- Introduction
- On 30 May 2024, the government introduced the Export Control Amendment (Ending Live Sheep Exports by Sea) Bill 2024 (bill). The bill would amend the Export Control Act 2020 (Act) to institute an absolute prohibition from 1 May 2028 on the export of live sheep by sea from Australia.
- Introducing the bill, the Minister for Infrastructure, Transport, Regional Development and Local Government, the Hon Catherine King MP, stated it would ‘strengthen sheep welfare to better align Australian export law with community expectations’. Minister King further argued:
Legislating a firm end date [to live sheep exports by sea] is considered by the government as the best means for producers, businesses and markets to make business decisions with a level of certainty, and work within a clearly defined timeframe for the closure of the trade… A legislated future date provides clarity and certainty for all stakeholders and allows the market to determine when trade occurs during the transition period as producers move away from supplying the live sheep by sea trade.
1.3The bill provides authority for Commonwealth spending to support the phasing out of live sheep exports and establishes offences and civil penalties for contravening the prohibition. The bill also responds to the recommendations of the Independent Panel on the phase out of live sheep exports by sea (see below).
Background
1.4Australia’s sheep industry accounted for nearly $8 billion in 2022–23, of which $4.5billion was for sheep meat and $3.4 billion for wool. That same year, live sheep exports by sea accounted for $77 million in direct export value, with live sheep exports by air worth $8 million.
1.5Live sheep exports by sea declined by 90 per cent from 2001–02 to 2022–23, dropping from 6.6 million head to around 650,000 head. In 2022, Australia was the fifth largest exporter of live sheep, representing 4.4 per cent of the global market.
1.6Community concerns at the live export trade have been evident amid a number of high-profile incidents.
1.7Western Australia (WA) is the only Australian jurisdiction to export live sheep by sea, with no other state or territory engaging in the trade since 2017–18. The IndependentPanel noted:
Australian live sheep exports have reduced significantly over the past 2decades… as alternative income sources, including cropping and domestic slaughter, have become more profitable.
1.8Live exports by sea from WA accounted for 12 per cent of ‘turn-off’ (that is, mostly older or unproductive animals that are slaughtered or exported) in 2022-23, whilst also providing an outlet for producers to reduce stock and manage risks from water or feed scarcity. The numbers of sheep traded through live export from WA are slightly higher than interstate transfers (8 per cent), and far lower than domestic slaughter (80 per cent). Live exports contribute to the WA economy more broadly through the live export supply chain. The final report by the Independent Panel noted:
For many in sheep-producing communities, maintaining a viable sheep flock is a source of income that supports employment and a critical mass of people to sustain services and social fabric of communities.
1.9See Chapter 2 for a further discussion on anticipated economic impacts of the bill.
Regulating the industry
1.10Under the Constitution, export powers are the prerogative of the Commonwealth rather than that of a state or territory. Live sheep exports are primarily regulated by Department of Agriculture, Fisheries and Forestry DAFF), with the Australian Maritime Safety Authority responsible for the regulation of livestock export vessels. Live exports are regulated through the Exporter Supply Chain Assurance System (ESCAS) and Australian Standards for the Export of Livestock (ASEL, see Box 1.1, below)
Box 1.1 Regulating live exports Exporter Supply Chain Assurance System (ESCAS) provides regulatory requirements that exporters must meet to export livestock from Australia for slaughter or fattening. ESCAS regulations require that exporters ensure the humane handling and slaughter of livestock in importing countries. Failure to comply may result in compliance investigations and a regulatory response. Australian Standards for the Export of Livestock (ASEL) provides regulatory minimum requirements for animal health and welfare that exporters must meet if they are to be permitted to export livestock. ASEL was last updated on 30 November 2023 to ‘improve animal health and welfare outcomes, update definitions, and improve clarity and usability of the standards’. |
1.11On 31 March 2020, DAFF announced a ban on the live export of sheep to or through the Middle East during the hotter and more humid Northern Hemisphere summer, specifically, between 1 June and 14 September. The ban took immediate effect.
Independent Panel
1.12On 3 March 2023, Minister for Agriculture, Fisheries and Forestry, Senator the Hon Murray Watt, appointed a four-person independent panel to conduct consultations to inform advice on how and when to phase out live sheep exports by sea. The Independent Panel examined issues including: potential mechanisms for phasing out live sheep exports by sea; timeframes and options for implementing the phase out; potential ways to support the transition; the economic impact of a phase out; lessons learnt from other countries; and other matters. In the course of consultations, the Independent Panel met with over 2,000 individuals, held 96 stakeholder meetings, and received more than 800 submissions.
1.13The final report of the Independent Panel made 28 recommendations, including:
- that the government provide funding to support the transition of businesses in the sheep supply chain (recommendation 1);
- that the government provide access to funding for industry to grow new and strengthen existing markets for sheep products, and to support market access and growth for sheep products (recommendation 14);
- that a review be conducted in 2026 to evaluate progress in the phase out, including consideration of adjustments to the timeline and other actions (recommendation 23);
- that the end of live sheep exports by sea from Australia should occur at the beginning of the Northern Hemisphere Summer Prohibition in 2028 (recommendation 27); and
- that the end of live sheep exports by sea be legislated during the 47th Parliament and should include a date from when the prohibition would apply (recommendation 28).
