Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

Firstly, the government will not support this proposed Greens amendment, which seeks to mandate the use of Australian steel. The Australian government procurement framework is based on the principles of value for money, open competition and nondiscrimination, which have applied under former governments of both persuasions, including, of course, former Labor governments.

Australia is party to a range of free trade agreements. International obligations arising from these agreements are reflected in the Commonwealth procurement rules, and these obligations include the requirement for non-discriminatory government procurement. It is important to understand that Australia's exporting businesses heavily rely on these arrangements, because we want our exporting businesses to be able to compete for business in these overseas markets. If we were to go down the path of discriminatory government procurement, then obviously the same would be directed at Australian exporting businesses in relevant overseas markets.

What the government has agreed with Senator Xenophon is not only a significant step forward in terms of the general issue that Senator Rhiannon raises; what the Nick Xenophon Team has done is be very mindful of the need for the change and the step forward to be sustainable—that is, not to be successfully challenged down the track. We have agreed improvements to the Commonwealth procurement rules that the Senate can have confidence will be in place on an ongoing basis, because they make progress in imposing some additional requirements, which Senator Carr has acknowledged as being good additional requirements. They frame it in a way that will ensure that Australia does not breach its international obligations. As such, these are rules that will make a practical and tangible difference. Of course, what Senator Rhiannon is proposing will essentially die at the first hurdle and not make any practical difference at all. One day the Greens will have to explain to me their strong support for steel in the context of their strong opposition to coal, but that will be a debate for another day.