House debates

Thursday, 10 September 2015

Questions without Notice

Trade with China

2:30 pm

Photo of Natasha GriggsNatasha Griggs (Solomon, Country Liberal Party) Share this | | Hansard source

My question is to the Minister for Trade and Investment. Will the minister inform the House why it is so important for our economy that the export agreement with China comes into effect this year? How is the misinformation campaign being encouraged by some unions sabotaging Australia's economic future?

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | | Hansard source

Mr Speaker, on a point of order: ministers can only answer with respect to their own responsibility. There are ministers responsible for a free trade agreement, but today we are hearing about this new thing, this export agreement, whether it has come out of a focus group or—

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Watson will resume his seat. The Leader of the House will resume his seat.

Mr Brendan O'Connor interjecting

The member for Gorton: I admit he is in an unfortunate position. I hear you very clearly. I have asked you a number of times to cease interjecting. You are warned. The Leader of the House.

Photo of Christopher PyneChristopher Pyne (Sturt, Liberal Party, Leader of the House) Share this | | Hansard source

Mr Speaker, on a point of order: in the same way as the foreign minister assisted the opposition yesterday about foreign affairs and trade, it might assist the Manager of Opposition Business to know that trade is about exports.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The Leader of the House will resume his seat. The member for Solomon will conclude her question.

Photo of Natasha GriggsNatasha Griggs (Solomon, Country Liberal Party) Share this | | Hansard source

Thank you, Mr Speaker. My question is to the Minister for Trade and Investment—

Opposition members interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Solomon will conclude her question.

Photo of Natasha GriggsNatasha Griggs (Solomon, Country Liberal Party) Share this | | Hansard source

I did not get to ask the whole question, Mr Speaker.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

That is what I am asking you to do.

Photo of Natasha GriggsNatasha Griggs (Solomon, Country Liberal Party) Share this | | Hansard source

Will the minister inform the House why it is so important for our economy that the export agreement with China comes into effect this year? How is the misinformation campaign being encouraged by some unions sabotaging Australia's economic future?

Photo of Joel FitzgibbonJoel Fitzgibbon (Hunter, Australian Labor Party, Shadow Minister for Agriculture) Share this | | Hansard source

Mr Speaker, I rise on a point of order. Reps practice is very clear: in asking a question, if a member makes a claim, she should be required to authenticate the claim and she needs to authenticate the existence of this so-called export agreement, which we have never heard of.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Hunter will resume his seat. The minister has the call.

2:33 pm

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

In answering this question, I congratulate and thank the member for the Solomon, because she has taken the fight up to the CFMEU and their lies and criticisms, and their xenophobic campaign in the strongest possible fashion with regard to the China free trade export agreement.

I was asked, Mr Speaker, why is it so important—

Photo of Brendan O'ConnorBrendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | | Hansard source

Are you the export minister?

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Gorton is warned; I remind him.

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

I was asked why it was so important for our economy that the China deal enters into force. If Australia plays its cards correctly, the next 30 years can literally be spectacular—setting up for growth and prosperity throughout the century and beyond.

I can say to my colleague who asked the question, northern Australia can also be a big part of that success. And the reason is, according to the OECD, a surging middle class in the region around us will see 600 million people today class grow to three billion people, not in 100 years, not in 50 years, but in the next 35 years. It is hanging there as a major prospect of prosperity and growth for all of us over the next 30 years.

The transformation is happening now. Last year 100 million Chinese left China for a holiday, and a million came to Australia. China expects 200 million people by 2020—again, just five years away—to leave China for a holiday. The transformation in the region is well underway, and the coalition has seen, unlike those opposite, that these three free trade export agreements with Korea, Japan and China—and, ultimately, with India—are a major bridge to the extraordinary opportunities that are emerging on our doorstep. They are a crucial part of the government's plan to diversify our economy post the mining boom.

And the plan is working. We have seen—

Opposition members interjecting

if you listen you'll find out—with Korea and Japan, in the six months since we entered into force those agreements, food and beverage exports to these countries have increased by 22 per cent and eight per cent respectively. At the same time, exports in those two categories out of China stalled to zero. Now, that just shows the great capacity of these agreements to increase the wealth and prosperity of all Australians in a most material way, but you have to put in place the structures. These agreements are the structures to make that …(Time expired)

2:36 pm

Photo of Julie CollinsJulie Collins (Franklin, Australian Labor Party, Shadow Minister for Regional Development and Local Government) Share this | | Hansard source

My question is to the Minister for Trade and Investment. I wonder if the minister could tell us if any imports are allowed under the China export agreement he has just told the House about.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The Minister for Trade and Investment, if you choose to answer.

Opposition members interjecting

Mr Burke interjecting

Members on my left will cease interjecting. The member for Watson will cease interjecting.

