Ms Julie Bishop (Curtin, Liberal Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I will make a brief opening statement before accepting questions relating to the Foreign Affairs and Trade portfolios. The 2015-16 budget is part of the Australian Government's plan to build a strong, safe and prosperous future for all Australians. The initiatives outlined in the budget will assist in advancing Australia's national interest in an increasingly complex economic and strategic environment. The transfer of global power, brought about by the re-emergence of Asia's great economies, instability in Europe and the Middle East, terrorism, tensions in the South China Sea and issues like infectious disease have emerged as potential fault lines in international affairs.

Managing the opportunities and the challenges that our country faces, now and into the future, requires a foreign policy that reflects our standing as one of the world's top 20 nations. We are a significant voice internationally. Australia's foreign policy projects and protects our reputation as a strong, open, export-oriented market economy and as an open, liberal democracy, with a strong commitment to freedom, the rule of law and democratic institutions.

While our priorities remain firmly focused on the region, our interests are global. In a globalised world, individuals and ideas on the other side of the world are just as capable of striking out at our interests as those in our own backyard. As I speak, over 300 Australian Defence Force personnel are in Iraq, training the Iraqi army in its fight against the terrorist group, Daesh. The rise of Daesh is not only a threat to the stability of Iraq and the Middle East region but a global threat, including to countries like Australia that celebrate liberal democratic values of freedom of expression, the separation of powers and gender equality.

The 2015-16 budget delivers $106 million to ensure the Australian Embassy in Baghdad continues to play its critical role in supporting our Defence Force personnel in Iraq, as well as the international effort to combat terrorism. The budget also provides $138.4 million to continue Australia's diplomatic engagement and security arrangements in Afghanistan. This budget lays the foundation for Australia's growing relationship with key economic and strategic partners in the Pacific, Asia and Middle East. The government has committed $98.3 million to establish new missions or posts in Qatar, Mongolia, Indonesia, Thailand and Papua New Guinea. It is the single largest expansion of Australia's diplomatic network in over 40 years.

We have also committed funds to rebuild the Australian Embassy in Washington DC, which had fallen into a shocking state of repair—you only have to ask the current Australian Ambassador to Washington, the Hon. Kim Beazley, about the need for repairs to the Australian Embassy.

In 2015-16 the Australian government will provide around $4 billion in official development assistance, ensuring that Australia remains one of the most significant providers of aid in the world. And Australia will have an aid program that we can reasonably afford. 'You cannot fund an aid program on borrowings'—quote, the former foreign minister, Bob Carr.

We have applied a rigorous analysis to country aid allocations to ensure our assistance is well targeted and supports economic growth and poverty alleviation. Aid to Pacific Island countries has been maintained in recognition of our primary responsibility to our neighbourhood and of their particular development challenges, while assistance to fast-growing Asian economies has been appropriately been scaled down.

We are taking an innovative, creative approach to overseas development assistance that will deliver better and more targeted outcomes, through sensible priorities, which will be subject of course to consultation with partner governments. The government has also committed additional resources to strengthen Australia's export performance and attract foreign investment, which will enhance our productivity and drive job creation.

Initiatives announced in the budget include: $18 million over four years to expand Austrade's current program of Australia Week events; $24.6 million over two years to promote business understanding of the recently concluded free trade agreements with the Republic of Korea, Japan and China; $30 million over four years to attract investment in the government's five priority areas—infrastructure, tourism, resources and energy, agribusiness and food, and advanced manufacturing services and technology; and $5.2 million over four years to expand Match Australia's sport business program.

These measures complement the Australian government's economic diplomacy agenda. Just as traditional diplomacy seeks peace, economic diplomacy seeks peace and prosperity. The Australian government will continue its efforts to ensure Australia is stronger, safer and a more prosperous nation.

Matt Thistlethwaite (Kingsford Smith, Australian Labor Party, Shadow Parliamentary Secretary for Foreign Affairs) Share this | Link to this | Hansard source

Foreign policy is a major weakness for the Abbott government. In fact, Australia has become an embarrassment, routinely being criticised by leaders of other nations about our foreign aid cuts, our approach to climate change and our relations within our region. Only today we see on the front page of The Australian newspaper the Indonesian foreign minister actively criticising specifically this foreign minister for the comments made yesterday in respect of allegations of people smugglers being paid. This foreign minister has allowed $11.3 billion to walk out of the aid budget over the last three years. Without a doubt, this is the worst performance by a foreign minister in our nation's history when it comes to promoting overseas development aid.

