Helen Coonan NSW, Liberal Party, Manager of Opposition Business in the Senate
2:43 pm
My question is to the Minister representing the Minister for Foreign Affairs and the Minister for Trade, Senator Faulkner. Is the minister aware of reports that China’s biggest steelmaker, Baosteel, will reduce production by one million tonnes—that is, by 10 per cent—over the next quarter? What impact will this and production cutbacks by other Chinese steel mills have on Australian iron ore exporters, Australian export earnings and Australian jobs?
John Faulkner NSW, Australian Labor Party, Cabinet Secretary
With due respect to Senator Coonan, I think this question is misdirected. I think it is more appropriate being directed to the Minister representing the Minister for Trade, who is in fact Senator Carr.
Kim Carr Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research
Thank you very much, Senator Faulkner.
Chris Evans WA, Australian Labor Party, Leader of the Government in the Senate
That’s a difficult handball.
Kim Carr Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research
That is exactly right—a hospital pass.
John Faulkner NSW, Australian Labor Party, Cabinet Secretary
I don’t represent for Foreign Affairs and Trade; I represent for Foreign Affairs.
Helen Coonan NSW, Liberal Party, Manager of Opposition Business in the Senate
I thank Senator Carr for at least acknowledging the question. Mr President, I ask a supplementary question. I ask the minister, when he gets an answer for me, to also check this. When the Prime Minister spoke to the Chinese Premier, Wen Jiabao, by telephone last week, did he raise Australia’s concerns over the slowdown in demand for Australia’s key raw materials and services exports to China? What was the Chinese Premier’s response?
Kim Carr Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research
I would be happy to seek further advice on this matter. It is my understanding that the Prime Minister did raise these questions with the Chinese government, that the reported suggestion of a slowdown in the Chinese economy was discussed specifically and that the growth rates that have been predicted for China are likely to be revised. However, it is my understanding that the Chinese government will be taking all the steps it can to actually address these issues and will be applying considerable attention to these matters. I am hopeful that I will be able to provide further information. I do not believe that the reported reduction in Chinese demand is quite as significant as some of the press reports have indicated.