Arthur Sinodinos (NSW, Liberal Party, Cabinet Secretary) Share this | Hansard source

I thank the honourable senator for her question and for her interest in trade. Trade is the lifeblood of the great state of Western Australia. I can confirm that these free trade agreements that we have been talking about—the Korea free trade agreement, the Japan free trade agreement and the China-Australia free trade agreement, to be followed by the Trans-Pacific Partnership—all will promote free trade, and the free trade will in turn promote greater innovation in the Australian economy because it will promote competition in the Australian economy, and competition and innovation are very closely related. The competition that comes from taking trade barriers down and taking down non-technical or non-tariff barriers to trade and all the rest of it—all of that will promote greater free flow of goods and services.

Our modelling indicates our three recent bilateral free trade agreements will add $24.4 billion to Australia's gross domestic product between 2016 and 2035. Household consumption in Australia will increase by $4,350 on average over the same period. What we are doing with the Harper review will promote competition, which will promote innovation and allow us to take advantage of these free trade agreements. And what we are doing in reducing unnecessary, burdensome and costly regulation will further add to the impetus for competition and innovation.

The new Assistant Minister for Productivity has been tasked with expanding our regulatory agenda to include more items which directly increase productivity. On top of that we are exploring ways to promote the formation of entrepreneurial companies in Australia. Changes to the Significant Investor Visa program will do just that. They will direct investment dollars to where they can provide the most benefit—venture capital funds backing start-up innovators.