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national rural reporter Kath Sullivan

Agriculture visa to be ditched, Labor says, looking to Pacific to fill worker shortage as election looms

Labor says its plan will reduce up-front costs for Australian employers. (ABC Rural: Kath Sullivan)

A federal Labor government would effectively axe Australia's agriculture visa before a foreign worker could arrive on the scheme, the party has announced.

The Opposition says an Albanese Labor government would instead establish a new agriculture stream within the existing Pacific Australia Labour Mobility (PALM) scheme, replacing the specific visa for forestry, fishery, and farm workers announced by the Coalition last year.

Labor says its government would also pay the up-front travel costs of Pacific workers travelling to Australia, allow Pacific workers to bring their families to live and work here, and promote permanent residency on a new Pacific Engagement Visa.

International development shadow spokesperson Pat Conroy said a new approach was needed to help farmers address worker shortages and better Australia's relationship in the Pacific.

"This government's current agricultural visa is not working, not a single worker has entered the country under this agriculture visa, it has failed Australian farmers and it has failed the broader Australian community," Mr Conroy said.

Mr Conroy pledged to reduce "up-front costs to employers by the Australian government paying all but $300 of the airfares, which we will recoup from workers through the tax system".

Australia's agriculture visa was announced by the Nationals on the sidelines of a free trade agreement with the UK last year, but so far no worker has arrived on the visa.

It was intended to be a demand-driven scheme to bring skilled, semi-skilled and unskilled workers to Australia.

Last month a memorandum of understanding was reached with Vietnam that would see workers from that country permitted to work on the visa, but tax legislation that would allow foreign workers to be employed in Australia has not yet been heard in parliament.

Mr Conroy announced Labor's intentions for the visa in Darwin as the Opposition committed more than $500 million in initiatives for the Pacific and Timor-Leste.

Shadow home affairs minister Kristina Keneally later confirmed that Labor would honour the memorandum of understanding reached with Vietnam.

Ms Keneally said Labor did support an agriculture visa.

"The difference between Labor and the [Coalition] government is the source countries," Ms Keneally said.

Accusations of 'repackaging'

Agriculture Minister David Littleproud said scrapping the agriculture visa would "impose a cost of living increase on every Australian".

"Labor are just repackaging our existing pacific schemes and taking away the opportunity for skilled and semi-skilled Vietnamese workers," he said.

Farmers had been calling for an agriculture-specific visa to address worker shortages for many years before the pandemic hit.

The National Farmers' Federation described Labor's announcement an "insult to farmers".

"Unfortunately, Labor has today confirmed its intention to do away with the farmer-developed ag visa," NFF chief executive Tony Mahar said.

"In tricky spin, Labor will keep the ag visa in name only, with the visa to be limited to workers from Pacific nations."

Victorian Farmers Federation president Emma Germano said Labor had not consulted key farmer groups on the new policy.

"If this is what the position is, that's what we've been waiting two years to hear about — well then, how disappointing," she said.

"It sounds like we are getting rid of the ag visa and we're just going to dress up the Pacific Labour scheme."

The Department of Foreign Affairs and Trade says more than 50,000 workers in the Pacific have been vetted to join the PALM.

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