- The Federal government noted (5) or supported (23) all recommendations made by the Independent Panel.
Government policy
1.15On 11 May 2024, Senator the Hon Murray Watt, Minister for Agriculture, Fisheries and Forestry, publicly committed the government to end live sheep exports by sea by 1 May 2028, and announced a $107 million transition support package to enable the Australian sheep industry to phase out live exports. The commitment implemented the Labor Government’s policy, taken to the 2019 and 2022 Federal elections, to ban the trade in live sheep by sea. The Independent Panel noted its view that animal welfare was ‘at the heart of the government’s policy’.
1.16Figure 1.1, below, provides the government phase out transition plan. The transition plan includes a stocktake to be conducted in 2026–27, partially implementing recommendation 23 from the Independent Panel by providing a ‘point–in–time assessment’ of how the sheep supply chain is adapting ahead of the phase out.’ The government response to the Independent Panel report committed the government to undertake the stocktake, through which it would monitor progress in the transition, the effectiveness of the transition support package, and consider additional steps that might be required to support industry and communities. The government stated the stocktake would not reconsider the end date or the transition timeline to ensure it did not introduce uncertainty with respect to the transition.
Figure 1.1Phase out of live sheep exports by sea: transition plan
Source: DAFF, ‘Phase out of live sheep exports by sea: Transition plan’, agriculture.gov.au/live-sheep-phase-out (accessed 17 June 2024)
Summary of key amending provisions of the bill
1.17The bill contains one schedule, the key provisions of which are outlined below.
Permanent export prohibition
1.18The bill inserts a new section 23A into the Act that prohibits the export of live sheep by sea from Australia to all overseas markets on or after 1 May 2028 (prohibition). DAFF submitted this firm prohibition provides regulatory stability and certainty for industry. The period between the passing of the legislation and the date on which the prohibition would take effect is referred to throughout this report as the ‘phaseout’ or ‘transition’.
1.19The date on which the prohibition would commence coincides with the start of the Northern Hemisphere summer and implements recommendation 27 of the Independent Panel. DAFF submitted that commencement of the prohibition on this date was designed to be less disruptive for effected stakeholders. The bill establishes the prohibition permanently and provides that an exemption to this prohibition must not be made.
1.20The rules regulating the live export of sheep by sea that are currently in place would continue to apply until the date on which the prohibition is scheduled to take effect. The bill would not affect the live export of sheep by means other than by sea and would not apply to animals other than sheep.
1.21The bill would commence the day after Royal Assent, noting that the prohibition comes into effect from 1 May 2028 rather than the date of the passing of the bill.
Spending authority for transition support package
1.22The bill inserts a new section 424A into the Act that provides for arrangements and grants in relation to the phasing out of the export of live sheep by sea and establishes the parameters around the type of assistance the Minister may make available during the transition. This assistance may include:
- assisting sheep producers and sheep supply chain businesses, particularly in WA, to prepare for or adapt to prohibition by taking up domestic or international market opportunities;
- assisting businesses to prepare for or adapt to prohibition by developing greater sheep processing capacity within Australia;
- enhancing demand in domestic and international markets for Australian sheep products; and
- exploring or developing opportunities to diversify markets for Australian agriculture and food in the Middle East and North African region.
- The Explanatory Memorandum notes the bill and accompanying transition support package would ‘enable domestic industry to adapt through increased sheep meat processing in Australia, keeping local jobs and sustaining regional development’. It also emphasises that the government intends to ‘start spending the funds as soon as possible to ensure those affected by the phase out are well-positioned, resilient and ready when the trade ends in 2028’. See Chapter 2 for a further discussion on the economic impacts of the bill.
Implementing the transition support package
1.24Funding for assistance under the proposed Section 424A was included in the 2024-25 Federal Budget, which made an appropriation for a transition support package of $107 million over five years. The 2024–25 Federal Budget describes the transition support package as designed to incentivise early action and to ‘support an orderly phase out of live sheep exports by sea, so that individuals, supply chain businesses and communities are well positioned and ready when the trade ends’. The transition support package includes funding to:
- assist sheep producers to transition their business away from live exports;
- enhance domestic and international demand for sheep products;
- implement the phase out;
- improve sheep welfare standards; and
- appoint a Transition Advocate.
- Minister King stated the measures contained in the support package would ‘enable those affected by the phase-out to be well positioned, resilient and ready when the trade ends’.
- DAFF noted the bill would enable spending against these funds from the beginning of the FY2024–25 financial year to provide the maximum amount of time for the phase out. It also submitted that further information about the programs would be made available during the second half of 2024.
