Labor warned two years ago – but failed to act

The Labor Government was warned two years ago about the long-term viability of the Tasmanian vegetable processing industry but failed to act.

In a Government commissioned report prepared in response to the “Fair Dinkum Food Campaign”, the agribusiness consultants, McKinna et al Pty Ltd, wrote that

“The long-term viability of the processing industry is in question” (p7)

And

Throughout the program of consultation it became evident that there are grave doubts about the long-term viability of the processing industry… Moreover, processors themselves are facing increasing competition from imports which serve to devalue entire categories and put downward pressure on prices. The ramifications of the processing industry ultimately closing down are major, but this likelihood must be considered. (p8 – emphasis added).

In addition to this, in 2006, concerns were raised about the long-term operation of McCain at Smithton when it was revealed that McCain management at Smithton did not even have a five year plan.

The Opposition supports the Premier’s actions in meeting with McCain to try and get them to reverse their position, but this report raises serious questions about how we have got to this position in the first place.

What have the Labor Government been doing for the past two years since this report was published?

When was the last time the Government spoke to McCain management?

And why have they done nothing to address the serious issues facing the vegetable processing sector?

The Government-commissioned report is available here:

http://www.dpipwe.tas.gov.au/inter.nsf/
Attachments/TTAR-7C633M/$FILE/Veg%
20Plan_Vol%205%20Industry%20&%20
Category%20Analysis_part%20B_4%20to%207.pdf
Will Hodgman MP Leader of the Opposition