Lisa Chesters (Bendigo, Australian Labor Party) Share this | Link to this | Hansard source

I will continue the remarks I was making about the Export Market Development Grants Amendment Bill 2014 before the debate was interrupted. The reality is that these grants will help the manufacturers and producers in the Bendigo electorate. Exporting brings jobs and security to the local community in Bendigo and in central Victoria and helps the long-term economic viability of the region. Innovation, quality and diversity are the driving forces behind our region's successful manufacturing and mining sectors. This has seen the emergence of a wide variety of small to medium businesses—the exact group that these grants aim to target—many of which operate in niche markets, or are hoping to.

The manufacturing and mining sectors produce financial rewards in the City of Greater Bendigo area worth $2.8 billion annually, or 27.5 per cent of the city's total economic output. To say they are important is an understatement; they employ almost 7,000 people. Seven thousand people work in our local manufacturing areas, so to say that it is a dark day in manufacturing in Bendigo would be wrong. The doom and gloom that we often hear about manufacturing is not happening in my city or in my region.

However, this success did not happen overnight. In fact, it had its beginnings as far back as the gold rush days in the middle of the 19th century. We have been producing mining equipment in Bendigo since the very early days of mining in this country. Bendigo-based manufacturers provide a wide diversity of products from armoured vehicles like our famous Bushmaster—and, hopefully, the son of Bushmaster, the Hawkei—to residential, commercial and industry turntables. These turntables travel from Kangaroo Flat to the great cities of the world to be used in restaurants, car dealerships or everywhere and anywhere that will purchase them. They produce everything from diesel locomotives to drill rigs, stone crushers and even the body armour that our troops wear in combat overseas.

I should also mention the fantastic fresh produce that is produced locally, as well as our beverage products such as wine, cider and craft beer, which are all manufactured and produced locally by our small to medium businesses. These products are currently being exported, and we hope to have more exported which is why these grants are so important.

An example of excellence in metal and engineering manufacturing is Keech castings. Keech castings is a company based in East Bendigo that produces 3-D technologies and 3-D printing which, I am told, is unusual for a city like Bendigo. I was at a breakfast this morning with the CSIRO where they were talking about this being a cutting-edge new niche industry and the future of manufacturing. I am so proud to be able to say that we already have these facilities, this capability and this technology in Bendigo. Keech's chief executive, Herbert Hermens, said that these printers would allow objects to be created quickly and cheaply and sourced in Australia. They are currently exporting this product all over the world. This company is exporting more and more produce every day, which is exciting for Bendigo, exciting for Keech castings and exciting for our country.

The technology works by making a solid 3-D model of an object designed by a computer program. The printers can be used to create car parts, aeroplanes, prosthetic hands and even the smallest of screws. We are told that this is the future of manufacturing—it is the revolution. Some are saying that it is the new industrial revolution of manufacturing. We are proud to say that Bendigo is one of the first places in the world to do it.

As I have flagged, another major area of manufacturing and production in our region is food and beverages. Whilst some know Bendigo for its poultry industry, we have some other major producers in dairy and bread-related products. Bendigo also has many businesses and manufacturers in wine, baking, coffee roasting, olive oil processing, honey, preserves, sauces and the list goes on. One that I would like to highlight to the House is B&B Basil. A father and daughter team got together in 2000 and noticed a lack of locally grown herbs at the local markets. George Bobin and Susie Young decided that they would get together and start growing their own hydroponic basil. This quickly grew to be an expanding market that included many micro herbs. Today, B&B Basil export to China, Japan and Hong Kong and they have been able to do this through the support of their local Austrade representative and through these export market development grants. These grants helped them establish their markets overseas.

Outside Bendigo, we have a number of other successful producers and manufacturers in the Macedon Ranges and Mount Alexander, which are shires that are known for their wine, craft beer, olives, cheese and other small produce. Right now, their markets strong locally and nationally, but they need that extra support to make it into the international markets.

I am quite often reminded by our local manufacturers that it needs to be the choice and the call of a manufacturer to take the plunge to step outside our own economy and step into the global economy. It is something that people do not take lightly. It is a challenge for a manufacturer to say, 'Yep, I'm going to compete globally.' It is important that they do though. It is important that we do see our manufacturers do that because, when they are successful overseas, it creates more jobs in our region and means that these businesses will continue to prosper and grow and create more wealth for our regions.

That is why it is important that we support them at every step, including through these grants, so that if they choose to make that choice they have the support. Labor has a proud record of supporting trade and boosting economic growth for our local industries. In fact, as I mentioned earlier in my speech, the Export Market Development Grants Scheme was a Labor initiative started back in the Whitlam days.

Many of the manufacturers in my electorate have taken advantage of these opportunities already, with every year a number of organisations, of manufacturers, of producers and of businesses putting their hands up and receiving these grants. In May last year, a company called Southern Cross Feeds, who prepares animal and bird feed, received a grant of about $9,000. A motion picture and video production company in Malmsbury received a grant of just under $40,000. Malmsbury is an area which is just north of Kyneton. It is usually known for its juvenile justice facility, but it is also known for its railway station. It is great to see another industry starting to grow in that area—that is, a motion picture and video production company that is now exporting overseas thanks to these grants. The Davidson Brothers in Bendigo is another creative arts organisation that received a grant, of just under $20,000k for creative arts musicians, writers and performers. This is another example of a growing industry in Bendigo—that is, our cultural economy. If we are serious about seeing people employed in the cultural economy, then we need to get behind them just as much as we get behind our manufacturers. Keech castings, whom I mentioned before, received a grant of just over $50,000. The Edge Equine received a grant for professional and scientific goods wholesaling. There is a lot that goes on in my electorate when it comes to manufacturing, producing and exporting our goods. That is why it is important that we continue to support these industries through the grants that we are speaking about today.

In conclusion, whilst I support the bill, I also want to express my disappointment that all references towards the Asian century have been dropped. All of these companies that I have spoken about who have been successful in their grants—whether it be B&B Basil, working with the paddock to the plate; Keech castings with their castings or with their 3D imaging; or our cultural economy—are exporting to Asia. We are in the Asian century, so it is disappointing to see any reference to the Asian century dropped—dropped not just from this bill but entirely from the new government's focus and priority.

Labor recognises that our future prosperity is underpinned by our engagement in our region. We cannot ignore our neighbours. They are our closest trading partners, and we should continue to engage with them. This is why it is so important that the new government pick back up the Asian century paper and we continue on that path. By the end of the decade, our region is expected to overtake the combined economic output of North America and Europe. We have a unique opportunity that other countries in the world do not have. We are in the region that will boom, and it is important for us to take the opportunity to be engaged. Our businesses will have access to expanded and emerging markets, with Asia set to become the world's largest consumption zone by 2030. That is why it is so important that we maintain a policy agenda in which Australia supports our manufacturers getting into Asia.

