Tim Wilson (Goldstein, Liberal Party) Share this | Hansard source

Efic is focused on the export finance Australian exporters need, not just to, obviously, export goods and services to the world but to particularly help those mighty giants of our nation, the foundation of our enterprise, small- and medium-sized exporters, to be able to build their capacity to sell the benefits, the wealth and the opportunity of this nation to the world. Of course, that focus pays dividends. Efic has provided around 260 SMEs with over $350 million of financial support in the last three years. The total exports supported were valued at $1.8 billion—not just $1.8 billion of goods sent around the world, but $1.8 billion that delivered jobs to Australians and built this nation's future.

In the wonderful electorate of Goldstein, many businesses have also benefited. For instance, SOS Hydration received a loan of $100,000 in July of last year—a company that I have met with in the past. Their wonderful entrepreneurs are providing an innovative Australian product and are taking it to the globe under Andrew Shaw and his team. Grande Exhibitions in Black Rock, with the innovation effort of Bruce Peterson, also received $100,000 a few years ago, and the Australian Pacific Touring company received a million-dollar loan in 2011 under Geoff McGeary.

Efic is already doing a good job in helping our exporters. During the course of the last financial year, Efic provided over 110 SME exporters with over $155 million in funding. However, Efic could do more to help Australian exporters. Among other things, the change in the legislation being provided gives more businesses the ability to secure Efic financing. Previously, Efic could only provide a guarantee for a loan from another bank for certain types of exporters of Australian goods and services. This change saves these businesses time and money by allowing them to borrow directly from Efic. But, more critically, it is also part of the drive of recognising not just the past and the present but also the future of the Australian economy. It particularly embraces the opportunity to give exporters in the services sector the chance to be able to realise their opportunity is part of our region.

Just consider the case of a WA geosciences company which exports innovative Australian geology and geophysics services and software. Following on from its international success, the company needed additional working capital to expand its offices in the UK, US and Malaysia. Expansion of its offices was important for driving more sales, its business growth and, of course, creating jobs for Australians overseas. The company's bank was unwilling to provide the finance so it contacted Efic for support. Efic was able to provide guarantees for bank loans, but this process could have been simpler, quicker and more efficient. The changes in this bill mean that this company would have been eligible for a loan from Efic.

Importantly, the legislative changes included a legislative stipulation to ensure there are more Australian jobs where Efic supports Australian businesses to expand overseas. It was already Efic policy that applicants for its overseas direct investment financing product must not use it to fund the outsourcing of jobs. The changes required businesses to certify in writing their reasonable belief that Efic's support for overseas direct investment will actually grow and result in an increase in the number of people employed in Australia by their business or affiliates. That is not a straightforward task because Australia is not an island continent producing finished goods. We are part of a global supply chain exporting goods and services to the world. But the government is committed to unlocking Efic's potential to support the operation and administration of government financing arrangements. Efic already provides fee-for-service support to the Northern Australia Infrastructure Facility. The changes in this bill enable Efic to provide its specialist financial services to a wider range of Commonwealth entities and companies on a fee-for-service basis—subject, of course, to ministerial approval. But what it actually means is that Efic now sits at the heart and potential of Australia's future export interests. and the physical development of this great island continent.

In summary, the changes in the bill, combined with the change in the Statement of Expectations, benefit a wide range of Australian exporters, including SMEs, as they seek to export innovative online products, sell intellectual property and the wealth of this nation in our mines, expand their reach overseas and grow jobs at home. They make it easier for Efic to support our exporters and their contribution to the growth of Australian jobs and the promotion of trade, tourism and investment interests in the Goldstein electorate in the great state of Victoria, and covering the whole of this Commonwealth of Australia as part of building its future for future generations.

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