Katie Allen (Higgins, Liberal Party) Share this | Hansard source

I rise to speak on the Australia's Foreign Relations (State and Territory Arrangements) Bill 2020. On 1 January 1901, the states of Victoria, New South Wales, Queensland, South Australia, Western Australia and Tasmania united to form the Commonwealth of Australia. Six individual states at the time joined together through deliberation, consultation and debate to form a united and prosperous Australia. Prior to this date, Australia remained fragmented, with each state comprising its own government, laws, taxation and tariff systems, and defence forces. Even the very foundation of our nation's transport and trade system found itself divided, complicating transport of people and goods across the continent.

I grew up in the border town of Albury. When I was a young child, the Albury primary school would take us down for a visit to the Albury train station to look at the foolhardy aspect of having different train lines across our great nation. The Albury train station was the longest train platform in the southern hemisphere, and we used to smirk and laugh that two governments couldn't agree on a unified rail system. That's just one example of why federation has been so important in the history of this country.

However, through unity and an understanding of the importance of national unity and a national government, support for federation grew. It was understood that in order for immigration, defence and trade to blossom unification was required. So on 1 January 1901 the Commonwealth of Australia was proclaimed—a remarkable accomplishment and a great stride forward towards a flourishing and united Australia.

Now, some 119 years later, we find ourselves in an ever-changing global landscape. Our global trade is expanding exponentially. In the 50 years from 1963 to 2013, Australia's exports of goods and services grew from $3 billion to $330 billion annually. Meanwhile, our imports have seen an average growth of 10 per cent annually. Indeed, Australia is proud to be recognised as a global leader in developing high-quality infrastructure, engineering, education, professional services and agriculture. Foreign investment drives our economic growth. It creates skilled jobs. It improves access to overseas markets and enhances our national productivity. Without foreign investment and trade, production, employment and income would all be worse off, and our nation would not be as we know it.

However, our national security interests must always remain an absolute priority. The Commonwealth government has always held responsibility for foreign policy. Only the Commonwealth government has the necessary expertise and the knowledge required to ensure that our foreign trade agreements are guided by our national interests and security. It is therefore necessary to have visibility and the ability to scrutinise sub-federal-government arrangements to ensure that they do not undermine the consistency of Australia's foreign policy and its application.

This increasingly globalised landscape has led to our states and territories engaging more and more in foreign trade and investment activities. Yet currently it's almost hard to believe that there is no requirement for states and territories to consult properly with the Commonwealth on arrangements with foreign governments. This goes against the very logic that led to our Federation in 1901, and now is the time for it to change. With this increased engagement by our state and territory governments with foreign entities, we've become vulnerable to increased risk like never before. Our state and territory governments have begun entering into arrangements that have tangible and vast impacts on Australia's foreign relationships. The tyranny of distance has become the power of proximity.

And as the paint is not yet dry on the digital revolution, we know the world is getting ever closer. In this digital world, where information can be so easily shared and data has become a sovereign entity, it's important that we have better oversight of interactions between our sovereign state of Australia and the rest of the world. Whilst foreign investment is of course something that we seek to embrace, this risk requires necessary oversight and control, and that is ultimately what this bill seeks to accomplish. The Victorian government's recent decision to sign up to the Belt and Road Initiative is one example that highlights the absolute need for this change. The lack of transparency surrounding the Victorian government's deal has caused great concern to many Victorians—who are equally Australians and have the right to know, as does the rest of the country, about the security details surrounding China's Belt and Road Initiative agreements.

Over recent months, countless Higgins constituents have written to me to express their concerns that the Victorian state government has acted against the interest of national security in this deal and, more than that, has acted without due and proper consultation or consideration of the Commonwealth. One constituent wrote to me: 'Stop this madness.' Another expressed the concern that this agreement, made without necessary Commonwealth government consultation, aims to 'undermine our sovereignty and our values'. The Commonwealth government has raised countless concerns over Victoria's involvement in China's Belt and Road Initiative. We've asked the Victorian government to explain why it is the only state in the country that has entered into this agreement. Meanwhile, the federal government has not signed a memorandum of understanding on the Belt and Road Initiative with China.