In 2013-14, from MYEFO and the budget, $7.6 billion was cut from the aid budget. But that was not enough. In the next year the foreign minister allowed a further $3.7 billion to be cut from the aid budget—in total, $11.3 billion. What was the minister's response? The minister's response during the Treasurer's condolence motion on former Prime Minister Malcolm Fraser was to roll her eyes. That was it—she rolled her eyes. The Australian people need more than that. They need more than eye rolling. My first question to the foreign minister is: when the Expenditure Review Committee were cutting the $7.6 billion from the aid budget in 2013-14 and again in 2014 when they were cutting $3.7 billion, did the minister object to those aid cuts? The minister says that they want to increase the diplomatic footprint of the Australian government, despite the fact that the minister has allowed 549 jobs to be cut from the Department of Foreign Affairs and Trade. By 2016 Australia will spend just 22c in every $100 of national income on development aid, the lowest that it has ever been in our nation's history, and it will fall further under this government to 17c per $100 of national income.

This foreign minister has said that cuts to aid will not affect the Asia-Pacific region, but we see in the details of the budget papers that the Philippines, Indonesia, Vietnam, Laos and Myanmar will have their aid budgets cut by 40 per cent. The minister has given a guarantee that there would not be any cuts to the Pacific—our own neighbourhood, our own region—yet we find in the details of this year's budget papers that there will be a cut to the Pacific region of $55 million. The government claim that they are all about transparency. Where is the transparency? It was up to the individual aid organisations to discover these cuts themselves. On several occasions the opposition, the aid organisations, the NGOs, have been asking: where are the cuts going to come from on the ground? The minister and the government refuse to answer, and we now see that the government is abandoning the notion of a blue book providing details of where these cuts would come from.

The minister has spoken about expanding the diplomatic footprint of Australia, and she has spoken of opening new posts. That is something that the opposition supports. But the incompetence of this minister in this government is perfectly demonstrated by the manner in which the government went about announcing the opening of a new post in Buka in Papua New Guinea: the foreign minister and the government forgot to properly tell the Papua New Guinean government about this change. And what was the response of the Prime Minister of Papua New Guinea? He said:

We were shocked to learn from the budget documents that Australia was planning to establish a diplomatic post in Bougainville. There has been no consultation on this proposal and there is no agreement to proceed.

This was confirmed by the secretary of the department during estimates a couple of weeks ago, when Mr Varghese said in response to a question from Senator Wong:

If we had our time over again, Senator Wong, I think we would have done this differently.

That is the view of the head of the Department of Foreign Affairs and Trade about the approach that this minister and the government took to announcing the opening of a new post in Papua New Guinea—one of our most important regional neighbours. My final question to the minister is: can the minister explain how she managed to embarrass Australia and cause offence to Papua New Guinea through the budget announcement of a new post in Buka in Papua New Guinea?

Ms Julie Bishop (Curtin, Liberal Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I find it somewhat rich for the former Parliamentary Secretary for Pacific Island Affairs to talk about our relations with Papua New Guinea. After all, it was his then foreign minister Bob Carr who declared that sanctions would be an appropriate imposition on Papua New Guinea, which made him and the Labor government a laughing stock in Papua New Guinea. And this was the member who claimed expertise in the Pacific because he swam in the Pacific Ocean. As for his confected concern about Bougainville, his press release could not even extend to the correct spelling of Bougainville, so I am not going to take any lectures from the former parliamentary secretary on this issue.

The fact is Labor have a real problem when it comes to the aid budget because the shadow foreign minister has given a guarantee that Labor will find $18 billion to put into the aid budget. Now this member comes in and says it is $11 billion, so he has committed Labor to an $11.3 billion investment in addition to the current aid budget. I ask the member for Kingsford Smith: where is he finding the $11.3 billion, or where is the shadow minister for foreign affairs finding the $18 billion that they have now guaranteed will be reinvested in the aid budget? I would like to know which programs in health, in education, in defence, in security and in intelligence would be cut to find $18 billion or $11.3 billion—obviously the member for Kingsford Smith is embarrassed by the figure of $18 billion that the shadow minister has committed him to, so he has undermined her and said it is only 11.3.

