NFF: settle legal claim on Indonesian cattle ban

Trade to the northern export market was suspended suddenly five years ago, to implement a new supply chain assurance system, to address community concerns about animal welfare outcomes, at the point of slaughter.

In October 2014, a class action claim was filed in the Federal Court alleging an Export Control Order made by then Agriculture Minister Joe Ludwig on June 7, 2011 - restricting exports to Indonesia for six months - was “invalid”.

In calling on the government to act, NFF President Brent Finlay said animal welfare had always been a high priority for industry and cattle producers but feelings still remained about the government’s sudden suspension decision.

“It has left a huge scar and really shook the trust of some good, decent hard working people, in their government,” he said.

Mr Finlay said hundreds of families, whose livelihoods were stripped from them through no fault of their own, continued to be overwhelmed by debt and were struggling to rebuild their businesses as a consequence of the “rash and unsophisticated” decision made by the former Labor government.

“The naïve manner in which the month-long suspension was executed has inflicted wide-reaching and long-lasting damage,” he said.

Mr Finlay said the suspension had an immediate impact on industry, including a sharp and unexpected halt to income, a compromise of Australia’s reputation as a reliable trade partner and perverse animal welfare outcomes for stock stranded in holding yards.

He said five years on, families were still wearing the financial and emotional scars of this misguided intervention.

“Poor government decisions cost jobs and lives and there remains an obligation on our politicians to right this wrong,” he said.

Mr Finlay said the legal action seeking compensation from affected parties continued to drag through the courts to the ongoing detriment of families and business.

“Those affected by this sorry saga need closure,” he said.

“Each day that passes just reminds them of a time when government did not care about them, their families or livelihoods.”

Mr Finlay said both major political parties had said, on the public record, the ban was a poor decision.

He said Labor has labelled its actions “regrettable” while the Coalition continued to attack Labor for imposing the ban.

“Despite this, neither side has taken any steps towards resolution of the legal case that followed,” he said.

“It’s time for those affected to be compensated for the social and economic consequences that followed June 7, 2011.

“Five years is long enough – this needs to happen as a matter of priority.”

The claim was listed in this year’s federal budget under unquantifiable contingent liabilities.

While the total amount has been speculated at about $1 billion, the budget papers said the final quantum of any damages sought cannot be predicted.

“The Department of Finance, which has responsibility for Comcover (the Australian Government’s general insurance fund), has assumed responsibility for the potential claims under its insurance arrangements with the Department of Agriculture and Water Resources,” it said.

“The Commonwealth has denied liability.”

Andrew Gill, partner of Minter Ellison's Canberra office, is running the matter and said the lead applicant had completed its evidence, including a modelling report and evidence on loss.

Mr Gill said the industry's case was therefore almost complete and the Commonwealth can now extrapolate the total loss suffered across the Northern Australian pastoral industry which was “significant”.

He said the Commonwealth's evidence was due at the end of August and they may wish to mediate.

“Losses continue to accumulate for all involved in the beef cattle industry across the Northern Australian land mass while they wait for the Commonwealth to complete its evidence,” he said.

“The caretaker period does not assist the delay.

“The loss from this decision together with the resulting long-term damage, still impacts upon the long term plans for the development of Northern Australia.

“Without a recovery there may not be the certainty required for Northern Australia to reach its full potential.”

Mr Gill said the loss and damage extended further than the losses resulting from the legal claim.

He said it also extended to indigenous land tenure and job losses and the lives and livelihoods “that have been devastated”, whilst waiting for a proper response from the government.

“The butterfly effect has also been devastating, going beyond financial impacts for instance impacting upon the life of Dougal Brett from Waterloo Station,” he said.

The class action claim is being strongly backed by the Australian Farmers Fighting Fund with the Brett Cattle Company being the lead applicant.

It includes cattle producers and exporters exposed to the Indonesian market at the time of the suspension and related businesses that provided transport and mustering services, feed, agistment and other services that suffered financial harm.

Mr Brett, of Waterloo Station, Timber Creek, NT died after a helicopter accident last year while working on the family cattle station, leaving behind his wife Emily and three young children.