits. competition and reduce benefits to make these difficult decisions to Australian consumers. to look into our electricity sector, It is now time to reconsider and look at whether we have our approach to these areas In effect, the changes allowed got the right incentives in place of reform. I compliment the Australian businesses to do for the cheapest electricity to be Government for bringing forward more with less. They allowed produced. a root-and-branch review of the them to employ more people and Competition and Consumer Act unemployment fell to levels not It will take hard work also to that has recently reported – the seen since the 1970s. Productivity look into the efficiency of our Harper review. It is considering growth was the highest in ports, which have become those recommendations now. 40 years and the average

14 Central Bulletin Number 3, November 2015 Australian was $7,000 better off laws leading to the absurd and training. That has happened thanks to this economic growth. situation that it costs more to send to some degree. We have The Productivity Commission sugar from North Queensland to introduced case-mix funding in estimated at the time that the Melbourne than it costs to send our health sector, and we have changes increased Australia’s sugar to Melbourne from Brazil! reformed some aspects of our GDP by 2½ per cent. education sector. At the core of national competition One of my first jobs as a policy was the application of However, to a large degree professional economist was competition and price oversight there has been no coordinated to work on the Productivity to the government businesses approach from all State and Commission’s 2005 review of involved in the hard infrastructure Territory Governments and National Competition Policy. sectors of energy, water and nothing to replace the competition telecommunications. payments that encourage States Unfortunately, our record in the and Territories to comply with last 10 years has wiped away Ten years ago, the Productivity those agreements. many of the hard-fought gains we Commission recommended that had made. Since then, electricity some of the NCP reforms should We need to rediscover a national, prices have more than doubled. be adopted and that they should consistent and broad-based focus on applying the same approach to competition policy There has been a re-regulation principles to the so-called “soft reform. of our ports and coastal shipping sectors” of health and education

Carbon tax debate shows skewed thinking

Nothing demonstrates a change in our political Twenty years ago, when we signed the National debate better than the debate on carbon tax. Competition Policy agreements, we established a national electricity market. We established an Twenty years ago, Treasury and our central auction process that every five minutes sets a price economic agencies would have extolled the benefits for electricity in this country. We set up that market of lower electricity prices and their importance for because it would provide incentives to make sure the wider economy. During the carbon tax debate, that the cheapest electricity was bought first in they argued that higher electricity prices did not that marketplace because that would benefit those matter all that much because businesses could just purchasing electricity. Electricity was no longer sold pass them on. in a Stalinist or planned way; it was sold on the basis of who could provide the cheapest electricity. In 10 years, I have gone from working at the Productivity Commission to becoming a Nationals Today, we have things like renewable energy targets, Party Senator for Queensland. The people that which, by definition, despatch the most expensive I now represent – such as small businesses and electricity first. The most expensive electricity is still farmers – cannot just pass it on. Many get paid renewable energy. based on a world price and no-one in New York or other international markets is going to pay our cane Under the Renewable Energy Target, electricity growers more just because Australian governments providers must meet a mandated amount of their routinely ignore their costs. electricity production from those sources, from more expensive sources. That pushes up the price and We have gone from having an electricity market the cost of production, which will ultimately flow that is based on getting the cheapest electricity through to businesses and households and make despatched first to one that gets the most expensive us less efficient, less productive, have a weaker electricity, by definition, despatched first. investment climate and lead to fewer jobs.