In 2015-16, Australia will spend $4 billion in official development assistance. That makes us one of the most generous aid donors in the world. We are reforming the aid program to ensure that it is responsible, affordable and sustainable. In June 2014 I launched a new aid policy, the new aid paradigm, to ensure the aid program had a clear mandate to promote economic growth and to reduce poverty in our region. We do not throw money at other countries to buy their votes for a seat on the Security Council; we focus on performance. I also announced new performance benchmarks to ensure we are delivering an efficient and effective aid program, to assure Australian taxpayers of the value of our investments.

In the 2015-16 budget, aid allocation will be informed by rigorous analysis of the contributions that Australian aid makes to partner country GDP, the global ODA flows and the growth trajectories of recipient countries. It is the first time that such an analysis has been applied to the aid program. Of course Australia will continue to invest significant funds in the Pacific: it is our region, and this is where our focus lies. This reflects the particular development challenges facing Pacific Island countries, including geographic isolation, and Australia's responsibilities as the region's primary aid donor and as a partner of choice. Our humanitarian and emergency relief funds will allow Australia to respond to development and humanitarian challenges, such as Cyclone Pam in Vanuatu.

In the Pacific, Australian aid continues to make up a considerable proportion of the gross domestic product of small island states—around 25 per cent in Tuvalu and 18 per cent in the Solomons—but, as we pointed out, in the fast-growing Asian economies to our north, they have grown 6.3 per cent or thereabouts every year over the past decade. Indonesia's economy, for example, has grown by 70 per cent since 2004. Indonesia is now the 16th-largest economy in the world and is on track to become the 10th-largest economy; therefore, our aid is in fact less than 0.1 per cent of their GDP. Indonesia have made it quite clear that they want trade and investment with Australia, not aid. We do not have a donor-recipient relationship; we have an equal economic partnership with Indonesia. And recent history shows that stronger economic growth is the most powerful driver for lifting people out of poverty. Thailand, in 2003, asked Australia not to send any more aid; they wanted trade. We signed a free trade agreement. Trade is now $18 billion between Australia and Thailand. These countries want trade, not aid.

The member made some comment about our commitment to transparency. He obviously has not read his brief. The Australian government reports detailed aid data at the project level on a quarterly basis through the International Aid Transparency Initiative.

An opposition member: Why are you cutting the blue book? You are cutting the blue book. What have you got to hide?

We supplied this information on 10 June. You obviously have not read it.

An opposition member: What have you got to hide?

Get up with the game. This is more detailed information than was ever provided in any blue book. If Labor is concerned with transparency, outline where you are going to find the $18 billion that the shadow minister for foreign affairs has promised will be put into the aid budget.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

I call the honourable member for Lindsay.

Fiona Scott (Lindsay, Liberal Party) Share this | Link to this | Hansard source

Thank you, Deputy Speaker. My question is to the Minister for Foreign Affairs—

Anthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | Link to this | Hansard source

Point of order!

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

Excuse me. Please halt.

Anthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | Link to this | Hansard source

I was on my feet. The call alternates.

Ms Julie Bishop interjecting—

We had a speaker there and then the call goes to this side.

The DEPUTY SPEAKER interjecting—

A government member: No, don't try that. He did it last time. How about it's our turn.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

Well—

Anthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | Link to this | Hansard source

Point of order, Mr Deputy Speaker. The way that it works under standing order 65—

A government member: That is not the way it works.

You struggle to find the chamber, okay? So let's not have rulings. The call alternates.

A government member: He is being a bully.

The call alternates.

A government member: You're being a bully.

I am not. The call alternates.

An opposition member: Do you want to be the chair?

A government member: I am not in the chair.

An opposition member: Exactly right.

A government member: I was mouthing off like you guys do all the time.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

The member for Lindsay will proceed and then you will be the next.

Anthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | Link to this | Hansard source

Under standing orders, the call goes to—

A government member: The Speaker has spoken. He's made his ruling.

The call goes to the alternate sides when there is more than one person jumping—

Fiona Scott (Lindsay, Liberal Party) Share this | Link to this | Hansard source

And the last question was from the member for Kingsford Smith.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

The member for Kingsford Smith was the last questioner.

Anthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | Link to this | Hansard source

No, it is not questioner. It is speakers.

An honourable member: Do not argue with the Speaker. Make a ruling.

It is speakers, and this is an incorrect ruling, Mr Deputy Speaker.

Ms Julie Bishop (Curtin, Liberal Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

There hasn't been one from our side, so just let her ask. You are wasting time.

Anthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | Link to this | Hansard source

Are you going to speak for the whole five minutes?

