Nickolas Varvaris (Barton, Liberal Party) Share this | Hansard source

I thank the House for the opportunity to speak on the important and exciting bill that we have before us. The Asian Infrastructure Investment Bank Bill 2015 has been in the making for some time now. It is a joint effort by our Treasurer, the Hon. Joe Hockey, and our Minister for Foreign Affairs, the Hon. Julie Bishop. The fruits of their labour are evident in the formation of this bill, which provides a rare and unique opportunity for Australia to showcase our position and give us a unique advantage in the Asia-Pacific. The decision for Australia to join the Asian Infrastructure Investment Bank comes after extensive discussions between the government, China and other key partners around the world. I am pleased that this bill will have bipartisan support, because it is clear that there are many positive aspects associated with joining this bank.

The timing of this bill is perfect because it dovetails on the incredible trifecta of free trade agreements the coalition has signed since coming into office. Free trade agreements with Korea, Japan and China mean Australians will have the opportunity of a generation to engage with our regional neighbours to make the best of increased export opportunities in goods and services. Importantly, free trade agreements will benefit further from this bill today, because having an enormous capital funding base will provide a huge opportunity for economic growth facilitated by Australia's ongoing positive and constructive relationships with its regional trading partners.

This bill will enable Australia to become a founding member of the Asian Infrastructure Investment Bank, which equates to a huge investment opportunity for our nation as a shareholder. This opportunity translates to ongoing prospects for Australian businesses wishing to trade and export with their regional partners. I am proud to be on the side of the House that looks to the future for Australia's economic prosperity.

The coalition is very proud of this bill because it is another component of our forward planning that looks to create opportunities and wealth for all our citizens. Creating the jobs of tomorrow and providing a stable economy underpin our philosophy of hope, opportunity and reward. We believe a core government duty is to render the right conditions and foster the relationships conducive to generating real prospects for all Australians. We believe in creating and harnessing the right conditions that encourage everyone to have a go. We believe in creating equal access to opportunities for all Australians so that we can all partake in the success of our nation, which will ensure our standards of living remain first-class.

Australia is an enviable nation in the developed world because not only do we live in a fantastic country surrounded by vast beauty; we have the infrastructure and economic conditions in place for Australians to really get the most out of life. A responsible thing for government to do is to plan for the future and increase chances for our nation to remain competitive and utilise partnerships and resources to generate the best deals we can for Australians.

This is where the Asian Infrastructure Investment Bank comes in, because partaking in this rare shareholder opportunity allows our relationship with Asia to strengthen and ensures we are part of our region's growth and prosperity. Asia, in particular India and China, are on a growth trajectory that is a once-in-a-generation opportunity. Having an investment bank dedicated to the promotion of trade in a region that needs infrastructure investment is something that will positively impact on Australia.

As I mentioned previously, Asia is a growing region and, because of its proximity to Australia and our longstanding relationship, its prosperity and economic growth is tied closely to ours. A strong Asia, therefore, means a strong Australia, and a partnership allowing our authorised capital base to be injected into the Asia-Pacific region's acute infrastructure needs is a step in the right direction for us. When Australia invests in regional projects like railways, ports, transport, energy and water infrastructure, logistics, environmental protection, information and communication technology, and agriculture, we will also absorb the benefit, because it will enable better trade and exports. It will also create a demand for our expertise and services, as well as commodity products, thus, in turn, creating the jobs of tomorrow.

Important infrastructure like ports, railways and other forms of transport in places like Korea, India and Indonesia enables Australian products to reach new markets or expand existing markets. By way of example, it means we can export more of our excellent beef and dairy products; wine, which is a growing market; chocolate; seafood; cheese; fruit; and other things grown or produced in Australia that are highly valued in the Asia-Pacific.

Furthermore, a stake in our region's infrastructure projects is likely to drive demand for Australian services, including engineering, construction management, finance, consultancy and so forth, on top of the existing flow of services that has resulted from the free trade agreements. Australia will facilitate this through private sector investments and co-financing projects with other banks and financiers. Australian companies will be able to bid for projects financed by the Asian Infrastructure Investment Bank through an open procurement model. Clearly, the opportunities are vast for regional engagement and project procurement.

The Asian Infrastructure Investment Bank is truly an amazing opportunity for Australia to participate in regional development and to further engage with its neighbours and with other member countries such as Vietnam, New Zealand, Singapore and the United Kingdom. Australia's investment of approximately $932 million in capital funding to the Asian Infrastructure Investment Bank over five years will make it the sixth largest shareholder in the bank and a key member and investor, helping to build the region's infrastructure future.

In essence, the Asian Infrastructure Investment Bank is similar to the World Bank or the Asian Development Bank, except that this will specifically focus on bridging the gap for infrastructure funding in the Asia-Pacific region. At this stage, it is estimated that a staggering US$8trillion is needed for this decade's infrastructure needs. This is a daunting task, but the only way to tackle it is to face it and develop a real plan that will be mutually beneficial. So the priority is to establish members who can contribute, and in a manner which will see acute needs in the transport, water and energy sectors being met. We have entered an unprecedented era in the knowledge economy, with globalisation of resources at play, but there is no point in not sharing our knowledge or our expertise when we can have transformational regional partnerships that foster better relationships with our neighbours and that, in turn, provide jobs and economic growth for Australia. We are uniquely placed to take advantage of the region's needs by being a part of a capital funding institution, which means we can also bid on projects.

The Asian Infrastructure Investment Bank is set to commence later this year. It will really see Australia recognised as a key regional partner through opportunities for a multitude of deals in the region. This bill allows Australia to work closely with China and other Asian Infrastructure Investment Bank members to establish a bank that is effective, accountable and transparent to complement the works of existing giants such as the World Bank and the Asian Development Bank.

As I mentioned previously, the enormous rise of Asia and its uncapped potential gives Australia the opportunity it deserves to help build the infrastructure of the 21st century. The bill today sets foundations for Australia's future. We signed a trifecta of excellent free trade agreements and now being a founding member of the Asia Infrastructure Investment Bank will truly enable Australia to develop mutually beneficial relationships in the Asia-Pacific region. Asia has always been on our doorstep, and its economic prosperity is largely entwined with ours—thus, investing in Asia's future becomes part of ours. The vision for the Asian Infrastructure Investment Bank is to promote interconnectivity and economic integration in the region in addition to working with existing multilateral development banks. By becoming a shareholder in this bank, the coalition is providing a future for all Australians. By exporting our commodities, fostering trade relations and taking on regional projects delivering major infrastructure, we are given an opportunity to prove our ability as leaders and as innovators capable of delivering the answers to the needs of our Asia-Pacific neighbours. By helping to bridge the gap in Asia's infrastructure funding needs through the development of the Asian Infrastructure Investment Bank, Australia has seized the chance to capitalise on tangible opportunities that will deliver hope, opportunity and reward. I commend this bill to the House.

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