Labor's amendments introduced last week sought to realign these grants to support small businesses exporting to the emerging markets in East Asia. It is important to be at the front of this. It is important that we support our manufacturers and companies that wish to trade and export to Asia. Many of the manufacturers in my electorate have taken the opportunity in the past—and I know that they wish to do so in the future. This is why it is so important that we continue to support the manufacturers, particularly in the regions. As I have said throughout my contribution today, manufacturing and production and producers are still a major employer in my area. These are Australian businesses based in our electorates that are keeping local people employed. We want to continue to see these local people employed. It is not just about having a strong local economy, nor about having a strong national economy; it is also about having involvement and engagement overseas.

Sarah Henderson (Corangamite, Liberal Party) Share this | Link to this | Hansard source

I rise to speak Export Market Development Grants Amendment Bill 2014. I know that the member for Bendigo was wanting to say that she commends the bill to the House. This important bill will help small and medium sized businesses such as those in my electorate of Corangamite to reach their export potential and to become self-sustaining exporters.

This is another part of our strong plan to grow jobs, to drive investment, to build a strong and prosperous economy and a safe, secure Australia. I might just reflect on the contribution by the member for Bendigo. I do commend the member for Bendigo for being so upbeat about manufacturing and the opportunities for jobs in her electorate. She spoke about the many different, exciting industry sectors in her electorate in defence, horticulture, wine, olives, cheese and even television production. She talked about growth and prosperity and about the future of more jobs in her electorate, and I have to say that it is terrific to see a member on the other side talking up the economy and being positive about jobs, manufacturing and the future of manufacturing. Some of her colleagues—and her more senior colleagues—might take a lesson from the member for Bendigo, because I think we have seen far too much spin and deception and far too much negativity about the very bright future that we have in manufacturing in this country.

The scheme before the House today helps small businesses by refunding up to 50 per cent of export market expenditure to help bring export markets within reach, as well as by supporting innovation. That is what we must encourage—innovation, investment, support for small business and the opening up of new export markets. I have one issue with the member for Bendigo in relation to comments about the Asian century. She obviously is not cognisant of the fact that our opportunities with Asia and the Asian century is one of the five pillars of what we see as our economy. Our links with Asia and our capacity to grow our markets with Asia are fundamental to the growth of our economy.

We recognise how important new export markets are to our economy, particularly in Asia; to business; to jobs; to investment; and to innovation. And in just a matter of months our government has finalised a free trade agreement with Korea. Under the Korean FTA, tariffs of up to 300 per cent will be eliminated on key Australian agricultural exports, such as beef, wheat, sugar, dairy, wine, horticulture and seafood, as well as in the resources and energy sector and across other aspects of manufactured goods. This is a great indication of how hard we are working, and it is unfortunate that the previous Labor government was not able to conclude such an important agreement with Korea, which opens up so much opportunity.

I have joined a coalition task force on supporting horticulture, which is a great initiative by the member for Casey. Several weeks ago we met with various sectors of the horticultural industry, and I am very pleased to report to the House that there was incredible enthusiasm for our free trade agreement with Korea, and of course for the work of the member for Goldstein, the Minister for Trade and Investment. Our minister did what Labor failed to do year after year: he concluded the negotiations, he secured a deal and he ensured that Australia is open for business across the nation and, importantly, to the critically important market of Korea. Independent modelling by the Centre for International Economics shows that agricultural exports to Korea would be 73 per cent higher after 15 years of the free trade agreement's operation. And we are also well advanced in progressing negotiations on a free trade agreement with China as well as with Japan—further evidence of our determination to ensure that as a nation we are open for business across Australia and throughout the world.

As we have heard from the Minister for Trade and Investment, the changes proposed in this bill will do a number of important things. They will provide an additional $50 million to this program over four years, giving effect to the funding boost we outlined in the 2013 Mid-year Economic and Fiscal Outlook. This comes after Labor slashed the Export Market Development Grants scheme by $25 million when in government. That is a sorry reflection on the previous Labor government's commitment to exports, and I am very pleased to say that we are reversing that and we are investing in exporters, because we understand how important exporters are to our economy.

Of course, this was the decision of an utterly dysfunctional government—a government that spent much of its six years in office undermining each other, dragging down two prime ministers, and racking up debt and deficit like we have never seen in the history of Australia. Just to remind the House—and we have heard this mentioned plenty of times before—let us not forget these figures. Over the forward estimates we are heading towards cumulative deficits of $123 billion, and we are $667 billion in debt. And we are paying the price for Labor's policies: we have now hit six per cent unemployment, which was forecast by Labor.

The bill will also see the threshold of expenses required before a firm becomes eligible for a grant reduced from $20,000 to $15,000—making it much more accessible—and the number of grants available to eligible companies will be increased from seven to eight. So what we are seeing with this additional investment in the scheme is new pathways to sustainable jobs and long-term job creation.

In my electorate of Corangamite we have seen some great examples of the EMDG scheme at work. Carbon Revolution, based at Deakin University in Waurn Ponds in the heart of my electorate, is a wonderful example of an exporter that has benefited from a grant under this program. Carbon Revolution received a $40,000 grant under the EMDG program and is now taking its innovation in carbon fibre wheels to the world. It was with great pride that several weeks ago I joined industry minister Macfarlane, Premier Napthine and manufacturing minister Hodges in Victoria to announce a $5 million grant under the Geelong Region Innovation and Investment Fund as part of a $23 million project delivering 150 new jobs. Here is an example of a company investing in advanced manufacturing and taking its innovation to the world—and it is a wonderful plan they have. They are currently producing about 4,000 carbon fibre wheels, and their projections are that that will move to producing 50,000 wheels per year. Their foresight in developing this incredible technology has been buoyed by the pronouncement of one German auto manufacturer, which has declared that the future in auto manufacturing—and certainly in wheels—is in carbon fibre, because they assist in producing more fuel-efficient cars.

So what we are seeing in my electorate of Geelong, assisted by the wonderful innovation and the strong industry links that Deakin University is building right across the region, is a great story in advanced manufacturing. So, when Labor talks about our government not supporting manufacturing, I do not think they are doing their homework. It was wonderful to hear the member for Bendigo talking about the great things that are happening in jobs and manufacturing in her electorate.

The Geelong region has a proud history as a manufacturing hub, and yes we have been hit hard by job losses in recent times, but we have a very bright future. We are working very hard to bring new, emerging industries and advanced manufacturing opportunities to our region. Building our capacity in exports is a very big part of that story.