Ms Julie Bishop (Curtin, Liberal Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

It depends what the question is.

Fiona Scott (Lindsay, Liberal Party) Share this | Link to this | Hansard source

I have a very important question to ask.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

Member for Grayndler, please resume your seat.

Fiona Scott (Lindsay, Liberal Party) Share this | Link to this | Hansard source

Could I have the full five minutes on the clock, please?

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

Yes, please.

Fiona Scott (Lindsay, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Foreign Affairs. I would refer the minister to the Australian flagship policy, that of the Colombo Plan. I would like to applaud the minister for her advocacy for this wonderful program and what that has meant for so many young people right across Western Sydney. According to the strategic direction statement in the 2015-16 Foreign Affairs and Trade portfolio budget statement:

The New Colombo Plan is deepening Australia's relationships in the Indo-Pacific by offering undergraduate students opportunities for scholarships and grants for study and internships/mentorships in the region.

A crucial component of the New Colombo Plan is the focus on internships and mentorships. Under the program, students will directly benefit from the opportunity to live, study and work abroad, deepening their understanding of our neighbours and forging friendships and professional connections that will last a lifetime.

We have entered into a new world of trade and economics, and this government is giving students the opportunity to develop those skills as part of the program so they too can break into the international market or pursue a career of their choice internationally. The opportunity was freed up by the Abbott government after securing free trade deals with China, South Korea and Japan. Also, students' knowledge of overseas markets from studying abroad will help us as a government to continue our relationship with the Indo-Pacific region.

To add, the minister visited Western Sydney—in fact, she visited my electorate of Lindsay—where we went to the University of Western Sydney. In February we were able to celebrate the success of more than 190 UWS students who had received grants and scholarships under the New Colombo Plan to travel internationally to more than 38 nations in the Indo-Pacific region. UWS students are travelling to countries such as Thailand, Japan and Singapore, where they take internships or conduct various projects that range from clinical placements in hospitals to working on sustainable development and community business projects run by NGOs.

The University of Western Sydney Vice-Chancellor, Professor Barney Glover, said expanding the university's international horizons is a strategic priority for UWS. He would also like to see increasing numbers of students studying internationally and developing a deeper engagement with our region. He went on to say:

The experiences and relationships we forge through education permeate, inform and shape our future endeavours.

Spending time overseas to study is a life-changing experience, and the positive impact of initiatives like the New Colombo Plan will be felt for years to come.

I was honoured, as part of my MBA program with AGSM, to in fact do one of my subjects in Hong Kong. It was international marketing. That experience has really helped me a lot in my own career and with my own experiences. Deputy Speaker Goodenough, you have lived and worked overseas, so I am sure you can also appreciate why these are amazing opportunities for young people.

The vice-chancellor went on to say:

In addition to the vital scholarly experience, students forge friendships and connections, develop leadership skills, and gain a first-hand understanding of another culture, which is invaluable for their future careers.

This is an opportunity that is guaranteed to enhance our students' personal and professional lives, long after they return home.

The Indigenous student that the minister and I met, Jasmin Hammond, is completing a Bachelor of Natural Science (Environment and Health) at UWS and spent a year abroad in Hong Kong as part of the Colombo Plan. She is also the first Indigenous Australian to be awarded one of these scholarships. She said her time at Hong Kong's University of Science and Technology was a formidable experience as she adapted to a home city of some seven million people. She studied chemistry and physics, which will be counted towards her degree here in Australia. Most importantly, while she was there she decided to also study medicine. The experience in Hong Kong was such that she decided to transform her life, so much so that she has been accepted to study a double degree: a bachelor of medicine and a bachelor of surgery. Jasmin came from a country town, and I would like to ask the minister: can the minister provide advice on the opportunities that are available for Australian undergraduate students in 2015-16, particularly those students in Western Sydney?

Anthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | Link to this | Hansard source

A point of order, Mr Deputy Speaker. I understand that you have ruled that we will break with the convention that is clearly there in House of Representatives Practice and the standing orders, that the call will alternate. What we are seeing here, therefore, is one question every 20 minutes, because you have a five-minute response, a five-minute dorothy dixer and then a five-minute response before anyone in the opposition gets the opportunity to ask questions.

