Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Trade. Will the minister confirm that the Minister for Trade directed the Export Finance and Insurance Corporation to provide the secret $200 million loan facility to GM Holden under section 29 of the EFIC Act, the so-called National Interest Account?

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

Senator Chris Evans interjecting—

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

Yes, I know!

John Hogg (President) Share this | Link to this | Hansard source

Senator Carr, address the chair and the question that is before you.

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

Senator Abetz has, of course, misrepresented the situation in regard to the government’s support for an EFIC export credit facility for General Motors Holden. The government has provided support through EFIC to General Motors Holden of a $200 million facility which has not been drawn down. This was because EFIC was able to do so through the National Interest Account—it was not able to facilitate this through the commercial account—and because General Motors Holden is a very important part of the new General Motors worldwide.

EFIC’s support was critical to ensure that, in a period of high uncertainty, General Motors Holden was able to be maintained as part of a new global General Motors. It was a decision taken by the trade minister, as is required by law, but it was a decision by the cabinet. As a proposition that was fully discussed within the government, it was not a secret; it was revealed—in fact, I am on the public record on Friday.

I understand that you have been getting certain advice through certain emails. I suggest that is not the process that you should rely upon in these matters. I would have thought that the advice that you have received on these matters is quite inaccurate. You could have relied upon the statements of government ministers that were published in the press last week.

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. The government was that forthcoming that, when I asked about this matter in February estimates, the minister refused to answer. So, before the minister gets on his high horse, he might like to go back to his refusal to answer questions on those matters.

Can I ask the minister whether it is right that EFIC’s 2008 annual report states:

Transactions are usually referred to the Minister for consideration on the National Interest Account where the size or risk exceeds EFIC’s commercial parameters ...

For the minister’s information, that is on page 15. Will the minister advise the Senate whether the size and risk of the $200 million loan to GM Holden exceeds EFIC’s commercial parameters, and, if so, did the minister—and, I understand, the cabinet—direct EFIC to put this onto the National Interest Account?

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

I thank the senator for the question. I do think he should check the Hansard again regarding the Senate estimates. He may well have been misinformed on that occasion as well on the basis of any questions he sought to put to myself or the officers.

The loan was offered through the Export Finance and Insurance Corporation. I have confirmed it was in line with the requirements of the EFIC Act, which allows for loans to be provided in support of Australian export efforts. The facility provides for a secure loan, subject to strict commercial conditions, to protect the Commonwealth’s interest. The details of EFIC’s transactions have remained—as they have on so many occasions under your government as well as ours—commercial-in-confidence. The loan will be managed, if it is drawn down, in accordance with the normal commercial practices.

The question of whether it was on the commercial account or the National Interest Account was a decision taken by government— (Time expired)

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

I simply refer the minister to his own written answer to question on notice No. AI-41 from Hansard of 26 February 2009, page E91, for his reference. My further supplementary question is: will the minister advise the Senate how much of EFIC’s current $1.1 billion national interest account has been made available to commercial entities, or is GM Holden the only commercial entity to have been given this sort of provision?

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

I would simply indicate that Senator Abetz has relied upon some dubious sources in regard to his estimates performance. He was properly advised of the custom and practice in regard to EFIC, which was the practice according to the EFIC Act, followed by us—as it was by you when in government, Senator Abetz. It is standard procedure for EFIC to provide facilities to companies in terms of their provision of support for Australian exports. As to the specifics of your question in regard to the administration of EFIC, I will have to seek further advice from the minister for trade. What I would say to you, Senator Abetz, is: do not rely on dodgy sources when you are trying to make your sorts of allegations.