Deputy Prime Minister Barnaby Joyce has suggested the influx of asylum seeker boats under the previous Labor government coincided with its decision to halt live cattle exports.

Key points: Labor's suspension of meat exports to Indonesia in 2011 "created bad will", Joyce says

Labor's suspension of meat exports to Indonesia in 2011 "created bad will", Joyce says It was "around about the same time we started seeing a lot of people arriving in boats"

It was "around about the same time we started seeing a lot of people arriving in boats" Joyce says Labor's animal welfare policy "will be just as disastrous the second time"

Speaking at the regional leaders debate in Goulburn in NSW, Mr Joyce, Labor's Joel Fitzgibbon and Greens leader Richard Di Natale were asked about the issue of live exports.

Mr Joyce said Australia had been one of the largest suppliers of meat to Indonesia in 2011, when the Gillard Labor government decided to suspend exports in the wake of a Four Corners investigation which exposed shocking cases of animal cruelty and abuse at 12 Indonesian abattoirs.

"They accepted us as a reasonable trading partner, we proved overnight that we weren't, we created immense bad will in the region we live," Mr Joyce said.

He was speaking just minutes after Labor released its policy on animal welfare, including the reintroduction of an animal welfare watchdog.

"Now, with the release tonight of the Independent Office of Animal Welfare, and the Labor Party basically announcing that they're going to have further caveats once more onto the live animal industry, and they're going to move towards … closing it down again.

"This was disastrous for us the first time, it will be just as disastrous for us the second time.

"Might I remind you that when we closed down the live animal export industry, it was around about the same time that we started seeing a lot of people arriving in boats in Australia."

A spokesman for the Indonesian Foreign Ministry said the Government wanted to clarify the Deputy Prime Minister's statement before officially responding.

The regional leaders debate in Goulburn focused on issues of live export, rural students, and internet speeds. ( ABC News: Alkira Reinfrank )

'Are you suggesting the Indonesian Government is sending refugees to Australia?'

ABC Political Editor Chris Uhlmann, who was compere at the debate, pressed Mr Joyce on the comments.

"Do you genuinely believe that those two things were linked?" he asked.

"I think that our capacity to have a strong working relationship with Indonesia is affected by them relying on us to be reliable suppliers of protein for their market," Mr Joyce said.

Analysis from Chris Uhlmann Certainly the Prime Minister will be asked about it tomorrow — does he agree with his Deputy Prime Minister that there was a link there?

I don't believe that that being said by the Australian Deputy Prime Minister can be ignored by the Indonesian Government. Questions will no doubt be asked there. So that moment may well play out badly for Barnaby Joyce over the next few days and weeks.

"Do you realise that you are suggesting the Indonesian Government then unleashed the boats in response?" Uhlmann asked.

"I think it's absolutely the case that we created extreme bad will with Indonesia when we closed down the live animal export industry," Mr Joyce replied.

Up until then, the debate had been fairly mild mannered, but Mr Fitzgibbon and Senator Di Natale seized upon Mr Joyce's comments.

"Barnaby, Chris gave you the chance to step back from your comments. You're not taking the opportunity?" Mr Fitzgibbon said.

"I stand by, we can talk about this all night. You either believe that it created bad feeling in Indonesia, or you don't," said Mr Joyce.

"Are you suggesting the Indonesian Government is sending refugees to Australia?" Senator Di Natale asked.

"I believe that the Independents and the Greens and the Labor party, when they closed down the live animal export industry, created immense bad will, and our capacity to manage other problems which became present were affected," Mr Joyce said.

Joyce had argued for subtle approach to Indonesia

Mr Joyce was in Jakarta in October last year, during a visit where he argued for greater surety for Australian cattle farmers.

During the trip he urged the Indonesian Government to implement yearly live cattle import quotas to replace the current quarterly arrangement.

"Indonesia is a vital market," Mr Joyce said at the time.

"As they are a vital customer it is incumbent on any minister to get on their bike, get over and say g'day and see what we can do to grow more and do what we do better."

During the visit, Mr Joyce urged Australia to be subtle in its approach and treat its neighbour with respect.

"I don't think it matters who it is, don't talk to someone via the television set," he said.