The mistake in the ruling is confusing this consideration in detail process with Senate estimates. This is not the same process as Senate estimates, which is why the opposition is therefore having to sit through 20 minutes for each question that is being asked, so in this it makes about three. Could I ask you to seek from the Speaker a ruling for future consideration in detail processes on whether the call will indeed alternate or whether we will have a genuine process of question and answer. I respect the ruling that you have made here but, with respect, your ruling is wrong and is against the standing orders and the House of Representatives Practice. I would ask you to seek from the Speaker a ruling and for her to report after question time today on what that would be.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

With the assistance of the Clerk, I will do that.

Ms Julie Bishop (Curtin, Liberal Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I note the member for Lindsay's great interest in the New Colombo Plan, which will be a transformative initiative for generations of young Australians. I am pleased that the member mentioned our visit to the University of Western Sydney's Penrith campus last February. We had a very good New Colombo Plan event and got some marvellous feedback from the students in her electorate.

In answer to her direct question about the budget, I can confirm that the government will spend around $28 million to support Australian students through the New Colombo Plan in 2015-16. This year in particular the New Colombo Plan will support around 3,200 students through scholarships and mobility grants. In 2016 the government will offer around 100 scholarships and around 4,750 mobility grants. What this means—and I know the member for Lindsay and the member for Solomon will be interested in this—is that this will take the total number of students supported through the New Colombo Plan since the pilot program began in 2014 to around 10,000 students by the end of 2016. So in two to three years it will be almost 10,000 students.

The member for Lindsay referred to the University of Western Sydney. They have been an enthusiastic supporter of the New Colombo Plan, and I thank the member for Lindsay for the engagement that she has had with the university in encouraging students to apply for New Colombo Plan scholarships and mobility grants. In many instances, the students receiving these grants and this funding have never been overseas, no member of their family has been overseas and they have not had the opportunity to study in our region.

Since the New Colombo Plan was established two years ago, I can confirm that 186 Australian undergraduate students from the University of Western Sydney have been supported to live, study and work in our region under the New Colombo Plan. That is 186 from the University of Western Sydney. This includes six students who have received the prestigious year-long New Colombo Plan scholarships.

Timothy Mann was a 2014 scholarship recipient. He is currently studying biological and molecular biological sciences in Japan, and he will be doing an internship at the RIKEN Brain Science Institute. Another student from your electorate, Member for Lindsay, Candice Skelton, has studied biology at the Chinese University of Hong Kong. According to Candice, her New Colombo Plan experience allowed her to 'grow as a person and to see life through a new perspective'.

The remaining 180 students have benefited from New Colombo Plan mobility grants that support shorter and longer term study, internships and practicums in the region. The member for Lindsay will be interested to know 20 nursing students travelled to Thailand to study healthcare delivery in remote districts including during a short-term practicum with Chiang Mai University and Om Goi hospital. There are 15 development study students who are travelling to India to volunteer at a non-government organisation focusing on the advocacy and rights of people with intellectual disabilities, and 15 social science, community development, planning and tourism students who will travel to rural communities in Vietnam to examine issues relating to poverty and climate change.

All these students are having the opportunity to study and work in one of 38 eligible locations from India and Pakistan in the west, to Mongolia in the north and the Cook Islands in the east. In recent months I have launched the New Colombo Plan in Thailand, Tonga, the Cook Islands and Kiribati, and I can tell you it is an enormously successful exercise in soft power diplomacy. It has been raised positively by President Xi Jinping of China, President Tan of Singapore and Prime Minister Abe in Japan. They have all raised the New Colombo Plan as an example of this government's commitment to soft power diplomacy at its best. The New Colombo Plan will also benefit the individual students by giving them new insights, new skills and new ideas that will enhance our country's productivity and prosperity.

Opposition members: Hear, hear!

I thank the members opposite for their cheers, because this is a bipartisan initiative that receives incredible support across the board. No wonder they want to be on board with this one, because it will build a generation of friendships, connections and professional networks between Australia and the region. The benefits of the New Colombo Plan were emphasised by Singapore's President Tony Tan when he said:

I am confident that the New Colombo Plan will play an important role in strengthening our education and people-to-people ties. The New Colombo Plan also reflects the Australian Government's broader focus on enhancing its engagement with Asia.

