Senior Associate Richard Dewar gives an overview of the new Legislation.
Introduction
The live export trade has seen significant legislative changes in recent months, especially concerning the export of live sheep. On 10 July 2024, the Export Control Amendment (Ending Live Sheep Exports by Sea) Act 2024 came into effect, the ultimate purpose of which was to amend the Export Control Act 2020 (the Act). The amendments have brought about notable shifts in the regulations governing the live export trade. Our article delves into the specifics of the new Act, comparing it to the earlier legal framework to provide some explanation as to the wide effect the Act now has on the live export of sheep.
History of the Live Export
The history of live sheep maritime exports, (particularly in Western Australia), traces back to the 1970s. During peak slaughter seasons, abattoirs nationwide were overwhelmed with sheep of an age where their wool quality had substantially diminished. Simultaneously, unionised abattoir workers frequently initiated strikes, effectively stranding farmers and paralyzing meat processing operations.
The live sheep export boom around Australia increased significantly, as a way of bypassing these industry strikes.
Previous Legal Framework
Prohibited Goods
Before the commencement of the new Act, the live export trade prohibitions were largely regulated by the Act and associated regulations, being the Export Control (Animals) Rules 2021 (Rules). Prior to the new amendments, the only goods expressly prohibited from export by the Act being Split Vetch. However, the Rules had the authority to prescribe certain goods, including livestock, and establish conditions under which these goods could be exported or prohibited from export.
Conditions for Export
The Rules created several circumstances where exports were prohibited unless the prescribed conditions were fulfilled, some examples being:
- Mandatory registration of export establishments,
- Implementation of approved arrangements for sea transport,
- Specific requirements for air transport, including pre-export quarantine measures,
- Requirement for valid livestock export licenses, and
- Specific times of year prescribed goods like sheep cannot be exported to a particular country.
These conditions aimed to ensure that the export of livestock, particularly sheep, was conducted under stringent regulatory oversight, ensuring animal welfare and compliance with international standards.
The Act provides several important definitions including a definition of:
- "export" to mean to export from Australian territory to a place outside of Australian territory: section 12 of the Act,
- "goods" to include any animal;
- "goods are exported" when the goods being exported begin their journey from Australian territory to a place outside Australian territory.
These definitions were not amended.
The New Legislation
Section 23A
The most significant change introduced by the Export Control Amendment (Ending Live Sheep Exports by Sea) Act 2024 is the insertion of section 23A. This section imposes a direct prohibition on the export of goods by sea, with sheep being the only named goods under this provision. Interestingly, this does not affect the transport of sheep by air.
Implications of the New Law
The new law represents a substantial shift in the regulatory landscape of the live export trade. By specifically prohibiting the export of live sheep by sea, the legislation aims to address longstanding concerns of animal welfare groups relating to animal welfare, environmental impact, and ethical considerations, without prioritising the interests, track record and expertise of the agricultural industry, and associated industries related to export.
The new law does present opportunities for agriculturalists. There is significant doubt and concern over how those opportunities are realised is a matter to be decided and is completely dependent on the entrepreneurial, resilient spirit of the agriculturalist.
Government Assistance
As government has effectively destroyed an industry, it is appropriate that assistance is provided to those whose livelihoods depend on it. To help affected parties adapt and comply with the challenges faced by the new legislation, the Government has developed an assistance package worth an estimated $107 million which includes:
- $64.6 million to assist sheep producers and supply chains transition to expand domestic supply.
- $27 million to enhance demand both domestic and international for sheep products.
- $2.6 million to continue to improve sheep welfare standards.
- $1.7 million for a transition advocate to facilitate communication between industry and government, who will provide information regarding transition plans and support to industry and updates to government.
- $11.1 million for the implementation of the phase out, including stock take of transition progress, and facilitate ongoing engagement with industry, communities, trading partners, and stakeholders.
Given the size of the industry and all of the businesses, rural communities, and families that rely on it, the adequacy of the assistance package has been appropriately challenged. Arguably, the package reflects a lack of understanding of the industry and its value to the nation.
Conclusion
The Export Control Amendment (Ending Live Sheep Exports by Sea) Act 2024 marks a significant turning point in Australian agricultural practice. While the immediate impact on the industry is substantial, the long-term effects may lead to a more sustainable and innovative agricultural sector. The key to success lies in how effectively stakeholders can adapt to these changes and capitalise on new opportunities in the evolving market landscape, and adequate government support for them to do so.
This legislative change not only reflects evolving attitudes towards animal welfare but also signals a broader shift in the government's view of agriculture.
The significant question to be considered is whether the public and government can appreciate the contribution of the industry to local communities, the economy, and Australian society before it is too late, and the agriculturalist has no other option than to cease operations. Only time will tell.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
