Speech by the Australian Deputy Prime Minister and Minister for Trade, The Hon Tim Fischer to the Opening of BRL Hardy's "Stonehaven" Winery, Padthaway, South Australia, 11 March 1998.

Introduction

Mr John Pendrigh, Chairman, BRL Hardy, my Federal colleague, the Honourable Ian McLachlan, Minister for Defence, the Honourable Graham Ingerson and other Members of the South Australian Parliament, Mr Stephen Millar, Managing Director, BRL Hardy, other distinguished guests, ladies and gentlemen.

It is a very great pleasure to be able to open BRL Hardy's new winery "Stonehaven" today and to launch its new wine label, appropriately called simply "Stonehaven".

As we have just heard, this winery represents a new phase in the ongoing success story which is Australian wine. BRL Hardy is investing some $18 million in this venture - the first new major winery to be constructed in 20 years.

The significant increase in plantings of grapes over the last few years - to keep up with extraordinary growth in both domestic and export markets - has now caught up with the industry. The price of success is the need to invest further in required plant and equipment. I congratulate BRL Hardy on leading the way.

The Australian Wine Industry - An Unqualified Success Story

The Australian wine industry has been one of the great success stories of the Australian economy over the last few decades.

But it was not always so. Australian wine has not always been held in high regard internationally.

Indeed, reputedly the last words of English author Evelyn Waugh to his son, Auberon - later to become one of Britain's more eminent wine critics - were: "Whatever you do - never drink Australian red!".

The happy ending to that story is that Auberon Waugh, far from heeding his father's last wish, not only drank our wine but heaped lavish praise on notable Australian wines - contributing to the high reputation our wine now enjoys in the UK, our major export market.

And our exports have been going from strength to strength.

In 1990 wine exports were worth $114 million. By the middle of last year they had multiplied more than fivefold to reach over $600 million. I am sure that achievement owes much to the efforts of the Australian Wine Export Council, a group of industry executives who came together in 1992 with a view to kicking export growth along.

Moreover, the industry has taken considerable pains to promote Australian wine around the world and is to be applauded for funding its export drive by way of a self-imposed export levy.

As a result of our wine's high quality and the hard promotional yards the industry has put in Australian wine is now extremely highly regarded right around the world. Australian wine is a byword for sophistication and technical excellence in over 70 markets.

I would also praise the industry for the extent to which it is looking to globalise its operations. Australian companies have already entered into joint ventures with significant wine producers from Chile, France, Italy, and the USA - both in Australia and overseas.

Thinking globally in this way ensures that Australia benefits from the best technical expertise the world has to offer as well as bringing much-needed capital into the industry.

What the Government is Doing to Support the Industry

The Government has certainly been doing what it can to support the Australian wine industry.

We are currently pursuing important discussions in the World Trade Organisation aimed at ensuring the consistent protection of geographic indications on a global basis.

Moreover, under the 1994 Australia-EU Wine Agreement, in which Australian and European wine producers agreed to protect each other's geographical indications, the Government has worked hard to open EU markets to Australian wine exports.

There has already been considerable success in reducing testing requirements for Australian wine. We are looking to finalise key issues such as the allowable product descriptors for Australian exporters to the EU, derogations from certain import certification requirements for Australian bulk wine, and overly-rigorous policing of imports by some EU member states.

The Government's Supermarket to Asia Council is also pursuing reforms which should benefit the wine industry. Let me give you just three examples.

The Council is working to ensure Australia gets maximum benefit from electronic commerce as a vehicle for international trade, it is establishing air and sea export freight councils to address Australian export logistical problems and it is establishing a single electronic window for AQIS and customs export clearance - thus cutting down red tape.

The Asian Crisis

Now I know that the industry has been looking to make inroads into Asian markets in recent times. The financial crises in Indonesia, South Korea and Thailand are therefore of some concern to you.

Last week I made clear in my Trade Outcomes and Objectives Statement to Parliament that we are in there batting for Australian jobs and lending a hand to neighbours at this important time.

Inter alia, we have extended the Export Market Development Grants Scheme, contributed to the IMF packages in Asia, set up special assistance through Austrade and, through Exporter Summits and individually, talked to exporters about how we can best help.

The Government is committed to Asia for the long haul. We realise many of our exporters are doing it tough at the moment and we will do all we can to protect our market share. We must not let our competitors steal a march on us in Asia.

We also must not forget that there are often opportunities in adversity. With careful risk management and a more competitive Australian dollar against US and European currencies, a strategic approach to Asian markets may well pay significant export dividends as Asian economies recover.

Indonesia, South Korea and Thailand are not the only markets in Asia, although they are the markets that have been most affected by the financial crisis. There are others, like Hong Kong, Japan and Taiwan, that still present many exciting opportunities for Australian exporters.

And we must not forget that business and personal relationships - carefully cultivated over many years - are still the bedrock on which to build future business relations. It is important to show those Asian contacts that Australian businesses are not just fair weather friends.

Conclusion

I'd like to close by noting that all Australians can be proud of the enormous successes which the wine industry has chalked up over the last decade.

Wine is one of our most successful exports - demonstrating to the world the sophistication of both Australia's science and its culture.

For, like all of civilisation's highest achievements, wine requires considerable technical expertise to produce a product of high artistic merit - for winemaking is certainly an art form.

I therefore again congratulate BRL Hardy, one of Australia's largest wine exporters, on its tremendous contribution to the wine industry's achievements over the last decade.

Moreover, I look forward to sampling not only the wine produced here at Stonehaven but also that which will be made in Canberra in your next winery venture.

BRL Hardy certainly understands that wine is an essential ingredient in making the wheels of politics turn - they're planting a vineyard on the main road into the national capital!

It was George Bernard Shaw who observed about British political life earlier this century that wine could be considered "a very necessary article ....enabl(ing) Parliament to do things at eleven at night that no sane person would do at eleven in the morning".

I hasten to add that you can count on today's Government not to take any decision which does not stand up in the clear light of day but I certainly agree that wine has become an increasingly important part of doing business in this country.

I therefore salute the vintners of Australia and encourage you all to continue to look to grow and prosper as you have done so well in recent years.