Matt Williams (Hindmarsh, Liberal Party) Share this | Hansard source

It has been pleasing to hear the member for Hughes initially, and just then my good colleague the member for Canberra, talk about the important role that Efic plays and the gap in the market that it fills. This is where government certainly does have a role. Even more pleasing to hear was the number of companies that the member for Canberra referred to that are exporting their goods and services around the world—in particular, a couple of very successful medical companies. This is where this country needs to go with greater exports and more companies creating more employment, significantly, for our country. It is these exporters that are taking advantage of some of the fastest growing markets around the world. It is so important that we help them flourish and encourage them along their journey. Sometimes their journey can be tough, and that is where a body like Efic comes into play and has an important role. From my own experiences working in trade and investment overseas in Europe, when we were trying to assist some SMEs to get into new markets they did need some assistance from specialists in the field—not that I was the only specialist. There were others, whether it be Austrade or other Australian businessmen already located there, who were able to pass on their expertise and advice to help them enter those markets. Often it is the SMEs too, and this is where Efic really has a significant role to play where the banks are not willing to finance some of their operations. SMEs are the engine room of our economy. They are so important to growing our markets and taking advantage of the opportunities overseas. In terms of those opportunities overseas, I will speak a bit later about the free trade agreements.

A classic in terms of SMEs is the South Australian economy, where around 98 per cent of all enterprises operating are SMEs, and around 90 per cent of those employ fewer than 19 people. When you think about it, these are real microbusinesses, but they are so important in the fabric of our economy. On the weekend I was promoting the Shop Small campaign, which I think is a good initiative. I went around to a few local businesses in Torrensville—the Master of Bread bakery, who were very hospitable and offered some of their fine products, as well as the Little Canton restaurant. At both places the operators are very passionate, dedicated businesspeople who are having a real crack and hoping to make a go. The Little Canton restaurant has been there for a number of years.

In terms of the hard work required, these businesses take risks. They put their houses on the line. We as a government—and all governments for that matter, whether they be state or federal—need to do what we can to assist them to create the best environment. That is why such a measure is important. It broadens the scope for a body like Efic to provide financing. As we have heard before in this place, it reduces regulation and red tape—over $2 billion of savings—which, combined with the repeal of the carbon tax, is giving small businesses a great start to get on and do what they do best.

This is a common-sense reform to broaden the Export Finance and Insurance Corporation's capacity—we have backed this, and I was pleased to hear that Labor are also supporting it in terms of the merits of the bill—because it prioritises an area that can be improved to help the export potential of SMEs, and it allows Efic to focus on helping small and medium-sized Australian companies to seize the opportunities. The main area where it does this is through lending directly to exporters of non-capital goods. The Minister for Small Business, the Minister for Trade and Investment and the Minister for Agriculture—the three combined—must be congratulated for driving some of these changes through.

Prior to these changes, Efic could only lend directly for the export of capital goods that are used in the production of other goods and not an end product. What do we mean by this? As some of my colleagues have pointed out, a classic anomaly is in the area of dairy, which is a significantly growing area for the Australian agricultural sector. We have seen how dairy has been such a boon for the New Zealand economy, with it quadrupling in recent years. This change in the legislation means that Efic can apply both to cows and to milk. This goes broader than just that one example, obviously. This restriction had applied to all other goods, including pharmaceuticals, food and fibre, medical products and consumer goods such as wine.

In these instances Efic provides a financial guarantee to the bank, which will then do the actual lending. It was clear that there was a need to extend the ability of Efic to lend to enterprises that export non-capital goods and not confine them to just a credit guarantee, which at the end of the day equated to extra costs. Again I say that this is a common-sense reform that directly benefits the Australian economy and SMEs.

In terms of the free trade agreements, the recent Japan-Australia Economic Partnership Agreement means that beef exporters will no longer have to pay $70 for a certificate of origin for each shipment. It also means that 97 per cent of our exports to Japan get preferential or duty-free access. These are just a couple of examples. When combined with what we are doing with China and South Korea, there are significant opportunities for our exporters and our SMEs to take advantage of some great foundations and some areas of growth in the economy that can help grow prosperity and, importantly, jobs.

I have heard many stories in my electorate where businesses have found it increasingly difficult to do business. We are making it easier. We are fostering a better environment and letting business get on with what they do best. I commend this bill to the House.

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