So I thank the member for Lindsay for her very pertinent question about supporting Australia's youth and engaging in the region. (Time expired)

Anthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | Link to this | Hansard source

In the absence of the tourism minister, who I understand is on sick leave, I have some issues on tourism to raise with the acting minister. The first issue is the backpacker tax that has been brought in. Some 134,000 working holiday visa holders per year will lose the tax-free threshold of $18,200 at the moment, increasing from 1 July. They stay some eight months on average and they earn on average $5,000, but the point is they spend $13,000 while they are here—a net gain of $1.3 billion to the economy. I am wondering what modelling the government did, prior to this change, on the economic impact, particularly on regional areas. The minister would be aware that, in many regional areas, the tourism sector relies upon this workforce. The point is: not only do they contribute indirectly by making sure that those tourism hotels and facilities are able to operate where there is a shortage of what is often seasonal labour but they also spend the wages that they earn in the local economy while they are there. We have not seen any modelling from the government on that issue.

The second issue is the survey of tourism accommodation, which remains under a cloud. I believe very strongly that the sector is right in asking for this survey to be reinstated. To take one example, Dianne Smith, the CEO of the Victoria Tourism Industry Council, said:

This will severely hamper the industry's ability to learn, grow and realise its potential.

One of the roles of government is to provide that evidence that forms the basis of good policy. It seems to me that this is a very short-sighted approach.

The third issue, and one that is also within the foreign minister's portfolio, is the decision to withdraw from the United Nations World Tourism Organization. For a relatively small amount of investment, Australia has lost its place at the table in engaging in its region through this organisation. The fourth issue is Australia Week in China this year. Will it be held? If it will not be held, why won't it? Surely this is a common sense position that is important for us to support.

There is, of course, less funding for Tourism Australia in the budget. Our most important marketing body generates some $16 returned to the economy for every dollar spent. The government has cut funding in real terms each year since being elected. The Parliamentary Library, in a paper that has been produced, described the cuts as significant. With the tourism grants cut for round 2 of the Tourism Industry Regional Development Fund, some 450 applications were submitted. They lost, therefore, $10 million of matching private investment in the process. Also, will the government reconsider its views toward the axing of all domestic marketing of tourism here in Australia? The last issue, but certainly not the least, is: for the first time in more than 40 years Australia has no designated tourism minister. John Key, the New Zealand Prime Minister, is also the tourism minister. The New Zealand government recognises the importance of tourism. Will the government consider appointing someone with responsibility for tourism?

In conclusion, it is pretty clear that tourism is a super growth sector for the Australian economy. It contributes $107 billion to the national economy. Every dollar spent in tourism generates another 92c in other parts of the economy. I feel very strongly that the government needs to take tourism seriously and not just have it as an afterthought.

Ms Julie Bishop (Curtin, Liberal Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I have to say it is ironic to receive a question on tourism from Labor. Labor did not even bother taking a tourism policy to the 2013 federal election. Labor cut funding for Tourism Australia and then it imposed the passenger movement charge with two separate increases occurring without warning—a $55 tax levied on each passenger, which was an increase of a total of 45 per cent under Labor. Labor increased tourist visa fees by more than 50 per cent. The world's biggest carbon tax cost the Australian accommodation sector $112 million in its first year; it reduced hotel profitability by 12 per cent. And Labor strangled the temporary skilled migration program at a time when tourism and hospitality businesses were desperately struggling to find skilled labour. It would be amusing if it were not so serious.

Our tourism industry achieved record results in 2014, with international expenditure up nine per cent to an all-time high of $30.7 billion and our tourism investment pipeline growing by nine per cent. A recent World Economic Forum report shows that the global ranking of competitiveness for Australia's tourism sector has improved from 13th in the world under Labor to seventh in the world this year. We have made a strong start supporting tourism, but of course there is more to do.

Deloitte has recognised tourism as one of only five sectors set for supercharged growth in coming decades, and the opportunities are immense. One hundred million Chinese people went on an international holiday last year. This will double to some 200 million outbound Chinese by 2020. The elevation of tourism to the cabinet table, by bringing tourism into its natural home in the Department of Foreign Affairs and Trade, was a conscious decision that we made in recognition of the sector's importance. The 2015-16 budget provided $36.7 million over the forward estimates in additional funding to Tourism Australia to support marketing activities abroad. This is the result of new foreign exchange arrangements that see Tourism Australia compensated for a weaker Australian dollar, consistent with the Foreign Affairs and Trade portfolio partners. In response to this, the Australian Hotels Association said:

The Federal Government is to be commended on today's announcement and recognition that tourism is a key player in ‎international commerce …

Similarly, the Accommodation Association said:

The funding pledge will assist with ensuring Australia is able to continue to compete in the aggressive global market for international visitors.

So, this is all good news.

