Dean Smith (WA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Assistant Minister for Social Services, Senator Fifield. Will the minister inform the Senate of the benefits which will flow to the Australian aged-care services sector from the China-Australia Free Trade Agreement?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I think all colleagues would agree that Monday was a momentous occasion for Australia, with Minister Robb securing a trifecta of free trade agreements with the signing of the FTA with China. I am sure all colleagues would also agree that Andrew Robb has been a phenomenally successful trade minister, with the Japan, South Korea and now China FTAs.

I am pleased to inform the Senate that the government has secured the best ever market access provided to a foreign country by China on services. When it comes to services, as Minister Robb has said:

This is the best ever deal China has done by a country mile.

The FTA has secured the best ever commitment with China agreeing to permit the establishment of wholly Australian owned hospitals and aged-care services in China. This does represent an unprecedented opportunity for Australian health services and aged-care providers to access China's vast and growing market. The Chinese population, like our own, is ageing and China will soon need to significantly increase its aged-care services to ensure that older citizens can enjoy a high quality of life.

The opportunities presented to Australian aged-care providers as a result of this agreement are completely unprecedented. Is it truly is a once-in-a-generation chance for aged-care providers to enter a new market that will be experiencing significant growth in demand over the coming years and the coming decades. It is almost impossible, I think, to overstate the significance of the opportunities this FTA has heralded for Australian aged-care services. Again, I think we should at a time like this put partisanship aside, give credit where credit is due and acknowledge the incredible work and results that Andrew Robb has secured.

Dean Smith (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister further advise the Senate of the benefits of exporting our expertise in aged care, thanks to the China-Australia Free Trade Agreement?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

As I said, Minister Robb has secured a best ever commitment from China for Australian services, including aged care, to operate in their domestic market. Australian aged care is, we all know, world class. We have a world leader in the Australian aged-care industry. Countries such as China, Japan, Vietnam and Sweden have previously sought our advice and expertise on aged care. This is a truly brilliant opportunity to export Australia's world-leading, quality aged-care services and expertise to China and to bring quality care to older people living in China. It will greatly expand the private health and aged-care sectors' wide offering of services throughout the region, and it will reinforce Australia's position as a world leader in health and aged care.

Dean Smith (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will the minister inform the Senate how opportunities presented by the China-Australia Free Trade Agreement leverage the strengths this government has fostered in the Australian aged-care services sector?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

On 1 July this year you would be aware of some changes that came into effect around how aged care is funded in Australia. As I outlined in a speech to CEDA last week, there is still unfinished business. In particular, there is more red tape to get rid off and there is more to do to move closer to a consumer-directed care model. But the 1 July changes are having an impact as private dollars are converging in the aged-care market, leading one stockbroking firm to state that there is a veritable 'smorgasbord of opportunities in Australia's domestic aged-care market'. The chair of Estia Health and former Ramsay CEO, Pat Grier, has compared the aged-care sector now to where the private hospital sector was 20 years ago as 'on the brink of a new era filled with possibilities and new business opportunities and challenges'.

Add to this the opportunities presented to Australian aged-care providers through the opening up of China through the FTA, and it is indeed a great time to be in the sector. (Time expired)