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

I support the Asian Infrastructure Investment Bank Bill 2015 and endorse the comments by the member for Longman, especially those regarding the new economy and the opportunities that the new economy presents, whether that be in entrepreneurship, start-ups or the digital age, and we know from history that those in Asia have done very well in this space. If we look back over the last 20 or 30 years at the Japanese and their companies in the electronics and information technology sectors, whether that be Sony, Nintendo, Panasonic, and at the South Koreans in recent decades and companies like LG and Samsung, they have been world leaders in adapting and innovating in the new economy. We must not forget that these companies started as small companies before they became large companies. This is why the package that the government announced just recently to assist start-ups with the employee ownership scheme, crowd funding and other initiatives will help Australian start-ups to better integrate into the world economy.

As we know, Australia's prosperity and economic growth are closely tied to the Asian region. The Asian Infrastructure Investment Bank Bill 2015 enables Australia to become a founding member of the Asian Infrastructure Investment Bank and puts Australia in a position to influence the bank's decisions and strategic direction. Australia will be the sixth largest shareholder, contributing approximately $1 billion paid-in capital to the AIIB over five years. Our membership provides an opportunity to further strengthen our engagement with the entire Asian region, which is the fastest growing region in the world and includes China, our largest trading partner.

Our relationship with China is essential to growing Australia's economy and creating jobs for all Australians. Annually this relationship is estimated to be worth $150 billion in two-way trade. The Asian Infrastructure Investment Bank Bill 2015 is further evidence of the coalition government's work to ensure the Australia-China bilateral relationship continues to deliver economic benefits. It also shows Australia working with China at a diplomatic and strategic level so that it engages in the international rules based system. The government is working with China to ensure the Asian Infrastructure Investment Bank has the appropriate levels of governance, accountability and transparency expected of a multilateral bank of this kind. The government's negotiations resulted in a commitment that the bank will be based on world's best practice that ensures all members will be involved in the direction and decision making of the bank—vitally important governance arrangements.

Becoming a founding member of the Asian Infrastructure Investment Bank will allow a deepening of our relationships with other member countries, including New Zealand, Singapore and Vietnam, among others. Ultimately, expanding our relationships with these countries will result in job creation for all Australians. This is one of the key reasons why I welcome the coalition's strategic achievements in Asia, including the free trade agreements with China, Korea and Japan. The bank will boost economic growth, create jobs and promote trade in our region by financing much-needed infrastructure investment.

We know that combined investment by countries can have a profound impact. For example, if we review history, the collective efforts to rebuild Germany and Europe after World War II through the European Recovery Program, or the Marshall Plan as it was more commonly known, provided access to credit and infrastructure investment. The United States oversaw the European recovery in partnership with countries like the United Kingdom. This sped up the German and European reconstruction considerably and enabled the growth that Europe has experienced and appreciated over the last half century. In the current context, Asia faces a major infrastructure shortfall as countries in the region industrialise and develop. Australia has the capacity to be a major beneficiary of the much-needed infrastructure investment in Asia. Therefore, it is in our economic interests that we participate in building this infrastructure through the bank.

Recently I spoke with Coffey International, who have major operations in Australia, and in particular in my home city of Adelaide. I asked for their input regarding the development in the Asia-Pacific, and in particular the Asian Infrastructure Investment Bank. Coffey's Asia-Pacific General Manager, Ben Ward, commented:

Investment in infrastructure is a key step in the economic development of a country—with access to reliable roads, rail and ports greatly increasing a country's ability to become a trading partner. Mechanisms such as an international investment bank, as long as they are models of good governance, which prioritise enabling the business and trade environment, can therefore become an important partner in the country's development journey.

The Asian Infrastructure Investment Bank will invest in areas such as transport, energy and water infrastructure, ports, logistics, environmental protection, information and communications technology, and agriculture. By improving infrastructure throughout the Asian region, greater opportunities will open up for Australian businesses like Coffey and increase demand for our services and commodity exports. Our services industry has benefited greatly from the development of Asia, and in particular China, and has serviced the resources and minerals sectors of those growing economies. Companies like WorleyParsons, Parsons Brinckerhoff, Sinclair Knight Merz, Jacobs—the list goes on—have grown considerably on the back of the resources and energy sector that has supplied the growing demand from Asia for our products.

Australian firms will be well placed to benefit from infrastructure projects in the region in other areas too, whether they be engineering, construction management, finance or consultancy. New ports and railways in countries such as India, Indonesia and Korea will mean that Australia's exports can now reach new markets. Take agriculture as an example. If we can get better access through new ports, better railways and better transport corridors in Indonesia, we can get far more of our agriculture to market in that country, which has about 200 million people and a growing economy.

As Asia develops, a middle class emerges, creating new demand for all that Australia has to offer. As we have seen with the burgeoning middle class of China, this demand expands to education, health services and tourism—all areas where Australia is fundamentally strong. Unquestionably, by making this decision to join the Asian Infrastructure Investment Bank, the parliament is facilitating the growth of Australian jobs and growth of the economy, and that is why I support this bill.

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