Geoff Lyons (Bass, Australian Labor Party) Share this | Hansard source

I was just amazed by the use of the slogan 'it's time'. I seem to recall that from a campaign in 1972—a great campaign. I am most pleased to speak on the Customs Amendment (Anti-dumping Measures) Bill 2011 today, which will amend certain provisions of the Customs Act 1901 concerning reviews of antidumping measures. The legislative measures to counter dumping have been in operation since early last century. The first country to introduce antidumping legislation was Canada, in 1904. Australia's legislation dates back from the Industries Preservation Act 1906.

In brief, the amendments contained in this bill will clarify the circumstances in which the minister may revoke antidumping measures. Australian antidumping laws, which broadly follow the World Trade Organisation AntiDumping Agreement, aim to prevent the dumping of imports found to cause or threaten 'material injury'. Although dumping is not specifically prohibited, competition from imports can be considered by the Commonwealth to be unfair in certain circumstances and remedial action can be taken.

Dumping occurs when an overseas company exports its goods to another country, oversupplying it at a price that is below the price it charges in its home market or is below the cost of production. Antidumping measures are imposed to prevent an importer from unfairly damaging Australian manufacturing. Australia's antidumping and countervailing system is an important facet of our trade environment and helps to protect local industry and jobs. That is why this bill is so important. The Gillard Labor government supports local industry because local industry is important for our nation. It is important for Australian families.

The bill responds to a decision from last year of the full Federal Court in the Minister of State for Home Affairs and Siam Polyethylene—the Siam decision, as it is called—which considered the review provisions and, in particular, the test for determining whether antidumping measures should be revoked. As the Hon. Brendan O'Connor, Minister for Home Affairs and Minister for Justice, outlined in his speech on this bill, the government believes the Siam decision will lead to outcomes inconsistent with the objectives of Australia's antidumping system, and it is appropriate that we seek to rectify it.

Minister O'Connor detailed how the Siam decision is problematic for two reasons. Firstly, the case highlighted a lack of clarity in the current review process, where affected parties must request one of three things: (a) a complete revocation of existing antidumping measures, (b) an adjustment to existing measures or (c) a revocation or, failing that, an adjustment based on changed circumstances. Secondly, the court in its decision formulated a new test for determining whether antidumping measures ought to be revoked. The formulation will likely lead to measures being revoked where they remain warranted.

This government believes that the court's interpretation of the test would lead to antidumping measures being revoked where Australian industry remains at risk of being damaged by dumping. That is why this bill is so important. We need antidumping laws that are consistent with world best practice and the best interests of the Australian economy. If a party wants antidumping measures to be revoked they will have to provide evidence that the measures are no longer warranted. The bill clarifies that if a party wants the minister to revoke antidumping measures it must initiate the request or apply for it within 40 days of a review commencing. This move will make the review process more open and transparent. It will also give Australian manufacturers adequate time to respond to an application for revocation.

The amendments make it clear that, if affected parties want the minister to revoke measures, they must apply for it and they must do so at the outset of a review process or within 40 days of a review commencing. The amendments cement the existing practice of Customs to treat revocation reviews as different in kind from reviews adjusting or updating the level of the measures, and will require an affected party to provide evidence that there are reasonable grounds for asserting that measures are no longer warranted. The amendments will also improve procedural fairness by giving affected parties advance knowledge of the process for seeking the revocation of measures and will ensure that investigators have time to consider the issues before reporting to the minister. Importantly, the amendments will give interested parties adequate time to defend their interests.

The proposed amendments also insert a new test, which will provide that the Customs CEO must recommend that the minister revoke the measures unless satisfied that the removal of measures would lead, or would be likely to lead, to a continuation of, or recurrence of, the dumping or subsidisation and the material injury that the antidumping measures are intended to prevent. Ultimately, it is a clear test which will avert the unnecessary revocation of effective antidumping measures.

The Australian Labor government is committed to its antidumping system. These amendments will ensure, where measures have been put in place to address injury faced by Australian industry as a result of unfair trading practices, those measures remain effective. Members of the chamber, may I say: it is vitally important that laws in this area are clear, for the good of Australian industry and for our international trade relationships. I say to those opposite in this chamber: local industry is worth defending. Australian manufacturing employs at least five times the numbers in our mines. Including agriculture, it is close to seven times that number. Most of our manufacturing sector and agriculture is almost entirely trade exposed. This industry deserves fair treatment in international rights and trade. They need to be afforded a level playing field.

As stated in the AMWU, CFMEU and AWU roundtable paper on antidumping, a better deal for consumers is an illusion. Short-term price cuts come at the expense of local jobs and increase prices over the long term, as the local competition is killed off. The manufacturing industry is an important part of our nation. In terms of employment, our manufacturing industry directly employs 1.1 million Australians, around 12 per cent of the workforce. Tasmania has a small but vibrant manufacturing sector. In my capacity as the member for Bass I will do all I can to encourage this sector and to protect jobs.

Another aspect to look at is the gross domestic product, gross value-added, in the manufacturing sector. According to Manufacturing Skills Australia, as at July 2009 manufacturing, including beverage, timber and paper products, contributed almost $107 billion, 12 per cent of the value of the Australian economy. This is certainly significant.

The Gillard Labor government want Australia to be a high-tech, high-value producer, paying good wages and offering a good standard of living. That is the future we are aiming for. It is the future that Australia deserves. That is why we are delivering the biggest infrastructure program this nation has ever seen: the National Broadband Network. This government are about protecting workers' jobs and their rights into the future. The government are about providing Australian children with the very best of education. The government are ending the blame game with the states when it comes to health, so we can deliver the best outcomes for patients. The government are about tackling climate change. We do not have our heads in the sand; we are not a complacent government. The Gillard Labor government have created more than 300,000 new jobs in the last year alone—and 98 per cent of these jobs were full time. Unemployment is below five per cent. When I studied economics, that was full employment. We have raised pensions. Age pensions are $128 a fortnight higher for singles and $116 a fortnight higher for couples since 2009. Our stimulus packages staved off the global financial crisis, helped families with the cost of living and built new infrastructure in our cities and country towns. Where the Liberal government provided flagpoles, the Labor government has provided jobs and infrastructure in education for the 21st century. Our terms of trade are the best in 140 years, with record returns for our export industries. Let us keep Australia strong. I am pleased the opposition are going to support this bill.

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