Other key budget outcomes for tourism that, obviously, the shadow minister overlooked are $30 million to increase promotion of foreign direct investment in priority areas, including tourism infrastructure; and $18 million to expand the series of Australia Week trade and promotional events in China, India, the US and ASEAN, promoting Australia as a world-class tourism destination and a valued trade and investment partner. As is publicly available information, Australia Week is held every two years.

The budget builds on the government's recent support for tourism, which includes striking a landmark air services agreement with China and freezing the passenger movement charge that increased 45 per cent under Labor. I can tell you that the tourism industry is delighted by the fact that we froze the passenger movement charge that Labor increased twice, without warning, to 45 per cent. We have announced three-year multi-entry visas for approved tourists and business applicants from China. We are launching pilots for online visitor visa lodgements for China and India, with a full rollout by the end of the year.

In particular, I wanted to mention working holiday makers—the backpackers. I will forgive the shadow minister for not understanding this: backpackers are currently treated as residents for tax purposes, but they are not residents. They should not access the tax-free threshold. The decision to remove the tax-free threshold for backpackers is all about tax consistency, something that Labor would not understand. This measure is closing a loophole; it is not applying a new tax. I do not expect those opposite to understand this, because they have never seen a tax that they do not embrace. I am sorry, but this is a loophole; it is not a tax. Backpackers make use of services and amenities funded by Australian taxpayers, so it is only reasonable to get them to contribute towards these services while they are in Australia.

The measure will not undermine our working holiday program. Indeed, given that many backpackers in Australia do not even make use of the residential taxation provisions, this move is not expected to have a significant impact at all on demand for these visas. Research from Tourism Australia indicates that backpackers choose to come to Australia primarily for cultural and leisure purposes. We are a lifestyle superpower on the world stage, and taxation arrangements are not the major driver of their travel in any respect.

We have a proud record of supporting working holiday makers in Australia. Unlike the ACTU, the bosses of those opposite, we do not demonise backpackers— (Time expired)

Natasha Griggs (Solomon, Country Liberal Party) Share this | Link to this | Hansard source

I refer the Minister for Foreign Affairs—

Matt Thistlethwaite (Kingsford Smith, Australian Labor Party, Shadow Parliamentary Secretary for Foreign Affairs) Share this | Link to this | Hansard source

Mr Deputy Speaker, can I have the call?

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

The member for Solomon has the call.

Matt Thistlethwaite (Kingsford Smith, Australian Labor Party, Shadow Parliamentary Secretary for Foreign Affairs) Share this | Link to this | Hansard source

I am seeking the call.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

The member for Solomon has the call.

Natasha Griggs (Solomon, Country Liberal Party) Share this | Link to this | Hansard source

to the strategic direction statement in the Foreign Affairs and Trade portfolio—

Mr Thistlethwaite interjecting—

budget statement, which states:

Gender equality and women and girls'—

Mr Thistlethwaite interjecting—

Can I continue?

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

Yes, please.

Natasha Griggs (Solomon, Country Liberal Party) Share this | Link to this | Hansard source

Can I have the clock restarted? Thank you.

I refer the Minister for Foreign Affairs to the strategic direction statement in the Foreign Affairs and Trade portfolio budget statement. It states:

Gender equality and women and girls' empowerment will be addressed across the aid program.

As the minister is aware, this year marks the 20th anniversary of the Beijing declaration and platform for action, an agreement adopted by the nations of the world to advance gender equality in 12 critical areas of concern. This important document was the focus of this year's session of the Commission on the Status of Women at the United Nations headquarters in New York. It reflected on the progress that has been achieved and the challenges that still lay ahead. The Minister Assisting the Prime Minister for Women, Senator the Hon. Michaelia Cash, and the Australian Ambassador for Women and Girls, Natasha Stott-Despoja, attended the commission to advocate for renewed international commitment and momentum towards gender equality. Twenty years on, gender inequality persists in our region, undermining economic growth, human development and poverty reduction. The anniversary has placed women's empowerment front and centre on the global agenda with policymakers, political leaders, technical experts and gender advocates driving renewed political will and commitment.

