The WA government is providing $500,000 to support the wine industry in re-establishing trade relations with China, leveraging initiatives like new direct flights to boost tourism and cellar door sales.

AnsweredQoN 256Legislative Assembly
Asked
18 April 2024
Portfolio
Regional Development

QuestionView source ↗

WINE INDUSTRY — CHINA — TOURISM
256. Ms E.J. KELSBIE to the Minister for Regional
Development:
I
refer to the Cook Labor government's commitment to providing long-term
prosperity for regional Western Australians .
(1) Can the minister outline to the house how this
government is supporting Western Australia's wine industry to
re-establish trade relations with China following its recent removal of wine
import tariffs?
(2) Can the
minister advise the house how this support builds on other initiatives
benefiting the economies in the south west and great southern, including the
new direct flights from Sydney?
The SPEAKER : The Minister for
Regional Development—in demand today!

AnswerView source ↗

Yes! I thank the member for her
question, and I have got to say that I do not think there is a single person in
Warren–Blackwood that the member has not met and spoken to. Wherever I go
into Warren–Blackwood the member's name comes up as advocating
for her region and strongly for the wine industry.
Several members interjected.
Mr D.T. PUNCH : In moderation!
(1)–(2) On Friday last week, I was pleased to join the
Premier and the member at Xanadu Wines in Margaret River for a very
important announcement about the wine industry's re-engagement with
China. As we know, the wine industry, along with other key sectors, suffered
greatly following the trade disputes with China triggered by the previous
federal government. Our government is providing new additional funding of $500 000
to assist WA wine exporters to re-engage with the Chinese market, which prior
to the introduction of tariffs was WA's largest overseas wine market,
representing 38 per cent of wine exports. That is 2.1 million litres of wine
exports to China in 2019–20, valued at $18.3 million. It was very, very
significant. The WA wine industry is estimated to be worth $729 million and
generates enormous economic opportunity and jobs for our regional communities.
It is a huge job creator for our state, with 6 000 people employed statewide.
This investment will support trade,
marketing and promotions, delegations to and from China, and WA's
participation in the region's premier wine and spirits trade
expositions like Vinexpo Asia in Hong Kong in May 2024 and ProWine in Shanghai
in November 2024. It will also assist exporters with costs for re-engaging
China-based retailers and distributors, and recommencing supply chains,
including bottling, packaging and shipping costs. The wine industry has been
suffering greatly. This is a real kickstart to help them along.
We know the partnership has been
working because, although export values to 30 June 2023 across Australia
demonstrated significant decline, WA has been less affected than other
jurisdictions because of our partnership
with WA Wines, which contributed $3 million to match the state's $3 million
to really drive over the last three years new opportunities for the wine
sector. We are also looking at east coast sales.
The
trade issues that we had impacted wines, the lobster industry and Bali. Who had
the farmers' and fishers' backs during that time? It was
our government. It was not the federal Liberal–National government, and
I did not hear much from opposition members. It was our government supporting
them then and it is our government supporting them now.
It is a pity that the Treasurer;
Minister for Tourism has left because she knows the value of tourism to our
wine industry—she knows the value of the contribution that tourism
makes to cellar-door wine sales, which is one of the key aspects of the wine
industry. For some winemakers up to 70 per cent of sales are direct to customers, and tourism plays a big role
in that. What better way to boost tourism numbers through the south west
and great southern than a plane full of tourists from the east coast, assisting
those east coast visitors, with their cash
flow, to sample our very, very fine premium wines. Following the success of
Jetstar's Melbourne to Busselton service, which commenced in April
2022, a new Jetstar service operates between Sydney and Busselton and is a very welcome boost. I want to thank our
hardworking Minister for Tourism, who is passionate about Western Australia and
regional Western Australia, for her work in helping to get those new
routes opened up. The service had its inaugural flight on 26 March and will
bring more than 28 000 additional inbound seats to the state through its
thrice-weekly service. That will be a valuable boost to tourism and it will
certainly help our wine sector, as it relies on those cellar door sales.
Reduced travel time from Sydney will encourage more visitors to conveniently
access the south west. This is significant state government support. It has
paved the way for the development of the Busselton Margaret River Airport and
the establishment of Jetstar's direct east coast connections. Through
the South West Development Commission and Tourism WA, the Cook government will
continue to work closely with the City of Busselton to secure airline services
into the future. That is the value of collaboration; that is what this
government stands for. We have the back of regional WA, we have the back of our
wine history and we will support it into the future.
The SPEAKER : The member for North West Central with
the last question.

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