There are other very important Corangamite exporters who have benefitted from the EMDG scheme. They include the Victoria Centre for Advanced Materials Manufacturing, in Waurn Ponds, which received some $98,000; POD Active, in Torquay, which received $46,000; Hard Technologies, in Waurn Ponds, which received $30,000; Rake Clothing, in Torquay, which received $5,500—and of course we know that Torquay is the wonderful home of Rip Curl, a fantastic business in my electorate; Anyhow Pty Ltd, in Torquay, which received $5,500; and ARMS Reliability, in Ocean Grove, which received $1,500. We have many wonderful businesses in my electorate, right across agriculture, in advanced manufacturing and in services. Deakin University is at the centre of so much of what we are doing now in industry and manufacturing.

The Prime Minister will visit three very important nations in April: South Korea, China and Japan. As we know, the negotiations on the South Korean free trade agreement are at an end, and that is a wonderful story. The negotiations with China and Japan are also progressing very well. These countries represent 40 per cent of Australia's total two-way trade in goods and services, valued at some $250 billion. The future prosperity of Australia, and other countries in our region, depends on increased trade and investments. And, of course, our exports are so critical to how we develop these markets in the future. As a government we are working very hard to develop these export markets to give exporters these important opportunities, to open up new markets, to increase trade, and to take our innovation, products and services to the world.

I commend this bill to the House.

Jane Prentice (Ryan, Liberal Party) Share this | Link to this | Hansard source

I rise today noting that this government is doing what previous Labor governments did not, and that is delivering on its election commitments. This bill gives effect to the coalition's trade policy, and the subsequent 2013 Mid-Year Economic and Fiscal Outlook decision, to provide an additional $50 million over four years for the Export Market Development Grants Scheme. The coalition government wants Australia to be a country that makes sense.

The measures in this bill, combined with the repeal of the carbon and mining taxes, a company tax cut, cuts to regulation, road building, and workplace law reform, will benefit all manufacturers. This government pledged to provide an additional $50 million in Export Market Development Grants, and put an additional $50 million into a Manufacturing Transition Fund.

The Export Market Development Grants Scheme is an integral part of the export promotion strategy of many Australian exporters, especially smaller to medium sized businesses. For many exporters the scheme plays a significant role in their decision as to whether or not to export, which markets to tackle, and their export orientation—that is, what proportion of production to export.

At the same time, Export Market Development Grants Scheme support accounted for more than one-third of the export income for smaller to medium sized firms participating in the program back in 2003. Even today, without this support many of these firms would reduce their export efforts. The objective of the Export Market Development Grants Scheme is to bring benefits to Australia by encouraging the creation of foreign markets for Australian goods, services, intellectual property and know-how. This objective can be achieved by assisting with the development of an export culture, creating new exporters, assisting with the diversification of exporters into new markets, assisting with the generation of additional exports and jobs within Australia, and creating greater innovation within Australian businesses.

More specifically, the Export Market Development Grant Scheme is intended to encourage small and medium Australian businesses to develop overseas markets through the 50 per cent reimbursement of expenditure incurred on export promotional activities above $10,000, provided that the total expenses are at least $20,000. The agency which administers the EMDGS, Austrade, similarly provides a range of vital services to would-be exporters, such as advice on prospective markets and opportunities, on the ground support in target countries, trade exhibitions and assistance in finding potential investors. The Export Market Development Grants Scheme is an effective way of assisting the work of would-be exporters, and is a crucial investment program for existing exporters.

I well remember back when I was running an event management company that many of my major events that were trying to attract delegates from overseas particularly benefitted from the Export Market Development Grants Scheme. What it meant was that we could enhance our publicity and promotion, not just of the event but for Australia as a destination, enhancing the tourism sector. An important part of that aspect was a business matching program for many of our major events, where the client probably would not have gone to that expense if the export grant had not been available.

It is appropriate that Australian businesses are awarded Export Market Development Grants funds according to commercial realities as opposed to a decision by some politician or bureaucrat in Canberra, who is invariably far removed from what is happening on the ground. Yet that is exactly what the previous Labor government has done since 2007. They have meddled with the Export Market Development Grants Scheme, and, frankly, they have made a complete mess of it.

Soon after taking office Labor expanded the scheme by lowering the eligible expenditure threshold from $15,000 to $10,000, increasing the number of grants from seven to eight, and increasing the maximum grant from $150,000 to $200,000. This does not, on the face of it, sound like a bad idea. But, while the cost of these changes was estimated at $50 million a year, the previous, Labor government only provided increased funding for the 2009-10 year. Then, in June 2010, Labor amended the scheme to essentially reverse the 2008 implementation of their own election commitments. This was yet another example of the previous government saying one thing publicly and then deciding to break promises and election commitments. All the while, small and medium-sized enterprises in this case had absolutely no idea what was going on.

I have heard from the industry that from year to year they essentially did not know what the government would do with the Export Market Development Grants Scheme. We do know that tourism is one of the key export industries in this country. It is a growing one and certainly event promotion falls under this category. Some of the very important work is to promote events and exhibitions held in Australia, as well as destination marketing for international tourists. By cutting funds available through the EMDG Scheme, Labor made a bad situation worse for an industry already struggling from the high Australian dollar and the whole-of-economy carbon tax. Of course, the government is not responsible itself for the success and growth of tourism. That is being done by hardworking tourist operators.

The Export Market Development Grants Scheme forms an integral part of any government's approach to supporting small and medium-sized operators to get a foothold in foreign markets, whether that be Asia or our more traditional markets in the USA, Europe and Canada. However, what the Labor government did was to take a very piecemeal approach to the tourism industry. They did not have a coherent strategy, nor did they ever plan one. The cut of $25 million last year was yet another example of how they damaged tourism. Now the adults are back in charge. Exporters now have the certainty that an additional $50 million will be provided over four years to the Export Market Development Grants Scheme. The coalition took a strong plan for economic growth to the last election, and, now, in government the coalition is delivering.

Keith Pitt (Hinkler, National Party) Share this | Link to this | Hansard source

I rise to speak on the Export Market Development Grants Amendment Bill 2014. The bill delivers on the coalition's election commitment to progressively restore funding to the export market development grants program, which was cut by the previous Labor government. The 2013-14 Mid-Year Economic and Fiscal Outlook allocated an additional $50 million over four years to the scheme from which Labor had cut $25 million per year.

The bill also broadens the eligibility requirements to ensure a greater number of small and medium-sized enterprises receive a greater level of assistance to enter new markets. The bill increases the maximum number of grants per applicant from seven to eight, and reduces the required expenditure threshold to qualify for a grant from $20,000 to $15,000. It reduces the current $5,000 deduction from the applicant's provisional grant amount to $2,500, and about 85 per cent of recipients will receive an extra $2,500 per grant as a result.

