House debates

Tuesday, 18 March 2014

Bills

Export Market Development Grants Amendment Bill 2014; Second Reading

8:53 pm

Photo of Eric HutchinsonEric Hutchinson (Lyons, Liberal Party) Share this | Hansard source

It gives me enormous pleasure to rise this evening to speak about what is indeed an important bill. Having been involved in the export area for many years of my working life, I am very pleased to speak on the Export Market Development Grants Amendment Bill 2014, particularly given that this falls under the purview of the Minister for Trade and Investment, Minister Robb. In the short time that the government has been in office he has been doing fine work to deliver the white paper, contrary to what the Deputy Leader of the Opposition suggested. Talking about engagement is indeed one thing. Talking is fine, and, while planning was not a hallmark of the previous government, talking about engagement is indeed important. I suggest that realigning is also important. But doing is actually far more important. Delivering on free trade agreements with countries like South Korea is the sort of thing that will get this country going again.

I want to dwell for a short period of time on the free trade agreement with South Korea. Over a period of time, it will eliminate tariffs on many of our main exports to that very important market. It will also open up new opportunities for Australian services as well as support our more traditional industries, including agriculture. Critically, it also puts us back on a level playing field with our competitors in the United States, the European Union and Chile, which already have free trade agreements with South Korea.

The modelling that has been done around this program suggests that, between 2015 and 2030, it will be worth $5 billion per year to Australia. Beyond 2030 it really kicks in, and the modelling shows that the benefits that will flow to the Australian economy—both in cities, in terms of the services that can be provided, but also in regional Australia, which is particularly important to my state and my electorate—will amount to around $650 million a year. This is so important. Indeed, Korea is our fourth-largest trading partner. Korea is Asia's fourth-largest economy. Having visited South Korea many times over the years, trying to sell Tasmanian wool and Australian wool, I understand what an important and sophisticated market South Korea is.

In my home state of Tasmania, particularly in my electorate of Lyons, exports are a huge contributor to a healthy economy in our state. Last year alone food exports were worth in excess of $520 million. Non-food products—a variety of machinery, transport, equipment, mining ores and concentrates, wood and paper products, processed metal and metal products—returned more than $2.5 billion. A $3 billion injection every year into the economy of Tasmania is indeed critical.

I have spoken in this place in the past about the importance of the seafood industry and the aquaculture industry in my state. Be it live or processed abalone; fresh, chilled or frozen Atlantic salmon; ocean trout, the best in the world, some would say; rock lobster; or mussels off the east coast—our exports are increasingly enjoying a growing reputation around the world as high-end food experiences not to be missed. It has been suggested in recent years that the value of the salmon and aquaculture industries to the state of Tasmania is growing by $1 million a week. When it comes to food, and indeed high-quality food, my state, Tasmania, punches above its weight.

I note that prior to Christmas the Minister for Trade and Investment, who I have a great deal of admiration for, and also the Prime Minister made particular mention of an abattoir based in Cressy in my electorate—Tasmanian Quality Meats—a family owned business which was successful in winning the regional exporter of the year award at the Business Council of Australia's export awards night prior to Christmas. Tasmanian Quality Meats is a business owned by Mr Brian Oliver and Mr John Talbot. They rightly deserve that award because of the growing quality and success that they have achieved in exporting lamb, mutton and veal. The export business has grown in a very short space of time, in 15 years, from almost nothing in terms of export income, not to mention domestic sales, to in excess of $12 million worth of exports—all with absolutely no government support. They have done it all on their own, but it is fair to say that as an exporter it is not easy. There are challenges. The deregulation agenda that this government has embarked on will no doubt help exporters.

The export market development grants that we are talking about here tonight are also another practical measure that will provide benefits to the many exporters in my state of Tasmania, including in my electorate. There have indeed been challenges. The global financial crisis was a challenge. The strength of the Australia dollar has been a challenge to exporters, be they miners, agriculturists or manufacturers and the like. We have the double whammy, though, in my home state in that we live on an island—a small island at that. That body of water across Bass Strait is an enormous burden; it is an increased cost that exporters in my state have to struggle with. I applaud and welcome the Productivity Commission-ACCC draft report into the Bass Strait that has been circulated for comment within my state. My colleagues from Tasmania, the member for Bass and the member for Braddon—

Debate interrupted

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