Stephen Smith (Perth, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

by leave—The Australian government is deeply concerned at Iran’s refusal to suspend its uranium enrichment and reprocessing related activities as required by multiple United Nations Security Council resolutions. As the House knows, Iran’s secret nuclear program was revealed in 2002. Since then, Australia has urged Iran to cooperate fully with the International Atomic Energy Agency (IAEA) and to take the steps necessary to reassure the entire international community about the nature of its nuclear activities.

The international community has responded through the adoption of four United Nations Security Council resolutions which require Iran to suspend uranium enrichment and reprocessing activities, and to meet the IAEA’s verification requirements. Three United Nations Security Council resolutions have imposed sanctions, including travel and financial restrictions against those engaged in Iran’s proliferation sensitive activities. Australia supports each of these binding resolutions, and has implemented these sanctions fully.

While the international community believes it is necessary to bring pressure to bear on Iran, it has also reached out to Iran. In particular, the European Union foreign policy chief Solana on behalf of the United States, Russia, France, the United Kingdom, China and Germany has offered a generous incentives package in exchange for Iran’s suspension of its enrichment activities. Australia has strongly supported this initiative and has urged Iran to accept it. Unfortunately, Iran has refused to take up this offer and to provide the necessary assurances to the international community. To supplement these United Nations sanctions, the European Union decided recently to impose additional autonomous travel and financial sanctions.

Members will recall that on 15 September, the IAEA again confirmed that Iran persisted with uranium enrichment and reprocessing related activities and had refused to give it access to all relevant facilities. The IAEA also reported it had detailed information suggesting Iran has conducted studies into nuclear weapons and that Iranian military entities have been involved in nuclear procurement. This information further deepened the government’s concerns about Iran’s nuclear intentions.

As I told the House on 17 September, in light of Iran’s continuing failure to comply with its international obligations, the government would consider what additional measures it could take to bring further pressure to bear on Iran. In response to ongoing Iranian defiance of the Security Council and given the Australian government’s strong commitment to nuclear nonproliferation, the government has now decided to impose new financial and travel sanctions effective from today. The sanctions are targeted against 20 Iranian individuals and 18 organisations which contribute to Iran’s nuclear and missile programs, or otherwise assist Iran to violate its Security Council obligations. These organisations include Iranian banks Melli and Saderat.

The new measures support and are similar to action recently taken by the European Union. The new measures are not intended to prevent legitimate Australian trade with Iran. However, the government will implement vigorously the Security Council’s call through Security Council resolution 1803 to be vigilant about providing financial support for trade with Iran, so as to avoid contributing to Iran’s proliferation-sensitive activities. To this end, Australia will not provide new financial support for trade with Iran under Australia’s trade promotion and trade finance programs; namely, through the Export Finance and Insurance Corporation (EFIC) and Export Market Development Grants (EMDG). The government will, together with the international community, continue to engage with Iran to urge it to suspend uranium enrichment.

I take this opportunity to address a separate matter relating to Iran. The Australian government has strongly condemned the statements by Iranian President Ahmadinejad calling for the destruction of Israel and questioning the Holocaust. These anti-Semitic comments were appalling by any standard. They have been rightly condemned by the international community, including the United Nations Secretary-General. Australian government officials in both Tehran and Canberra have also repeatedly made Australia’s abhorrence clear. We were appalled by the latest anti-Semitic views expressed by the Iranian President in his 23 September address to the United Nations General Assembly. Again, we condemn these remarks unreservedly. The Iranian President’s statements are unacceptable and do nothing to reassure the international community that Iran will act as a responsible international citizen. This is all the more troubling given Iran’s nuclear program.

The government has given exhaustive consideration to international legal action against Iran for these statements. Having now considered legal and other advice, the government, the Attorney-General and I have decided not to pursue international legal action against Iran. In doing so, we recognised the complexity of the issues involved and the high legal threshold required to bring forward such a case. As well, we determined to avoid pursuing a case which would give further profile to these obscene remarks. Most importantly, the Australian government would not want such legal action to complicate or distract from the international community’s efforts to address the serious concerns about Iran’s nuclear program and Iran’s failure to abide by binding United Nations Security Council resolutions.

It is clear to me that the international community’s most pressing priority—indeed, its most compelling priority—in relation to Iran is to address Iran’s nuclear program. That is what the united effort of the international community needs to be directed to. My announcement today on new sanctions reflects the Australian government’s determination to support and reinforce the international community’s efforts to hold Iran to account.

I ask leave of the House to move a motion to enable the member for Wide Bay to speak for a period no longer than seven minutes.

Leave granted.

I move:

That so much of the standing and sessional orders be suspended as would prevent Mr Truss speaking for a period not exceeding seven minutes.