What this means is that a new business which has a unique product that only has a market overseas and which is looking for its first sale and is spending just $15,000 on export promotion will now get a $5,000 grant. Previously, they would have received nothing. An experienced exporter who has received seven grants but whose business is suffering due to the high exchange rate will get an extra grant to help try and recover these markets now that the exchange rate is improving. They can receive a grant of up $150,000. Previously, they would have received nothing. This bill will facilitate quicker payment of EMDG in years of low scheme demand or where additional funding is provided. Enhancing the scheme will benefit many small businesses in regional areas like Hinkler. In the last financial year, two businesses in Hervey Bay, which is at the southern end of my electorate, one involving tourism and the other in the fishing industry, received assistance under this program totalling $17,616.

I would encourage more of my local businesses to apply. Expanding into new markets is good not only for the business concerned but for the local economy, and it creates jobs. They only need to look at some of their fellow Hinkler businesses to see the opportunities that exports can create. Hinkler has a proud history of exporting. Last year, Bundaberg Brewed Drinks, the makers of the famous ginger beer, was named Queensland exporter of the year. Regarded as one of Australia's most diverse food bowls, we export fruit and vegetables, seafood and sugar. As household incomes increase in India and Asia, so too will the demand for reliable, safe and fresh Australian produce. They are all things that we do well in Hinkler—safe, reliable and fresh.

Named after the great aviator Bert Hinkler, the Hinkler electorate is also known for its innovation. From the mechanical cane harvester, to the recreational aircraft built by Jabiru, to beverages like Bundaberg Rum, manufacturing, processing and value-adding is alive and well in Hinkler with the likes of Jakes Candy, Mammino Gourmet Ice Cream and Urangan Fisheries. We also have some large exporters that started out as small local businesses. Bundaberg Walkers Engineering Ltd was established in 1888. Back then it was known as the Bundaberg Foundry.Today, the business is a dynamic organisation servicing the needs of sugar, power generation, mining, marine and general engineering industries in both the domestic and the international market. They export their engineering, technical and design services, and have manufactured equipment to more than 20 countries, including Thailand, Indonesia, Argentina, the US and Sudan.

With recent International Women's Day celebrations in mind, I note that Bundaberg Walkers Engineering Ltd now has a female general ma nager. Leone Aslett is leading the team of 130 workers in a field that is typically dominated by men. With two daughters of my own, it gives me great comfort to see more women forging careers in the major exporting business. I congratulate Leone. She is a local girl that married a local boy, attended university, raised a family and now has a highly successful career. Hinkler, with its access to quality produce and its proximity to Brisbane, has a manufacturing sector that is facing a period of enormous potential. This bill will ensure that local businesses looking to enter new markets get the marketing support that they need.

We on this side of the House recognise that small businesses are the backbone of regional Australia. They employ about 50 per cent of all Australians working in the private sector. In Queensland, small businesses account for 96 per cent of all businesses in the state. Yet under Labor they were subjected to an ever-growing list of costly and time-consuming red tape, endless rule changes and 43 new or increased taxes. In a period of just three years, the Rudd-Gillard-Rudd government gave us two Prime Ministers, two Treasurers, five Assistant Treasurers and six small-business ministers.

This bill seeks to give businesses certainty so they can begin planning their expansion into new markets. Exporting is a very tough business, and I can give you one example. In my electorate of Hinkler, AustChilli and AvoFresh, which are owned by the local De Paoli family, employ between 80 and 100 people and they inject more than $10 million per annum into the local community through employment, products and services. They supply food ingredients, fresh produce and value added products to supermarkets in Australia and multinational food companies. They are innovative, they are forward thinking and they are continually looking for new markets and product opportunities. At present, exports make up just a small portion of their revenue.

Director Trent De Paoli recently outlined for me some of the challenges they face in exporting from Australia and why their success to date has largely been in domestic growth. The cost of developing and servicing export markets is high. The expense of travelling to your target country is often in excess of $50,000, and that is before you have even started receiving an income from that market. Often with new markets the up-take is slow; it takes years to build viable and financially sustainable returns that reflect the investment made. To be successful in today's fast-paced world you need to have your own people on the ground to ensure the business trade is accurately supported—again, a high expense that is critical. Import duties can often significantly affect potential success.

Australian goods are very expensive due to the high costs of production, including labour, electricity and water. This impacts our ability to compete globally. However, Mr De Paoli still views the glass as being half full. He says the exchange rate is helping exports. The demand is there. As I stated previously, emerging middle classes globally want high-value products, and Australia is regarded globally as a stable country that produces quality. The export market development grants will help businesses get a foot in the door. They are just one of the things that this government is doing to help small- to medium-sized businesses.

Of particular benefit to my electorate, and as promised, we have also suspended Labor's flawed marine management plans. We will create a new plan in consultation with stakeholders, one that is based on science. We are providing $6.5 million for 25 research projects to ensure the continued sustainability of Australian fisheries, including expanding the Status of key Australian fish stocks report to include more species. We are producing an agriculture competitiveness white paper to identify ways to grow farm profits and enhance agriculture's contribution to economic growth, trade, innovation and productivity.

Repealing the carbon tax will begin the process of restoring Australia's global competitiveness. Even Virgin Australia head John Borghetti has indicated the best assistance the parliament can provide to business is the removal of Labor's carbon tax, which has cost the aviation industry hundreds of millions of dollars. The carbon tax cost Qantas $106 million in 2012-13. That money would have paid the wages of at least a thousand staff. For my local businesses, the costs of electricity and refrigerant gases, for example, skyrocketed with the introduction of the tax.

We are cutting red and green tape to save businesses time and money. We are dedicating days in parliament to slashing unnecessary red and green tape to lift productivity and boost economic growth. And we recently released full details of the free trade agreement we negotiated with South Korea. The removal of tariffs will benefit a range of Hinkler exporters, including those in the sugar, horticulture and seafood industries. When the agreement is fully implemented, 99.8 per cent of Australian exports will enter Korea duty free, resulting in agricultural exports increasing by 73 per cent by 2030. Korea is Australia's third largest export market, our fourth largest trading partner and an economy with an above average growth outlook. It is Australia's largest market for raw sugar. Importantly, this agreement protects our competitive position in the Korean market. With one in five Australian jobs linked to trade, this agreement will provide an important boost to Australia's economy.

Economic modelling estimates that that agreement will boost our economy by about $653 million after 15 years. And we are working to conclude agreements with other trading partners to boost Australia's competitiveness in the global economy. This includes the Trans-Pacific Partnership, which involves 12 countries including Australia and represents a staggering 39 per cent of global gross domestic product. Our exports to member countries are worth almost $100 billion a year, accounting for about 34 per cent of our trade overall.

