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

My question is to the Minister for Trade and Investment. Will the minister advise the House of steps the government is taking to enhance Australia's reputation as an investment destination? Is he aware of any threats to these efforts?

Andrew Robb (Goldstein, Liberal Party, Minister for Trade and Investment) Share this | Link to this | Hansard source

I thank the member for Corangamite. I make the observation that the member is proving to be as effective as her mother, who served the region of Geelong with such distinction for many years.

With regard to attracting critical foreign investment in Australia, the biggest challenge we have had has been to restore the gold standard reputation for low sovereign risk that was trashed by the actions of those opposite when we saw the four biggest budget deficits in our history, the live cattle debacle, the introduction of a highly punitive carbon tax when no-one else had one, the blind siding of the resources sector with a mining tax, and, of course, the blow-out of up to two years for the approvals of major projects. These and a host of other actions have bludgeoned our reputation for low sovereign risk. For that reason, this government has moved swiftly to make amends.

We have scrapped the carbon and mining taxes. We have laid down a program to live within our means. We have moved to create a one-stop shop for project approvals and implemented a six-monthly regulation repeal day. We have completed two free trade agreements with two of our biggest trading partners. We have moved quickly to restore trust in our trading relationship with Indonesia, and we have prompted the emergence of many major infrastructure projects with an asset recycling plan. We have also had 42 investment roundtables in 16 countries around the world, explaining our direction and program as a government.

Yet we see that Labor, even from opposition, can bludgeon our reputation for low sovereign risk. The Labor opposition in Victoria, led by a man who is a wholly owned subsidiary of the CFMEU, Dan Andrews, has announced that, if elected at the forthcoming state election—just like this leader has announced he will reintroduce the carbon tax—it will tear up the contracts for Australia's biggest road-building and tunnelling project, the East West Link, a $16½ billion project. Such an action will reverberate around the investment world, causing immeasurable damage to our ability to attract critical infrastructure investment. Running a country or a state carries with it a great responsibility to avoid reckless action like promising a new carbon tax or scrapping an East West Link. The Victorian Labor opposition must urgently reverse this decision, as must the Leader of the Opposition in regard to the carbon tax.