Andrew Giles (Scullin, Australian Labor Party, Shadow Minister for Cities and Urban Infrastructure) Share this | Link to this | Hansard source

I rise to speak on the Customs Tariff Amendment (Incorporation of Proposals) Bill 2021. This is legislation that would amend the Customs Tariff Act 1995 to extend the free rate of customs duty to certain medical and hygiene products from 31 December 2022 until 30 June this year; provide for free rate of customs duties for goods for use in the F-35 Lightning II Joint Strike Fighter Program; and for prescribed motor vehicles and motor vehicle components for research and development activities by automotive service providers previously registered under the Automotive Transformation Scheme between 1 April 2021 and 30 June 2025.

This is a bill that Labor supports, because the amendments will facilitate continued access to medical products and hygiene products for use in combatting COVID-19. There is, of course, an ongoing need to prevent the spread of COVID-19 within the Australian community, and the products that we are talking about here will include face masks, gloves, clothes or gowns, goggles, glasses, eye visors, face shields, soaps, COVID-19 test kits and reagents, viral transport media and disinfectants. Also, the amendments contained in this bill will support continued domestic research and development in the automotive sector, and ensure that previously registered automotive service providers can continue to access the tariff concession. This will help automotive service providers maintain an Australian presence, including through the engineering services design and product development.

The bill contains three significant measures, as I touched on earlier. The first is to incorporate the Customs Tariff Proposal (No. 1) 2021, which was tabled in the parliament on 3 February. As has been made clear in the explanatory memorandum to the bill:

The provision of a "Free" rate of customs duty for certain medical and hygiene products to 30 June 2021 is estimated to reduce customs duty receipts by $3.8 million.

The second measure will also insert new items to provide a free rate of customs duty for goods that are for use in the program known as the F-35 Lightning II Joint Strike Fighter Program. Under the memorandum of understanding for the development of the joint strike fighter, Australia has committed to achieving tax neutrality under the F-35 Lightning II Joint Strike Fighter Program. This measure incorporates Customs Tariff Proposal (No. 2) 2021, which was tabled in the parliament on 17 March. The implementation for a free rate for goods associated with this will reduce receipts by $6.7 million across the forward estimates.

Finally, the third measure would insert a new item, section 39A, into schedule 4 to provide a free rate of customs duty for prescribed motor vehicles and motor vehicle components for research and development activities by automotive service providers previously registered under the Automotive Transformation Scheme and where the time for working out duty is between 1 April 2021 and 30 June 2025. This measure incorporates Customs Tariff Proposal (No. 3) 2021, tabled in May this year. The implementation of this free rate of customs is estimated to reduce receipts by $1.7 million across the forward estimates.

These measures commenced respectively on 1 January, 1 March and 1 April 2021 through notices of intention to propose customs tariff alterations and related customs tariff proposals, necessitating the amendment to the bill we're dealing with now. We must ensure Australia's domestic manufacturing capacity and capability through this prolonged COVID crisis and we must also support our long-term recovery. We must support industries that are of strategic importance. Therefore I move the following second reading amendment to this bill:

That all words after "That" be omitted with a view to substituting the following words:

"whilst not declining to give the bill a second reading, the House:

(1) acknowledges the bill provides for reduced rates of customs duty for goods required to combat the COVID-19 pandemic;

(2) notes that the Government has failed to outline a long-term plan to support local industries that are of strategic importance and in our national interest to safeguard; and

(3) further notes that the Prime Minister's refusal to secure a variety of vaccines in accordance with world's best practice has left Australians dangerously exposed against highly infectious COVID-19 variants".

On this side of the House we will never forget, in the context of this legislation, that it was this coalition government that oversaw the destruction of our car industry. In 2013 the Liberals dared Australian automotive manufacturers to leave Australia and, sadly, they did. As a result of this action and others, the coalition has presided over the permanent loss of more than 55,000 manufacturing jobs in Australia.

The Morrison government has had over a year to invest in new manufacturing—

Mark Coulton (Parkes, Deputy-Speaker, Minister for Regional Health, Regional Communications and Local Government) Share this | Link to this | Hansard source

I call the minister on a point of order.

