Consumer Affairs: Textile Labelling

Mr SOUTHWICK (Caulfield) -- The matter I wish to raise is for the attention of the Minister for Consumer Affairs. I note he has been very busy getting rid of dangerous toys in the lead-up to Christmas, and I commend him for that work. The matter I raise relates to the mandatory accurate labelling of fibre content in clothing and textiles, which is a matter of real concern to consumers, to small businesses, to retailers and to Australia's textile and clothing industry. I am advised that currently there is no legal requirement for the labelling of fibre content in textiles and clothes. Given the strict regulations surrounding care requirements for clothing, this seems a curious anomaly. It is a loophole, and I call on the minister to look at closing it.

More specifically, historically Australia's wool industry has been a core part of agriculture in this country and remains an important export industry, with the federal Department of Agriculture, Fisheries and Forestry stating that the gross value of wool production in 2009-10 was $1.92 billion. It remains somewhat accurate to say that Australia rides on the sheep's back, and the industry has a fond place in the history of Australian industry. Given the importance of the industry, it is vital that the government does what it can to protect it from products and imports which are wool in name only and which drive down consumer confidence in the value of this fibre.

At the moment it is very easy for products made of synthetic fibres such as polyester to be imported, labelled as wool products and then sold more cheaply than authentic wool products. This hurts exporters and sellers of authentic wool products who do the right thing and only label real wool as wool but they are undercut by inferior knock-offs. I would like to congratulate my constituent, David Mond, who has been manufacturing and selling pure wool doona products in Victoria for some time and brought this matter to my attention.

Consumers are being impacted by this. They are being misled into believing they have purchased real wool when in fact they have been sold a shoddy substitute. As I said previously, the industry as a whole is hurt when the reputation of Australian wool is compromised by these polyester wolves in sheep's clothing.

I repeat my call for the minister to investigate with Consumer Affairs Victoria what regulatory and legislative steps can be taken to ensure that when Victorians purchase a product that is labelled as wool it is wool and not in fact an inferior knock-off.

Mr O'BRIEN (Minister for Consumer Affairs) -- I thank the member for Caulfield for raising this important matter. I was not aware that the member for Caulfield had so many woolgrowers in his electorate! However, he raises an important issue, and I particularly congratulate him on raising it on behalf of his constituent David Mond. The Victorian government recognises the concerns of consumers and producers about a lack of any legal requirement for labelling of fibre content in textiles and clothes. This means some unscrupulous traders are able to label a mixture of polyester or other synthetic fibres and wool as woollen. This can obviously mislead consumers, and, because wool-blend products are cheaper to produce, consumers can be misled so that they are not getting what they think they are getting or what they are paying for.

This also means that people who produce pure wool items are at a disadvantage.

The Victorian government therefore takes this issue seriously. We believe the consumer has the right to know the contents of what they are buying and that the textile industry deserves to operate in a fair marketplace. A fair marketplace is one where there is appropriate disclosure and appropriate labelling. This is also important for consumers who might have allergies to particular fibres or materials, as currently they may be buying clothing they believe to be safe for them, because it is labelled as woollen, when it might in fact have synthetic fibres that could cause an allergic reaction. In our view all suppliers, including importers, manufacturers and traders, should be required to clearly state the fibre content of their clothing and textile products.

A mandatory standard for fibre content labelling would address these issues.

Under the Australian Consumer Law responsibility for establishing product safety standards, including information standards, rests with the commonwealth. The Victorian government is currently pursuing a solution through the relevant government channels. My colleagues in New South Wales are taking the lead on this particular matter on behalf of all state and territory jurisdictions, working with the commonwealth, and I can state without reservation that Victoria supports the implementation of a new national information standard.

Before a mandatory standard can be implemented, a rigourous process of review and research is required. I am pleased to advise the member for Caulfield and all honourable members that this process is very much under way and on track. I hope to be able to report on the implementation of the mandatory information standard for fibre content labelling in the course of 2012.

If a mandatory information standard is implemented, a product labelled as wool will have to be wool, and traders selling products who fail to live up to that simple standard will face disciplinary action via fair trading agencies, including the Australian Competition and Consumer Commission and Consumer Affairs Victoria. This will deliver a better outcome for consumers, a better outcome for industry and ultimately better outcomes for Victoria.