I also welcome the Prime Minister's announcement that he will visit Japan, Korea and China next month with premiers and chief ministers to strengthen diplomatic and trade ties. He hopes to sign the free trade agreement with Korea while he is there and progress negotiations with China and Japan. The three countries together represent 40 per cent of Australia's total two-way trade in goods and services, valued at a total of $250 billion. While China is Australia's largest two-way trading partner, 123 countries around the world are in the same boat. Competition is fierce. A free trade agreement will protect our relationship with China. With that in mind, I note comments made recently by China's Premier Li that they will seek to accelerate negotiations with Australia. Unfortunately, the negotiations had stalled badly under the previous Labor government. While Labor dithered for eight years, New Zealand beat us to it, reaching an agreement with China four years ago. Since then, New Zealand's dairy sales to China have increased by $2.2 billion. We have every reason to believe an agreement will be reached with China this year.

This bill ensures the export market development grants program complements the trade agreements and partnerships that we are putting in place, making it easier, not harder, to do business in Australia. This will grow the economy and create jobs for current and future generations—further proof that the coalition is focused on trade, not trade unions.

Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Link to this | Hansard source

I welcome this bill and wholeheartedly support the changes to the Export Market Development Grants Scheme that the bill will achieve. The bill delivers practical yet important changes to the Export Market Development Grants, EMDG, Scheme to assist small and medium enterprises to gain access to new markets or to enhance their engagement with existing markets. As we have heard from previous coalition speakers, small to medium enterprises certainly are the backbone of the Australian economy. In fact, they are very much the engine room of the Australian economy, as we just heard from the member for Hinkler.

As the minister highlighted in his introductory speech, this bill delivers on yet another coalition election commitment to progressively restore, and increase, funding to support our exporters which was removed by the previous government. I recall speaking against Labor's bill on 12 March last year which cut funding from this very scheme when Labor shamelessly ripped $25 million a year out of the EMDG to fill its ever-growing budget black hole at the time. It was so shameless because it came at a time when our exporters were struggling under the weight—the very weight—of a high Australian dollar, the weight of a new carbon tax and the burden of significant red tape.

In my electorate of the Riverina exporters were also facing the Murray-Darling Basin Plan, which Labor made so very difficult for those people.

Amanda Rishworth (Kingston, Australian Labor Party, Shadow Parliamentary Secretary for Health) Share this | Link to this | Hansard source

It is a good plan!

Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Link to this | Hansard source

I can hear my South Australian opponent opposite say that it is a good plan. It is now, because New South Wales has just signed up and, as the member for Kingston would well know, because it was a bad plan they held out until the coalition came to power and offered a good plan. Her South Australian Liberal colleague Senator Simon Birmingham has offered 10 gigalitres of environmental flows to be sold to productive growers in the Gwydir Valley in the north of New South Wales and, hopefully, when that works—as it will—water will be offered in the rice-growing season to my irrigators in the southern end of the basin in the Riverina.

For our livestock industry, these cuts by Labor also came in the wake of Labor's kneejerk decision to ban the live cattle trade overnight in reaction to a television program.

There is no doubt that Australia needs to export the goods that we produce and the knowledge we create. This is vital not only to ensure the future viability of our manufacturing sector but to create jobs and to build prosperity right across the economy, whether that be in mining and resources—so important in Western Australia—agriculture services or in research and education. This is in line with the coalition's strong commitment to building a five-pillar economy. To help Western Australia, we want to get rid of the mining and carbon taxes which have been so crippling and so job destroying in that state.

The Abbott-Truss government recognises that we need to support our small to medium enterprises to break into new markets and to expand existing markets. This will not happen by accident. While many of Australia's industry sectors produce some of the best quality and most sought-after products and commodities in the world, it is still a huge challenge to secure overseas markets to sell to.

While Australia's terms of trade have risen by an unprecedented 75 per cent between 1998 and 2008—a period of time dominated by a coalition federal government—that has been driven largely by a rise in commodity prices, and particularly iron ore exports. It demonstrates that we still have significant opportunities for our non-resources sectors to pursue in enhancing our engagement with foreign markets. Just this week, we had a delegation here from Mongolia. I visited Mongolia, and I know the great iron ore industry that Mongolia has. Certainly, Australian companies and Australian expertise are helping Mongolia to extract the wealth of their iron ore. But they do not have a job-destroying carbon tax placed over their industry. The opportunities presented by a growing Asian middle class, with ever growing demand for Australia's high-quality products, need to be seized and need to be seized now.

The EMDG has been an extremely effective mechanism which has enabled hundreds of Australian small- to medium-sized businesses to better promote their products and to seek new markets overseas for more than two decades now. Evaluations of the EMDG consistently confirm the value of the scheme to our exporters and demonstrate that the scheme directly increases Australia's exports. For every dollar spent in EMDG for capital constrained firms it generates a boost to exports of up to $20, and as high as $220 in some cases. I know the member for Paterson here, who is very conscious of improving our tourism exports, will certainly agree with me there.

The changes to the EMDG contained in this bill will make it even easier for businesses to qualify for the grant. Firstly, the bill increases the number of times a firm can access EMDG funding from seven to eight. The bill now reduces the amount firms have to spend on export promotion from $20,000 to $15,000 and reduces the deduction from an applicant's provisional grant amount by half from $5,000 to $2,500. So for example, if an eligible business spends $20,000 on export promotion, under these changes the business can apply for EMDG funding of up to $7,500 rather than the $5,000 it can claim currently.

The bill will also provide for faster payment of grant funding to successful applicants, to provide certainty to their business—and certainty is really important. You get certainty under the coalition. All we got under Labor was uncertainty. Finally, the bill will also prevent grants being paid where a firm has engaged an EMDG consultant who is considered not to be a fit and proper person.

In my own electorate, the Riverina, we boast a number of small and medium enterprises across a diverse range of industries and which are well placed to take advantage of this scheme. Being the food bowl of Australia—I unashamedly say that because the Riverina is the food bowl of Australia because of all the good water policy that the coalition is introducing—it has strategically significant horticultural and livestock industries well placed to meet international demand. We have the best wheat, the best beef and the best lamb of anywhere in the world. And certainly when it comes to wine—

Bob Baldwin (Paterson, Liberal Party, Parliamentary Secretary to the Minister for Industry) Share this | Link to this | Hansard source

Ah, yes!

Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Link to this | Hansard source

And I hear the member for Paterson agreeing! We also have the best wine.