In 1901 Victoria entered the federation as the state with the most overwhelming support for a unified Australia. Yet now, in 2020, we have seen a key player in team Australia divert from the national interest. This is not just deeply disappointing; it is deeply concerning and may even be dangerous—and certainly dangerous for the common good of Australia, for our national interest and indeed for the Commonwealth of this country. The Morrison government certainly supports regional investment initiatives that are transparent, uphold international standards, meet genuine need and avoid unsustainable debt burdens for recipient countries. While the memorandum of understanding between the Victorian and Chinese governments has now been released, little else is known about the deal. That is why it has, rightly, caused great concern both in my community and in the community at large.

It is in this light that the Australia’s Foreign Relations (State and Territory Arrangements) Bill aims to ensure that no such future agreements can be made without assurance that arrangements are consistent with Australia's foreign policy and interests. Whilst intentions may be pure, states and territories do not have the same level of understanding as the Commonwealth government of the specific risks regarding our national interests. How could they? They represent a subset of Australia's interests, not the entirety. This understanding formed much of the foundation for our need for Federation in 1901, and it continues to ring true today.

It is for this very reason that improved oversight is required, and this bill aims to address this concerning gap.

Where prospective or, indeed, existing arrangements are inconsistent with Australia's foreign policy or seek to adversely affect our national interests, the federal government should and must have the capacity to invalidate or halt such agreements. This is not a matter of our states' independence; this is a matter of national security. Importantly, through this bill, if the foreign minister considers an agreement to be inconsistent with Australia's national interests, the minister will thereby have the capacity to declare the agreement invalid. This is a necessary step towards ensuring that Australia's national interest is upheld in all circumstances and agreements. I know many of my constituents in Higgins will applaud this bill loudly.

Importantly, this bill does not seek to intrude into the business and powers of states or territories. Similarly, this bill does not seek to stifle foreign investment; to the contrary, this bill aims to support state and territory governments to ensure that they are acting consistently and in line with our national interests. Furthermore, while this bill will apply to some university arrangements, it is not designed to impede the normal and important business of our thriving universities. Certainly, this bill in no way aims to limit universities' academic freedom and engagement.

It's important to note that this bill goes forward following consultation with key stakeholders, including our universities. One such amendment to the bill following consultation is that it now includes insertion of the definition of 'institutional autonomy'. A second amendment includes a three-year statutory review. This bill only affects public Australian universities as far as they have arrangements with foreign governments or foreign universities that do not enjoy institutional autonomy. It's plain to see why these sorts of arrangements are important.

Conversely, this bill will provide governments at all levels—so we're now talking federal, state, council and, indeed, the Australian people—with the confidence that due diligence has been afforded to all international arrangements undertaken by Australian entities. Furthermore, this bill will ensure robust protections and transparency for commercial and sensitive information. This has become incredibly more important in the digital revolution. Included in this bill is a requirement of the foreign minister to maintain a public register of notifications provided and decisions made under the bill. These measures will ensure the heightened transparency that the Australian public want and deserve.

In this light, this bill seeks to foster a consistent approach to our foreign policy engagement across all levels of government in Australia for the sake of all Australians. Ultimately, these reforms aim to preserve the underlying principles of our system. Australia will of course continue to welcome foreign investment for the significant benefit it provides. Australia is a nation driven by global trade, and this bill will not change that. However, we must ensure that investments undertaken are not contrary to the national interest. Accordingly, this bill delivers the necessary powers to the Commonwealth government to ensure that robust transparency and protections are in place to safeguard our national interest, and that is why I rise to support the Australia's Foreign Relations (State and Territory Arrangements) Bill 2020.

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