Questioning during a Senate Inquiry has revealed that the Rudd Government held a gun to the head of industry with an ultimatum that they can either have the 40% government rebate or AQIS export certification reform, according to The Nationals Senator Ron Boswell. The Senate inquiry being conducted by the Senate Standing Committee on Rural and Regional Affairs and Transport is investigating the management of removal of fee rebate for AQIS export certification functions. Senator Boswell said that “the problem is with efficiency of government to provide inspection services for export industries, not the export industries themselves. It is logical that government efficiencies should be put in place before the rebate is removed.” “Removal of the rebate without reforms leaves our export industries exposed to increased costs that their international competitors do not have to bear.” According to the Australian Meat Industry Council (AMIC) “exporters in many other countries pay very little or nothing (the US industry contributes 10-12% of FSIS operating costs compared to Australia’s industry funding 100% of AQIS operating costs).” “Some industries during the inquiry gave testimony that they do not have confidence in AQIS to deliver any reforms,” Senator Boswell said. The Australian Horticultural Exporters’ Association (AHEA) submission stated, “all too often, AQIS have asked for Industry Consultation, consulted with Industry and then undertaken the changes AQIS deem necessary, neglecting Industry’s desires” Senator Boswell said that “industry is taking a tremendous leap of faith that AQIS will make good on reforms without knowing what the reforms are and without any timeframes in place on when these reforms will be delivered.” The Coalition next week is expected move a disallowance motion that, if successful, will reinstate the 40% government rebate on Export Control Fees. “The Senate Inquiry heard testimony from industry representatives that if the Coalition’s motion to disallow motion was successful, that any AQIS reforms were off the table,” Senator Boswell said. “Government is increasing AQIS fees and industry just has to lump it, despite major international competitors not having to pay the same fees and despite the fact that if reforms were in place they could deliver lower export certification charges.” AMIC Chairman Gary Burridge told the Inquiry, "Industry has no way of off-setting the cost increases unless we pass them back to primary producers.” Senator Boswell said, “these government charges will be the balance between whether some industries survive or not, and I for one will not stand by and watch food based industries destroyed because AQIS charges are too high.” ENDS