THE Greens and Coalition Senators have dropped their opposition to new quarantine reforms, which have replaced the 40 per cent export inspection fee subsidy as of today.
Both camps managed to broker special arrangements and conditions, particularly for the horticulture sector, to let the reforms go ahead from July 1.
This is despite flagging last week they would disallow the new regulations even though the policy had support from most exporting industries.
The Government will now roll out a $40 million reform package at the Australian Quarantine and Inspection Service (AQIS) as compensation for the discontinuation of the subsidy.
The reforms - developed with rural exporters - are designed to improve efficiency, particularly on the technology front, promising to cut red tape for rural exporters.
Last week Minister for Agriculture, Tony Burke, described the package as "the biggest reforms in this area in a generation" and would help achieve a world-class Australian agricultural export sector.
Changes include increasing the use of electronic processing - more than 89 per cent of the 33,000 clearance certificates to be issued in the next financial year will be done electronically.
The reforms will also remove duplication in auditing and inspection requirements between State, Commonwealth and customers.
While many export industries were reportedly pleased with the reform outcome, some Senators were worried the removal of the 40 per cent inspection rebate before the reforms were completely rolled out would impose massive costs on industry that would invariably get passed back to farmers.
Greens deputy leader, Christine Milne, told Rural Press that she has her disallowance motion still "on the books" and will carefully monitor the early implementation of the reforms and transitional assistance to industry to ensure they are fairly rolled out.
She negotiated a review of the reforms before November, conscious industry was concerned the change could be "often promised, but never delivered".
Last week Liberal Senator, Richard Colbeck, also listed a disallowance motion arguing there was not the industry support for the reforms without a continuation of the subsidy.
He said this was the case particularly in the meat industry and horticulture, but the basis for his opposition quickly dried up on the day he was due to block the measures, with statements of support from both industries for the Government's reform agenda. His motion has also been deferred until after the winter break.
The Australian Meat Industry Council said its support for the passage of the legislation was "based upon a commitment by the Federal Government to implement a ground-breaking suite of reforms to the meat inspection system in Australia".
"AMIC's commitment to full cost recovery remains hinged to the successful delivery of the reform agenda," AMIC chair Gary Burridge said.
Horticulture Australia Council chief executive Kris Newton said his industry "strongly opposes" the removal of the 40 per cent Government co-contribution to the current fees and charges model but have agreed to the reforms nonetheless.
"We believe this is a blunt instrument in policy terms, and poorly-timed without adequate warning to industry," he said in a letter to Senators last week.
"It will initially create significantly increased costs for many exporters.
"However, industry as a whole has accepted the model of the proposed fees and charges structure as an interim measure to commence in the 2009-10 financial year only to ensure AQIS' program costs are covered in the transition to a more responsive, efficient and cost-effective export inspection and certification program."
Senator Milne said she was concerned about horticulture because there was such a diversity of views and "it was almost impossible to work out what horticulture wanted".
"Some in horticulture, particularly the citrus sector, didn't want any additional costs whatsoever because they are in survival mode," Senator Milne said.
"But I didn't want to disallow the whole lot and prevent the reforms for grains, wheat, live exports, fish, everything so I went to the Minister looking for a way forward for horticulture.
"I reached an agreement that out of the $2.5 million that had been set aside for horticulture in the reform package, half of that would be paid as a rebate over 12 months to help with the fact the industry is such a seasonal business."
Senator Milne said that if the reforms do what they're supposed to, fees and charges should be reduced next financial year.
"There's a section of people that wanted the whole lot disallowed and wanted the subsidy kept on," she said.
"Even if they had been able to extend it until next year, the $40m that Minister Burke got will just be spent on the subsidy and at the end of next year we're in exactly the same position we're in now with no prospect of the fees going down and the Government would just not keep rolling this out year after year.
"My biggest criticism is that the Howard Government, over all those years, just kept paying the subsidy and did not actually use it as leverage to get the reforms at AQIS that should have been delivered."
Email a friend