2:37 pm

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

This is the sort of juvenile activity—

Opposition Members:

Opposition members interjecting

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

Of course if Australia's exports to China, China exports to us. It is an export agreement. Don't you understand?

Opposition members interjecting

It is an export for China, right? They signed an agreement. But this is the level to which the opposition have taken this debate. You have not identified—

Opposition members interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

Minister for Trade, resume your seat for a second. Members on my left will cease interjecting. Members on my left are interjecting far too often far too loudly. I will deal with them if this continues.

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

China exports.

Mr Albanese interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Grayndler is warned.

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

Why are they carrying on in such a nonsensical way? Why have they not asked me one question about the detail of this issue—not one question? If you are so concerned about it, why don't you ask the person who negotiated this agreement about the detail? Why haven't you? I will tell you why.

Opposition members interjecting

If you shut up, I will tell you why. You want to listen? You want to find out? The reason is that you have not identified one thing in the worker protection area that is not the same as what applied under your government. There is nothing to negotiate, because you have not identified one thing. This has gone through JSCOT. It is going through the Senate inquiry. It has gone through all sorts of intermediaries, all sorts of research groups and others. Every one of them has confirmed that what we did in this deal is identical to what the worker protections were under the Korean deal, the Japanese deal and the Chile deal. All of those things are identical, and you have not laid a glove on this bill. That is why you are carrying on with that nonsensical question.

Photo of Nickolas VarvarisNickolas Varvaris (Barton, Liberal Party) Share this | | Hansard source

): My question is to the Minister for Small Business. Will the minister inform the House how small businesses in my electorate of Barton and elsewhere will benefit from the export agreement with China? Are there any threats to this job-creating agreement?

2:40 pm

Photo of Bruce BillsonBruce Billson (Dunkley, Liberal Party, Minister for Small Business) Share this | | Hansard source

Not only have we delivered the biggest jobs and small business package in our nation's history; we are now opening the door to hundreds of millions of new prospective customers. As for the member for Barton, very ably representing the more than 13½ thousand businesses in his electorate: they are looking to export into this North Asian opportunity, which is a delicious world of possibilities for our businesses. When you think about the fact that there is $100 billion worth of goods going to China under the agreement that Minister Robb has negotiated, 95 per cent of our exports to China will be tariff-free when this agreement is fully into effect.

This is great news for small business and for farming and family enterprises, and it is worth remembering that 90 per cent of Australia's exporters are SMEs but by value it is only five per cent of our export earnings. So there is an enormous opportunity, given that high degree of SME engagement in exports into North Asia and particularly into China, to grow that economic activity and to see the jobs and prosperity flow from it.

Here are a couple of examples from the member's electorate. Frutex are currants and raisin exporters—a great business in the local member's electorate already exporting into Asia but wanting to do more, and they will be able to do more and be encouraged by this trade agreement. Fardoulis Chocolates—I tell you they are unrivalled in reputation for crafting superior, distinctive and great-tasting chocolates. They are looking to delight more citizens in North Asia, including many of the 900,000 visitors from China who come to our country, participate in our economy and are delighted by what we do.

These agreements are very important to shift from the mining boom to the dining boom, but let's not forget how spectacular the service opportunities are under these agreements. We know that services are 70 per cent of our domestic economy, though only 17 per cent of our export income—another enormous opportunity for Australian businesses. This is not about exporting things but about exporting knowhow, education and training in the financial services sector, telecommunications sector, and health and ageing. It is a great opportunity for Australian small businesses, and we should get behind it.

I have done a bit of research and I have realised why the Leader of the Opposition is not a fan of this agreement. When he was the tsar of the AWU, at the 2004 Victorian Labor Party conference he seconded a motion moved by his union mate Dave Oliver to oppose the trade deal—not any particular deal but even trying to negotiate a deal. This shows you what is wrong with this opposition leader. This is why this xenophobic campaign needs to be stared down and defeated. It is not the detail of the deal being negotiated; Labor hates the idea of any deal with China. They want to shut the door to these opportunities. It is on the record there from 2004. You need to change your way, Leader of the Opposition. (Time expired)

2:44 pm

Photo of Kelvin ThomsonKelvin Thomson (Wills, Australian Labor Party) Share this | | Hansard source

My question is to the Minister for Trade. This afternoon on Sky News the minister was asked if it was hard to include mandatory labour market testing in enabling legislation for the China-Australia Free Trade Agreement. He said, 'It's not difficult to do, but it does create all sorts of complications.' If it is not difficult, why is the government refusing to safeguard Australian jobs?

Mr Hockey interjecting

Ms Julie Bishop interjecting

Mr Billson interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The Treasurer will cease interjecting. The Minister for Foreign Affairs; the small business minister is delaying the Minister for Trade and Investment.

