Alan Ferguson (SA, Liberal Party) Share this | Link to this | Hansard source

I present three reports of the Joint Standing Committee on Foreign Affairs, Defence and Trade as follows:

Visit to Australian Defence Forces deployed to support the rehabilitation of Iraq, 22 to 28 October 2005

Australia’s defence relations with the United States

Expanding Australia’s trade and investment relations with North Africa

I seek leave to move a motion in relation to the report on Australia’s defence relations with the United States.

Leave granted.

I move:

That the Senate take note of the report.

The security treaty between Australia, New Zealand and the United States of America, the ANZUS treaty, which came into force on 29 April 1952, is a key element supporting Australia’s national security. The treaty has operated for more than 50 years and still remains relevant in a strategic environment increasingly challenged by terrorism and non-state actors. It is as a result of this environment that the treaty was first invoked following the 11 September 2001 terrorist attacks on the United States. Since World War II, Australia and the United States have developed strong defence relations. In particular, the last decade has seen a new level of defence relations encompassing Australian involvement in the first Gulf War and in the US-led coalitions in Afghanistan and Iraq.

The evidence given to the committee was overwhelmingly in favour of the alliance and the security that it provides for Australia. There was some discussion about the ongoing relevance of the treaty and whether there was a need to enhance the treaty to more broadly reflect contemporary strategic needs. While there was little support for renegotiating the treaty, some groups suggested that traditional alliances will need to adjust considerably to defeat the types of asymmetric threats faced by Western allies in the 21st century. Other groups cautioned that Australia should be more careful in how it manages the alliance, to ensure Australia’s interests are not subsumed by those of its larger alliance partner.

The committee, through its inquiry, has examined how Australia’s alliance with the United States impacts on the security of the Asia-Pacific region. Evidence to the inquiry strongly supported United States engagement in the Asia-Pacific region and indicated that Australia’s relationship with the United States is seen by most countries as a positive influence on regional security. The committee found that Australia and the United States can do more to encourage the development of democratic processes in the security forces of Indonesia, and has encouraged the United States to lift legislative restrictions on US training assistance to the Indonesian military. It is pleasing to note that the US has already acted in relation to that matter.

The committee also considered the impact on the Australia-US defence relationship of the emergence of a more powerful and assertive China. The committee found that Australia’s relationships with both the United States and China are such that Australia has the potential to act to ease any future tensions that might emerge between these powers. In undertaking its inquiry, the committee has received significant assistance from both the Australian and US departments of defence, including support for our delegation to the US to seek their perspective of the alliance. During this interaction, even the most senior US military personnel consistently reported on the excellence of the performance of the ADF in all training and operational activities. That performance bolsters Australia’s contribution to the alliance and earns great credit for the Australian Defence Force and for Australia. The challenges faced by Australia in its region and internationally will continue to be met in concert with our United States ally. Australia’s defence investment will ensure that Australia continues as an effective and reliable alliance partner as well as a self-reliant regional power.

It was a long inquiry, one that stretched over the period of the last election. It was a very important inquiry, which allowed all members of the joint standing committee to better understand our relationship. The inquiry also reasserted the importance of that relationship, which has been in place for so many years. As part of the inquiry, a group from the Defence Subcommittee spent just over two weeks in America in July of last year and presented a separate report on that visit, during which we were able to gain first-hand information about many of the future operations and procurements of the Australian defence forces, notably the Joint Strike Fighter, the Abrams tanks and a number of other programs that the Australian defence forces have put in place in order to ensure the ongoing reliability of our defence relationship.

I also place on record the marvellous work of our committee and of our Defence liaison officer from last year, Colonel Gus McLachlan, who was involved for most of the duration of the inquiry and enabled us to gain access to many defence officials throughout the United States and managed to make this inquiry work in such a good manner. I commend the report to the Senate and I seek leave to continue my remarks on this report later, as other members may also wish to speak at a later stage.

Leave granted.

I seek leave to move a motion in relation to the other two reports I have tabled today, one on the visit to Australian defence forces deployed to support the rehabilitation of Iraq, in October 2005, and the other a Trade Subcommittee report on expanding Australia’s trade and investment relations with North Africa.

