Kelvin Thomson (Wills, Australian Labor Party, Parliamentary Secretary for Trade) Share this | Hansard source

I thank members for their participation in this debate and I thank the opposition for its support of the legislation before us, the Export Finance and Insurance Corporation Amendment (New Mandate and Other Measures) Bill 2013.

I wish to comment on the remarks made by the member for Hughes concerning the carbon price. He ran out the tired old chestnut of the world's highest carbon tax.

In fact it is not a tax. It is a price on carbon and I am simply referring to the expression which you used, which is manifestly incorrect. In fact, the government has moved to link the carbon price with the carbon price being applied by close to 50 European countries. We will have exactly the same price as those 50 European countries, so it is simply absurd to run out the tired old chestnut that we are applying the world's highest carbon price.

It is manifestly untrue. Small- and medium-sized enterprises are indeed the engine room of job creation in this country and they will be the big winners following passage of this bill. In September 2011 the government commissioned the Productivity Commission to review Australia's export credit arrangements. Our response to the Productivity Commission's review, which was announced earlier this year, set out some adjustments to the mandate, the powers and the governance and financial arrangements of the Export Finance and Insurance Corporation. This bill implements those changes.

The new mandate for the Export Finance and Insurance Corporation will ensure that more of its resources are devoted to small- and medium-sized enterprises which face financial barriers to exporting. The bill also gives the EFIC new powers to enable it to better support Australian businesses participating in global and regional value change. Increasing participation in regional value change will result in increased specialisation and productivity as Australian companies move up the value chain focussing more on high value-added activities.

This bill forms part of a commitment in the Australia in the Asian Century white paper to direct more of EFIC's resources to small- and medium-sized enterprises looking to expand into Asia and other emerging and frontier markets. EFIC already plays a valuable role in assisting exporters but these reforms will help it to keep pace with changes in the global economy, particularly through EFIC's improved ability to support Australian companies to integrate into regional value change.

While EFIC's new focus will be on helping small- and medium-sized enterprises with their overseas endeavours, EFIC's mandate will not preclude it from supporting larger firms should they too face market failures, particularly when doing business in emerging and frontier markets. Through the introduction of a tax equivalent payment and debt neutrality charge or guarantee fee, the bill will also ensure that EFIC does not have a net competitive advantage over other businesses in the private sector. The bill will also remove the government member from EFIC's board. That will increase the board's independence from government.

The amendments in this bill will reorient EFIC's operations towards those small- and medium-sized exporters who face genuine market failures in accessing finance, particularly those businesses operating in frontier and emerging markets.

In getting around Australia in recent times I have been able to talk to a lot of small- and medium-sized enterprises who are doing well in terms of finding markets to which to export their products. They have been able to locate niche areas where quality counts for a great deal, where Australian branding counts for a great deal and is well received overseas, and they are doing well. You tend not to hear those stories. The stories that tend to make it onto the front pages of the media are about businesses closing their doors or laying off workers. Indeed, members of parliament often do not hear the good news stories because the businesses that are doing well do not have any cause to darken our doors, whereas those who are struggling may well seek to make contact with us. I can assure members here and people throughout the community more broadly that there are many Australian businesses that are doing extremely well with niche products, with high-end technology, with innovation and with good design, and they are taking advantage of Australia's reputation for quality and reliability.

The bill demonstrates our strong commitment to delivering on the Australia in the Asian century white paper objectives, improving support to Australian businesses so that they can take advantage of the changes and opportunities occurring in our region. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.

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