An export success story from my own electorate is SunRice, based in Leeton, which has developed over six decades from a single rice mill to become Australia's largest rice exporter, exporting 80 per cent of Australia's rice output to more than 60 countries.

But it is not just food and fibre that the Riverina produces. We have sophisticated manufacturing, processing, viticulture and services sectors which would like to take advantage of the Asian century—and indeed they can under a coalition government which is open for business. With ongoing support of schemes such as the EMDG, I am confident that through our small and medium businesses promoting their businesses and products overseas we will increase Australian exports.

While Labor cut export promotion funding, the coalition is restoring it. This will boost exports, support critical industries, create jobs and build prosperity for all Australians. The difference in priorities between this coalition government and the former Labor government could not be more stark.

This bill delivers on another key election commitment, and I very much commend it to the House. And as I do, I would like to talk about several Riverina businesses which are really winning in export markets. I speak of Hyne Timber at Tumbarumba, Murrumbidgee Irrigation Ltd and Coleambally Irrigation Co-operative Ltd. They may not be seen as great exporters, but the water they provide and the businesses that they run certainly underpin the whole economy of the western end of the Riverina. Those irrigation communities are providing enormous export benefits and balance of trade boosts to the Riverina, to New South Wales and indeed to our nation.

Then there is Advanced Communications and Southern Oil Refining. Last Wednesday I was very privileged to join the Minister for Industry, the member for Groom; the Queensland Minister for Environment and Heritage Protection, the Hon. Andrew Powell; and my good friend and colleague the member for Flynn, Ken O'Dowd; at the opening of the Northern Oil Refinery in Gladstone, which is in Ken O'Dowd's electorate. It was a wonderful occasion.

While much of Australian manufacturing is going down the gurgler unfortunately, a new, innovative and environmentally-friendly industry was officially launched in Yarwun on Wednesday. The $55 million Northern Oil Refinery, which will provide valuable exports, is the biggest of its kind in Australia and it sits right in Gladstone's backyard. It brings 40 new operational jobs and so many more indirect jobs to the region. It is a joint-venture project. Southern Oil Refining based in Wagga Wagga started when a few environmentally-friendly farmers came together because they wanted the means to create new oil out of the used sump oil on their farms. They came together and Southern Oil came about as a result. From that little idea of the few farmers in Wagga Wagga in New South Wales we now have a $55 million plant in Central Queensland.

Southern Oil Refining joined with JJ Richards & Sons, another great environmentally-friendly company. The project was officially launched by Minister Powell, who said that the value of the materials in commercial and industrial waste was estimated at $26.5 billion a year. In Australia about 350 million litres of waste oil is created annually, with 60 per cent of that burned and 24 per cent exported overseas to be burned. Once fully operational this re-refinery will reduce Australia's greenhouse gas emissions by 290,000 tonnes per year.

Southern Oil Refining Managing Director Tim Rose said that the plant was the next generation of waste oil management. He is so right. He gave a tremendous speech in which he said it was a unique event and hoped it was going to be something to be remembered. This is the start of a new industrial enterprise. Tim Rose said, 'At a time in Australia when much of the news is about how tough it is, particularly in manufacturing, we have stood up and committed to a significant investment in the future.' He said they are very proud of that, and so they should be. He said:

To the uninitiated 'lube oil' may not sound too sexy, but it is essential … it keeps your cars running, our planes in the air, mining and farming equipment going—it literally lubricates the wheels of commerce and industry.

This export industry started in Wagga Wagga and there is now a $55 million refinery in Central Queensland. I am very proud, like Tim Rose. Lubricating oil does not wear out; it just gets dirty and the additives in the oil lose effectiveness over time. They are going to re-refine it. The re-refining plant can process 100 per cent—every single drop—of Queensland's annual used lube oil. This represents a fantastic environmental opportunity for the state and for the industry.

I want to promote some more industries in the Riverina that are doing great export marketing things. We can talk about De Bortoli Wines, Warburn Estate, Westend Estate and Byrne Trailers. Byrne Trailers have been hard hit by the terrible shutdown of the live cattle export industry. They make fantastic trailers in Wagga Wagga and are getting things back on track after that hard hit. Then there is SunRice, which I mentioned before. Casella Wines last October toasted the success of bottling its billionth bottle of Yellow Tail wine. The Yenda based winery has gone from strength to strength after signing a multimillion dollar partnership with Coca-Cola Amatil, and has announced the release of two new products to the Australian market. In December last year they posted a $29 billion loss—and that hurt. That was the biggest loss in the company's history. That loss was brought about by the high Australian dollar but was not helped by the carbon tax—they use a lot of power at Casella Wines. Despite that loss, the family winery has seen a surge in positivity since the Australian dollar dipped.

Casella's Managing Director, John Casella, said that the one billionth bottle milestone was one his family never envisaged would happen so quickly. Yellow Tail was released in 2001. One billion bottles means that 10 billion glasses of Yellow Tail wine have been enjoyed around the world. Yellow Tail has held its position as the No. 1 imported wine and the No. 1 red wine in the United States—and to know that that comes from the Riverina! John Casella, his team, his family and all the grape growers right around the Riverina should feel very proud of that. As John Casella said:

Our success is testament to the commitment and hard work of all of our staff, and the support of our distributors, trade partners and our loyal fans. We’re continuing to see growth year-on-year and this is a result of the quality, consistency and value proposition that we offer.

It also shows exactly what can be done when we get the water to be able to grow those fine grapes and all the fine things we do in the Riverina. That is why I fought so hard to get a better water deal for my growers in the Riverina. We all need our water. I appreciate that South Australia needs water, but so does the Riverina to be able to grow the food and fibre that is the very best in the world.

Amanda Rishworth (Kingston, Australian Labor Party, Shadow Parliamentary Secretary for Health) Share this | Link to this | Hansard source

We grow grapes too!

Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Link to this | Hansard source

I know you grow grapes too. That is fantastic, member for Kingston. And you do make great wine. You also need water to be able to do that. That is why it cannot all go to the environment; it has to go to productive use. That is why the coalition is getting on with the job. We are also getting on with the job with this very important bill, which I commend to the House.

Bob Baldwin (Paterson, Liberal Party, Parliamentary Secretary to the Minister for Industry) Share this | Link to this | Hansard source

I rise to speak on the Export Market Development Grants Amendment Bill 2014. This is a refreshing bill that delivers on our election commitment to actually increase the funding for export market development grants. This bill increases the funding to the EMDG Scheme by $50 million over four years. In contrast, the former Labor government in their first bill on export market development grants in 2010—and I spoke on that matter on 16 June 2010—reduced the export market development grants from $200 million to $150 million. Just to show that they could be outdone, when I spoke on the Export Market Development Grants Amendment Bill 2013 on 14 March last year they cut it from $150 million to $125 billion.