Leave granted.

I move:

That the Senate take note of the reports.

I seek leave to incorporate tabling statements on the two reports

Leave granted.

The statements read as follows—

Visit to Australian Defence Forces deployed to support the rehabilitation of Iraq, 22 to 28 October 2005

In late October 2005, a delegation of eight members from the Joint Standing Committee on Foreign Affairs, Defence and Trade visited Australian Defence Force personnel deployed on active service in the Middle East.

Thanks to first class support by both the Diplomatic and Defence Staffs in the Middle East the Delegation was able to meet with the following organisations or agencies:

• Two members of the delegation conducted an operational mission with the Royal Australian Air Force Maritime Patrol Aircraft Detachment over the Northern Arabian Gulf and Southern Iraq;
• Royal Australian Navy personnel deployed aboard HMAS Newcastle;
• Royal Australian Air Force personnel conducting C130 Hercules air lift operations in support of coalition forces in both Iraq and Afghanistan;
• The Al Muthanna Task Group conducting security operations and training for the new Iraqi Army in southern Iraq;
• The Australian Embassy in Baghdad’s International Zone hosted the delegation for a meeting with the Speaker of the Iraqi Transitional National Assembly, Mr Hajim al-Hassani and members of the Transitional Assembly;
• The US Commander of Multi-National Forces Iraq, General George Casey; and
• The Australian National Commander, Commodore Geoff Ledger and his staff at Camp Victory Baghdad.

The visit to ADF units in the Middle East area of operations formed part of the Committee’s wider program of inspections to Defence Force units and Defence Industry sites. Where it is practical the Committee has also sought to visit ADF personnel while they conduct operations. In recent years the Committee has visited Australian Forces in Afghanistan, East Timor and Solomon Islands.

The delegation had three specific aims in undertaking the visit to the Middle East. Its primary purpose was to demonstrate the Parliament’s strong bipartisan support, and the support of the Australian community, for Defence Force personnel deployed on this demanding operation.

Secondly the visit allowed the members of the delegation to gain a more comprehensive understanding of the situation in Iraq, the tasks being undertaken by Australian personnel and the suitability of the training and equipment they receive.

Finally the delegation, in meeting with the Speaker of the Iraqi Transitional National Assembly, became the first delegation from the Australian Parliament to the Transitional National Assembly of Iraq, supporting Australia’s engagement with the newly democratic nation.

The comprehensive delegation itinerary allowed the members to achieve each of these aims. Exposure to this range of issues and experiences could only be achieved as a result of a very well orchestrated program. The delegation thanks the Australian Defence Force for developing and coordinating a visit program that ensured the safety of delegates while giving them exposure to a wide range of personnel and locations. In particular the delegation thanks the Australian National Commander in the Middle East, Commodore Geoff Ledger, for his hosting of the delegation throughout the visit. Commodore Ledger provided the delegation the benefit of his considerable experience throughout the visit, leaving the members confident in the leadership and organisation of Australian Joint Task Force in Iraq.

The Committee would also like to thank Australian Embassy staffs in the Middle East for supporting the program. In particular the delegation thanks Dr Ralph King in Kuwait and Mr Howard Brown in Iraq. Both of these experienced officials operate under some of the most demanding conditions experienced by Australian Government personnel anywhere in the world.

The Committee returned from the visit extremely impressed by the dedication and professionalism of the Australian Defence Force personnel conducting operations in this demanding, often hostile environment. Australian personnel are working closely with the emerging Iraqi institutions and personnel, showing compassion in their daily dealings with the local people and considerable restraint when called upon to apply force. They are performing with distinction and have earned the respect and admiration of both the coalition and Iraqi forces with whom they are working.

All Australians should be proud of the achievements of the ADF on operations in the Middle East and the contribution they are making to the reconstruction of Iraq.

Expanding Australia’s trade and investment relations with North Africa

The countries of North Africa represent a market nearly eight times that of Australia. Australia has yet to fully engage with the 155 million people living in Algeria, Egypt, Libya, Morocco and Tunisia.

