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PRIME MINISTER
STATEMENT BY THE PRIME MINISTER, THE HON P J KEATING MP
FOOD EXPORTS TO ASIA
I am pleased to announce thaot we wiln establish six Regional Export Freight
Councils throughout Australia to co-ordinate strategies aimed at our greatly
expanding exports of perishable goods to the rapidly growing Asian markets.
In addition, we will fund a special study to provide a commercial and
independent assessment of the potential of inland New South Wales to be a
major source of food for Asia. This study will evaluate the potential demand for
air freight and the need to improve aviation infrastructure in the region.
Background
When I visited Orange in September last year, I was pleased to be able to
discuss with industry leaders and the local community the enormous potential
the APEC markets provide for our food exports. To date our efforts have been
rather uncoordinated -for every success there has been another story of
frustration. But those successes highlight just how rich the rewards could be with a smarter
and more focussed effort. It was with this in mind that I established a Working
Group to review impediments to the export of perishable produce. The Working
Group reported to Government at the end of last year. Their advice proved to
be an important input into the food export strategy that my colleagues, Senators
Collins, Cook and McMullan, announced at the end of January.
The essence of the Workin Group's recommendations was that the overrding
need was to improve the communication and focus of all links in the export
freight chain. That is, we have to get the software of the system right and have
all players focussed on a comnmon objective.
The Report considered in detail a number of proposals that have aimed to
encourage the developmnent of air freight hubs throughout the country. There is
lWte doubt that the demand for dedicated air freight will increase considerabl
over the coming few years and that we must ensure that we have suitable
policies and infrastructure to support At.
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We already have first-class aviation facilities in most of our major cities that
could support 747 freighters. Adelaide will join this list following the extension
of its runway. This is not the case, however, for much of inland Australia. The
Working Group's Report accordingly provides some preliminary assessment of
proposals for aviation infrastructure to support international freight from the
region. The Inland Marketing Corporation's proposal to have the Parkes Airport
developed into an international transport hub warranted particular attention
because it had been advanced more than any others.
The Working Group's Report concluded, however, that on present trends the
proposal may not be a commercial proposition for some time.
But, of course, we should not be relying solely on present trends. Rather we
need to take a strategic view of how to greatly expand our exports of food
products tailored to the new markets in Asia. We need to look beyond current
practice and analyse the commercial potential of focussing producers
throughout the region on these opportunities.
It is against this background that we have decided to provide $ 2.7 million over 3
years to set up six Regional Export Freight Councils that will co-ordinate action
throughout the country. These Councils will operate under the umbrella of the
Agri-Food Council which now has transport as a high priority.
It is also clear that current proposals, including the Inland Marketing
Corporation's proposal, are not sufficiently advanced for the Government to
commit infrastructure funds unconditionally. We have thus decided to provide
$ 300,000 for a special comprehensive study into the potential of inland New
South Wales as a source of food for Asia. The study will provide a commercial
and independent assessment of the opportunities as well as particular
investment and infrastructure needs.
Much of the investment can be expected to be funded by the private sector.
However, based on this study, the Government will look favourably on
supporting any strategic infrastructure funding, including the possible
development of an inland international airport.
PARKES FEBRUARY 1996 5061