When I hear speakers from the opposition speaking on this bill saying how good export market development grants are—how they are going to increase local businesses' opportunities to get into overseas markets and how they will bring great economic benefit to this nation—I often wonder if these are the same people who sat there very quietly when it was cut from $200 million to $50 million, when their plan was to cut it from $150 million to $125 million. Over the reign of their government, they reduced funding for export market development grants from $200 million per annum down to $125 million per annum at the very time when we needed to grow our export markets.

There are some measures in this bill that will be well received by all industry sectors, but most importantly by small- to medium-sized enterprises. This bill will increase the number of grants an applicant can receive from seven to eight. That is good news. What the former government wanted to do was not only restrict the number of applications but also direct where those applications could be spent. Now we all understand that we are right at the cusp of a rapidly emerging Asian market, and, yes, we should be doing everything we can to embrace that market and capitalise on our efforts. But at the end of the day, it is actually up to individuals in business to put their own money on the line to attract markets, and then have government support. It is not for governments to dictate where markets should and should not be. If you believe in free enterprise, if you believe in return on investment for the risk that you take, then you should allow individuals to determine which markets they think they will get the best return on.

In a former role I held in this House—that is, as the shadow minister for tourism—I held a number of roundtables with the tourism industry. At each and every roundtable, the issue of export market development grants came up. Tourism operators in particular need access to those grants, because tourism operators in particular are usually very small-sized businesses, and access to that supporting capital can mean the difference between those businesses surviving and crashing. If those businesses survive and grow, that means more jobs for Australians. That is why this is good. What is particularly impressive about these amendments put forward by Minister Andrew Robb is that they will reduce the minimum expenses threshold to be incurred by an applicant from $20,000 down to $15,000. That means smaller operators will be able to go overseas, will have financial support for printing brochures in different languages to make sure that those new customers can read in their own language what they want, will be able to attend trade shows, will be able to beat down the doors and will be able to bring new business to Australia. This is good news.

The other thing that is particularly good for businesses sharing the love, as I call it, is to reduce the $5,000 deduction from the applicant's provisional grant to $2,500. To give you an understanding of how that works, currently on an eligible expenditure for $5,000, $10,000 or $15,000 there is no rebate proposed, no export market development grant. But what will happen now is at $15,000 there will be a $5,000 proposed rule. Then at $20,000, the current grant rule of $5,000 goes up to $7,500. All the way through it provides a great benefit, but it caps out with eligible expenditure of $305,000 at $150,000. So up to 50 per cent of what you spend marketing your business opportunities for Australians in overseas markets—you have the ability to have that rebated by this government.

There are two other aspects of this bill which are worthy of consideration and show an understanding and an engagement with industry. One is the prevention of payments of grants to applicants engaging in EMDG consulting assessed to be not a fit and proper person. The one that really is impressive and will win small business in particular, is to enable a grant to be paid more quickly where a grant is determined before 1 July following the balance of distribution date. Small businesses run on very tight cash flows at times. The opportunity to have these grants to promote their business and to get that money in a timely manner is critically important.

Some of the people in my electorate who accessed these grants in previous rounds are companies like Moonshadow Cruises, who win national tourism awards for taking people out whale watching and dolphin watching. I have watched that business grow from one boat to a number of boats. They are now operating out of my home port of Port Stephens, and they are also expanding into Newcastle. What is really good is that when I go down there to the waterfront, I see the numbers of tourist buses with people from the Asian region just lining up. They are lining up, spending money in my electorate, and that is great. I encourage them and other operators like Tamboi Queen Cruises, who have also accessed the EMDG Scheme.

But it is not limited to tourism operators. As the previous speaker said, winery operators—there is no doubt we have the best wine in the world in the Hunter Valley. You would often wonder why you would need export market development grants to compete when you have the best wine such as comes from the Hunter Valley, but you actually do.

Michael Sukkar (Deakin, Liberal Party) Share this | Link to this | Hansard source

The Yarra Valley!

Bob Baldwin (Paterson, Liberal Party, Parliamentary Secretary to the Minister for Industry) Share this | Link to this | Hansard source

I know there is a dispute on the quality of wines all over Australia, but what is important is that we provide the support for people to export our agricultural product. This is not only our wines but also some of our fresh foods. New markets, particularly Asian markets, are to be encouraged and supported. One of the other companies in my region who accessed export market development grants in previous rounds is Weathertex, who took an old product like masonite, took that technology and turned it into weatherboard sidings. They have not only saved an old factory and kept workers on, they have also expanded into international markets, particularly into the European markets, with their pre-painted weatherboard siding. The Hunter Valley is also becoming the home to the mining support services industry. A lot of those technologies and products are exported.

If people in other countries do not know what you have on offer, how can they buy it? So it is about going to the trade shows, it is about having the displays, it is about making sure people can see and understand. The essence of building an international business is actually the relationship, and that relationship needs to be addressed face to face. You need to build the relationship before you can build the business and that is where these grants come in. This is not only limited to, as I said, tourism, wine, wood products or mining industries. Even industries in our region like music and software have accessed the export market development grants and built businesses on the back of them.

When you live in a country that has roughly 23 million people, your market is limited. You need to expand globally, to pick up more markets, to increase the economies of scale of your business. We need to encourage small business. As I said earlier, the last two bills brought in during the reign of the previous Labor government saw the money for export market development grants cut from $200 million to $150 million. Just when we thought that this was as bad as it could be, they cut it from $150 million to $125 million and put more conditions on the small to medium enterprises in particular that wanted to access the grants to grow their business. They should be condemned for that. Yet we heard a number of speakers on the Labor side stand up and talk about how wonderful export market development grants are and how great they are for manufacturing. I would like to ask them: why did they not speak up when their own government was cutting the budget?

I commend this bill to the House because, while I support all industry, I support small to medium enterprises in particular. They put their own skin in the game, determined to take the risk, and when government supports them and gives them a hand-up and access to those markets, they can achieve their maximum potential. I commend this bill to the House.

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

I rise to speak on the Export Market Development Grants Amendment Bill 2014. In doing so, I quote my good friend and colleague the member for Longman, who said this is all about a 'hand up' not a 'handout'. This bill delivers an extra $50 million over four years for export market development grants and fulfils an election promise to increase the funding. One thing we have been very good at since the election is doing what we said before the election we would do. Before the election, we said we would do this; now we are delivering.

