Territory cattlemen fall short in billion dollar compo claim

The Northern Territoy’s cattlemen face disappointment in their long drawn out compensation battle with the federal Government. Read what’s happened.

The federal court has dealt Northern Territory cattlemen a blow in their bid for compensation following the federal Labor government’s 2011 live cattle export ban.

The court ruled on Thursday the Commonwealth will only be liable for loss of income suffered over 12-months, not three years, as NT cattlemen had claimed.

Justice Thomas Thawley ruled the quota of cattle accepted by Indonesia had only been impacted in 2011.

He said a drop in the quota in 2012 and 2013 was due to the Indonesian Government’s policy to pursue greater self-sufficiency in its beef market, not because of the fallout from the Gillard Government’s 2011 ban.

The live export ban was introduced by federal Labor Agriculture Minister Joe Ludwig on June 7, 2011 following a report on ABC TV’s Four Corners program showing NT cattle being mistreated in Indonesian abattoirs.

The ban was rescinded on July 6, 2011 with NT cattlemen arguing Indonesia cut quotas of NT cattle in subsequent years following the ban.

NT Cattle were targeted in Julia Gillard's 2011 live export ban.

A compensation claim launched by the Brett Cattle Company on behalf of the industry claimed the ban had cost $600 million across the supply chain.

In 2020 federal court justice Steven Rares ruled in favour of Brett Cattle, awarding the company $2.94 million in damages.

NT Cattlemen and the Commonwealth government have been unsuccessfully seeking an out-of-court judgment for the past five years which, including interest, was estimated at around $1 billion.

The Commonwealth offered $215 million to settle the case, saying the ban only affected the export of about 88,000 head of cattle in 2011.

Justice Thomas Thawley’s decision means the amount of compensation awarded is likely to be closer to the government’s $215 million offer, than the $600 million the cattlemen had sought.

Justice Thawley placed a 48-hour embargo on the publication of the full reasons for his decision.

In a statement NT Cattlemen’s Association chief executive officer Romy Carey acknowledged the court’s decision.

“While the judgment marks a significant milestone in a legal battle that has spanned more than a decade, we are still working through the detail and assessing its full implications both for the families directly affected and the wider cattle industry,” she said.

“At the request of the Commonwealth, the Federal Court has placed the reasons for judgment under a 48-hour embargo.

“Accordingly, we have not yet been provided with access to the full decision and will refrain from further comment until we are in a position to respond responsibly and with the complete facts before us.”

NT Cattlemen’s Association chief executive Romy Carey.

In his 2020 determination, Justice Rares ruled the ban was unlawful and the then-Agriculture Minister Joe Ludwig’s actions constituted misfeasance in public office.

He ruled, that Mr Ludwig knew of the consequences of his decision but “plunged ahead regardless” in a “recklessly indifferent” manner.

“(Ludwig) made the Ban Order shutting his eyes to the risk that it might be invalid and to the damage that it was calculated to cause persons in the position of Brett Cattle,” Justice Rares said at the time of his decision.

The government’s $215 million settlement offer was rejected by the industry.

The legal arguments focused on the financial impact of the ban, including the number of cattle that would have been exported to Indonesia.

Former National Party leader Barnaby Joyce has been a strong advocate for cattlemen to receive full payment.

“This money should be paid,” he said.

“The court has made their decision. Everybody’s come to a conclusion and it’s both on compensation and also basically the honouring of a government decision, you can’t decide a decision of an independent abattoir is incorrect and you have a different view.”

Originally published as Territory cattlemen fall short in billion dollar compo claim