David Gillespie (Lyne, National Party) Share this | Link to this | Hansard source

I'm just seeking what relevance this has to the bill before the House.

Mark Coulton (Parkes, Deputy-Speaker, Minister for Regional Health, Regional Communications and Local Government) Share this | Link to this | Hansard source

The member for Scullin will say—

Andrew Giles (Scullin, Australian Labor Party, Shadow Minister for Cities and Urban Infrastructure) Share this | Link to this | Hansard source

One of the three elements in the bill goes exactly to this issue, Minister at the table! It goes to the third set of provisions, which go to concessional tariff arrangements that support the automotive industry.

Mark Coulton (Parkes, Deputy-Speaker, Minister for Regional Health, Regional Communications and Local Government) Share this | Link to this | Hansard source

I call the member for Scullin.

Andrew Giles (Scullin, Australian Labor Party, Shadow Minister for Cities and Urban Infrastructure) Share this | Link to this | Hansard source

Thank you, Deputy Speaker. Perhaps you were aware of this matter when you were sitting around another table. The Morrison government has had more than a year to invest in new manufacturing capability and they haven't, once again leaving Australia missing out on new jobs and manufacturing opportunities. Government experts have since confirmed that the Prime Minister has never had a plan to create manufacturing jobs, just plans to create headlines. The secretary of the department confirmed at the 2021-22 budget estimates that the $1.5 billion Modern Manufacturing Strategy has not created a single job—not a single job!—saying that this fact is crystal clear and an inevitable outcome of the funding profile that no new jobs in manufacturing have been created under the strategy.

The COVID-19 pandemic has taught us that we need to be a country that makes things, but this government has squandered this opportunity and has left companies that have supported the national effort in the lurch. There is one example which is particularly telling: an Australian company that supported our domestic production of medical masks at a time of greatest need, Med-Con. When the pandemic hit at the start of last year, as borders were closing and the immediate imports of some critical medical equipment were frozen, Australian health services needed masks immediately and Med-Con was the only surgical mask manufacturer in the country. It's a small, family owned business based in Shepparton in Victoria and it was critical to supplying our frontline health services.

The government begged Med-Con to boost its supply and they did their bit—as all Australians have done throughout the pandemic. But they have been let down by this Prime Minister and left in the lurch. In April 2020 the Prime Minister, on his Facebook page, spoke of supporting Med-Con. He spoke at great length about this. But if we fast forward to 21 July of this year, this is what the CEO of Med-Con, Steven Csiszar, said to the ABC:

All the people we've supported throughout the pandemic seem to have left us.

The cameras move on and so does this Prime Minister, which is just so revealing of his behaviour at every turn. He is all about the photo op and never there for the follow-through. Whether it's bushfires or the pandemic, he cannot move himself beyond base politics and beyond engaging with daily political tactics. He has proven himself incapable of governing for all Australians or for the national interest.

Australians know that the Prime Minister had two jobs this year: speedy, effective rollout of the vaccine and putting in place dedicated national quarantine arrangements. He has failed at both to the cost of all us. The economy is bleeding hundreds of millions of dollars every day and billions a week because he hasn't done these two jobs. Australians can't afford another three years of this kind of leadership.

Labor supports the provisions that are contained in the bill, which are of themselves uncontentious, but we must be on guard with what is happening with our broader policy settings. We can't afford to be caught off guard like this again. The pandemic has underlined how exposed we are to disruptions in global supply chains. The pandemic has taught us we need to be a country that makes things, and a state-of-the-art sovereign vaccine capability must be top of this list. Under Labor, Australia and Australians won't be left behind as we have been under this government. Labour has a plan for reconstruction that will rebuild our manufacturing base, create good jobs and safeguard our health and prosperity. It's all about creating the advanced manufacturing industries that will power good jobs and a stronger economy and provide ongoing sovereign capability for decades to come.

The Prime Minister is not on the side of Australian manufacturing and he does not believe in a future made in Australia—and, even if he did, he does not have the character, vision or competence to see it through.

