Ian Macfarlane (Groom, Liberal Party, Shadow Minister for Trade) Share this | Hansard source

The Tradex Scheme Amendment Bill 2008 is another piece of excellent legislation which, as the shadow minister for trade, I welcome the opportunity to speak on. The previous government was well and truly aware that exports are one of the most important features of Australia’s economy and are worth more than $216 billion a year. Trade continues to open up new opportunities for Australia—opportunities that create jobs, drive prosperity and help ensure the future of our nation. At least one in five Australian jobs are generated by exports and, more importantly, bearing in mind my rural and regional background, in rural and regional Australia this industry—that is, the export industry—is creating one in four jobs directly and indirectly.

The coalition are steadfast in our commitment to trade, trade reforms and liberalisation. Trade is central to our economy and, in government, we implemented a raft of policies to help exporters operate more effectively and efficiently. One of the most important of those was the Tradex Scheme. This came into effect from 2000 to provide duty relief for those items that are imported with the express purpose of being exported or used in some way for another product that is in turn exported. The Tradex Scheme has been connected to the duty drawback regulations and, while the former provides upfront duty exemption for imported goods destined for export, the latter provides for the return of duties paid on imported goods when they are subsequently exported.

The Tradex Scheme Amendment Bill 2008 will provide a simpler framework for trade by decoupling the Tradex and drawback programs. Decoupling the Tradex and drawback regulations will enable the Tradex Scheme to remain consistent with the Customs drawback provisions without being dependent on them. By separating these two programs, importers and exporters will be further assisted as it will allow the two operations to be tailored to meet the particular demands of its customer base. It is essential that we provide exporters with the right framework in which they can operate in a way that will encourage value adding, innovation and of course competitiveness. Trade brings out the best in businesses. While the global marketplace is highly competitive, it is also a rich reservoir of opportunity for Australian businesses and industry. By exporting, Australia’s businesses access a global marketplace of more than six billion consumers. By participating in the global marketplace, Australian businesses are more likely to be innovative, to enhance their productivity and to integrate into global supply chains and areas that are so important in terms of our future industry growth.

Trade brings down the costs for businesses and consumers. The competition encouraged by exports provides businesses with high-quality supplies they need at prices that keep them competitive at home and overseas. By exporting, businesses can achieve cost savings through higher production volumes. That is crucially important in many of the industries which are now facing pressure from imports. Their solution will come from exporting their products into global supply chains and global markets. Export to world markets many times larger than the domestic markets will provide opportunities which in many cases will be the difference between survival and failure for many of Australia’s industries and businesses.

The benefits exporters receive from their exposure to international trends in technology, product design and consumer behaviour will also spill over into the Australian economy. There is no better example than that of the car industry, in which we now see two of Australia’s leading manufacturers, GMH and Toyota, exporting half of their production overseas. Thus they are sustaining a very viable future for themselves and for the industry and utilising the opportunity to export Australian technology while at the same time importing technology here which is then incorporated into our general production.

The other elements of this bill will enhance the administration of the Tradex Scheme and will cut through the red tape for the industry—something I understand the minister is very fond of, and I wish him every success in that regard. It is an area which we have all in our time battled, and an area in which the previous government had some success, but that does not mean that there is not ample room for further success. Not only will we be cutting through red tape for industry but, more importantly, we will be improving our competitiveness as an exporting nation. These amendments are worthy of the coalition’s support and I commend them to the chamber.

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