Central Bulletin Number 3, November 2015 15 PRAGMATIC PARTY DOES WHAT WORKS without compensation take away a Attacks on the Nationals often fail to farmer’s right to manage their trees and vegetation. And it is not a free understand the organisation’s purpose market when snails and frogs are given greater rights than human beings. MATTHEW CANAVAN A case in point is the long-running saga of the proposed Nathan Dam. Nationals do not look to some wise First proposed in the 1920s, the dam, Ming-type ruler and say: “What would about 400km west of Hervey Bay, has he do?” Instead, we have one unifying received steam in the past two decades principle — we will do whatever best as a way to expand cotton production works for our people. and underpin the development of coal mines in the area. It has hit a barrier, So when the Country Party — though: 850 boggomoss snails were predecessor to the Nationals — was found near the dam site and the formed it was ardently free trade federal Environment Department On these pages recently Judith because high tariffs hurt farmers who ordered that they be “translocated” Sloan attacked the Nationals for wanted to export. Indeed, Earle Page before any work could progress. Not proposing “protectionist” policies — the first major leader of the Country long after, more than 18,000 snails such as a code of conduct for the sugar Party — made it a condition of forming were found nearby so the dam builders industry. a Coalition government in 1934 that assumed they could proceed. Not so The code has been proposed 465 items of machinery would be made fast! The environmental experts are because cane growers often cannot tariff free. now saying the original 850 snails is supply anyone but the closest mill. Overall, however, the Country Party an important “sub-population” and The proposed code would provide for failed in its bid to move Australia must be protected. a mediation and arbitration process to towards free trade. Both the Liberal The Nationals have been behind a resolve disputes between growers and and Labor parties advocated higher push to throw away this ideological millers. tariffs to protect manufacturing madness and put forward practical, Before Sloan was a columnist she industries. The Country Party was left environmentally sustainable ways of was a commissioner at the Productivity in the position that if you can’t beat building more dams. The Coalition Commission. While there she presided them, you have to join them, leading has already committed to building over a report into international them to advocate protection all around, dams and the agriculture white paper cargo shipping and recommended including for agricultural industries. puts more meat on this skeleton. “independent dispute resolution As Black Jack McEwen summed up, The Nationals are the second oldest process involving arbitration and “You cannot logically protect one section party in parliament. They have had provisions to ensure the parties to the and not protect other sections, given more reported deaths than the average negotiation are bound by the results”. basically similar circumstances.” Most house cat but in five years they will Attacks such as this on the Nationals trade restrictions have been removed celebrate 100 years as a party. They are not uncommon, but often miss the but that does not mean farmers operate have survived this long by being a mark and fail to understand the true in fully free and competitive markets. pragmatic party that puts what works nature and history of the party. They It is not a free market when farmers ahead of what is ideal. As for Deng are often written by people who have overseas can employ labour without the Xiaoping, so for the Nationals: it is little to no contact with Nationals protections and costs imposed on our not whether the cat is white or black, MPs. I could not find one colleague employers. It is not a free market when it is whether it catches mice. who had spoken to Sloan before her large retail companies can demand non- column. If such conversations had contractual payments from suppliers to taken place, she might have realised maintain relationships, as revealed in that putting any ism protectionism, the Federal Court last year. agrarian socialism or anything else It is not a free market when Australian This article was published in The — on the Nationals would not fit well. governments can unilaterally and Australian 11July 2015

regional Queensland against regional Australia, including What did the Nats Bob’s anytime. People in the bush Bob’s seat of Kennedy. ever do for us? know it isn’t what a man says that matters– it’s what he does. Bob chose to go independent It was disappointing to see and isn’t in a position to deliver independent MP The Nationals are delivering for anything for anyone. He was a criticising the new Liberal- regional families, businesses and great supporter of Kevin Rudd Nationals Coalition agreement. communities, and are responsible when Mr Rudd was Prime Minister for getting billions of dollars and I would welcome Bob telling I am happy to compare the Nats’ committed to spending that will us how that helped anyone in achievements for the people of directly help people in rural and Kennedy.

16 Central Bulletin Number 3, November 2015 Labor “gags” traditional views on same-sex marriage Labor has moved a number of We also said there should be debates on same sex marriage a people’s vote after the next in federal Parliament recently but election on the issue. It is important one thing has distinguished their we should be deliberative about contribution to the debate: not this change. It is not something one Labor member who supports we should rush into. traditional marriage has been allowed to speak. The Marriage Act and definition of marriage are extremely important. Labor says they are in favour I believe the nurturing of a child in of a free vote – a “conscience a relationship between a married vote” – yet we never hear from mother and father is the best the Labor members that support outcome, the ideal outcome, for traditional marriage, even though a child. I know they are out there! (In fact, Labor are only in favour of a free That is not something I believe vote until after the election, when from any religious or personal Labor members will be bound to view but from a very extensive and support same-sex marriage.) clear-sighted look at the research in this area. The technical This is a very personal issue for they are not allowed by their party literature in this area is clear: the many and it’s time we gave the to speak. best outcome, on average, for people a say, not let politicians a child’s development is to be who are silencing one side of The position of the Liberal National nurtured by a mother and a father the debate control the debate. Party Coalition is to maintain our who remain married. At this stage, the only way that party position that marriage is a “people’s vote” will occur is if between a man and a woman, as We should be very careful before the LNP Coalition is re-elected at it has been for centuries. we tinker with an institution that next year’s federal election. has survived the test of time, and We had a lengthy joint party-room in fact been the norm for at least I support keeping the current debate on this issue, where every five centuries. definition of marriage. I know member got to speak. At the end there are also still Labor Members of it, the clear majority was in It is right to allow the Australian of Parliament who support favour of maintaining our party people to make that choice after traditional marriage. However, policy position. a lengthy and considered debate. Crackin’ the whip I am proud to have been elected the Nationals whip in the Senate, succeeding fellow Queensland Senator Barry O’Sullivan, who has diligently policed us during my time in Parliament since July last year.