Comparison with other jurisdictions
1.27Similar prohibitions have been implemented in two comparable jurisdictions, as outlined below. The bills’ Explanatory Memorandum notes the approach to the phase out taken in the bill is ‘less restrictive than other countries [which have implemented similar prohibitions on live exports]’, pointing to the transition support package and a longer transition period than was provided elsewhere.
United Kingdom
1.28On 20 May 2024, the Animal Welfare (Livestock Exports) Act (UK) received RoyalAssent, effectively banning the export of live animals from Great Britain, including cattle, sheep, and pigs. It covers both fattening and export for slaughter. Upon receiving Royal Assent, the UK government announced:
The Act will ensure that animals are slaughtered domestically in high welfare UK slaughterhouses, reinforcing our position as a nation of animal lovers and a world leader on animal welfare, boosting the value of British meat and helping to grow the economy.
New Zealand
1.29On 1 September 2020, the Gulf Livestock 1 sunk, killing over 40 people and over 6,000 heifers. The New Zealand Government subsequently suspended live exports by sea and launched an independent review. In response to the review’s findings, the New Zealand Labor government introduced the Animal Welfare Amendment Bill on 21 September 2021, which received Royal Assent on 30 September 2022. Following a transition period until 30 April 2023, it effectively banned the live export of cattle, deer, goats, and sheep by sea.
1.30The National Party took power in October 2023, pledging to overturn the ban. At the time of publication, the New Zealand ban was still in effect.
Conduct of the inquiry
1.31On 3 June 2024, Minister Watt wrote to the House of Representatives Standing Committee on Agriculture (Committee) requesting that it conduct an inquiry into the bill and produce an advisory report by 21 June 2024. The Committee launched its inquiry on Tuesday, 4 June 2024, issuing a media release announcing the inquiry and calling for submissions by 11 June 2024.
1.32The Committee invited submissions from a range of stakeholders, and received and published 668 submissions which are listed at Appendix B. The Committee also received 25 submissions confidentially and not published. In addition, the Committee received 6,683 form letters and campaign emails in favour of the bill and/or policy, and 1,156 form letters and campaign emails that were critical of the bill and/or policy. The Committee also received 4,324 short statements under 250 words relating to the Bill and 228 emails that were received as correspondence relating to the inquiry. Further details of how the Committee received and processed the evidence is included below.
1.33The Committee held two public hearings: one in Canberra, ACT on 12 June 2024 and one in Muresk, WA on 14 June 2024. The public hearing in Muresk included a one-hour community statement session, at which members of the public were invited to share their opinions on the bill for up to three minutes each. A list of witnesses who appeared at the public hearings is at Appendix A.
Processing the evidence
1.34Over 13,000 contributions from individuals, organisations, and stakeholders were sent to the Committee secretariat. Given the resources required to process the volume of material received in a limited time, the Committee resolved to manage the submissions as follows.
1.35Form letters and campaign emails, both in favour of and against the bill or policy, were aggregated against the different templates rather than published as individual submissions. Form letters refer to submissions that largely use the same template or wording, save for some paragraphs or free text areas that can be personalised by the submitter. Generally, the top and tail of a form letter is identical. Form letters are usually distributed by interest groups or organisations for people to copy, edit, and submit, or prepare according to writing instructions provided by the interest group. A copy or sample of the form letters and campaign emails received by the Committee are at AppendixC and include:
- Sheep Producers Australia form letter, critical of the bill (1,156 received);
- RSPCA form letter, supportive of the bill (6,259 received); and
- Various other pro-ban email campaign and form letters (424 received).
- Short statements comprising submissions of 250 words or less were not published individually. While the Committee did not set a word limit for its submissions, a review of the short statements showed that they generally contained views related to the policy underlying the bill rather than the bill itself, and echoed concerns already raised or submitted. In the interests of time, the Committee resolved that these statements be counted and reported as a subset of submissions, but not published.
- Other contributions that did not meet the criteria for a submission to a parliamentary inquiry were not processed by the Committee. This included 228 documents that were provided as correspondence that did not directly address the provisions of the bill or were not created for the purpose of the inquiry.
- Substantial or more detailed submissions that comment on the contents of the bill and its implementation (rather than the policy itself) were published by the Committee as individual submissions.
- The Committee’s views on these matters is provided in the following chapter.
The report
1.40Much of the evidence received by the Committee related to the government’s policy to prohibit the export of live sheep by sea, rather than the provisions of the bill. Many submitters and witnesses expressed strong concerns with the policy, the basis of its introduction, and its anticipated impact on livelihoods and rural communities. In particular, submitters argued the prohibition would:
- compromise the businesses and livelihoods of those involved in the industry;
- cause mental distress to those effected;
- harm rural and regional communities in WA; and
- undermine animal welfare by forcing current overseas buyers to purchase live sheep exports from countries with lower animal welfare standards than Australia.
- Extensive evidence was also received in support of the policy on animal welfare grounds and in the expectation that it would strengthen sectors of the domestic economy. As this inquiry is focused on the provisions of the bill rather than the Labor government’s policy, the following chapter details key issues raised in evidence related to the bill itself.