Alex Gallacher (SA, Australian Labor Party) Share this | Hansard source

I table and present the report of the Australian parliamentary delegation to Japan and the Republic of Korea, which took place from 9 November to 21 November 2014. I seek leave to make a statement in relation to the document.

Leave granted.

I move:

That the Senate take note of the document.

The delegation had several aims. These included discussing our trade relationships, particularly in the context of the free trade agreements being finalised with each country at the time of the delegation's visit. We also wanted to explore Australia's role in energy and mineral exports in the Japanese and South Korean economies, and the countries' approaches to energy policy in the aftermath of the Fukushima nuclear accident in Japan.

Amongst our other appointments, the delegation had the honour of meeting the Presiding Officers of the National Diet of Japan, the Speaker of the Korean National Assembly and held meetings with the parliamentary friendship groups in both countries. We were deeply honoured by the generous hospitality extended to us. We thank the parliamentarians in Japan and South Korea for making the time to hold informative and friendly discussions with us.

The dominant impression gained by the delegation was the extent to which Australia is relied upon as a partner for Japan and South Korea in the secure supply of energy resources, minerals and food products. The visit gave us new insights into the deeply complementary trade relationships between our countries and the extent to which Australia fuels the Japanese and Korean economies.

Australia is Japan's largest supplier of energy resources, providing 25 per cent of Japan's total energy needs. This includes 64 per cent of Japan's coal imports, 21 per cent of natural gas and 19 per cent of its uranium imports. In addition, Australia supplies 59 per cent of Japan's iron ore and over 50 per cent of its beef imports.

The delegation was pleased to see firsthand Australian energy and mineral resources being used to fuel the Japanese economy. For instance, the delegation had the opportunity to visit the Isogo Power Station in Yokohama, the world's most advanced coal fired power station. Employing ultra-supercritical technology, the plant uses Australian coal and produces 25 per cent fewer carbon emissions than the global average per coal power plant. The delegation saw Australia's strong common interest with Japan in seeing that low-emission coal-fired technologies are widely deployed.

We visited the steelworks of Nippon Steel and Sumitomo Metal Corporation in Osaka, which sources 50 per cent of its iron ore from Australia. We saw this being transformed into rail wheels for use both in Japan and here in Australia for our mining projects.

At the Sakai LNG Centre, which is one of dozens of LNG terminals in Japan, some 1.5 million tonnes of Australian LNG arrives each year from Woodside's Pluto project. The gas is used in the Kansai Electric Power Company's gas-fired power stations to provide electricity to millions of customers in the Kansai region.

I am pleased to report that the Japan-Australia Economic Partnership Agreement and the Korea-Australia Free Trade Agreement had widespread political support in both countries. It was encouraging for the delegation to hear from parliamentarians we met in Japan that the relationship with Australia has never been closer. In addition to our already very strong economic and people-to-people links, it was emphasised to the delegation that Japan would like to see the security and, ironically, the military, relationships grow in the years ahead.

Finally, the Republic of Korea was most impressive. It is worth recalling just how extraordinary South Korea's economic development has been. In 1953, shortly after the Korean War, South Korea's gross domestic product stood at US$41 million, and income per capita was just US$67 per year—the country among the poorest in the world. By 2014—just 60 years later—South Korea's GDP had grown more than 31,000-fold and is now over $1.4 trillion. The Republic of Korea is today the 13th largest economy; an extraordinary achievement in less than one generation or lifetime. Nothing better epitomises South Korea's economic development than the fact it now exports its own indigenously-developed nuclear power plants

In the very short time remaining to me I want to say that, tragically, the leader of the delegation, the former member for Canning, Mr Don Randall MP, died in 2015. The delegation expresses its sincere condolences to the family and appreciation for his leadership of the delegation.

Question agreed to.