Livexchange 2022: NTCA president David Connolly on live export regulatory costs

Hypocrisy, bureaucracy and an inability to see beyond the next political cycle were some of the difficulties Mr Connolly said the industry had grappled with in the past decade, which he said had only been combated by exporters and producers working together rather than apart.

"From a producer point of view, this live export cost recovery program is not the answer as ultimately we, the producer, will bear the expense," he said.

"Some of the systems governing live export are overbearing, expensive, cumbersome and ultimately ineffective.

"To add to this, the continual desire to recover the costs of too many public servants doing far too little or far too much, getting in the way of your industry functioning efficiently, is not the answer either."

An annual livestock export license in Australia will go from $25,000 to over $100,000 under the latest round of cost recovery increases planned by the federal government.

Mr Connolly said the apparently simple solution, that exporters pay for the cost of regulation themselves, meant in reality that the cost burden would be shared.

"Indonesian companies and cattle producers here in Australia will bear the brunt of this as well," he said.

"Producers already pay income tax, capital gains tax, goods and services tax, local government tax, petroleum tax - we've got more taxes than income streams, and now I'll have to factor in a live export tax into my business.

"Because that is what full cost recovery will be, a tax on live exporters simply for being live exporters, a tax on producers for selling to them, and a tax on Indonesian customers for no other reason than they have the misfortune of sitting on the wrong end of the supply chain to the Australian government."

Mr Connolly said it was fundamentally wrong to tax the customer in a supply chain for no other reason than being a customer.

"During a time of global financial instability, food insecurity, rapid inflation, surely no government will continue with this madness," he said. "We must go back to what is practical, what makes sense, what is fair and reasonable."

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It was clear among the 400 people taking part in the LIVEXchange 2022 conference that the scars of the 2011 live export ban were still raw, which Mr Connolly touched upon, saying that the pastoral industry, which has been in the Northern Territory for 150 years, had seen every manner of government action and inaction in that time.

Believing that the Labor Party's policies on exporting sheep were wrong and would do more harm than good, the apolitical NTCA took the step of speaking out about its concerns prior to the May federal election.

"Let me be clear - the ALP policy on exporting sheep is wrong and will do more harm than good," was the blunt message Mr Connolly reiterated on Wednesday.

"We've asked why they want to stop it, what evidence that's based on.

"Why do they want to make the same mistake twice."

While remaining concerned on that front, Mr Connolly said they were reassured on other levels, especially by the communication and collaboration of federal Agriculture Minister Murray Watt.

"We judge the person, not the party," he said. "The work done on strengthening biosecurity proves we can do good things working together."

Partnerships were emphasised as the way live export industry needs could be met more effectively.

Mr Connolly finished his powerful address by saying it was not only important but imperative, that both sides of the industry come together to solve each other's issues within the supply chain.

"Whilst it has not always been the case, the two sectors of the one industry are now more united than they have ever been," he said.

"Somehow the live export of cattle from northern Australia has withstood a global pandemic, an outbreak of FMD and LSD in Indonesia, record high cattle prices and rising input prices, and a difficult global financial market.

"Somehow, our little industry that means so much to so many, has been able to persevere and thrive.

"But remember, the sustainability of this great industry will only continue if each brick in the building is placed correctly.

"Together we can hold the ground against greater challenges than we would by ourselves.

"I am pleased to say that we here today are friends. We are working in the same set of cattle yards."

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