Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

The Minister for Trade has provided the following answer to the honourable senator's question:

(1) I (Dr Emerson) am aware of the claims made by Mr Eather.

(2) See (1) above.

(3) I am advised that communication between Austrade and Mr Kasamatsu was initially undertaken by telephone.

(4) Austrade provides Australian exporters with introductions to prospective overseas customers. Conducting due diligence, negotiating terms of trade, insurance and securing payment is the responsibility of the exporter.

I am advised that in February 2000, Austrade Nagoya introduced Mr Kasamatsu, of Yamaichi Tsusho, to Mr Eather. Mr Eather dealt directly with Mr Kasamatsu from February 2000 to July 2000. Austrade did not participate in any meetings between the parties.

Austrade Nagoya relied on information provided by Mr Kasamatsu when introducing Mr Kasamatsu to Mr Eather.

(5) I am advised that, at this time, Austrade sought written confirmation of the company information previously provided by Yamaichi Tsusho Ltd in initial telephone conversations. See (3) above.

(6) Mr Brazier was employed at Austrade Nagoya from 4 May 1997 to 14 July 2001. Mr Yoshimoto was employed at Austrade Nagoya from November 1998 to 31 August 2009.

(7) Austrade Nagoya was closed on 31 August 2009 for operational reasons.

(8) Yes. Documents covering this question were provided to your (Senator Milne) office on 26 May 2011 following a Freedom of Information request.

(9) Austrade engaged law firm Mallesons Stephens Jaques to undertake an examination of all the relevant circumstances and available information. This legal advice is privileged.

(10) A search of Austrade’s current and previous database does not reveal any entry, or subsequent deletion, for Yamaichi Tsusho Ltd.

(11) I am advised that Austrade does not have any information about the directors of Yamaichi Tsusho Ltd.

(12) Austrade provides introductions between Australian exporters and prospective overseas customers. It does not, and cannot, ‘require’ any company to trade with another.

Austrade does not undertake due diligence for Australian exporters. Conducting due diligence, negotiating terms of trade, insurance and securing payment is the responsibility of the exporter.

Austrade’s internal client service document Meeting Our Clients’ Needs - A Practical Handbook, dated July 1999, contains the following entry:

Assisting in the selection of a long term strategic export partner: …Clients (i.e. Australian exporters) will need to engage professional financial and legal counsel to complete due diligence tests or other technical assessments of business capacity or capability. Austrade may be able to arrange for a credit/status report on a potential partner, should the client require one.

(13) On 8 July 2010,The Office of Legal Service Co-Ordination (OLSC), which administers the Legal Services Directions 2005 (the Directions), concluded that Austrade had acted in a manner consistent with the Directions after considering the concerns raised by Mr Eather about Austrade’s handling of his claim and events leading to the signing of the Deed of Settlement and Release. Mr Eather was legally represented at the time and the terms of the Deed are confidential.