Australian Grape & Wine has condemned what it describes as “the lack of assistance for grape growers and winemakers in the Albanese Government’s budget”.
After suffering significantly from the protracted tariff war with China, AGW has labelled the budget as a “missed opportunity” which ignores the industry’s pleas for urgent support.
“This Budget provides no relief for the serious challenges facing growers and winemakers in regional communities across much of Australia,” AGW chief executive Lee McLean says.
“The industry’s struggles are not the result of normal market fluctuations, but stem from factors outside the industry’s control, including the loss of our largest export market (China) in 2020.”
Lee has also criticised the omission of the industry’s “modest” pre-budget submission requests, including a $30 million sustainability package, $36 million for export assistance, and $20 million for domestic wine tourism.
“It is well understood, however, that Australia’s grape and wine sector is experiencing a downturn that is deeper and harsher than what we have seen previously,” he said.
“This downturn is testing the fabric of our sector and has the potential to decimate the businesses that contribute to the regional communities in which they operate.
“While this scenario is, absolutely, a cause for alarm, we were confident a smart and strategic co-investment between industry and the Australian Government would mitigate the worst of the potential impacts, while also laying the groundwork for businesses to take stock and implement the steps they need to take to allow the industry to recover.
“We made it crystal clear – many in regional wine communities across Australia are on their knees and need urgent government action to stop a bad situation from becoming a catastrophe.”
However, Lee says instead of the support it was seeking, all the industry got was a new tax in the form of the deeply flawed biosecurity protection levy.
He says while China’s decision to lift import duties is positive, it will simply not resolve the issues facing growers and winemakers.
“The economic shock experienced by our industry has led to unsustainable prices for grapes, an oversupply of wine, and increasing economic disadvantage in regional Australia,” Lee said.
“It’s a damning indictment of just how dire the situation is when the refund on an empty wine bottle is worth more than what many of our growers receive for the grapes that fill it.
“It’s disappointing that despite the sector’s $45.5 billion economic contribution, the government has turned a blind eye to our pleas for assistance.
“We are now calling on Canberra to reconsider this missed opportunity.”
He says Australian Grape & Wine is committed to fighting for growers, winemakers and regional communities.
“We will not let this go,” Lee said.
“This deliberate failure to help families in regional Australia jeopardises the viability of entire communities, and without help it is only going to get worse.”
