Press conference, Waikerie, South Australia

MURRAY WATT: Thank you for joining us today at the Nippy’s Citrus Packing Facility here in Waikerie in the South Australian Riverland. Today, I'm very pleased to announce the latest round of support from the Albanese Government for producers and communities as part of our efforts to ensure the health of the Murray-Darling Basin and the long-term health of the communities and industries that underpin it.

I think all Australians are aware, and particularly, here in South Australia that the River Murray is facing extreme environmental pressure. We have seen over many years over allocation of water and that is having environmental effects on the River Murray. You may have seen earlier this year I was in South Australia to announce that we had listed as critically endangered the Lower Murray and that was based on scientific advice that talked about the environmental pressure that this part of the Murray River system is under.

It's pleasing that we are starting to make some good progress in restoring the health of the Murray but we know that there's a lot more to do and that's why our Government has pursued a range of policies including voluntary water buybacks and over $870 million of investment in water infrastructure to make sure that we can preserve the Murray-Darling Basin, its environment, its communities and its industries for generations to come.

Now as part of that, what we've also announced is some financial and financial support in acknowledgement that while the agriculture sector in the Murray-Darling Basin has grown over the last few years, we do recognise that voluntary water buybacks can have some impacts on some communities and some industries. And that's why we announced $300 million in support overall under our Sustainable Communities program, which is all about getting behind local industries, exploring new opportunities, protecting existing jobs and creating ones.

And that's the purpose of today's visit and announcement today is to announce some of the funding under that $300 million program. What we are announcing today is the beginning of round one of our financial support to South Australia under the Sustainable Communities program. This round involves $12.7 million of Federal Government funding towards local industries and local jobs to make sure that these communities are thriving well into the future.

Today, what we're focusing on is the $3.5 million of funding within that we're providing to the agriculture sector here in South Australia. We all know that the Riverland is a major agricultural producer, whether it be the citrus industry, the wine industry, other forms of agriculture as well. And these investments will go a long way to making sure that we continue to have these industries, the support for growers that we need and the jobs that these industries provide in these communities for a very long time to come.

Thank you to Jeff Knispel, the managing director of Nippy’s for hosting us today. Nippy’s is an Australian wide and world famous company, when you think about the amount of exports that come out of here. And we want to support this business and its jobs for a long time to come.

And that’s why we’re providing $640,000 in a Federal Government grant towards Nippy’s. Nippy’s are co-investing in this as well, and all of that money will go towards doubling the capacity of the fruit grading line here at the factory in Waikerie. What that will do is help to protect around 100 jobs, really important jobs for this rural community and allow this production facility to expand into the future, supporting growers as well.

Beyond this facility, we're also providing $1.7 million towards critical infrastructure upgrades for the second stage of the Venus Citrus redevelopment project in Loxton and also nearly $1 million for the dollars for a new olive oil processing plant in Wenmark. So these are a range of different agricultural projects that federal investment is going towards, delivered by the Malinauskas Government here in South Australia and it's all about keeping the agriculture sector here strong as we do adjust to a change in climate, to changing water needs and the changing condition of the River Murray.

As I say, just in summing up before I hand over to Jeff, we are making good progress in the delivery of the Murray-Darling Basin Plan. It is encouraging to see some of the health of the Basin and the River Murray starting to turn around but we know that’s going to be a long term process and our Government is here for the long haul, just as we're here with these communities and industries for the long haul as well.

So thanks again to Jeff for having us along and I’ll invite him to say a few words as well. JEFF KNISPEL - MANAGING DIRECTOR, NIPPY'S: Thank you, Murray. Yes, I'd like to thank PIRSA and also the Loxton District Council for their supportive letters and Bank SA for their supportive letters in enabling us to, I believe I can say we are likely recipients of a grant.

We have expansion programs locked in for here at Waikerie but also at our Moorook operation and whilst the funding for here was a modest contribution towards the total cost, we are hopeful that we'll be more successful with round two for our project plan for Moorook. But look, we're very grateful for the contribution that the Government has made towards our upgrade here at Waikerie.

Thank you very much. MURRAY WATT: Thanks, Jeff. No worries.

