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

I move:

That this bill be now read a second time.

The changes proposed in this bill, theTrade Legislation Amendment Bill (No. 1) 2016, give effect to several key recommendations resulting from the 2015 Review of the Export Market Development Grants (EMDG) scheme conducted by Mr Michael Lee in the second half of last year, as well as making several minor policy and technical amendments designed to improve the operation of the Export Market Development Grants Act, and to make changes designed to deliver savings to align the scheme closer to its budget.

The changes proposed in this bill also change the name of the Australian Trade Commission to the Australian Trade and Investment Commission.

EMDG celebrated its 40th anniversary last year, and since 1974, has been reviewed fifteen times, with ongoing bipartisan support for the scheme. In fact, I think it must be one of the most successful schemes under operation within the public arena. As I have said, it has had bipartisan support since 1974 and it has had very strong support within the small business sector. The reviews of the scheme have consistently found the scheme to be an effective and efficient means of promoting the development of Australian exports under successive governments. The most recent review concluded that EMDG is effective in conferring a net benefit to the Australian economy and community, with increased economic activity across the economy and enhanced community welfare attributable to the scheme.

Given this background, and the many amendments that have been made over the years to reflect changing economic circumstances and budget decisions, major changes to the scheme are not warranted at this time. Indeed, in his 2015 review report to me in June last year, Mr Michael Lee stated, 'My recommended changes to the scheme will add certainty and confidence to long-term planning for exporting businesses, governments and Austrade. I am recommending few significant changes to the scheme.' The changes proposed in the bill are designed to update and/or rationalise some of the provisions of the scheme, including some of the changes recommended in the 2015 review.

Specifically, the purpose of this bill is to amend the Export Market Development Grants Act 1997 (the Act):

I am introducing this bill at this time to enable it to come into effect on 1 July 2016, in order to provide exporters with certainty of the EMDG provisions applicable to their export promotions activities for the 2016-17 financial year and beyond.

At the same time I am also introducing an amendment to the Australian Trade Commission Act 1985 that will change the commission's name to the Australian Trade and Investment Commission.

This name change will better reflect both Austrade's significant role in promoting and attracting foreign investment and the priority the government places on attracting foreign investment to secure Australia's future prosperity. Since becoming Australia's first trade and investment minister, I have seen there is significant value in regular dialogue with major investors in Australia, both foreign direct investors and portfolio investors. Australia has relied on foreign capital to grow since the days of the first fleet, and this continues to be the case. We are the world's 12th largest economy, with the sixth largest landmass, but with the 51st largest population. So we consistently generate more attractive investment opportunities than we can fund from our own pool of domestic savings, and the country is the wealthier for it, with higher paying jobs, by harnessing foreign investment to capitalise on and develop such opportunities. Note that I do not propose to change the corporate moniker 'Austrade' as this name and brand carries significant goodwill with business in Australia.

I commend the bill to the House.

Debate adjourned.