Steven Ciobo (Moncrieff, Liberal Party, Minister for Trade, Tourism and Investment) Share this | Hansard source

I will pick up on some of the points that have been made with respect to this debate. I understand the legitimacy of the concerns of the member for Kennedy, but there are reasons why Efic does provide finance to foreign corporations. I will give you but one example. Efic provided finance to a Norwegian business because that Norwegian business was buying an Australian ferry. One way to think of it is that it is effectively a form of vendor financing. It ensures that foreign companies are generating jobs in Australia. They are generating jobs in Australia because of the requirement that there be a linkage between the finance that Efic provides and the ability to export a product.

I do understand what the member for Kennedy is saying, but it is not that black and white. The fact is that there are foreign businesses that Efic, by providing that finance, will ensure purchase Australian manufactured goods and Australia services. These are Australia goods that provide employment opportunities for Aussies all around this country, including, for example, Incat in Tasmania, who are able to provide employment opportunities and help boost the Tasmanian economy as a direct result of that finance going to a foreign entity, which, in turn, buys Australian manufactured goods. That is part of the reason why we have that requirement ensuring that there is that direct link. I want to assure the member for Kennedy that there is always the requirement for a direct link back to Australian exports, and that is a crucial part of what we are doing here.

The other aspects that I will quickly raise before this debate concludes are in respect of the amendments that have been foreshadowed, which these amendments within the chamber currently address. As a consequence of the amendments that the government is putting forward, we are currently putting in place a net positive jobs test. It is the coalition that is making sure that there must be an improvement in the jobs outcomes—not a neutral jobs impact but, in fact, a net positive jobs impact—as a consequence of providing finance to a foreign entity.

Labor has outlined two amendments. One is to prohibit finance being provided to a business overseas that may possibly impact on an operation in Australia, and they cited the example of a call centre. We cannot support that because what that amendment will effectively seek to do is freeze in time the composition of the business. If a business were evolving and, for example, moved a function of that business abroad in order to generate more employment, more profits and a more efficient business in Australia, then, in net terms, that would be a positive, and my concern with that amendment is that that would not be the case.

The final point with respect to Labor's foreshadowed amendment is with respect to prohibiting overseas investment where it would have a negative commercial impact on a company engaged in the same business in Australia. I have heard a number of Labor members and, indeed, the shadow minister make reference to the recent Guardian article. I think it is important that we understand that there is another side to that. For example, I have a letter from Glenn Jobling, the engineering director of Adelaide Control Engineering. He wrote: 'Without the support of Efic, we would not have been able to meet all of the contract provisions, which would have resulted in the client cancelling the approximately $11 million Australian order, the bulk of which involved equipment manufactured in Australia, resulting in significant benefits in terms of employment both in my company and those of my suppliers. Perhaps even more importantly, the success in winning this contract has opened the door for further similar orders both within Australia and overseas. Your'—that is, Efic's—'assistance has thus enabled us to invest in the development of new technology for the mineral, mining and processing industries which, in turn, is providing opportunities in the Australian manufacturing sector.'

I just cite these couple of quick examples. I want to work constructively with the Labor Party and I want to ensure that we can improve Efic's function. But these are not black-and-white issues, and there must always remain a tie back to improving the job opportunities for Australians.

Question agreed to.

Bill, as amended, agreed to.

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