Thanks mate. Good stuff. JOURNALIST: Why were the Riverland communities in particular targeted with these grants?

MURRAY WATT: So the way this grant program works is that we provide funding and then the relevant state government goes through the different applications and chooses the most meritorious ones. And so the South Australian Government clearly decided that the Riverland area when it comes to agriculture in South Australia is impacted by the River Murray, is impacted by some of the changes that are being made and needs that financial support as well.

So even though I'm a Queenslander, I know about the importance of the Riverland towards our agriculture sector. I was here in the Riverland after the 2022 floods as the Emergency Management Minister and we want to make sure that these communities thrive well into the future. JOURNALIST: There's also some pretty staunch opposition to buybacks as we know.

While we have upstream and downstream states in total opposition to each other when it comes to sharing water, is this money a band-aid on those bigger issues? MURRAY WATT: I wouldn't say it's a band-aid, I think it's an injection of support and a vote of confidence in the future of these communities. As I've said, what we know from the official figures is that the agriculture sector in the Murray-Darling Basin has continued to grow over the last four years since we revamped the Murray-Darling Basin Plan.

I'm aware that particularly the New South Wales and Victorian Governments and some producers in those states don't support voluntary water buybacks, but the reality is to ensure that we have the long-term health of the river system, of the communities and industries that rely on it, we need to do that work as well as invest in the infrastructure projects in the way that we have.

You can’t have sustainable communities and industries if you don’t have a sustainable River Murray system. And it’s that combination of effort, the voluntary buybacks, the investment in water infrastructure and the support for communities as we adjust, that will make sure that this region continues to thrive well into the future. JOURNALIST: Are you happy with how the buyback scheme is operating?

Has there been strong interest? MURRAY WATT: There has been very strong interest. And you may have seen that the- we expect that by the end of this year, we will reach 400 gigalitres of voluntary water buybacks towards the 450 gigalitre target that we set three or four years ago.

So that is good progress, and we expect to be able to reach that 450 mark by the end of next year, which is the deadline for reaching that point that’s set in legislation, and we intend to deliver it. But as I say, we also recognise that in some communities, those buybacks are having an impact. And we’re not the kind of government that’s just going to leave those communities on their own.

That’s why we’re investing that $300 million, including $20 million here in South Australia, to support those communities and make sure they thrive well into the future. JOURNALIST: Are you getting any interest from wine grape growers? What sort of support is the federal government offering those here in the Riverland?

MURRAY WATT: Yeah, look, I'm aware as a former Agriculture Minister that the Riverland wine industry has had some difficult times in recent years. Some of that has been about weather conditions, some of that has been about the trade ban that we saw from China that our government of course worked so hard to lift. So there's a range of factors that are impacting on the Riverland wine industry.

I didn't mention it in my introduction, but in addition to those grants that we're providing to individual firms, we are also funding a number of feasibility studies that involve, for instance, what can be done to assist wine growers with the removal of those fence posts that they have that I know there have been issues around, in terms of the contamination of those fence posts.

But also working with local growers, wine growers that is, to look at what sort of diversification opportunities there are as well to continue this wine industry and this region to flourish. So lots of support for the wine industry as well as the support we're providing through the agriculture department. JOURNALIST: And that Renmark project for olives, so that's, I guess, recognising that there are diversification opportunities for wine grape growers?

MURRAY WATT: Exactly. Renmark of course has been a major wine growing area in Australia for some time. But as I say, there are a range of pressures, some domestic, some international, on the wine growing industry around Renmark.

And the funding that we're providing, I think around $1 million, towards a new olive oil processing plant, is exactly about making sure that those growers have more options and diversifying the industry base. We would expect, as you see in Australia, that sometimes people grow certain crops, they change to different crops according to industry conditions, and we're very hopeful that we'll see some wine growers in the Riverland, particularly around Renmark, move towards olive production.

It's a more water efficient crop, so that's again something that farmers can take up to make sure that they're ready for a future which is likely to involve a much more drying climate. JOURNALIST: South Australia sits at the bottom of the basin, is forced to sort of cope with water decisions made upstream by governments and other irrigators. Is money trying to buy back the favour of SA river communities?

