Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Yesterday the Prime Minister said under the China FTA 'that there is absolutely no possibility of placing any foreigner in an Australian job without labour market testing,' but the Department of Immigration and Border Protection told the treaties committee on Monday that, when the FTA comes into effect, engineers, nurses and trades workers will be exempt from labour market testing. Why does the Prime Minister keep misleading Australians about the impact of this agreement?

Honourable Members:

Honourable members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

Members on my left and right will cease interjecting.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The point I make in response to the Leader of the Opposition is that nothing is possible under the China-Australia Free Trade Agreement that is not possible under other free trade agreements, including free trade agreements negotiated by members opposite. My point is: why are members opposite singling out China for this kind of criticism? Why are members opposite targeting China?

Members opposite like to say that this is the Asian century, and it is the Asian century. The free trade agreement with China puts us at the heart of the Asian century. That is what it does and that is why it should be supported by this parliament.

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order on direct relevance. The question goes to whether or not the parliament was misled yesterday, not the general topic—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Watson will resume his seat. The Prime Minister is relevant. The Prime Minister has the call.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Again I make the point that nothing is possible under the China-Australia Free Trade Agreement that was not possible under free trade agreements with other countries negotiated by members opposite. If it was right for Japan, if it was right for Korea, if it was right for Chile, why is it wrong for China? What have they got against China?

Mr Nikolic interjecting—

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Mr Speaker, I ask for a comment to be withdrawn by the member for Bass. It is a specific term that you ruled as unparliamentary last week, and we should not have racist slurs being thrown back and forth across this parliament.

Mr Perrett interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

I will address the matter if the member for Moreton ceases interjecting. I did not hear the remarks by the member for Bass, but, if the member for Bass made an unparliamentary remark, it would assist the House if he withdrew it.

Andrew Nikolic (Bass, Liberal Party) Share this | Link to this | Hansard source

My comment was 'the racist speech given by the Leader of the Opposition'.

Mr Dreyfus interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Isaacs will cease interjecting. The member for Bass will withdraw.

Andrew Nikolic (Bass, Liberal Party) Share this | Link to this | Hansard source

I withdraw.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I say this with some reluctance, but if the terms of this agreement were all right in agreements with Japan, if they were all right in agreements with Korea, if they were all right in agreements with Chile, then what have members opposite got against China? Why is China so different? Why is China to be singled out in this way by members opposite? I am not one to bandy around serious accusations, but I have got to say that, quite frankly, the campaign that is being waged by certain unions—aided and abetted by this Leader of the Opposition—against the China-Australia Free Trade Agreement is not just xenophobic; frankly, it is a racist campaign. And it must be a racist campaign, because they are—

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Prime Minister will resume his seat. As I have made clear before, it is within the practice and the—

Mr Snowdon interjecting—

The member for Lingiari is warned. You are not going to interject while I am seeking to address a matter raised by the member for Watson. It is within the practice—that is why I listen very carefully to these answers—to say 'a campaign' or 'a document' by an outside body such as a union. That term is able to be used.

Ms Macklin interjecting—

The member for Jagajaga is warned. I was listening very closely, and the Prime Minister did not directly, as I heard it—he used the term 'aided and abetted'. He is very close to the line, but I am listening very carefully. I call the next question.

Michelle Landry (Capricornia, National Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister update the House on how the China-Australia Free Trade Agreement will deliver on the government's plan for a strong and prosperous future for all Australians?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Capricornia for her question. I do appreciate her support for the China-Australia Free Trade Agreement and I do appreciate her support for the plan that this government took to the last election—a plan for a strong and prosperous economy that would deliver us a safe and secure Australia. I am pleased to report to her and to the House that the plan is working, and we are sticking to the plan. The plan is working and we are sticking to it. The latest instalment in our plan, the next step in our plan, is the finalisation in this parliament of the Australia-China export agreement—the China-Australia Free Trade Agreement—because that will deliver more jobs for Australians and more jobs in Capricornia.

I can inform the House that modelling by the Centre for International Economics shows that the China-Australia Free Trade Agreement, along with the agreements also negotiated with Korea and Japan, will make households more than $4,000 better off and boost GDP by almost $25 billion over the next couple of decades. That is a $25 billion boost to GDP over the next two decades. Why will it do that? It will do that because, under this agreement, tariffs on some 95 per cent of our exports to China will be completely abolished: beef tariffs—gone; dairy tariffs—gone; lamb tariffs—gone; wine tariffs—gone. That is why this is so good for jobs in our country, including in Capricornia.

If the China FTA enters into force before the year's end, exporters will get two quick tariff cuts—one when the agreement enters into force and another on 1 January 2016. That is why I say to members opposite that the legislation for this export agreement must be passed this year. It absolutely must be passed this year. If it is not passed this year the beef industry will lose $110 million; the dairy industry will lose $60 million; the wine industry will lose $50 million and the grains industry will lose $43 million. As Bob Carr said, the China FTA gives Australia better access to this market than any other country. He said:

There will be more jobs and higher wages in Australia if the China FTA goes ahead.

That is from Bob Carr. If only the Leader of the Opposition would channel Bob Carr. Instead, all he can do is channel the hate speech of the CFMEU. (Time expired)