Dan Tehan (Wannon, Liberal Party) Share this | Hansard source

Back to this very important matter: a country like Pakistan is obviously a developing country. In my view, it is incredibly important that we enable these countries to facilitate trade, because trade, in the end, is a better form than aid of their making sure that they have a sustainable future. If we can put the infrastructure in place, like the Karachi port, which will enable them to triple the amount of goods going in and out of that port, that is a significant development for Pakistan. That means Pakistan will grow. It means the income of its citizens will grow. It will mean that not only the demand for goods and services from within Pakistan but also demand for external goods will improve, and that means something for Australian exports. For example, we export wheat to Pakistan. There will be a greater demand for Australian wheat. The benefits then flow through to Australia. This is why it is in our interests to support a bank of this nature.

That example of the Karachi port I think is an excellent one because, as I say, this is not just excellent news for the people of Karachi and Pakistan, who will be able to bring more into their market and community, but also an incredible opportunity for a trading nation like Australia. Currently, we have exports of $423 million in goods to Pakistan each year. Of this, our top exports are goods transported through shipping—seeds, vegetables, coal and fertiliser, worth $271 million, and wheat, as I mentioned previously. Pakistan's new capacity will mean that our farmers and miners can ship more goods to Pakistan without being constrained by port capacity or expensive wait times at the dock.

However, the World Bank must cater for the globe, and we must wait for projects such as this to develop across our region. With the new AIIB, these projects can be provided faster and on our doorstep, where our exporters need them most. As a growing middle class expands in Asia, the AIIB will provide funds infrastructure, potentially unleashing demand on Australian commodities such as beef and dairy. These commodities will continue to expand their market in Australia's closest market.

It is interesting what a few people have said on this. John Brumby, the former Victorian Premier, has said:

Asia faces chronic infrastructure shortage and the AIIB is an important mechanism to … support regional growth. Strong regional growth is good for Australian business and good for the region …

The Business Council of Australia also has said:

Australian companies will benefit from opportunities to participate in developing and building new AIIB financed infrastructure, as well as having access to improved infrastructure which facilitates trade in the region.

And then of course we have the Treasurer, Mr Hockey. He has said:

This is real, tangible, meaningful … policy …

I think that is a very succinct way to sum up. This is real, tangible and meaningful policy.

It is real because it will deliver important economic results for the region. It is real in that the impact of it will not only be felt in Asia but felt here in Australia as well. It is real in that it will make a difference to people's lives. In particular, in developing countries, it will make a difference to the lives of those people who are living on or below the poverty line, because they are the people who ultimately, if we can get economic growth going in these developing countries, will be lifted up out of that poverty zone. That is what this bank is all about.

It is tangible because it sees the region coming together and cooperating to lift its growth. It is tangible in that it means that we will be cooperating together as a region. It is tangible in that it means that, as nations, as we prepare for the future of the Asia-Pacific region—and we know that the Asia-Pacific region is the growth region of the world—we are setting it up to continue to grow and continue to be the part of the world which the rest of the world will look to for serious leadership.

And it is meaningful policy. It is meaningful policy in that this means that Australia is doing its part. Australia is playing its part. It means that once again Australia is setting itself up for the future. I must commend the Treasurer because the Treasurer fought long and hard for us to be able to be a founding member of the AIIB. He was prepared to go out and say: 'This is the type of leadership that Australia must show in the region. Let's not be frightened about the potential for this bank to be set up. Let's actually embrace it. Let's see where our future lies—it lies in this region—and let's make sure that we are very much a part of it.'

It is just like the way that the government is leading the way with the China FTA. We are not being weighed down by negativity and pessimism about certain implications which are completely ill founded; we are prepared to say this is the right thing for our nation's future. So, in a similar vein to the China FTA, it is a pleasure to be here today to support the AIIB. I say to the Treasurer: well done for your leadership on this issue.

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