Christopher Back (WA, Liberal Party) Share this | Hansard source

That less than helpful contribution should be ignored, Mr Acting Deputy President. I certainly do give Mr Hockey the accolade and the acclaim, because it was him that saw the importance of us joining the Asian Infrastructure Investment Bank.

Senator Cameron will be delighted to learn that on 29 June this year, Mr Hockey, the excellent Treasurer of Australia, gave effect to the government's commitment to join the Asian Infrastructure Investment Bank by being the first person in the world—I am going to repeat that in case Senator Cameron needs to write it down—the first person in the world to sign the bank's articles of agreement in the Great Hall of the People in Beijing. His signature was followed by representatives of 49 other countries. What a great legacy for that great man. Mr Hockey said:

The decision to join the bank was made following extensive consultations with key partners inside the Asian region and outside the Asian region. This included participating on negotiations on the bank's design with 56 other prospective founding member countries.

It is important to understand that we are the fifth-largest regional shareholder in the bank. In that sense Australia, through the excellence of Mr Hockey, will be able to influence the bank's decisions and strategic direction.

The question was asked in earlier contributions today—I am not sure if it was you, Mr Acting Deputy President Whish-Wilson, or Senator Lambie—about what governance processes were in place. I believe, since you are nodding, Mr Acting Deputy President, that it may have been you. So I have availed myself of this opportunity to inform the Senate of this.

In March of this year the government made clear that the key issues to be resolved before Australia could commit to join the AIIB were that the bank's board of directors would have control over key investment decisions and that no country—and I hope Senator Lambie's staff are listening because she made the observation that China in some way would have some massive influence—will dominate the bank or the decisions of the directors. So, in announcing our decision to sign the articles of agreement in June, again that excellent Treasurer, Mr Hockey, noted that all these criteria have been met and that the governance will be based on best practice, ensuring that all members will be directly involved in the direction and decision making of the bank in an open and transparent matter. I hope that is further discussed when we come to look at some of the amendments.

Mr Acting Deputy President, why do we need to be involved? I cannot go further than the comments of industry leaders. Peter Collins, the chair of Industry Super Australia, made the observation:

This move will be a huge fillip for Australian expertise in funds management, engineering, construction, architecture and legal services which could be widely applied to projects financed by the AIIB.

He also made the observation that not only will they 'provide new opportunities to deploy capital but also export the funds know-how in connecting funds services and savings to bankable projects'. There you have Australian super. I am sure Senator Sinodinos will correct me if I am wrong, but if already have the second-largest or third-largest pool of superannuation investment in the world, and we are rushing to become the second-largest, if not the largest. To have an acknowledgment and an endorsement from the chair of Industry Super Australia has to be seen as a very valuable point. I hope it is a point that is not lost on members of this chamber when they finally come to consider this.

The Business Council of Australia, Chief Executive Officer, Jennifer Westacott, welcomed the government's decision to join the bank as a founding member. She made the point that Australia can play a key role in setting the direction of the body, and decisions it will make to finance projections that address Australia's infrastructure gaps. She obviously realises that Australian companies will benefit from the opportunities to participate in developing and building new bank financed infrastructure, as well as having access to improved infrastructure which facilitates trade. As we all know, we are a massive exporter. Our own state exports 95 per cent of the grain it produces. We cannot consume it. We have the land mass of continental America excluding Alaska, and we have the population of Greater New York. I just do not know where those who stand up in this place and talk about Australia not needing to be actively engaged in the world of export get off. I just do not know who they think is going to consume the produce that has made this country great, and will go on making it even greater.

Putting to one side for a moment commodities, which of course will be 99.9 per cent free trade once the China-Australia Free Trade Agreement is in place, the big point that has attracted China to Australia with this FTA is our services sector. Ten years ago, when the negotiations started under the Howard government for the China free trade agreement, the emphasis was on commodities. The Chinese now see themselves going past America as the leading economy in the world but they know they are deficient in a range of areas—in the services sector particularly, and they recognise Australia as a country that may be able to provide those services. How wonderful it will be for us in our employment, in our university sectors, to be able to produce graduates and continue to work in services sectors such as corporate governance, prudential regulation, banking and finance, insurances and extending beyond that. Minister Robb is another excellent trade minister—probably the best in our history; nobody else has produced three free trade agreements within two years—and as he says—