From the Executive Director of the NTCA

I would like to welcome members to Alice Springs for this the 25 th Northern Territory Cattlemen’s Annual Conference and to thank staff and members who have worked hard over the last 6 months to organise this outstanding and historic event.

On the wall of the NTCA office in Darwin hang the photographs of the past and current NTCA presidents and executives. These are just some of the people who have played an integral role in developing this dynamic and strong association over the last 25 years.

This photographic record is just one part of the history of the NT Cattleman’s association; a history of a great organisation that is testimony to the dedication and conviction of many people who have worked together to achieve collective goals over the past 25 years.

I took up the position of Executive Director in late June 2008 with the July show circuit and round of branch meetings providing a good opportunity to familiarise myself with the NTCAand get to meet a number of members and gain an understanding of some of the issues.

The core business of the NTCAis to effectively represent you, the members, and to be a strong advocate of a range of issues impacting on the pastoral industry in a time of continual change.

From day 1 of the carbon trading debate was hot, is still here, and will be for some time to come along with a good list of other issues including, land clearing, delivery of health services to regional and remote areas, the NT elections, improving the condition of roads and infrastructure and the continuing role of live export.

Industry overview

The Cattle Industry continues to make up more than 50% of the non- mining, NT primary industry sector. With a value of production exceeding $400m and over $600m in direct and indirect benefits to the NT economy through manufacturers, suppliers, service providers, contractors and transport companies, our industry provides a major contribution to regional economic development.

Employing up to 1800 people directly and up to 2000 indirectly the sector is a major driver in regional development, and the responsible management of over 45% of the NT landmass.

Export figures in 2008 showed an increase of 17% on 2007 with 365,000 through the Port of Darwin.

Despite the difficult seasonal conditions our northern industry is in good shape. Not withstanding the current economic crisis the long term outlook for live export remains positive. Significant ownership changes in Northern Australian Cattle properties over recent time is testament to the confidence that exists in the sector which is producing a natural, low environmental impact, clean product to feed the world.

Live cattle export, ongoing drought, increasing environmental pressures, the poor state of road and port infrastructure, the proposed carbon pollution reduction scheme and implementation of local government reform were some of the key issues for Territory pastoralists during 2008.

Environmental Matters

Increasing environmental pressure at the national and Territory level is placing increased pressure on industry and being the least developed state or territory, with less than 1% of the land cleared for development makes the job even more challenging. Tightening controls on land clearing and development threatens future development. The Association has worked for the lifting of the moratorium on the basis of scientific evidence and a more basic fairness case and in December the NT Environment Minister announced changes to the moratorium allowing land clearing to take place, all be it under tighter controls, however this has been seen as a positive step forward after many years of hardship and frustration. The practical application of the ministers instructions by the department has provided a high degree of frustration, however with strong intervention by the NTCAthis situation has moved somewhat.

While food security is finally gaining some recognition internationally, it is not on the NT Government agenda.

It is legitimate point for our industry to use in the development and diversification debate and is a core platform for advocating sensible policy. Tax incentives for timber and carbon sink forests are also working against the availability of land for food and this competition has been seen in the Douglas Daly region.

Animal Welfare

With a singular reliance on long haul transport and live export the NTCAis well aware of the potential for ill informed lobby groups to disrupt the NT industry and livelihoods, evidenced by the mulesing campaign. Introduction of new national standards for animal welfare are progressively working through high priority areas. Live Export Standards have been completed, Livestock Transport due for release in April, with work commenced on Cattle Standards. This process will eventually see all industry under national standards and industry involvement in this process is critical.

Media training was run during the year in order to assist in the positive representation of the NT industry, measures to educate producers to work effectively with the media and the positive role of Livecorp / MLA have proved beneficial in maintaining a coordinated approach to maintaining accurate information and understanding of industry issues. This will remain a key focus for the NTCA.

