AFGC welcomes new ministers

The Australian Food and Grocery Council (AFGC) has congratulated the new Coalition ministers and welcomed the ministry’s focus on growth, trade and regulatory reform.

AFGC CEO Gary Dawson said the food and grocery sector believes a rebalancing of national priorities towards growth, jobs and regulatory reform was long overdue.

“We congratulate new ministers on their appointments, particularly those relevant to our sector: Industry Minister Ian Macfarlane, Trade and Investment Minister Andrew Robb, Small Business Minister Bruce Billson, Agriculture Minister Barnaby Joyce and Assistant Treasurer Arthur Sinodinos,” Dawson said.

“The clear signals from the new ministers are encouraging. Food and grocery companies are looking for a return to certainty and stability from the government and a focus on getting the policy settings right to boost confidence and promote investment and jobs.

“To that end, we strongly support priorities including the finalisation of stalled Free Trade Agreement talks, a rollback of costly unnecessary regulation, action to reduce energy costs, a tax reform white paper and a review of competition laws to help level the playing field where there is an imbalance in market power.

“Food and grocery manufacturing is Australia’s largest manufacturing sector, directly employing around 300,000 people and with annual turnover of $110 billion. It is the lifeblood of many regional economies, with numerous major food processing plants located outside the metropolitan areas, and makes up half the total industry employment in regional Australia.

“Right now the industry is facing massive challenges from high costs, the high Australian dollar and retail price deflation squeezing profitability. Key food processing capabilities are at risk of being lost altogether, with the flow-on loss of jobs and opportunities extending into the farm supply base.

“It is also an industry with massive growth potential for the future provided we can boost competitiveness and productivity, and open up market access in the growing economies of Asia.

“AFGC looks forward to working with these experienced ministers in establishing a coordinated and disciplined approach to policymaking, to ensure a competitive Australian food and grocery manufacturing sector.”