House debates

Tuesday, 9 May 2006

Delegation Reports

Parliamentary Delegation to Denmark and Sweden, 16 to 27 October 2005

3:32 pm

Photo of Mal WasherMal Washer (Moore, Liberal Party) Share this | Hansard source

by leave—It is certainly a pleasure to address the report on the Australian parliamentary delegation to Denmark and Sweden. On behalf of all delegates, I would like to express my appreciation to the Danish and Swedish parliaments for their hospitality and informative and comprehensive program; to the Australian Ambassador to Denmark, His Excellency Mr Matthew Peek, and Mrs Linda Peek; and to the Australian Ambassador to Sweden, His Excellency Mr Richard Rowe, and Mrs Asa Hasselgard-Rowe and staff for their wonderful support and hospitality. Thanks also go to DFAT, the Parliamentary Library and the Parliamentary Relations Office.

Australia’s relationship with Denmark has been strongly enhanced by the marriage of Australia’s Mary Donaldson to Crown Prince Frederik of Denmark and the birth of their son and heir to the Danish throne the day before we arrived on our visit, as the Speaker said. Unemployment in Denmark is around five per cent. The labour market in Denmark is based on employer organisations making collective agreements with trade unions. Around 80 per cent of blue-collar workers belong to a trade union. Many labour market issues are dealt with through negotiations between employers and trade unions.

The Confederation of Danish Industries noted that flexibility is needed for future growth, in accordance with the traditions of the country. The confederation noted the impact of globalisation on local industries in Denmark, which has high labour costs and an ageing population. Danish industry has adjusted to this with less labour-intensive industry and with automation and streamlining of production processes. The Danish parliament is considering pension reforms to increase the age of retirement from 60 to 65 years. The confederation noted personal income taxes to be too high, with a top tax rate of 63 per cent and a value added tax at 25 per cent.

Child care is a significant issue, with the government providing subsidies to assist with the cost of child care. Standards have been developed for the education of children in day care centres, allowing women to return to the workforce.

Greater collaboration between Danish and Australian scientists to improve knowledge and technology based farming would be welcomed by Danish scientists. A visit to Vestas Wind Systems in Jutland demonstrated the manufacture of the wind generators used in Portland, Victoria and Wynyard, Tasmania. The world’s largest container operators, AP Moller-Maersk, were surprised that we operate five major ports to service a nation of only 20 million people. They believe that fewer ports and more comprehensive transport infrastructure based on rail would provide greater benefits.

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