Just weeks after the wine industry was singing the praises of the Federal Government for its A$500,000 grant to fund marketing workshops around rural Australia, it reckons it’s been slapped in the face. Chief executive of the Winemakers’ Federation of Australia (WFA) Ian Sutton is upset that the Government has not extended the exemption of the first 600,000 litres of domestic sales per annum from the so-called ‘Wine Equalisation Tax’ (WET). This is not unreasonably considered to be a lifeline for dozens of small producers and their local economies. Since the abolishment of the previous 41% wholesale tax on wine and the introduction of the WET, the Government has pocketed an additional A$340 million from the wine industry, yet quite clearly the Government has given next to nothing back. As Sutton goes on to say, Australia’s winemakers are taxed higher than any other major wine exporting country in the world. He also says that there are tough times facing small wineries at present, driven by tough local economic conditions. He’s also dead right when he claims that the implications facing regional jobs, investment and wine tourism are dire indeed. The industry, he says, is now seeking urgent talks with the Government. Isn’t this a case of too little, too late? The industry’s case is rock solid. The evidence behind its claims is indisputable. The Government has used the wine industry as a cash cow and has failed to take the trouble to learn enough about it. On all available evidence, it would appear that the Government has only bothered to look at the increasing export figures and has paid scant attention to the grassroots issues facing many wine producers. If the wine industry slides backwards, not only will it cost Australia in potential export dollars, but also in rural employment, infrastructure and tourism. Every bottle of Australian wine sold overseas is a promotion for ‘Brand Australia’. Clearly the wine industry has also failed in its own duty to communicate these concerns adequately. It’s not enough to cry poor after the door has been bolted closed for another year. These issues should be addressed prior to budgets, not afterwards. Australian wine must figure out how to get closer to both sides of Federal politics, for it’s going to need friends. Right now it has very few, if any friends around the Cabinet table. In addition to the fiscal matters of immediate concern, the wine industry also needs to communicate its case on environmental issues such as responsible water-usage and land care. It needs to lobby strongly enough to win the inevitable fight for water resources against industries like cotton and rice. It must demonstrate that it is a responsible environmental citizen and move swiftly to correct its remaining environmental deficiencies, for that is where the next major battle is going to be fought. Every damaging incidence like the recent case in which BRL Hardy was found guilty in South Australian Environment, Resources, and Development Court of breaching environmental guidelines, will certainly damage its future credibility. It’s no use the wine industry crying poor now. Surely it has the funding, the resources, the profile and the incentive to ensure that future Federal budgets don’t take its existence for granted.