Mark Coulton (Parkes, Deputy-Speaker, Minister for Regional Health, Regional Communications and Local Government) Share this | Link to this | Hansard source

Is the amendment seconded?

Julie Collins (Franklin, Australian Labor Party, Shadow Minister for Agriculture) Share this | Link to this | Hansard source

I second the amendment and reserve my right to speak.

Terry Young (Longman, Liberal National Party) Share this | Link to this | Hansard source

I rise today to speak about some important amendments to the Customs Tariff Act 1995. The changes we are proposing incorporate three proposals that have been tabled in parliament this year which provide for a free rate of customs duty for a range of imported goods. The measures contained in these proposals will continue to support the availability of vital health and hygiene products in the community, contribute to our ability to fulfil international defence commitments and facilitate continued research and development in the automotive sector.

Customs tariff proposal No.1 will extend the free rate of customs duty for imported prescribed medical and hygiene products that can be used to combat COVID-19. The coronavirus continues to spread around the world at an alarming rate. While our record on suppressing the virus here in Australia has been world leading, recent and ongoing lockdowns make it clear that we are not out of the woods yet. In fact, the delta variant of the virus has proved to be the most contagious and is responsible for our current state of lockdowns and community restrictions.

The latest data on COVID-19, at the time this speech was written, reveal there have been 280 locally acquired cases in the past 24 hours. There are currently 4,727 active cases and 433 people are in hospital. But Australia is rising to the challenge. There have been 168,120 COVID tests done in the past 24 hours. In my home state of Queensland there are currently 144 active cases. We have just come out of a five-day lockdown and many restrictions remain in place. Meanwhile, Australia's vaccine rollout is gaining pace. As of Saturday, there have been more than 13½ million doses delivered. The Australian government remains committed to protecting the health of all Australians and we are doing our part, along with the state governments, to suppress the virus as best we can.

One of the tools we have is to make it easier to import medical and hygiene products that will help us fight this terrible pandemic. The first amendment to the Customs Tariff Act is an extension of a temporary free rate of customs duty for a selection of imported prescribed medical and hygiene products to combat COVID-19. Specific goods covered by the measure include facemasks, gloves, clothes or gowns; goggles, glasses, eye visors or face shields; disinfectant preparations classified to heading 3808 in schedule 3 to the Customs Tariff Act, excluding hand sanitisers; soaps; and COVID-19 test kits, reagents and viral transport media.

This proposal contains a measure that extends the free rate of customs duty for these eligible goods from 31 December 2022 to 30 June 2021. This tariff concession initially started on 1 February 20. Through consultation with stakeholders, including Australian businesses, the measure has been extended twice to continue to meet the needs of the community during the COVID-19 pandemic. The end date was previously extended from 31 July 2020 to 31 December 2020. This latest extension of the measure to 30 June 2021 is expected to reduce receipts by $3.8 million across the forward estimates. This extension to the free rate will ensure individuals and businesses continue to have access to the essential supplies required to keep themselves and other members of the community safe. It will also help ensure that Australia remains a competitive market for these essential medical and hygiene goods and allow the community to source these goods for those people who need it most, such as healthcare professionals and other essential workers.

The second amendment to the Customs Tariff Act that we are debating here today provides a free rate of customs duty from imported goods that were used in the F-35A Lightning II Joint Strike Fighter program. This program is a plan for affordable next-generation strike aircraft weapon systems for our armed forces and our allies. The Australian government has already acquired around 30 of the Lockheed Martin designed Lightning II aircraft. We will eventually acquire 72 Joint Strike Fighters in total, along with associated weapons, spares, support equipment and infrastructure.

The F-35A brings cutting-edge technologies to the battle space of the future and is critical to achieving the objectives set out in the 2020 Defence strategic update to shape, deter and respond. Our fleet of F-35As will fulfil the functions of air dominance and strike capability currently provided by F/A-18A/B Hornets. The F-35A Lightning II, in concert with the Super Hornet and Growler aircraft, will be a potent air combat capability mix. This will provide the Royal Australian Air Force with crucial air combat power to meet Australia's needs beyond 2030.

