Mayor’s View – 19th March, 2009
The vital debate on imported bananas has been going on for several years now. The latest announcement from the federal government is that the bio-security authorities are satisfied that there is no significant risk to the Australian banana industry and consequently imports will be allowed.
Not all scientists believe the risks are acceptable and there is certainly considerable scepticism and concern in our local community. I believe, on the basis of the precautionary principle, that the risks should not be taken.
The free trade argument is not one that is challenged too often, even though Australia often appears to be the only player on ‘the level playing field’. This is especially the case when it comes to agricultural products and the world market.
Many Australian industries have contracted or had manufacturing moved offshore, to take advantage of very considerably lower labour costs. The Australian consumer has benefited from lower cost imports and the theory goes that the benefits of industry going offshore outweigh the costs to the whole economy.
In the case of imported bananas, I am told that Philippine bananas can be landed in Sydney or Melbourne for $6 per carton. This compares with costs of production in Australia of approximately $11 per carton, plus say $3 per carton for freight south. With a price difference of this proportion the imported bananas obviously would have a huge advantage in the market place, where most shoppers choose predominantly on the basis of price per kilo.
Free trade is well and good, but we need to consider the consequences.
Where is the study on the effects of banana imports on our region?
Where are the plans for compensation and assistance in the transition to other industries?
Where are the rules to display the country of origin of fruit at retail outlets in every state?
Make no mistake; banana imports would be devastating to the Cassowary Coast economy. Bananas are our biggest industry. Flow on effects will be felt throughout, for example in effects on land values; vastly restricted employment opportunities for locals and backpackers – leading to reduced local spending by these wage earners etc. etc.- the multiplier effect’.
Only our region, producing 90% of Australia’s bananas, will pay the price for imports, while the rest of Australia stands to benefit. The cost will be borne by us. It is always hard to get a regional message across to Canberra or Brisbane from the Far North. Our numbers are small. Typically in free trade arrangements the costs are borne across larger regions. In this case our small region is bearing 90% of the costs for Australia.
I have been talking with ‘Advance Cairns’ and business people, including the Cairns Chamber of Commerce – people who generally endorse the principles of free trade and they agree with me that, in cases like this, the consequences to the local economy must be considered by government.
The CCRC will do all that it can to protect our banana industry – short of introducing planning laws that require farmers to grow bananas on current banana production land.
I call on our local community to make its views known to the federal government. Insist that we have answers to the questions listed above before allowing imports into the country. The consequences of their decision on our fragile local economy have not been thought through and there are not appropriate compensation or adjustment packages in place.
The federal government must be made to care about the regional effects of its policy decisions.
Stand up and be counted.