Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Hansard source

The Australian government encourages major projects to develop an Australian industry participation plan which sets out how they will provide full, fair and reasonable opportunity for Australian industry to participate in the project. In line with international obligations, an Australian industry participation plan does not mandate the use of Australian industry but provides opportunities for capable and competitive Australian industry to participate in investment projects. Mandating local content would increase costs to the community and to major project proponents, with associated risks of reducing competition and moving projects offshore.

Australia's obligations under the WTO Technical Barriers to Trade Agreement require that regulations do not create unnecessary obstacles that inhibit trade. In principle, progress towards implementing regulation is in response to increased risk, to justify the increased cost and impact. Every policy option must be carefully assessed, its likely impact costed and a range of viable alternatives considered in a transparent and accountable way against the default position of no new regulation.

Question agreed to.