Australia is acquiring F-35A as part of an international cooperative program led by the United States. Under the agreement, partners bid for and win work on the global program on a best-value basis. Australia has won over $2.7 billion worth of work, with more than 50 companies involved. In time, this will expand to include maintenance and repair for a range of system components in support of the global fleet. Australia will continue to work with the United States and our industry partners as more aircraft are delivered through to 2023.

The amendment to the Customs Tariff Act supports Australia's participation in the Joint Strike Fighter production, sustainment and follow-on development memorandum of understanding. This memorandum was signed in 2006 and commits to achieving tax neutrality. This measure is estimated to reduce customs duty receipts by $6.7 million over the forward estimates.

Finally, the third amendment to the Customs Tariff Act 1995 that we are debating here today incorporates a measure to provide a free rate of customs duty for certain imported motor vehicles and motor vehicle components. These vehicles and components must have been imported by an automotive service provider previously registered under the Automotive Transformation Scheme. While registrations under the scheme have closed, the time for working out duty runs to 30 June 2025. These goods included under the amendment measure must be imported for use in the testing, quality control and manufacturing evaluation or engineering development of motor vehicles designed or engineered in Australia. This measure extends to the treatment previously provided to these goods during the operation of the Automotive Transformation Scheme.

This scheme supports the Australian automotive industry and aims to encourage competitive investment, innovation and economic sustainability through financial assistance. Under the scheme, motor vehicle producers were covered for up to 15 per cent of the cost of eligible plant and equipment and 50 per cent of eligible research and development investments. With the end of the second stage of this scheme, this concessional item ensures that companies previously registered under the scheme can continue to access a customs duty concession and are not subject to additional regulatory burden. This measure is about supporting the automotive manufacturing industry, facilitating continued research and development in the automotive sector and supporting local jobs. It responds to concerns from the automotive industry that the end of the concession would significantly disrupt research and development activities. The measure is estimated to reduce customs duty receipts by $1.7 million across the forward estimates.

The amendments to the Customs Tariff Act 1995 that we are debating here today are vital to Australia's continued health and economic recovery from the COVID-19 pandemic as well as our national security. The world in which we live is always changing, and we as a government need to change with it and support those vital industries that keep us safe and support our economy. One of the ways in which we can do this is by amending our existing customs tariff legislation to reduce import duties on goods that are so important to our future.

Vince Connelly (Stirling, Liberal Party) Share this | Link to this | Hansard source

The current times have really forced us to assess where our priorities lie, as we rightly should periodically, and make adjustments where we need to. One of those areas has been in personal protective equipment, or PPE. We're all rolling with face masks at the moment in many places around the country and, indeed, the world. Along with face masks, gloves, gowns and the like are significantly high-volume disposables. So we have had to make some legislative amendments in order to give favour to the flexibility with which we can import PPE. The second priority I will touch on today as I speak to this bill is that of defence industry. I see the shadow assistant minister for defence, the member for Paterson, is in the chamber, and I know that she is incredibly passionate about defence industry, particularly the F-35 Joint Strike Fighter, as are we all. Supporting defence industry absolutely is another priority which as a nation we are absolutely getting behind. The third priority I'd like to touch on is lower carbon transport. There is an awful lot of innovation going into lower-carbon transport options. These include dual-cell vehicles, which have a traditional hydrocarbon power source mixed with electric, and electric vehicles. Some of the emerging research is going into the use of hydrogen as a fuel for transport. I highlight these three priority areas because they are captured in the intent behind this bill. The Customs Tariff Amendment (Incorporation of Proposals) Bill 2021, is set to amend the Customs Tariff Act by paying particular attention to three proposals around these three priorities, which have already been tabled in parliament.