As can be seen from the photograph, Barry is slightly less than distraught at relinquishing the task. Like Barry, I never expect to actually use that stockwhip on the wall.

Central Bulletin Number 3, November 2015 17 Fishing bans a warning to all primary producers From November 1, net fishing has been banned in more than Katters disappoint 1,600 square kilometres of water Fishermen were disappointed stretching from the Fitzroy River to see the two members of the out beyond the Keppel islands Katter Australia Party in State and in areas near Mackay and Parliament – Robbie Katter Cairns. and Shane Knuth – vote with the Labor Government to shut Not only do these unnecessary down net-fishing in those three fishing bans cast a dark shadow regions rather than sending the over the lives of 50 fishing policy back to be re-examined. families and other seafood industry business operators but Their votes helped give Labor also, as the Queensland Seafood the numbers in State Parliament Industry Association says, “stand This T-shirt at the Tin Can Bay Seafood to defeat an LNP disallowance as a “stark warning to all primary Festival said it all: “An industry that feeds motion against the net bans. you is an industry worth fighting for.” producers”. So, the Katter Australia Party of how the Labor Party is killing has voted to put primary I agree with a recent editorial in jobs in Central Queensland. producers out of work. the Queensland Country Life newspaper that said in part: “Set The Labor Party is bad news shut down coal-fired power out neatly in the Parliamentary for jobs in this region. Labor is generation in Australia, a policy committee report into the (net- taking away the livelihoods of that will cost thousands of jobs fishing) bans … is a cautionary commercial fishermen, won’t that rely on coal mining and the tale for all Queenslanders. It support development of the Great cheap energy it provides. reveals a government that refuses Keppel Island resort and refuses to consult with those affected and to help the Federal Government Labor Party politicians are ignores the evidence and the reign in environmental activists being real job-killers in science in order to gain votes.” blocking jobs in stalled mining regional Queensland and I projects. can’t understand why they are Ruining the livelihoods of these behaving this way when we commercial fishermen and their On top of that, Labor want to have so many young people in families is just one more example impose a new carbon tax and particular looking for work. Aquaculture has plenty of potential in Queensland Aquaculture holds enormous about opportunities to expand Great Barrier Reef catchment, potential for growth in Northern aquaculture here to meet which will facilitate further Australia, and that includes increasing demand for prawns, development of an industry that Queensland. fish and other species. can contribute significantly to regional economies. As part of the Australian While wild-catch fisheries Parliament’s Northern Australia continue to supply most of the Committee inquiry into seafood produced in Australia opportunities for expanding the currently, it is clear the majority aquaculture industry above the of future growth in production will Tropic of Capricorn, I attended come from aquaculture. hearings in Cairns, Townsville and Brisbane in August. We heard that new technology and improved farm design and The Committee inspected management is already mitigating Coral trout is one of the species where existing operations and heard potential contamination of the aquaculture could boost production.

