Helen Coonan (NSW, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Foreign Affairs and the Minister for Trade, Senator Faulkner. Is the minister aware of reports that China’s biggest steelmaker, Baosteel, will reduce production by one million tonnes—that is, by 10 per cent—over the next quarter? What impact will this and production cutbacks by other Chinese steel mills have on Australian iron ore exporters, Australian export earnings and Australian jobs?

John Faulkner (NSW, Australian Labor Party, Cabinet Secretary) Share this | Link to this | Hansard source

With due respect to Senator Coonan, I think this question is misdirected. I think it is more appropriate being directed to the Minister representing the Minister for Trade, who is in fact Senator Carr.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Thank you very much, Senator Faulkner.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

That’s a difficult handball.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

That is exactly right—a hospital pass.

John Faulkner (NSW, Australian Labor Party, Cabinet Secretary) Share this | Link to this | Hansard source

I don’t represent for Foreign Affairs and Trade; I represent for Foreign Affairs.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Senator Coonan, I do not have a brief on China and Chinese iron ore. If I may, I would be happy to take the question on notice.

Helen Coonan (NSW, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

I thank Senator Carr for at least acknowledging the question. Mr President, I ask a supplementary question. I ask the minister, when he gets an answer for me, to also check this. When the Prime Minister spoke to the Chinese Premier, Wen Jiabao, by telephone last week, did he raise Australia’s concerns over the slowdown in demand for Australia’s key raw materials and services exports to China? What was the Chinese Premier’s response?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

I would be happy to seek further advice on this matter. It is my understanding that the Prime Minister did raise these questions with the Chinese government, that the reported suggestion of a slowdown in the Chinese economy was discussed specifically and that the growth rates that have been predicted for China are likely to be revised. However, it is my understanding that the Chinese government will be taking all the steps it can to actually address these issues and will be applying considerable attention to these matters. I am hopeful that I will be able to provide further information. I do not believe that the reported reduction in Chinese demand is quite as significant as some of the press reports have indicated.