Question agreed to.

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

The coalition notes today’s statement by the Minister for Foreign Affairs announcing that Australia has extended bilateral sanctions against Iran in response to Tehran’s continued failure to adhere to United Nations Security Council resolutions. The coalition support the extension of bilateral sanctions. In government we supported the United Nations Security Council resolutions calling for Iran to open its nuclear program to inspections by the International Atomic Energy Agency with the intent of halting what we assessed was a nuclear weapons program.

The international community has sent many unambiguous messages to Iran that it must fulfil its international obligations and stop uranium enrichment and reprocessing activities. International coordination of responses is vital. Therefore, by meeting the level of European Union sanctions, Australia is playing its part. Australia should keep up its pressure on Iran over failing to adhere to UNSC resolutions, not agreeing to the International Atomic Energy Agency’s requirements for inspections of all facilities and full clarification of Tehran’s nuclear policy.

I note that the government is also proposing some new measures in relation to trade with Iran. The Minister for Foreign Affairs commented that he is not intending to prevent legitimate Australian trade with Iran, but I do note that he proposes that there will be no new financial support for trade with Iran under Australia’s trade promotion and trade financing programs—and I make a particular reference to the Export Finance and Insurance Corporation. EFIC has its own independent charter and is expected to behave independently. While I can understand the desire for the government to want to take a clear stand on this issue, it is important also for EFIC’s independence to be respected. There are some deals or trade negotiations which involve greater risk than EFIC is prepared to take, and that then involves a national interest account decision by the government. It is quite appropriate for the government to act as it sees fit in relation to national interest account measures, but I urge caution in interfering in the normal commercial activities of EFIC in making decisions about what sort of trade transactions it should back.

Trade with Iran is quite small, although it was once one of our most important wheat markets. We had, I understand, about $200 million worth of trade in 2006-07, and that included a range of primary products including barley, animal oils, fats, meat and butter. Coking coal and motor vehicles have also been important exports to Iran, and it is probable that some exports arrive in Iran through other Middle East destinations. However, that trade, whilst small, is important. Most of it is a difficult market. It will be difficult for Australia to break back into Iran with our new wheat marketing arrangements, and there may be no desire to do it, but I think there does need to be a recognition of the fact that sometimes there will be a need for EFIC to be involved in projects that have significant national interest.

On the other hand, we in no way turn a blind eye to the unacceptable behaviour that has been apparent in Iran’s nuclear program, and we agree with the government’s assessment that Iran remains committed to its indigenous development of nuclear energy. Iran’s commitment under its current and, for that matter, its previous leaders to develop nuclear energy and its intent to maintain a weapons option is likely to continue. We recognise the validity of Iran’s right to develop nuclear energy for peaceful purposes and its increasing need for energy. Iran’s approach to this issue, though, seems to be a complex mix of energy needs, statements about its own sovereignty and national strategic ambition. I think it is important that we respond appropriately and support United Nations Security Council resolutions in relation to this issue, particularly No. 1835 of 27 September. The coalition opposes proliferation of nuclear weapons wherever it may occur around the world.

In view of Russia’s opposition to further United Nations sanctions against Iran during the debate over Security Council resolution 1835, we also call on the government to take up this issue in diplomatic representations with Russia. We urge the government to take into full consideration the view of the International Atomic Energy Agency, as the authorised UN agency treating technical and operational aspects of nuclear issues, that Iran remains committed to enrichment. This is not likely to be reversed, and pursuit of non-proliferation inspections and verification regimes must be part of future international responses to Iran’s activities.

Can I also make some brief comments on the government’s decision not to take legal action concerning Iran’s anti-Semitic views. We, like the government, were appalled by the anti-Semitic views expressed by the Iranian President in his 23 September address to the UN General Assembly, and we condemn those remarks unreservedly. I can understand that sometimes these kinds of issues are full of legal complexity, and sometimes the government have been full of bravado about what they want to achieve, such as international prosecution in the whaling issue, and when they see what the facts are they realise that they are unable to mount a successful case. I think the government need to be thorough, vigilant and correct in condemning unacceptable behaviour and unacceptable comments. It is disappointing that no legal action is possible, but, on the other hand, to mount a case that would inevitably fail would also be counterproductive. So I caution against bravado where there is no capacity to actually deliver what might be threatened in those statements.

I welcome the government’s further commitments in relation to sanctions against Iran. I urge them to be aware of the potential implications for some Australian exporters and, if need be, to be sympathetic to the circumstances of those exporters. I recognise that no-one, even for commercial reasons, should seek to undermine government policy in relation to these important areas, but we also need to be aware of the economic implications for sometimes perhaps quite small and committed companies.