Importantly, the first proposal contains a measure that has the effect of extending the free rate of customs duty for eligible medical and hygiene products which are capable of use as we combat COVID-19. This extends that eligibility from 30 June 2021. This tariff concession commenced last February. The Morrison government, through consultation with a range of Aussie businesses, recognised the importance of this measure, and so has extended it twice already. With infections still current in at least three states at the moment, it's more vital than ever that we continue to meet the needs of our community through the pandemic. We cannot step on or even contemplate applying the brakes any time soon. Indeed, we are powering ahead with the delivery of the vaccine so that we can suppress the virus. So far, and I congratulate Australians on their wonderful acceleration in the take-up of vaccines, 13.6 million doses of COVID-19 vaccines have been administered. This takes our rate of fully vaccinated people to over 22 per cent and rising. Our rate of vaccination is well over one million doses per week. This weekend we hit another significant milestone when we saw 140,225, to be precise, people roll up their sleeves, marking a record rate for a Saturday. This government is overcoming hurdles that are thrown at us.

Much as all of us, I'm sure, would like to possess a crystal ball, nobody does. There have been changes in our plan throughout the pandemic as the situation has changed, even as the virus itself has changed. German Field Marshal Helmuth von Moltke commented, 'No operational plan survives first contact with enemy forces.' A learning that all young military offices, at least in Australia, are reminded of is that once you confront the enemy things are absolutely, guaranteed, going to change. That's what we've seen through this pandemic, and we will keep amending our plan as need be.

In Australia we can celebrate a great deal of success. I look around OECD nations, for example, and if we were to experience the same rate of deaths from COVID on a per-head of population basis, we would have experienced 30,000 deaths. Whilst every single death that we have unfortunately experienced in Australia is an absolute tragedy, it is certainly a fortunate circumstance indeed that we have avoided tens of thousands more deaths.

Over three million Australians have also been supported through JobKeeper, and one million Australians are now back at work. This absolutely fits within the government's consistent mantra of focusing on saving lives and livelihoods. It is particularly pleasing that Lieutenant General Frewen has been appointed to oversee the vaccine rollout. I can attest to General Frewen's capabilities, having served as one of the officers under his command during my time as a military officer. He was a fantastic commanding officer and a wonderful commander of the joint task force in the complex environment of the Solomon Islands. He certainly has some great runs on the board. So it's wonderful to see him as part of the team fighting COVID here on our shores.

We're witnessing a significant ramp-up, as I said, in the vaccine program. Another measure of this is that we are now seeing the arrival every week of one million doses of Pfizer. Thanks also to the Prime Minister and national cabinet's agreed four-phase national plan, we're powering through this first phase by accelerating the vaccine rate. This does come at a price, though, and extending the tariff exemption for PPE over the forward estimates will cost in the order of $3.8 million, an investment I think we can all agree is absolutely well founded.

The second part of this proposal relates to a free rate of customs duty on imported goods for use in the F-35 Lightning II Joint Strike Fighter, or JSF, program. This is the most advanced fighter jet in the world, and Australia should be very rightly proud to be a lead participant in this program. The use of the concessional item is limited to goods that are for use in the program and are not currently eligible for a free rate of customs duty. The F-35 has the capability to strengthen our national security, enhance global partnerships and power economic growth. This is a part of the Morrison government's commitment of $270 billion on defence capability over the next decade. This is of course in response to a complex and contested environment strategically, both in our region and right across the globe. Strong national security absolutely underpins also our economic prosperity and our ongoing social cohesion. We're living, as I said, in a contested region, and it is more important now than ever that we continue keeping Australians safe and sovereign, and investing in our military and our defence industry is how we are going to keep doing that. This measure is estimated to reduce customs duty receipts by $6.7 million over the forward estimates—again, a very appropriate expenditure.

Finally, the third proposal is to provide a free rate of customs duty to certain motor vehicles and components imported for research and development activities by our automotive service providers. This tariff concession will be applicable till 30 June 2025. It enables automotive service providers who were previously registered under the Automotive Transformation Scheme to continue accessing concessional treatment for eligible goods. This measure responds to concerns from industry that the end of the concession would significantly disrupt their research and development activities. As Australia looks towards more environmentally friendly modes of transport which are lower carbon, such as hybrid electric cars—and I mentioned emerging research into hydrogen powered vehicles—it's really important that we reduce the financial burden upon those who are undertaking this research and development and driving forward that leading edge of our lower-carbon future.

