House debates

Wednesday, 15 June 2011

Bills

Appropriation Bill (No. 1) 2011-2012; Consideration in Detail

12:41 pm

Photo of Martin FergusonMartin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Hansard source

A range of questions have been raised by those who are participating in this debate and I will seek to cover some of them. Obviously time is not of a long duration because we adopted the same approach to the House of Representatives committee stage processes for the budget as was the longstanding practice of the previous Howard government over almost 13 years. So if the shadow minister has some complaints he ought to take them up with the former Prime Minister of Australia, John Howard.

Putting that aside, I am disappointed that the member for Paterson, having made a long-winded contribution of no substance, could not stay in the chamber, because perhaps he could have learnt something about the challenges the tourism sector in Australia is facing at the moment. Let us be very frank, the Australian economy is going through a process of change at the moment because of the pressure of the mining and petroleum sector and the strength of the Australian dollar. This is reflected in the challenges I confront as Minister for Tourism, and it is also reflected in, for example, the challenges facing the manufacturing industry, for which Senator Kim Carr has responsibility.

Putting aside the endeavours by the member for Paterson to undermine, there is terrific activity in the tourism sector at the moment to survive with respect to both international and domestic visitation. The tourism industry is, to some extent, holding its own in very difficult times. Earlier today the member for Paterson asked me for a briefing—and I am surprised he has asked for that so late after the budget—on the activities of the department, budget initiatives and Tourism Australia. I have already spoken to my staff today about arranging that briefing, and we will seek to meet his convenience. Perhaps prior to this process next year he might seek a similar meeting. If he had done that this year, we would not have had the waste of time of his long-winded intervention of no substance earlier today.

I will now go to the latest tourism forecast, released on 26 May, which should answer some of the issues on tourism. I note that, despite oil prices, natural disasters and the high Australian dollar, Australian tourism is actually demonstrating resilience, which is very important to the member for Groom's home state of Queensland given the recent natural disasters, including the impact in his own electorate. Tourism consumption, interestingly, is forecast to increase by 0.4 per cent to $98.4 billion, with inbound visitation forecast to increase 3.1 per cent to 6.1 million in 2011. The committee also forecast that the modest growth in domestic tourism shown in 2010 will continue through 2011. I really hope for the sake of this industry that it actually does occur, because this industry employs, directly and indirectly, just under one million Australians. Domestic nights—and this is a factual report—are forecast to fall by 0.3 per cent to 259 million nights in 2011. Spending, importantly, is forecast to decline by 0.7 per cent due to the impacts of floods, cyclones, the high Australian dollar and, because of the nature of the times, the somewhat close-fisted consumers. Domestic trips, however, remain resilient and are forecast to increase by 0.5 per cent in 2011. Consistent with other growing economies, including China and India—and I appreciate the positive feedback from the member for Paterson about the positive outcomes in Cairns last week in terms of the first ever Australia-China Tourism Summit—China is our real growth opportunity, with currently 470,000 tourists, at a value of about $3.6 billion, expected to double by 2020 and, from a tourism perspective, earnings for Australia, just out of China, of about $6 billion to $7 billion. These economies are very important to us.

I simply say, I suppose, in a very honest way to the member for Paterson that there has been no endeavour to wind back the capacity of Tourism Australia, TQUAL, or our commitment to implementing long-term tourism strategies because we know we have to work with the tourism industry. It is resilient and it is doing its best to actually survive in these difficult times.

I now go to, I suppose, a more considered intervention from the member for Groom. Perhaps he ought undertake a tutorial with the member for Paterson as to what these processes are really about rather than make inane interventions of no consequence or which do not contribution in the long term to the operation and quality of this parliament.

Mr Husic interjecting

The member for Chifley correctly raises the issue of the coal industry. (Extension of time granted). I had ministerial responsibility for resources and energy in December 2007. If I had been asked to give an undertaking that no mine would close on my watch, then I would not have given that undertaking and nor would I give a similar undertaking now, with or without a carbon tax. I will give you a few examples why. I actually took phone calls during the global financial crisis from a range of mining companies in Australia, including from a range of coalmining companies, which, because of the impact of the global financial crisis decided, for whatever reason, to actually close coalmines in Australia. I also recall actually going to Ravensthorpe, in Western Australia, in partnership with BHP and having the opportunity to be part of the opening of a huge investment by BHP in the new nickel mine operation in Western Australia. Within the space of 12 months it was closed.

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