In May 2005 the Minister for Trade asked Committee to examine our trade and investment relations with North Africa and the likely future trends in these relations.

The Committee was also charged with assessing the role of the government and its agencies in maximising opportunities as they emerge in the region.

In addition to holding public hearings and receiving submissions the committee visited Algeria, Egypt, Libya, and Morocco to review trade and investment opportunities for Australia in person.

Two members of the committee also visited Tunisia to attend the World Summit on the Information Society.

During visits to Algeria, Egypt, Libya, and Morocco the committee met with senior Government figures, the Parliaments, Government agencies and departments, and importers.

The contacts made included meeting with the Prime Minister of Morocco and several senior ministers in each of the cities visited. In Morocco, Algeria and Libya there was considerable television and media coverage of our visit.

The response to the committee’s visit was positive and very encouraging.

We looked to see if there were any impediments to trade in this region, and what could be done to capitalise on the opportunities.

Although the countries are different they share some common characteristics which are relevant to Australia’s commercial interests.

GDP growth is strong in all five countries. In the resource rich countries of Libya and Algeria, further strong growth based on escalating oil prices can be expected.

Each of the countries is going through some degree of market s liberalisation and reductions in taxes, and tariffs.

The privatisation of companies could be seen across the board.

In the region major infrastructure projects for roads, ports, electricity, water supply, airports and agriculture represent opportunities for Australian companies.

Increased consumer demand also means further opportunities in the market for Australia. Currently the most promising are:

• Wheat and agricultural products;
• Livestock and meat products (particularly lamb);
• Mining and agricultural equipment;
• Consultancy in a wide range of areas;
• Tourism training; and
• Education—particularly post-graduate students

Of course, the biggest potential remains in the oil and gas fields, especially those of Algeria and Libya.

Australia’s biggest oil explorers continue to bid for major projects in these countries, with BHP Billiton being successful in Algeria, and Woodside in Libya.

Iron ore production as well as aluminium smelting is also possible in Libya, with BHP-Billiton interests. An Australian manganese smelter is being assessed as to its possibility in Egypt.

In summary the potential for Australia in North Africa is significant because of the opportunities in resource development, because of the GDP growth rates of the big countries and because there is export potential to Europe through the countries where trade conventions with the EU exist.

In the light of its on-the-spot reconnaissance of the region, and the numerous submissions it received, and the evidence from public hearings, the committee concluded that Australia should ensure that appropriate resources are allocated to these markets to encourage Australia’s access and export growth.

To pursue these aims, the committee has recommended that, at the government-to government level, the Australian Government should seek to improve access for Australian exports through negotiating lower tariffs on a bilateral basis, particularly in agribusiness. (Rec 1)

It should also initiate or continue ministerial discussions with North African trading partners to address technical access issues, particularly harmonising customs and standards requirements. (Rec 2)

Following discussions in North Africa about visa arrangements for entry to Australia the committee recommends that there should be closer focus given to expediting visa processing requirements. Specifically the Department of Immigration should review its visa processing arrangements for North Africa as a priority, and also consider reviewing the assessment processes for North Africa students sponsored by their governments. (Rec 3)

As requested by the Minister for Trade, the committee examined the roles the Department of Foreign Affairs and Trade and Austrade.

The committee concluded that Austrade should reconsider its organisational and representational arrangements for North Africa (Rec 4)

Australia has to compete in the region with traders and investors from Europe and America. It would be better placed to do so with a presence in the region.

Specifically, the committee recommends that high priority be given to the establishment of a Trade Commissioner and Consul-General in Algiers. (Rec 5)

Such a post would indicate Australia’s intention to pursue a long-term relationship; increase our visibility in the region, and open a gateway to opportunities there for Australian entrepreneurs.

In closing, I am grateful to all those who gave evidence to the inquiries. I also wish to thank my colleagues, and the secretariat.

I commend the report to the Senate.

I seek leave to continue my remarks later.

Leave granted; debate adjourned.