18 Central Bulletin Number 3, November 2015 $100,000 cheque for Clarke Creek Community Fellow Rockhampton-based MP Federal Government’s $100 Prior to the election of the Michelle Landry and I recently million project to improve Coalition Government, there had took a two-hour drive north-west to coverage in regional Australia. been no funding for mobile phone the little township of Clarke Creek towers in regional areas. to see Anglo American Coal hand Michelle had been determined to over a $100,000 cheque to local get a mobile tower in the area and Ongoing funding to fix mobile community representatives. she had taken the whole Senate phone blackspots was another team to the town in 2013 as part win by the Nationals in the Anglo American promised the of the Federal election campaign. Coalition agreement. funding as part of the community push for better mobile telephone coverage, and the company’s Head of Corporate Affairs, Jon Richards, handed over a cheque at a ceremony at Clarke Creek State School.

Clarke Creek is one of four sites for new mobile base towers in Capricornia announced by Michelle in June as part of the A nice big cheque from Anglo American Coal for the Clarke Creek community. Parents passionate about schooling remote kids I recently met with members of They provide a schooling base to students across an area from the Isolated Children’s Parents’ teach remote country students via Mackay to Bundaberg and Alpha Association (ICPA) to hear the internet and, in some cases, (about twice the size of Victoria). about the special challenges the old school of the air (though of educating kids from far- online instead of via radio). These parents are passionate flung properties and remote about constantly improving communities. ICPA represents There are 35 teachers on site in the education opportunities for more than 3,000 families across Rockhampton looking after 560 children and deserve support. Australia.

Along with fellow Nationals Senator Bridget McKenzie – who is based in Victoria but chairs the Senate Standing Committee on Education and Employment – and Member for Capricornia Michelle Landry, I talked to ICPA members from Central Queensland at the Capricornia School of Distance Education in Rockhampton. Teaching kids on remote properties requires dedicated parents.

Contact For more information about any of the articles or issues raised in this edition of Central Bulletin, please contact me at the addresses or numbers below. For the latest news and views - including media releases and opinion articles - check out my website and Facebook page and follow me on Twitter.

Address 34 East St Rockhampton Q 4700 Email [email protected] Postal PO Box 737, Rockhampton Q 4700 Website www.mattcanavan.com.au Phone (07) 4927 2003 Facebook www.facebook.com/SenatorCanavan Fax (07) 4927 2004 Twitter @mattjcan

Central Bulletin Number 3, November 2015 19 Michelle Landry opens new office in Sarina

Federal Member for Capricornia Michelle promised to establish Michelle Landry has ticked off this office during the last election another election promise to campaign because the northern support residents in the Sarina part of Capricornia around and West Mackay district by Sarina, West Mackay and the officially opening a new Sarina Pioneer Valley is an important office. area for the State.

The shop-front, believed to be She has been fighting for many the first Federal MP’s office to things in this area in the 20 be based in the town, is located months since taking office – at the Sarina Beach Shopping including a better deal for the Centre. sugar sector in their marketing row with Wilmar and on the Trans I attended the recent office Pacific Partnership (TPP) trade opening with fellow LNP Senator deal. James McGrath. Fitzroy water workshop attracts stakeholders More than 150 people have There are more infrastructure The workshop was open to attended a “Fitzroy Water projects in Australia than funds to the public and included short Workshop” in Rockhampton to construct them, so it is important presentations by invited hear detailed cases for competing that expensive projects like dams speakers, followed by a panel water project concepts. and water pipelines demonstrate discussion and questions from value for money. the audience. I hosted the workshop on October 28 with fellow CQ There are always going to The three-hour workshop certainly Coalition MPs Michelle Landry, be arguments about which achieved its goal of providing Member for Capricornia, and Ken infrastructure projects should information and hearing the views O’Dowd, Member for Flynn, so be funded. That’s true at the of a wide range of stakeholders we can mount the best possible local level and at the national about the needs and capacity, arguments for the region when level, with fierce competition for challenges, benefits and costs of debating with Federal Ministers available funding. potential projects. and other colleagues about water infrastructure spending.

It was a bonus that , Minister for Resources, Energy and Northern Australia, also attended the workshop and heard firsthand about the opportunities and challenges represented by a number of options for dams on Australia’s largest east coast Keen interest in dams on the Fitzroy system was reflected in a big turnout at the recent river system. workshop in Rocky.

Front cover photo: During a driving tour of North Queensland in August, I had the chance to talk with canegrowers about current industry issues, including the Trans-Pacific Partnership trade deal which has delivered a disappointing result on sugar. This paddock meeting was in Tully.

20 Central Bulletin Number 3, November 2015