Mr Hockey interjecting

The Treasurer will cease interjecting.

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

) ( ): I thank the member for his question. He has valiantly opposed trade at every step for as long as I can remember. That is your entitlement, but as a spokesman for the Labor Party in question time—it tells us all something.

Ms Macklin interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Jagajaga!

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

Secondly, a piece of legislation is not difficult to draft. I agree with that. But it does create certain—

Mr Champion interjecting

Listen to me and I will tell you. It does create complications. You are like a university student, the way you carry on.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Wakefield will leave under 94(a).

The member for Wakefield then left the chamber.

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

Goose!

Dr Chalmers interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Rankin is warned.

Photo of Pat ConroyPat Conroy (Charlton, Australian Labor Party) Share this | | Hansard source

Mr Speaker, a point of order under standing order 90: the minister made an unparliamentary remark regarding the member for Wakefield. I ask him to withdraw.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The minister will withdraw.

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

I withdraw.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The minister will continue.

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

It does cause complexities and complications, and the reason is that if we move legislation which makes all sorts of demands about making it mandatory in the Migration Act—

Mr Burke interjecting

Do you want to know the facts about the act, or not? You have asked me not one question about the facts, yet you will not listen to me when I get up here. It creates a complication because we are going to do things to China that we have not done to any other country. That is the problem. And all of a sudden it underscores the xenophobic, racist activities on your side of the House. It underscores in one question—

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The Minister for Trade—

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

That is the first question you have asked me, and it is about the racist—

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The Minister for Trade and Investment well knows that he cannot reflect on members opposite. He can reflect on a union campaign or a document. He must withdraw.

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

I will withdraw, if it was taken as personal.

Opposition members interjecting

I withdraw. Regarding the request that Labor is making, there is not a cigarette paper of difference between the worker protections in this China deal and all the other deals that we have done, including those under Labor. There is not a cigarette paper of difference between them. There is no substance to your arguments. You have tried for weeks now, and no-one—forget about us, but no-one outside—has confirmed the arguments and the cases that you are putting, because when they go into the depth of it they find that the regulations and the requirements are identical. Secondly, if we start to put a bill down, you have a list of requirements as long as your arm. That is the other complication. And it will be all be directed to China and no-one else. (Time expired)

2:48 pm

Photo of Mark CoultonMark Coulton (Parkes, National Party) Share this | | Hansard source

My question is to the Minister for Industry and Science. Will the minister outline to the House how the export agreement with China will benefit the mining industry in Australia? What threats exist to these benefits being realised?

2:49 pm

Photo of Ian MacfarlaneIan Macfarlane (Groom, Liberal Party, Minister for Industry and Science) Share this | | Hansard source

I thank the member for Parkes for his question.

Ms Macklin interjecting

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Jagajaga is warned.

Photo of Ian MacfarlaneIan Macfarlane (Groom, Liberal Party, Minister for Industry and Science) Share this | | Hansard source

As a person who has spent a long time farming, he knows the benefits of this FTA and what it will provide to our primary industries in Australia, not only our agricultural industries but our mining and resources industries as well. Under the FTA, 95 per cent of our exports to China, such as wine, beef, seafood, lamb and of course resources, will be entirely duty-free. An elimination of tariffs on coal, for instance, and other minerals will earn this country and the companies involved some $600 million. That is exactly what the mining industry needs right now—no delay; right now—so that we can ensure that they remain viable and continue to employ Australians.

Not only is the deal good for Australians, but Australians recognise that it is good for them. Sally McPherson, who runs a Queensland-based earthmoving equipment business called iSeekplant, which employs some 17 people, said recently:

The China deal will make mining more competitive and that will be good for jobs in Australian businesses like ours—

referring to her business—and:

A delay to the trade deal will stall that investment and jobs growth, with enormous consequences for our economy.

That is a businessperson saying it like it is. As the member for Parkes knows, I was recently twice in his electorate, to open two coalmines. One was the Idemitsu mine, which is a $360 million investment that employs local people and supports local businesses. As well as that we saw the Whitehaven Maules Creek mine open just recently. Along with the $767 million investment and the 450 jobs that it provided—the most important feature of those jobs being that 15½ per cent of them are held by Indigenous Australians—we are seeing the advantage of the resource industry and the advantage of supporting the resource industry through this FTA.

I know the Labor Party has trouble when it comes to the coal industry. They do not know whether they support the jobs in it or not. We have seen the Labor Party in the Newcastle City Council vote against coal jobs, and we cannot hear a word from the Leader of the Opposition. Does he support coal jobs or not? Or is he so concerned about the Greens preferences that he is ignoring the workers in the coal industry? We need to see this free trade agreement initiated and put in place immediately to make sure that we are supporting the jobs of Australians working in the coal industry.