Nick Xenophon (SA, Independent) Share this | Hansard source

I have been told how my colleagues will vote on this—that the government and the coalition will be opposing this motion. Just last week President Obama told us:

We need growth that is fair, where every nation plays by the rules … and where currencies are market driven so no nation has an unfair advantage.

Treasurer Swan said last month that:

It's important that all countries move to market-determined exchange rates to stop artificially depreciating their currency relative to others including the Australian dollar …

He went on to say that, if it does not happen, it will have devastating consequences for Australia. So I am hugely disappointed at the indications that I have received that the government and the opposition will oppose this motion. I am disappointed that, despite the comments from President Obama, despite comments from Treasurer Swan and despite the fact that economists around the world—including the US Chairman of the Federal Reserve Ben Bernanke and the RBA's Glenn Stevens—agree, for instance, that China's currency is undervalued, the government and the opposition do not seek to look further and deeper at this issue.

This motion does not call for anything other than an inquiry by the Senate Economics References Committee. It is about looking at the issue of fixed currencies, seeing what impact fixed currencies have on the price of imported and exported goods and finding out whether domestic industries are able to compete fairly against goods imported from countries that do not have floated currencies. It is baffling. These terms of reference are based on the terms of reference of the WTO's working group that will be held on this issue in 2012, at the instigation of Brazil. It is a global issue. This motion is to hold a Senate inquiry, with very broad terms of reference, into the impact fixed currencies have on imports and exports and on Australian industries. That both the government and the opposition want to bury their heads in the sand disappoints me greatly. Question put.

The Senate divided. [15:52]

(Deputy President—Senator Parry)

Question negatived.