Roads and infrastructure

The NTCA continued the pressure in identifying problem areas and working with government to resolve problems. The situation is dire, with less than 30% of the network sealed and in decline, and that is before you get onto the dirt. The NT’s infrastructure Australia bid for $1.7B to seal the secondary road network would transform the NT, however this is looking less promising by the day. Pressure will continue for the government to have a viable plan B at a time of shrinking GST revenue and this is seen to be one of the major challenges we face and is a number 1 priority. The $250m Port upgrade is looking more promising and will improve efficiencies across all resource sectors.

Property revaluations

A debacle the last time, revaluations of pastoral leases is due this year and take effect in July 2010. Currently the responsibility of the Minister for Environment.

Clearly, doing the job properly will take some commitment by government to regain credibility and protect the industry from unrealistic changes in UCV and the flow on to rates and pastoral fees.

NTCA has begun discussions with the current ministry and while it is caught up in a debate about where the PLA should reside it is a key priority for our first 6 months.

Pastoral Land Act

After the long and detailed process of review over 2005-06 -07 changes to the Pastoral Land Act have not been before parliament and the changes remain on the shelf. While the proposed changes remain relevant there is an increasing intention by government to deal with native vegetation legislation and land clearing by other means, sidelining the role of the Pastoral Board. This posses the major threat to our industry. There appears to be a deal of uncertainty in government on this issue and the NTCA will continue to work for a satisfactory resolution.

Increasing environmental pressure and focus on off park conservation outcome s is driving government to seek deals with land holders.

Great attention is being paid to this issue as it cannot be at the expense of production. It is a priority that we focus on the maintenance of production and conservation together and counter the argument that the 2 are mutually exclusive.

Local Government reform

July saw the implementation of new local government legislation and establishment of municipal and shire councils. While the reforms took place, the NTCAhad been successful in negotiating a common sense approach to the rating of pastoral land and a future offset clause against pastoral fees. Changes to the PLA are now required to lock this into legislation which is now locked up in further possible changes and debate about the best department to house the Act.

Carbon and the CPRS

2008 has been a defining year in the journey towards an emissions trading scheme. The NTCA provided submissions to the Federal Green Paper and Territory Government’s climate change process and also commends NFF on the leadership that it has provided to the agricultural sector. No one is more aware of the impacts of climate variability and change than our rangeland industry, so it has been the impending government policy impact that has been seen as the major threat to our sector rather than the climate change itself. The headlong rush to a CPRS, in the absence of sensible and workable rules for agriculture from the highest levels ( Kyoto) and the resulting production and economic impact makes the brave new world of emissions / carbon a major challenge. The Conference will provide some detail on the measures industry is taking as we move to a decision date in 2013 for the possible inclusion of Agriculture in 2015. Despite the economic winds there seems to be a resolve to continue by government and this could be at the detriment of industry and competitiveness – we stand to be impacted heavily. Combined with the work of the NFF and other peak bodies the NTCA will continue to promote the specific issues faced by in the NT in the formation of future policy.

Wild dog control

After many years of work the government have finally provided some resolution with a partial solution so that we now have the capacity to use prepared baits. Fresh meat baiting will continue to be delivered by government until Sept 1 after which a fee for service will be triggered. Dried baits will be available after training and application to NRETAS for a wildlife permit, the length of which remains a point of contention. It is still a step forward, so we will actively work to ensure it is as workable as possible.

Primary Industry Review

The review of the primary industries took place in 2008 and provided a range of recommendations that have formed the basis for some changes to the department. The NTCAprovided a detailed submission to the review, including the strongest message for government that there is a complete lack of recognition by government for the primary industry sector and a resulting lack of coordination across departments and ministries. The relocation of senior departmental staff to Alice Springs this year has been met with disbelief and we still await the productivity gains that come with it.

