Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

My question is to the Assistant Minister for Health, Senator Nash. Will the minister inform the Senate of the benefits of the China-Australia free trade agreement for Australia's health sector?

Fiona Nash (NSW, National Party, Assistant Minister for Health) Share this | Link to this | Hansard source

I thank the senator for his question. As noted by many members on this side of the chamber, at its core this agreement will mean more jobs from more Australians. It will mean better access to the world's second largest economy, an improved competitive position the export markets, more prospects for increased two-way investment and reduced cost for imports for Australian businesses and consumers alike.

The China-Australia FTA will open significant opportunities for Australia in the world's second largest economy and one of the world's fastest growing economies. China is Australia's largest export destination for both goods and services, accounting for nearly a third of total exports. It is our largest export market for agriculture, resources and services and is a growing source of investment, creating jobs and economic prosperity for Australia. The benefits of this agreement are far reaching and one of the great beneficiaries in our economy is services—in particular, our world-class health sector. Those of us from rural electorates often think of the free trade agreement in terms of agriculture, beef and primary produce. We often forget that China is already Australia's largest services market, worth nearly $7½ billion dollars in 2013-14

This agreement will knock down barriers to trade in services. For the Chinese economy, which is transitioning its population into the modern world health care, the hospital system is there but the primary care system is well and truly ripe for development. The opportunities we have to help provide 1.3 billion citizens with primary care are very positive. The opening up of Chinese health industry to foreign investment represents an unprecedented opportunity for Australian businesses, given China's growing middle class and its increased demand for quality health care.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister inform the Senate how, as a result of the China-Australia free trade agreement, Australian healthcare providers will be able to establish themselves in the Chinese market?

Fiona Nash (NSW, National Party, Assistant Minister for Health) Share this | Link to this | Hansard source

Under the China-Australia free trade agreement, China will permit Australian medical service suppliers to establish wholly Australian-owned hospital institutions in China. This will greatly expand the opportunity for the private health sector to offer medical services in China. In practical terms, Australian healthcare providers will now be able to take their world-class expertise into this emerging market. They will be able to build Australian-owned hospitals and nursing homes in China and, most importantly, train the staff to run them.

This FTA will also provide major benefits to Australia and to the biotech and pharmaceutical sectors, because tariffs on these products will be progressively phased out within four years. China already imports more than half a billion dollars' worth of pharmaceuticals a year. The China-Australia FTA gives Australian healthcare businesses are fantastic opportunity when they enter or do business with one of the world's fastest growing economies.

Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister inform the Senate of the views of the health sector on the benefits of this historic free trade agreement?

Fiona Nash (NSW, National Party, Assistant Minister for Health) Share this | Link to this | Hansard source

I am pleased to advise the chamber that the chief executive of peak body AusBiotech, Dr Anna Lavelle, has noted the benefits of the agreement to the health sector. She was recently quoted as saying:

AusBiotech welcomes the free trade agreement with China as a positive move for an industry that is 'born global' and relies on trade in international markets to prosper.

Also, Chris Rex of Ramsay Health Care has said:

China has favourable demographics for healthcare, with a population of 1.3 billion—

Stephen Parry (President) Share this | Link to this | Hansard source

Order! The time for answering the question has expired. But just a moment, I will check: was the clock set for the full 30 seconds? I think that might not have been the case. Minister, if you wish to answer further, you are welcome to continue. We will allow a further 10 seconds.

Fiona Nash (NSW, National Party, Assistant Minister for Health) Share this | Link to this | Hansard source

Thank you, Mr President. The Australian healthcare industry thinks that this agreement is a good deal. Who else thinks that this is a good deal? Bob Hawke thinks this is very good deal for Australia, Bob Carr thinks this is a very good deal for Australia and Simon Crean thinks this is a very good deal for Australia, as do the Labor premiers of Victoria, South Australia and Queensland. It is about time that those opposite got on board.