Extract from Hansard [ASSEMBLY - Wednesday, 24 August 2005] p4537b-4542a Mr Paul Omodei; Mr Tony McRae; Mr Mark McGowan; Acting Speaker; Mr John Kobelke; Ms Margaret Quirk ABATTOIR INDUSTRY, INQUIRY Amendment to Motion Resumed from 17 August on the following motion moved by Mr P.D. Omodei (Deputy Leader of the Opposition) - (1) That this house calls on the government to conduct an inquiry into the abattoir industry in Western Australia, and in particular - (a) the reasons for the closure of Harvey Beef; (b) the location of current abattoirs; (c) potential sites for new abattoirs; (d) identify current abattoirs and their classification; (e) future sites suitable for international accreditation; and (f) whether government should provide incentives for new abattoirs or upgrading or relocation of current abattoirs, and any other matter pertaining to domestic and export abattoirs which inhibits their development and existence. (2) That the matter be referred to the Economics and Industry Standing Committee. (3) That the government take action on any matter relating to the continuation of a viable beef industry while the committee inquires into this matter. to which the following amendment was moved by Mr G. Snook - That the following paragraph be added to the motion - (4) That the committee report to the Legislative Assembly by March 2006. MR P.D. OMODEI (Warren-Blackwood - Deputy Leader of the Opposition) [4.04 pm]: The amendment moved by the member for Moore seeks to add the following paragraph to the motion - (4) That the committee report to the Legislative Assembly by March 2006. I will not take too long talking on the issue, but it was deemed that that amendment to the motion would finish it off. We wanted an indication from the government about whether it would support the motion. As members know, last Wednesday debate on the motion was adjourned by the member for Greenough; that terminated the debate. Needless to say, this matter is very important to the people of Western Australia. I will sit down right now so that we can move through the debate. MR A.D. McRAE (Riverton - Parliamentary Secretary) [4.05 pm]: The proposal that the committee report by March 2006 reveals part of the problem the government has with this motion, which we debated last week. The proposal is that somehow this Parliament and this chamber can assist the industry by referring the matter to a committee for investigation that goes to the very question of matters that are now in the hands of the voluntary administrator. The same proposition suggests that setting a reporting date of March 2006 will assist in the processes currently under way. That reveals the problem that the government has had with this motion from the outset. The government will not agree to this amendment. That is not to say that it will not be open to a discussion about an inquiry of the nature that has been proposed, or even about the proposed reporting date, but after the current problems have passed. Since this matter was last debated in this chamber and the amendment was proposed to be added to the original motion, a range of things has happened. The pace at which those things are occurring reveals that the reporting date of March 2006 will not assist our task. The Minister for Agriculture and Forestry met with the voluntary administrator, Ferrier Hodgson, as recently as last Sunday. He has undertaken to be receptive to submissions or to receive further information from the administrator. In that context, and in the context of the government’s intention that a sustainable commercial enterprise emerge from the hiatus in the operations of E.G. Green and Sons in Harvey, it is clear that an inquiry at this time will not assist all the stakeholders, including the producers, the administrator, the workers, the unions, the transport operators and the shire. The shire has added its voice to the calls of concern about how to ensure that a commercial operation emerges. In that context, we will not agree to this amendment. As I said to the opposition last week, the government is prepared to accept a modified set of terms of reference for an inquiry. It might even accept March 2006 as an appropriate time frame in which the Economics and Industry Standing Committee is to report to this house. However, to set the time frame as March 2006 and not modify the terms of reference so that they are [1] Extract from Hansard [ASSEMBLY - Wednesday, 24 August 2005] p4537b-4542a Mr Paul Omodei; Mr Tony McRae; Mr Mark McGowan; Acting Speaker; Mr John Kobelke; Ms Margaret Quirk meaningful to the reporting time of March 2006 means that we cannot agree with the motion. Much work is yet to be done. I say again to members of this house and to the community that the government will do everything in its power to ensure that a sustainable commercial operation re-emerges from the hiatus of the operations of E.G. Green and Sons. We are working on that now in a collaborative and cooperative way. This motion and the amendment that has been proposed do nothing to contribute to finding that sustainable commercial solution, and therefore we will oppose it. MR M. McGOWAN (Rockingham - Minister for Peel and the South West) [4.09 pm]: I am pleased to speak on this very important matter. As the Minister for Peel and the South West, I know that Harvey is an important community in the south west and plays a pivotal role in the state’s economy. It is very important because of the support it gives to the rural community around the town; in particular, the beef industry, dairy industry and other industries in the area. It is very important to the government that E.G. Green and Sons continue to operate. It is also very important to the local community because, for approximately 90 years, it has been a significant employer in the region. It has provided good quality and good paying jobs for large numbers of local people. It is an important component of the economy of the Harvey area. It is very important to us that E.G. Green and Sons be able to continue operating. Of course, it provides 90 per cent of exports of beef. The ACTING SPEAKER (Mr P.B. Watson): Order! The amendment is that the committee report to the Assembly by March 2006. I ask the minister to speak to the amendment. Mr M. McGOWAN: Certainly. The amendment moved by the member for Moore imposes an unreasonable time frame for the committee to report. I expect that this matter will be resolved in a reasonably short period. From all the advice that has been provided to me, it appears that E.G. Green and Sons is a business that is largely sound and has a substantial asset base. It also has a very good name among consumers and a very good customer base overseas for products produced through the abattoir. It certainly appears to me from the advice I have received from the Minister for Agriculture and Forestry, Hon Kim Chance, that he thinks it is a long-term, viable entity that will be able to survive into the future as an ongoing business concern. He has visited Harvey and met with the workforce at E.G. Green and Sons. He has been in constant contact with the management of that business. His view is that this matter should largely be able to be resolved with a commercial solution. That commercial solution may involve some management changes at E.G. Green and Sons. It may involve some restructuring of the debt. It may involve some negotiations and discussions with the bankers to ensure that they can continue to extend credit to the business to allow it to continue to operate. Considering that today is 24 August, my expectation is that the matter will be resolved in the very near future, probably only a matter of weeks, and that E.G. Green and Sons will continue to operate. Mr A.D. McRae: That certainly is the view I have expressed previously on this matter. The minister in the other place has expressed the very same view. Mr M. McGOWAN: It is very important in these matters that business be allowed to come up with commercial solutions to these problems. Business should be allowed to get on with business. All I have heard from the Deputy Leader of the Opposition is solutions that are arrived at at a moment’s notice that involve the government giving money. That was the context of the question he asked last week. The issue had only just arisen. As far as the government was aware, there was no request by the company for any government support. The member for Warren-Blackwood came into the house and told the government to give the company money. That appears to be the solution that the opposition adopts to every single problem in Western Australia! Give them money; that is the answer to everything! I have certainly experienced that with my portfolios of tourism, and racing and gaming. We would need the budget of somewhere like Saudi Arabia to satisfy the demands of the opposition for every issue in Western Australia because every issue is to be resolved with money. The ACTING SPEAKER: Order! I ask the minister to address the amendment. Mr M. McGOWAN: My concern is that the opposition is imposing an artificial time frame on the reporting requirements of the committee that would artificially constrict what will be examined by the committee.