House debates

Monday, 29 February 2016

Bills

Trade Legislation Amendment Bill (No. 1) 2016; Second Reading

5:57 pm

Photo of Matt WilliamsMatt Williams (Hindmarsh, Liberal Party) Share this | Hansard source

The growing middle class of Asia is to become one billion, or 1,000 million, over the next decade and this will be a crucial piece of the puzzle in Australia's economic prosperity. Whether it be trade agreements or the export market development grant—the EMDG scheme that we are talking about today—the coalition is providing the foundations and policy initiatives for a better Australia and, importantly, to allow Australian companies to grow. The EMDG scheme is a key Australian government financial assistance program. It provides support, by way of a reimbursement of eligible export promotional expenditure, to Australian small and medium sized businesses that want to begin exporting or grow their export markets. The design of the scheme recognises that developing export markets takes time.

Having worked in Europe, assisting South Australian companies expand, I know the challenges faced by these businesses that are keen to explore new markets. Furthermore, from my time in the private sector, I have assisted companies to access the EMDG and other government grant programs, and I know how valuable they are. They are particularly valuable to the over 3,000 recipients from around Australia who have received $141 million in grant payments. Sixty-four per cent of recipients were from services industries—a real growth area of our economy—including 14 per cent from education and culture, 11 per cent from ICT services and over 10 per cent from tourism and related industries. Importantly, 31 per cent were from manufacturing sectors as well.

I want to talk about trade in a bit more detail as this provides significant opportunities for our future. The recently signed trade agreements will bring unprecedented opportunities for my state of South Australia, with our Asian neighbours demanding a diverse range of goods and services: health and aged care, tourism, education and high-quality foods and wines. Thanks to the federal government, South Australian businesses and primary producers have been provided with the platform to tap into this market. For all the news about the South Australia's unemployment rate and the decline in manufacturing and downturn in the resources and energy sector, there is always hope. Agriculture and services such as education, tourism and health remain strong foundations and offer potential.

On the future, I am an optimist. I want to reflect on why I am a strong believer in our future. The Turnbull government is to deliver and will continue to deliver a great outcome for our nation. To provide the context, I need to look back at recent years. As I said in my maiden speech:

Innovation, knowledge and creativity are the new drivers of economic growth in developed nations around the world.

…   …   …

… We need to foster an environment where innovative sectors can grow and entrepreneurs can flourish. We need to seek and encourage greater business and technological innovations.

The Turnbull government's National Innovation and Science Agenda is so important in this respect, not just the $1 billion in initiatives that the government has announced but also the new focus on an enterprising nation, a country where entrepreneurs and growing companies are celebrated and where business and industry better understand the need to invest and innovate.

During my first term, I have spoken to a number of successful South Australian businesses and leading manufacturers like Philmac, in the irrigation pipes and fittings area; Seeley, in air conditioners; Coopers; and Australian Vintage, in wine. What these companies have done well is innovate, expand and grow their businesses, helping jobs and the local economy. A number have also been successful and received strong financial support from the federal government as part of our $155 million fund to help the economy transition from the downturn in the automotive sector. However, many of these companies are well established. The innovation statement and Prime Minister Turnbull's focus are on encouraging the next Apple, Google, or Amazon to come from Australia and not the United States.

The trade agreements entered into by the coalition will provide a great platform for economic growth. As the Winemakers' Federation of Australia chief executive, Paul Evans, said on the China FTA:

The potential of how much value we can derive from this announcement is really now back in the hands of industry …

With exports surging into China, the FTA will allow us to build on our strength that we have in the market. With China's middle class growing at levels that are hard to get your head around, this is an exciting time for Australian winemakers.

From wine to food: that is another sector in which my state has standout companies such as San Remo and Thomas Foods. If we are talking about Thomas Foods, they employ 3,000 people. They are one of the fastest growing companies in our state. If we move from meat to tuna, there is Hagen Stehr, from the Stehr Group, saying that the China FTA will open a new market, and they are hoping to export 200 tonnes of tuna to China over the next year. Catherine Barnett, the Chief Executive Officer of Food SA, said that the free trade agreement provided a gift for food industries in South Australia. She said:

It is now up to businesses to seize this opportunity to grow by being smart with their marketing, branding and positioning …

Darren Thomas, owner of South Australia's largest meat exporter, Thomas Foods International, said that the tariff reduction would allow the meat industry to be more competitive, especially against the New Zealand market. He said:

We certainly have had a heightened focus on … China with the Free Trade Agreement in mind. We are working closely with our clients to ensure they are aware of the benefit of the FTA.

Transporting food and wine to the port and then to the export markets is vital in the supply chain, and that is why the north-south corridor in Adelaide is so important. One of my first priorities upon being elected to parliament was to make the case for a better South Road. Just over two years later, we see the construction of the Torrens-Road-to-Torrens-River section, with Darlington due to start this year. Furthermore, the coalition government announced the billion-dollar Northern Connector project. These three projects show that the government is committed to South Australia. Further, these projects will result in hundreds of jobs and a better economy.

When one thinks of industries in South Australia, defence is close to the top of the list. As I said in my maiden speech:

The many employees in the defence sector in Hindmarsh look forward to the coalition's commitment to increase defence spending to two per cent of GDP … The air warfare destroyers and the next generation of submarines are two such examples where Australian workers, South Australian workers, will be part of something special.

Just last week in the defence white paper we reaffirmed our commitment to increase defence spending and, importantly, committed to build nine frigates in Adelaide and bring the project forward to 2020 to mitigate the downturn in defence projects as a result of Labor not making a decision on defence shipbuilding in 2011. And, as residents of Hindmarsh know, I have been outspoken in my desire to see the submarines built in Adelaide. These projects will deliver more jobs for South Australia, some 2,500 for shipbuilding, with more jobs to come once the evaluation process for the submarines is completed.

So, as we progress into the third year of the coalition government, the residents of Hindmarsh and South Australia are seeing results and action as a consequence of a federal government that is delivering for them. There are green shoots across key sectors such as food and wine, infrastructure and defence. Yes, there are challenges for my state as the automotive sector closes down. We have seen the Holden announcement, Nissan in the 1990s, Mitsubishi in 2007 and Ford in the last months of the Labor government in early 2013. But, just as the state recovered from the decline in the whitegoods and clothing sectors in the 1980s, we will again recover and prosper. I look forward to continuing to work with local companies and delivering on projects creating more jobs, a better economy and a better future.

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