House debates

Wednesday, 26 November 2014

Questions without Notice

Trade with China

2:42 pm

Photo of Andrew BroadAndrew Broad (Mallee, National Party) Share this | | Hansard source

My question is to the Minister for Trade and Investment. Will the minister inform the House of the benefits for Australian services, investors and businesses as a result of the China-Australia Free Trade Agreement?

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

The member for Chifley.

Photo of Andrew RobbAndrew Robb (Goldstein, Liberal Party, Minister for Trade and Investment) Share this | | Hansard source

I thank the member for Mallee for his question and note that, despite his shy and retiring nature, he is a tremendous advocate for agriculture and horticulture. He served as president of the Victorian Farmers Federation between 2009 and 2012—the youngest ever, I understand.

It is worthwhile looking at the electorate of Mallee as an example of the impact of the China-Australia Free Trade Agreement. It is a major regional centre in Australia. The Mallee itself represents one of the great horticultural regions in Australia; it grows 62 per cent of Australia's almonds, for which tariffs of up to 24 per cent will go. The Mallee grows 75 per cent of Australia's table grapes, which largely go to Guangzhou, and tariffs of 13 per cent will go. The Mallee grows 90 per cent of Australia's dried fruit, and tariffs of 10 per cent will go. The Mallee is a huge source of avocados, which attract tariffs of 25 per cent and these will go. The Mallee is a strong citrus region and tariffs of up to 30 per cent will go. Tariffs on orange and carrot juice will go. The Mallee is a major wine-producing region and will benefit greatly from the removal of tariffs of up to 30 per cent on Australian wine. It is a huge region for barley—a $548 million export industry to China today— and the three per cent tax will go. While the Mallee is not dairying and beef and sheepmeat country, total tariff elimination on dairy and beef and sheepmeat will result in a huge increase in domestic consumption of grains—which is one of the great strengths of the Mallee—for dairy cows, cattle, sheep and the like.

On services, Ramsay Health Care, a great Australian company, operates the Mildura public hospital. Ramsay Health is currently negotiating to be appointed the operator of five hospitals in Chengdu city, serving a mix of public and private patients. In future, Ramsay can build whatever hospitals they like in China, own them and operate them 100 per cent. The Mallee TAFE, known as SuniTAFE, is recruiting students from China as a result of the free trade agreement. Of course, the tourism sector is benefiting enormously because of the investment opportunity in hotels, resorts and attractions. Under the new working holiday visa, 5,000 young Chinese will be available for seasonal work in areas where it is difficult to get Australian workers. This FTA is not only transformational for Australia; it is transformational especially for the Mallee.