MURRAY WATT: No. Look, we announced this funding at least three years ago when we announced our broader plan for the Murray-Darling Basin. So this is not in response to any sort of recent factors.

It was in recognition that if we were going to make the changes that were needed to preserve the long-term health of the River Murray, there needed to be support for communities as that transition occurs. So, as I say, we've invested a very large amount of money in water infrastructure as well, $870 million. But we recognise that we needed to come to the party and fund industry expansion, new industries, existing industries, and that's what this funding's about.

JOURNALIST: Yeah, there's also been some new research predicting the lower Murray will experience flash droughts, I'm not sure if you're familiar with that, in the future. Is the government doing anything to prepare for that in terms of water? MURRAY WATT: Look, I haven’t heard of that specific report, but what I am aware of is the predictions that as a result of climate change, we are likely to see drying conditions here in South Australia, and in fact right across the Murray-Darling Basin.

And again, that’s one of the reasons why we’ve had to make the hard decisions to restore the health of this incredibly important water system for Australia. There's a reason that people internationally know about the River Murray. It's an iconic river system for Australia, both in terms of the communities and the industries it supports, but of course those native fish, the water birds, the incredible natural environment that this river system supports as well.

We need to protect it, it's why we need to take the action that we have, and it's why we need to continue investing in these communities for the future. JOURNALIST: Jeff, can you tell us what you’re going to use the grants for. JEFF KNISPEL: At this site about seven or eight years ago, we did a major upgrade to one of our production lines that handles what we call the other varieties, the lemons, the mandarins, the grapefruit, the blood oranges.

And that's now well and truly commissioned and well on the way to paying for itself. The main part of our grader which handles oranges, that’s- kind of got left behind, but that’s now part of what we’re planning to do here now. So ideally, we would have loved to have gone to a greenfield site and built a brand-new citrus packing shed, designed fit for purpose.

But given the current economic circumstances, we're a little bit cautious, so we thought we'd just wind the project back a little bit and just do a major upgrade within the shed in the existing building. And so the aim of this is to- there'll be some design features that'll save some water, washing water in particular. There'll be some features that I believe will handle the fruit much more gently, and this is critical for fruit that’s got to go by sea to most of our destinations, taking three, four, sometimes five weeks.

So fruit that is handled carefully and gently is critical. And I also believe that some of the photographic ability to sort out blemish or divide fruit into classes 1, 2 and 3 then juice grade, it'll be state of the art and be far more accurate, and hopefully enhance returns to growers. So that's what's planned.

So it's a major upgrade to the orange processing line within the building. JOURNALIST: Can I just get a few of your thoughts on how important this is for the Riverlands in general? JEFF KNISPEL: Well, within Waikerie Township, we would put about $5 million worth of wages into the community.

And there's economists that can work out what the multiplier effect benefit of that is, so that's critical. We've been a major employer in the town, so the fact that we survived and with this support money, we can, I guess, progress a little more confidently with our investments. So yeah, it's a critical project for us as a family business.

And I guess our bigger family, the hundred odd people that work here and their extended families, we all survive and carry on life pretty much normally. JOURNALIST: How is the future of the citrus industry looking at the moment? JEFF KNISPEL: By comparison to the wine grape industry, probably fairly rosy.

But I will say, this year has been a difficult year. We've kind of finished off in a little bit of a bare market rather than a bullish market. Quite often at the end of a naval season, there's a little bit of an upsurge in demand because the harvest is coming to an end, and you know the old story, when supply drops, demand improves and price improves.

But demand is really flat at the moment, probably as a result of- the industry is having a lot of trouble with export markets and shipping times, irregular shipping, fruit being held up at port and then transferred to another vessel or arriving late. And this all affects the condition and the look of the fruit when it arrives, and that leads to claims and discounting.

So just generally not one of our best seasons as an industry. I think I probably speak for more than one packing house when I make those comments. JOURNALIST: Sure.

And domestically then? How’s the demand here? JEFF KNISPEL: Yeah, domestically we’re just ticking over normally.

