Simon Crean passed away recently in Europe aged just 74. There have been many references since to his contribution to rural Australia especially as Minister for Primary Industry and Energy in the 1990s.
But it was only after catching up recently with prominent NSW and WA sheepmeat processor and entreprenuer Roger Fletcher, of Fletcher International, that I was able to appreciate that Mr Crean's influence on the red meat industry was far broader than just pre farm gate.
Roger indicated that throughout his political career, Mr Crean was always cognisant of the need for all sectors of the supply chain, including processors, to prosper and operate with minimal government interference where possible. If farmers were to maximise their return, then the government needed to ensure the whole supply chain was operating efficiently.
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Simon Crean became the new Labor Minister for Primary Industry and Energy in June 1991 replacing at the time the man considered the best Primary Industries Minister Labor had ever had in John Kerin.
How would a former union official who knew nothing about the meat business be able to do any good for meat processors?
One of Mr Crean's early actions as the minister, Roger remembers, was to invite him and other processors to Canberra to brief him on what they believed where the key issues facing the meat processing sector.
Roger said that Simon wanted to hear from those directly involved in the industry about which issues they thought that the government could actually influence and make a difference with.
"He didn't like to use consultants, " Roger said.
"He liked to go straight to those with skin in the game and get their direct feedback on any issue. What do I need to do to fix this issue, he would often ask."
Reform of Government Meat Inspection
One of those issues was the huge cost of meat inspection that was being recovered from processors by the government at the time, a cost that had risen to over $80 million in 1991, up to 5 per cent of an operation's production costs.
This was a huge impost that limited processors ability to pay for livestock.
In response, Minister Crean proposed restructuring the Federal Government's meat inspection system to remove ingrained waste and inefficiency.
There was a lot of pushback from the established Canberra bureaucracy as well as from the trade union movement.
It took over 12 months to build momentum for change. Various studies identified the logic of separating regulation from service delivery but implementation would involve substantial redundancy costs.
Minister Crean provided $54 million to help the reform of the meat inspection system to be completed.
That change in meat inspection policy and the replacement with company-based Quality Assurance Officers paved the way for a much greater focus on meat quality outcomes, said Roger.
"It encouraged a move towards brand based marketing underpinned by quality attributes and a move away from the commodity mentality of previous decades," he said.
Roger sees this as one of the most signifiant changes in meat processing over the last four decades.
The reform of the meat inspection system under Simon Crean was an essential precursor to that process.
After the suspension of the reserve price scheme for wool in 1991, Roger says Simon worked directly with the Opposition to seek a consensus view on resolving the huge wool inventory left behind.
He reformed the government approach to quarantine and championed tertiary educational campuses in rural Australia.
Capital and Labour Utilisation
When Roger first built his plant at Dubbo in 1989, he said it was the first new plant in NSW in over a decade.
As a new plant, he set out to establish new employment policies including the establishment of the first enterprise bargaining agreement in the Australian meat processing sector. This put the business in a position to eventually go to two shifts, something other plants found difficult because of the union-supported tally system at the time.
Dubbo was also the first to hot bone mutton.
These were significant changes to the status quo but as minister, Mr Crean supported Roger in his fight for greater efficiencies in capital and labour utilisation, changes that became the norm in following decades.
Roger also credits Mr Crean with helping him establish a new working culture with training programs established at that time.
With the assistance of Simon Crean. Roger said he established the first registered training organisation outside the TAFE system.
Despite strong opposition these proved so successful they have allowed Fletchers as a company to train almost all its abattoir employees ever since.
Lessons Learned
In thanking Simon Crean for his contribution to the processing sector I asked Roger whether he had any messages for today's politicians in better ensuring the sustainability of one of the country's most important rural employers and wealth generators - the meat processing sector.
"Politicians use too many consultants these days," he said.
"That only distances them from any issue. Consultants have a role but politicians need to listen more to those with skin in the game. I go to too many meetings where there is no outcome.
"Change is not always easy and the benefits not always immediately apparent or bankable. It often requires politicians to stay the course and fight for what they know is in the best interests of the industry as a whole."
Simon Crean didn't cut ribbons, Roger said.
"He was a doer and a great champion of regional Australia. A few more Simon Creans in today's politics wouldn't hurt."