The city of Townsville is home to me and my family. The export market development grants will help small and medium businesses reach their export potential. Townsville has over 10,000 small-sized businesses and over 700 medium-sized businesses. Townsville is trying to build itself as a major exporter to South-East Asia. One of my goals in this term of parliament is to truly internationalise my city, and international flights in and out of Townsville are the most important thing. We have a great, progressive port with a very good board on it now. We are looking to expand the services of the port. Additionally, one of the things previous administrations have done for Townsville is that over 30 years ago we became a sister city with Port Moresby.

The previous Labor Mayor of Townsville, Tony Mooney, has always said, 'I sign on the line and I make it my own.' The closest capital city to Townsville is not Brisbane; it is in fact Port Moresby. We are very close to Port Moresby. We need to develop our closer ties.

We are also home to the North Queensland Cowboys. The Intrust Super Cup is the next tier down competition. The Papua New Guinean Hunters are in the Intrust Super Cup. They play against Mackay, Cairns and teams from Brisbane, as well as Rockhampton. They are going pretty good at the moment, too. Papua New Guinea loves Rugby League. It is the only country in the world that has Rugby League as its international sport. We need to increase our cultural, sporting and economic ties with our closest neighbour, Papua New Guinea. It makes sense. I am very proud to say that the Prime Minister, Tony Abbott, will be going to Port Moresby this weekend with a business delegation, of which I will be a part, along with the member for Ryan. We will make sure that we are putting our best foot forward. We will be going there as the Australian business delegation, but I am going there with one thought and one thought only—that is, to make sure that Townsville gets its fair bite of the cherry.

The Minister for Trade and Investment, Andrew Robb, has been very upfront about and very proud of this bill because he understands the need to get into export markets. He understands the need to invest time and energy into new markets. When Andrew Robb was in Townsville during the campaign last year, he addressed a large audience at breakfast in Townsville. One of the telling statistics of the tropical world—that is, between the tropics of Capricorn and Cancer—is that there are currently 500 million people around the world who would be classified as middle class. Andrew Robb told that gathering their that by 2035 the number of people who will be considered middle class will grow to 3.6 billion people—and most of them will be directly north of Australia. So the development of the northern Australia is key to the development of Asia, the delivery of services, the delivery of food and the delivery of education, and Townsville will be front and centre. We must make sure, when we are talking about the development of Northern Australia, we are talking about our relationship with Papua New Guinea.

Townsville invests heavily in Papua New Guinea. We have people in Townsville like Sir Mick Curtain, who has significant infrastructure projects and significant investments in Papua New Guinea . We must ensure we maintain those close ties. We have a wide-ranging engagement with Papua New Guinea. These EMDGs will make sure that we are able to further develop that. One of the YWAM ships, which takes medical treatments upriver in the Western Province of Papua New Guinea, spreading medical services around the country, was in Port Moresby.

I was able to take a delegation from the Townsville Chamber of Commerce to Port Moresby, and the high commission was kind enough to organise a reception for us and the people of YWAM. All the people who came were from Townsville. So, we are in this space. Two-way trade between our two countries was over $5.7 billion in 2012-13. Deepening our economic ties is a major focus. Trade from Papua New Guinea to Australia is also a major focus. Peter O'Neill, the Papua New Guinean Prime Minister, spoke about the need to develop those micro business ties between the two countries to facilitate trade. That is how the Prime Minister of Papua New Guinea saw it, that is how I see it, as the member for Herbert, and I know that is how the Prime Minister and the minister for trade want this to develop.

Townsville will play a major role in that, not only in direct trade but in the delivery of services. Townsville has James Cook University, a teaching hospital at the Townsville Hospital, military services through Australian Defence Force capabilities and training out of Lavarack Barracks, and vocational and educational training sectors and other professional services sectors. It is important not to think about trade as simply being about building something here and shifting it. Trade is about the exchange of money for the exchange of services or products. Townsville is a great base for a lot of fantastic professional people, from town planning and engineering through to solicitors and accountants. We should be able to export those sorts of services.

The grants about which we are speaking are about helping us to get started. If a business were to spend $20,000 trying to establish themselves in an overseas market, they would be able to get back $7,500 on one of these grants. That is up from $5,000. The other big thing is that we have speeded up the process of getting that money back. That is the key to it. It is one thing to say that these grants are available but—and it does not matter to which sector we are referring—we need to speed up the processing of the grants.

My dad's family started exporting pigs to Singapore and Malaysia in the late 1960s—that is how long the international live animal trade has been going on. They understood what it was like to go overseas to establish a new business. They knew the importance of understanding their customer. In Australia, a person who wants to sell something generally understands the road to the sale—meet and greet, establish a rapport, qualify the customer, examine the features, advantages and benefits of the sale, complete a trial close—'How does that sound?'—handle an objection in the trial close, handle any actual objections and close. That is how it works in Australia. When going overseas it is imperative to understand how they do business. When my family went to China for the first time, or even the first six or seven times, they did not even mention business. The trip was about establishing bona fides; it was about understanding your customer. That is where you need to understand what trade is all about. That is why this bill is important and that is why these EDMGs are so very important, because so much of the sales process is about establishing trust and establishing a relationship with that new client by letting them know that you are not just in there for the dollar; you are in there for the long haul.

It takes guts to start up a business in Australia. It takes guts for a person to believe that they have a good idea and that they are capable of being in command of their own destiny. I wish I had had the guts to do it myself, but I never did. I was a good manager but I never had the guts to back my talent and put everything on the line. If you can imagine how tough it is to start up a business in Australia, imagine how hard it is for someone to start a new part of their business in another country, where the only thing they know is that their product is good—they understand their product and they know that it is needed by the overseas market. It is necessary to establish a relationship with those customers from scratch and understand the way they do business. It takes time to develop those networks. As the member for Paterson was saying, we have to understand that these things take time and time is money. There are little bits and pieces that we can and should do to help businesses over that hump.

Whether we are talking about emerging markets, such as Papua New Guinea, Indonesia, India and China, or our mature markets, such as the US, Canada, Great Britain and other First World countries in the EU, we have to understand that it does take time to develop these relationships. We have to understand what it is that we are trying to do here. We have to back our business people and accept that they do understand what they are doing. We have to back these people because they have to spend a little to make a little—that is the key to this.

I am very proud to say that this government is serious about the development of Northern Australia. There will be a major forum held in Townsville at the end of this financial year and we will bring investors, heads of government departments and ministers together to make sure that we are talking about the development of Northern Australia, because that leads into what we are trying to do here. These small and medium businesses need help to get across that hump. That is all they need, because they have the products, they have the services, they have the work ethic and they have the people. This is what this government is doing—this government is backing business in Australia. When Tony Abbott said on the night of 7 September that Australia is open for business, he meant it. With this bill, Andrew Robb, the Minister for Trade and Investment, is delivering on that promise. I thank the House.

Debate adjourned.