Australia is on track to meet and beat our 2030 Paris target through a technology focused approach. That stems from our aversion to solving problems with taxes and preference for leveraging technology. That's where this bill absolutely lends a helping hand. Australia's Technology Investment Roadmap is expected to guide $20 billion worth of government investment over the next decade and drive around $80 billion in total new investment in low-emissions technologies in Australia by 2030. The 2021-22 budget includes $1.2 billion over 10 years for investments in low-emissions technology. This includes $565 million to establish international partnerships on practical low-emissions projects and $263 million to accelerate the development of carbon capture, use and storage.

Research shows that a hybrid vehicle can use 40 to 60 per cent less fuel and emit around 30 per cent less carbon dioxide than a conventional vehicle. Meanwhile, electric vehicles produce zero tailpipe CO2 emissions. If a 100 per cent renewable energy such as solar power is used to recharge the batteries, then the power is free and greenhouse gas emissions are eliminated. Lower-carbon transport options are increasingly being selected by Australians. In fact, we saw the sale of EVs and plug-in hybrids increase by almost 300 per cent in 2019, to 6,718, compared to 2018, when it was 2,357. As I said, that is an incredible 300 per cent increase. That is why this government is investing in lower-carbon transport options, with the introduction of this proposal estimated to reduce customs duty receipts by $1.7 million across the forward estimates.

In summary, we have shifted, and rightly so, in a range of priority areas, particularly those touching on PPE, defence industry and lower-carbon transport options. I commend this bill to the House, as it goes a long way to helping us achieve those objectives.

Rowan Ramsey (Grey, Liberal Party) Share this | Link to this | Hansard source

I don't agree with the amendment, although I do agree with the proposal put by the government in regard to the Customs Tariff Amendment (Incorporation of Proposals) Bill 2021. There are very few set-and-forget policies in government, particularly when it comes to tax and customs law. It is a scenario of constant change and adjustment. If it was Winston Churchill who said, 'When the facts change, sir, I change my mind,' he was completely on the money. Certainly, when it comes to issues of trade, we've seen many things change in recent years. The establishment of a number of free trade agreements—or freer trade agreements, as they probably should be referred to—moves by Australia in the field of antidumping, moves by other countries alleging dumping against Australia, those who take political positions and attack our trade status for, as the term would suggest, no better reason than pure politics are all things that we as a government have to face on virtually a daily or weekly basis. So, too, are the proposals that have been put up in these amendments.

Australia built a huge wall of tariffs in the early and middle parts of the last century. The dismantling of that great tariff wall began, of course, in the 1970s under Gough Whitlam, who moved for an immediate reduction of 25 per cent in all tariffs across the board. It was the beginning of a very long, drawn-out process of general tariff reduction by both sides of politics, which came to a halt, I suppose we should say, in the early 2000s, when the remnant tariff—and many would say Australia doesn't have any tariffs—was at five per cent, where it remains, on around 50 per cent of those goods that are termed to have a rateable tariff assessment. That's not to say that's on 50 per cent of the goods we import; it's nothing like that. It's that 50 per cent of tariff items still retain tariffs.

It probably begs the question of why those remain, but I think the removal of tariffs generally has been good for Australia. There would be others that would argue differently, but certainly right back in the 1960s Bert Kelly argued strongly that one man's tariff is another man's job. It was Gough Whitlam who said at the time of Bert Kelly's passing that no one man from the backbench had ever done more towards a long-term Australian policy than Bert Kelly. Through those years, they have been reduced and Australia has flourished. People have said that there would be no jobs here, but in fact even today, in the midst of a COVID crisis, we have below five per cent unemployment, so it has been good for Australia and it will continue to be. While we might beg the question, as I said, why these five per cent tariffs remain, that is the status quo and has been the case for the best part of 20 years now.