To put a bit of perspective on it, in a naval season, which is wintertime, the proportion of food that goes to domestic markets is about 20 per cent and export’s about 80. So if exports are having a rough time, that has a major impact on kind of the mood of the industry. JOURNALIST: And prices, then – are they still a bit low for the grower-producer?

JEFF KNISPEL: Compared to last season, our dollar, the Australian dollar, is a little bit stronger against a lot of our Asian partners and their currencies. So we were lucky to get offered last year's price because our partners overseas argued they were taking on board the cost of the Australian currency. So they said, can we share the burden a little bit?

You accept last year's price. That's what I've been told, and that's what's applied for Nippy’s this season. Accept last year's price, and as your customer in the overseas market, we'll take on the burden of the exchange rate.

Last year, we were at about 69 cents, Australian dollar- US dollar bought, sorry, I'll go the other way around. The Australian dollar only brought 69 US cents, this year it's buying 71 US cents. So you see we're stronger, our trading partners trade in US dollars, so they've got more dollars for the same fruit.

JOURNALIST: Can I just get your thoughts on Larissa Waters resigning as leader of the Greens? MURRAY WATT: Yeah, look, obviously I wish Larissa Waters the very best when it comes to restoring her personal health. I've got a positive relationship with Larissa.

We don't agree all the time, but I work very constructively with her and Sarah Hanson-Young when it came to passing those reforms to the EPBC Act last year. Obviously, the Greens have now got a big decision in front of them, but absolutely on a personal level, Larissa has my very best wishes towards her recovery. JOURNALIST: Today the RBA is broadly tipped to increase interest rates for the fourth time this year.

What's your message to Australians who are already struggling with the cost of living? MURRAY WATT: Obviously, I'm not going to pre-empt the decision of the Reserve Bank today, but we do recognise that economists are predicting an increase in interest rates. And what I can say to Australians is we get it, we get the pressure that people are feeling at the moment.

It's why our government has worked so hard to make sure that wages are rising, to deliver cost of living relief, whether that be our tax cuts, cheaper medicines, Free TAFE, all of those kind of things that we're delivering to try to help people keep their head above water at what is a difficult time. I think all Australians understand that the impacts of the Middle East war that we're seeing go on and still the Ukraine war have had a very big impact on inflation here in Australia, as they have on every other country around the world.

But we'll continue to support Australians as best we can to get through this. JOURNALIST: Is it reasonable for Australians to want a tax cut or some kind of relief sooner, given the government’s record tax haul? MURRAY WATT: I can understand Australians are looking for every piece of support they possibly can get.

And again, that's why our government has really stepped up to the plate in providing tax cuts and other forms of cost-of-living relief. I think we need to remember that our political opponents in the Liberal, National and One Nation parties have voted against every single piece of cost-of-living relief that we've provided. They voted against our laws to increase wages, they voted against our laws to reduce the cost of medicines to provide tax cuts.

So we will always consider what further support we can provide to Australians, but if the Liberals, Nationals and One Nation got their way, we wouldn’t have seen the tax cuts that our government recently delivered. JOURNALIST: Is there any consideration being given to another cut to the fuel excise, especially with the US President's recent backing of a ban on diesel producers selling overseas?

MURRAY WATT: We said at the time that we reduced the fuel excise that was a temporary measure. We are concerned about making sure that decisions we make don't add to inflationary pressure. So, a further reduction in fuel excise is not on our government's agenda, but that's why we are looking at other forms of cost-of-living support like the ones that I've already explained.

In terms of the reports of the US and what it may do with diesel exports, there are obviously different reports going around at the moment about what may or may not happen there. I can assure Australians that the US only supplies around 3 per cent of Australia's fuel supplies. So even if the US were to go down that path, we wouldn’t expect that to have a major impact on our fuel supplies here in Australia.

JOURNALIST: Last one here, the family of Melbourne man Hiep Tran missing in Cambodia fears he was targeted for his political advocacy and has implored the Albanese government to help find him. Is there any update from the government on that matter? MURRAY WATT: I’m sorry, I don’t have any information about that.

All good? Great, thanks. We acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture.

We pay our respects to their Elders past, present and emerging.