The evidence is clear: gender equality is critical to development and must be a key part of Australia's aid program. I am pleased that the government's new aid paradigm released last year—Australian aid: promoting prosperity, reducing poverty, enhancing stabilityplaces gender at the heart of our aid program. The document highlights the alarming rate of domestic violence. One in three women in South-East Asia and two in three women in some Pacific countries experience physical and/or sexual abuse by their partner. It is estimated that the Asia-Pacific region is losing up to $47 billion annually because of women's limited access to employment opportunities, and up to $US30 billion annually due to gender gaps in education. This statistic is alarming to me as a woman and particularly so as the member for Solomon. My electorate is one of Australia's most multicultural communities, with vibrant Asian and Pacific communities. In the time it takes me to travel from my electorate south to Canberra, an equivalent trip north would reach eight international capital cities, 36 trade ports, 69 international airports and nearly half a billion people. To put it simply, what is good for Asia is good for Solomon. Economic growth in Asia means jobs in north Australia. Economic empowerment in South-East Asia and the Pacific means markets for our goods, skills and produce. Given this statistic, how is Australia's aid agenda prioritising women's empowerment? How will the Abbott government assess the performance of our aid program in addressing gender inequality? In the foreign minister's speech on the government's new aid paradigm, she states:

Globally the private sector generates 90 per cent of jobs and funds over 60 per cent of investment. A strong private sector delivers higher growth, more jobs and will help reduce poverty.

According to the strategic direction statement in the portfolio budget statement:

DFAT will strengthen the aid program’s engagement with the private sector and its promotion of the empowerment of women and girls.

Minister, how is the Abbott government embracing the private sector to advance gender equality?

Ms Julie Bishop (Curtin, Liberal Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I thank the member for Solomon for her support of the Australian Government's commitment to promoting opportunities for women and girls and for her question. I know that she has worked very hard to support women and girls in her electorate of Solomon and in the Northern Territory. As she rightly notes, the government's new aid paradigm reflects our strong commitment to empowering women and girls in our region. That is why we have prioritised initiatives that enhance women's voices in decision-making, leadership and peace-building initiatives; promoting women's economic empowerment; and, importantly, ending violence against women and girls in our region. Gender equality contributes to growth, development and stability. When women are able to actively participate in the economy and in community decision making, everybody benefits. So gender equality is one of the six investment priorities of the aid program.

In the 2015-16 budget I established a $50 million competitive gender equality fund. This is the first time this has been done. The fund will support initiatives that advance gender equality and foster innovative work by private sector and non-government organisations, particularly women's organisations. The fund will continue Australia's contributions to influential global initiatives such as the United Nations' work to end violence against women. It will also preserve important initiatives such as Pacific Women Shaping Pacific Development. That initiative supports improved political, economic and social opportunities for women across 14 Pacific island countries. But initiatives supported under the gender equality fund will complement gender activities currently funded through country and regional programs.

We know that a strong private sector delivers higher growth and more jobs and will reduce poverty. So if we can find a private sector solution available that is efficient and effective we will embrace it. I have announced a new $15 million partnership with the World Bank to enhance women's economic empowerment in South-East Asia over the next four years. We will work with the World Bank and the private sector to support women entrepreneurs to access financial services and build their business skills. This partnership will see us work with large companies to improve employment opportunities for women, improve their workplace policies and increase the use of services provided by women entrepreneurs in their supply chains. I know that the member for Lindsay and the member for Solomon understand the skills required for women entrepreneurs. This investment will improve knowledge of the ways to increase women's economic opportunities and apply those lessons to the design of programs. We are going to do it through a South-East Asian gender lab, which will undertake data collection, analysis and evaluation of the impact that programs will have.

Australia's investment in women's empowerment through practical programs supports our international commitments, including at the United Nations Commission on the Status of Women. Last month in Pakistan I announced a skills training program for marginalised women and girls. The program will support 5,000 women and girls in remote areas to develop skills suitable to the local job market and to access finance to establish small businesses—because, as we know, in Australia and elsewhere small business is the driver of economies. In the Pacific, Australia and Papua New Guinea have agreed to a five-year plan to promote gender equality. I know that the member for Solomon is particularly interested in our initiatives with our close friend and neighbour PNG. The plan, delivered through an Australia-Pacific women's development initiative, will focus on creating leadership and economic opportunities for women. It will coordinate the efforts of government, the private sector, NGOs and community groups to pilot new and innovative approaches to help prevent violence. These are just two examples of how the Australian Government is providing practical support to women and girls in developing countries and therefore driving economic growth, which provides job opportunities and sustainable communities.

Question agreed to.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That debate be adjourned and the resumption of the debate be made an order of the day for a later hour this day.

Question agreed to.

Sitting suspended from 13:33 to 15:58