This bill deals with three different items under that tariff regime, and they're different from each other. The first item concerns medical goods, which of course provide hygiene and safety for us in dealing with COVID-19. I think the member for Longman went through the details, but the list includes masks, gloves, clothes, gowns, goggles, visors, protective glasses, disinfectants—but, I point out, not hand sanitiser—soaps, test kits, reagents and things of that nature. A decision was made in the early days of the COVID-19 crisis, which was right back in February 2020, that, on a temporary basis, free status, which means no tariffs, should be applied to these goods to ensure that we do have supply in Australia. There's been a great ramp-up of manufacturing capacity in that time not just in Australia but also right around the world, and those things that are the first form of defence at the moment, being masks and other things, are in plentiful supply at least in a place like Australia. We'd already extended this exemption once. One would have hoped that by now perhaps the COVID crisis would be in retreat, but it's stubbornly refusing to go and is adapting itself and making itself more dangerous to society generally, so we need a further extension. I don't think there's any argument about any of the amendments in this bill for that matter, but I think that's a fully justifiable case.

On the Joint Strike Fighter—the Lightning II, as it's called—Australia worked very hard to become a part of the global supply line for the JSF. We are one of nine nations that have won the ability to bid for content in these Joint Strike Fighters. We have 30 of them already in Australia of the 72 that we've ordered. Already that ability to bid to get into that supply line has been to the net benefit of Australia of around about $2 billion. That's quite a boost to our economy, but I think, even more than that, it integrates us into one of the very high-technology lines of the world.

In my home state of South Australia there's been a lot of investment by US, largely, and European defence contractors establishing bases here in Australia because they can see that the Australian government is committed to a higher budget level in this uncertain world for the development of technology and the supply of equipment to our defence forces after a historic low. They are here on the ground, and of course being a participating partner in the production of the Joint Strike Fighter has been of great benefit. We will see similar things—in fact, even better things, I think—when it comes to the construction of our frigates at the moment and our submarines in the medium-term future. We are also designated to become an assigned product supply provider, so we will be like the parts shop for the JSF in the Pacific region. That will be important—by definition, that is a highly specialised supply line—because, as a part of our obligations under winning those contracts, is a guarantee to our partners of neutrality on tax, and this exemption does exactly that.

On a personal note, I was on a delegation in the US in 2015. We didn't get to see a JSF up close, and I still haven't, even though now they're in Australia. The member for Franklin and I sat in a simulator of the cockpit in Washington. I can fly an aeroplane but maybe not a JSF, I'd have to point out. The thing that got me was a pilot still relies on vision. You could sit in this cockpit and look through your lap. I thought, 'Gee, I forgot to bring my legs, the seat and the bottom of the aeroplane!' It's a surreal thing that the cameras that sit around this hi-tech operation give you the ability to look straight through yourself as it were. I found that a bit of a surreal experience, but the technology looked pretty good to me. I'm not an assessor of aeroplanes, it would be fair to say, but the fact we were involved in its production and are going to be the parts shop for the Pacific region is very important for Australia.

The third set of items that we're dealing with today under this free status for tariffs is around the automotive supply industries. As we all know, we don't make any cars in Australia anymore. I heard from the shadow minister earlier that it was all the Liberal Party's fault, but he neglected to mention who was in government when Ford and Toyota exited the scene—actually, I think that was Ford and Mitsubishi, so I should be careful about throwing stones. We don't make cars anymore but we make components. There have been a number of components suppliers that have been able to swing over to international supply. To do that, they need to stay current with modern technologies and develop a new technology for the supply of these vehicles. It's very important they are able to import the particular products they need for testing and development. This was an exemption that they enjoyed under the previous car transformation plan, so this new addition is really a continuation of the status quo. Once again, it just makes sense.

These three items that we're addressing in this amendment all make sense. It's all good policy. It's just another show of governments being able to, as I say, chew gum and speak or walk at the same time. I don't know about chewing gum and speaking at the same time; maybe that's not etiquette. But either way, it is just the mechanics of government in getting on with the job. I commend the amendments.

Debate adjourned.