Fiona Nash (NSW, National Party, Shadow Parliamentary Secretary for Regional Education) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Trade and Competitiveness and the Minister for Defence, Senator Bob Carr. I refer the minister to my unanswered questions of 1 November regarding the government's cancellation of its long-intended purchase of South Korea's LAND 17 self-propelled howitzer.

In particular, I refer to the minister's assurance about his 'cordial' conversation with Korean foreign minister Kim when I asked whether the government's decision would have diplomatic, trade or commercial fallout for Australia, given the Korean government's closeness to its defence industry. Are free trade agreement negotiations with South Korea now stalled because the capricious cancellation of this purchase prompted Korea to increase its insistence on the inclusion in the FTA of investor-state dispute resolution clauses to mitigate against exactly this sort of sovereign risk? Will the minister answer the parts of my question that he took notice on 1 November?

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I am very grateful for the question because I did deceive the house when I gave that answer about the impact of this cancellation. I referred to one conversation I had with foreign minister Kim of South Korea. I mentioned that in that cordial conversation, held only days before I answered the question in the Senate, he had not raised the question of this contract. It was not as full and, I confess, as honest an answer as I might have given. I neglected—

Senator Abetz interjecting—

Was that an interjection? I neglected to draw the attention of the Senate to no fewer than four other conversations with the foreign minister of South Korea where the matter had not been raised with him. One of them was when he came here to Canberra, three or four months ago I would say, for bilateral discussions. The matter did not figure in those discussions.

Another meeting was in New York in September, where we discussed a range of issues. He did not raise that matter. There was a telephone conversation not long after I assumed this job where, again, he did not raise the matter. If it were a matter of bilateral concern—

Fiona Nash (NSW, National Party, Shadow Parliamentary Secretary for Regional Education) Share this | Link to this | Hansard source

Mr President, I rise on a point of order, on relevance. I asked the minister about the investor-state dispute resolution clauses, which he is yet to refer to in his answer. I ask you to draw the minister's attention to the question and have him respond appropriately.

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

The question was broader than that, and the minister is responding to the question. The minister still has 32 seconds remaining to address the question.

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The point about investor-state dispute resolution is that it is only one of several issues to be resolved. Other outstanding issues include, for example, the terms of access for Australian agricultural product. Should that be disregarded? Should we not persist in talking about terms of access for agricultural products? Is that the view of the National Party, that this should not be a concern of the Australian government? On the contrary; it is the view of the Australian trade minister that that should be pursued. (Time expired)

Fiona Nash (NSW, National Party, Shadow Parliamentary Secretary for Regional Education) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given the government's dishonourable cancellation of the LAND 17 self-propelled howitzer project, is it no surprise that the Koreans are insisting on the inclusion of the investor-state dispute resolution clauses in the free trade agreement to protect their industries from the sovereign risk of dealing with the Australian government? Is this derailment of the free trade agreement negotiations now jeopardising Australia's $770 million beef export market to Korea?

Honourable Senators:

Honourable senators interjecting—

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

Order! When there is silence we will proceed. I remind honourable senators that talk across the chamber is disorderly. Senator Nash is waiting to have the foreign minister answer the question.

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The Liberal Party would like it said that they take the case for Australian business. But, in fact, Australian business should be given the final word on this very matter. The trade minister has received a letter from the Australian Industry Group commending the position he is taking on ISDS. It was received on 14 November and is in strong support of the Australian government's position on ISDS.

Senator Ian Macdonald interjecting—

Well, you might object and you might attack the organisation I am quoting. But that is the body speaking for Australian investor opinion, and they commend the position taken by my colleague the trade minister. They support it specifically on this matter.

I might say that the Australian government and our colleague the minister for trade are working very, very hard to conclude the free trade agreement.

Fiona Nash (NSW, National Party, Shadow Parliamentary Secretary for Regional Education) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Does the minister agree that the fact that the disgraced member for Dobell, Craig Thomson, is secretary of the Australia-Republic of Korea Parliamentary Friendship Group simply adds insult to injury as far as Korea is concerned? Does the minister think it appropriate that a visiting South Korean parliamentary delegation, already concerned about Australia's sovereign risk, be entertained by Mr Thomson as the Gillard government-supported secretary of this group?

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

When all allowances are made that this is the end of the parliamentary session, it has been an exhausting week, the questions have been used and misused and it has been a tactical disaster for those opposite for two or three sitting weeks—a tactical disaster—and that we know that oppositions get to the bottom of the barrel towards the last sitting days, I cannot help the honourable senator. I have no idea whether Mr Craig Thomson is chairman of that group. He could be—

Honourable Senators:

Honourable senators interjecting—

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

Order! Senator Bob Carr, resume your seat. Senator Macdonald?

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia) Share this | Link to this | Hansard source

Mr President, I rise on a point of order on relevance. We have had this minister for 30 seconds, half the allotted time, giving a critique on the questioner and going nowhere near answering. Mr President, you have to stop these people treating question time as a joke.

Jacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | Link to this | Hansard source

Mr President, on the point of order: if Senator Macdonald had listened rather than jump in the way he had he would have heard the minister answering the question. He stands up and refers to 'these people' in a point of order that does not respond—

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

What's your point of order?

Jacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | Link to this | Hansard source

I am responding to the point of order, Senator Abetz.

Honourable senators interjecting—

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

Order on both sides! Senator Collins, continue with your point of order.

Jacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | Link to this | Hansard source

Thank you, Mr President. The minister was quite reasonably responding to the nature of what was an absolutely ridiculous question talking about parliamentary friendship associations in relation to South Korea, and any suggested role of Mr Thomson is absolutely ludicrous. Unfortunately, Senator Macdonald shows again, as have other senators in the last couple of days in this end of session, that they simply cannot hear what is occurring in the chamber.

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

This is debating the issue now.

Jacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | Link to this | Hansard source

The minister was answering the question.

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

Order! The minister was answering the question and the minister still has 31 seconds remaining to address the question, if he so chooses.

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Mr President, let me confess that I was under the impression that the member was president of another friendship group, and that is the North Korean friendship society, spending his time going to folk dancing festivals in Pyongyang and tours of gulags in that benighted country. I do not know—how would I know?—who is chair of the North Korean friendship group.

An honourable senator: She told you!

Well, I cannot take her at her word . As far as I am concerned, it could be a fiercely contested position. (Time expired)