Budget submission

The NTCA provided a budget submission this year to government highlighted a range of issues critical to industry including:

• Security of future food production capability
• Appropriate allocation of departmental responsibility for the key disciplines of production and environment.
• Roads investment for maintenance and new capital works across the road network and particularly the secondary network.
• Increased investment in extension and industry capacity development including value adding to Federal initiative such as the FarmReady program.
• Increased bio-security early warning and response capability.
• Investment in renewable energy and water enhancement programs to deliver more effective and efficient energy use.
• Improved education and health services right across the NT and improved access to medical assistance in regional and remote areas.
• Improved access and use of modern telecommunication technology for business, community and private benefit.

2030

An NTCA submission to the NT Governments 2030 submission process has been used as an opportunity to once again raise the importance of our sector to the NT now and into the future. The submission also was an opportunity to project our future NT as a strong and prosperous state leading in trade, innovation and development across the region, at the forefront of innovation and efficiency, producing high value food products for domestic and international consumption across 65% of the NT land mass. Embracing technology like automated livestock monitoring and control systems and renewable stock water pumping systems. Adapted and improved pastures, and targeted nutritional supplementation to enhance the sector’s future productivity.

Renewable Energy

Whilst prices have come back recently, the high fuel prices throughout the year placed an enormous cost burden on the industry. The association is addressing this through two projects which are nearing completion. One project is working with some of the very large stations throughout the NT and identifying economical options for them to utilise renewable energy and reduce the amount of diesel used to power their homesteads. There has been a cut in the subsidy level for renewable systems and if not addressed will make the process of change unviable. The NTCAneeds to look at avenues to continue this initiative and lobby for greater funding.

Scoping futures

With support of the Caring for Country program the NTCAwill roll out a new and exciting futures initiative to map a range of future scenarios for NT pastoral lands (involving indigenous and non-indigenous lands) and industry. The idea of the project is to get a step ahead to establish the broader drivers that will work to form the future for a viable and prosperous sector into the next 20-30 years.

Indigenous programs

The NTCA has been a key driver, along with land councils, the NT Government and ILC in the NT Indigenous Pastoral Program (IPP) which is an initiative to increase the level of Indigenous employment in the pastoral industry and to increase the amount of aboriginal land under production. This initiative has made significant gains over the past 5 years with over 30,000 km2 of new land developed under agreements with industry and more than 60,000 head. This initiative will produce part of the anticipated expansion of the NT herd to meet increasing market demand. I make particular mention of the outstanding work of Tony Freshwater, in what is a very challenging field.

Industrial Relations

The NTCA and Ian McLean continue to support members in Industrial Relations matters with the assistance of the National Farmers Federation.

The major issue at present is the award modernisation process which in the case of ag riculture involved reducing over 60 awards to just 1 or 2.

The NFF took the lead bringing together stakeholders in an attempt to reach a consensus point of view on a modern agricultural award.

Despite a lot of good work done by NFF, the exposure draft contained a lot of clauses relating to hours of work, overtime and allowances which would add to labour costs for industry, reduce flexibility and increase administration.

High level legal and technical advice in its submissions to the AIRC, as well as lobbying the AIRC, and Deputy Prime Minister (& workplace Relations Minister prior to implementation in Jan 2010. The NTCAwill continue to work with NFF and keep members informed of the changes under the new award and new industrial relations system.

A year of changes

There were significant changes internally within the Association during the year, with Stuart Kenny, Tricia and Bev Seidel moved on. I welcome Jo Shearn and Portia Peterkin.

Executive Officer Ian McLean is also moving on after an outstanding contribution to the industry over a number of years to return to his family station in Queensland.

What’s next

Clearly, the major issues in the coming months and years will be:

• Changes to environmental legislation and the pastoral land act.
• Increasing animal welfare pressures and the information battle to win the minds of our largely urban society.
• Conservation pressures at territory and federal level aimed in some cases at displacement of production.
• Emissions trading and the exposure of agriculture
• Economic pressures and changes in terms of trade.

The NTCA is in a position to take up these issues in cooperation with other peak bodies and while our way forward will be challenging we only have to look to the past 25 years to see that our industry and association has strength beyond measure, and a collective resolve to see the rights and interests of NT producers protected and advanced.

Luke Bowen
Executive Director
26 March 2009