James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

My question is to the Minister for Human Services, Senator Payne, representing the Minister for Trade and Investment. Can the minister inform the Senate how the government's free trade agreement with China will stimulate jobs and growth for all Australians—

Stephen Parry (President) Share this | Link to this | Hansard source

We lost your microphone in the last few seconds but I assume the minister heard the question.

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

I thank Senator McGrath for that question. It is absolutely essential that the ChAFTA is implemented as soon as possible. It is one of our trifecta of trade agreements that are with the major economies of North Asia. These agreements are very, very powerful enablers for Australia and they are part of this government's help to diversify our economy, as I have said before. In fact, just like our trade deals with Japan and Korea, which are already in operation, the benefits to Australian businesses and the people they employ will flow immediately. ChAFTA, if we implement it this year, will result in a double-bonus effect of tariff cuts for our exporters—one round of tariff cuts this year and a second round of tariff cuts in January 2016. This would result in literally hundreds of millions of dollars in tariff or tax relief for our exporters. In fact, upon full implementation, some 95 per cent of Australia's goods exports to China will enter China duty free. That is why it is essential that those opposite support this deal and allow the benefits to flow immediately.

If they are not prepared to listen to it from me, they might note that the agreement has been backed by Labor figures—by John Brumby, Craig Emerson and the luminary Bruce Hawker. If they are not good enough for them—and I do not often quote Labor Premiers—I will quote Daniel Andrews, the Premier of Victoria, who said:

It is very exciting to see the free trade agreement that, for the first time takes a really bold step in terms of services. Being able to have much greater access and a much bigger profile and presence in China for services offered, or at least led by Victorian companies and consortia right out of Melbourne.

That was a quote from Mr Daniel Andrews on 13 January this year. He would be the Labor Premier of Victoria, as I understand it. The Labor Premier of South Australia said:

China is our largest trading partner. China also is our fastest-growing trading partner. This free trade agreement will give us the impetus to grow that trade opportunity even further.

James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister inform the Senate of the cost to Australian industry if the China-Australia Free Trade Agreement is not implemented by the end of this year? Which sectors stand to suffer if this landmark does not receive support?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

I thank Senator McGrath for his supplementary question. We have had the opportunity to identify some of the sectors which will suffer the most. It is interesting to start with something like the financial services sector, who warn that if not progressed 'the cost to our economy will be more than $4 billion' and some '10,000 jobs in financial services alone by 2030'. In agriculture, the NFF has advised that delay will cost agriculture alone $300 million in 2016—in one year—with untold flow-on effects to rural and regional communities. There may be no-one opposite who cares about those, but we on this side most certainly do—and Senator McGrath in particular in relation to the rural and regional communities of Queensland, which will rely on the ChAFTA opening up opportunities for them. Failure to ratify will, for example, cost the red meat industry $100 million, dairy up to $60 million, wine up to $50 million and grains more than $43 million. (Time expired)

James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Mr President, I have a further supplementary question. Can the minister inform the Senate how the China-Australia Free Trade Agreement will benefit the small business sector and create jobs?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

This is a very important point. These free trade agreements are not just about big business and that end of town. If you are a small business with a great product or a great service, e-commerce will give you a direct route into the world's major markets, including of course China, as a result of ChAFTA. These FTAs translate into jobs and opportunities for everyday Australians. Let us take for example Kimberley Kampers owner Bruce Loxton in Ballina. He has big plans to export his caravans into China as a result of the FTA—directly as a result. He has already applied to double the size of his premises and is hoping to add between 30 and 40 staff on the North Coast of New South Wales. Under ChAFTA he can do that because the 10 per cent tariff on caravans will be eliminated. The ChAFTA will not only increase the competitiveness of his business, Kimberley Kampers, but also create new opportunities and new jobs for Australians—and those opposite need to support it. (Time expired)

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President—

Stephen Parry (President) Share this | Link to this | Hansard source

I will give the call to the Leader of the Government in the Senate first but, Senator Wong, I will come back to you if you like.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

Mr President, if I may, I would briefly correct an answer. I believe that in one of my answers I referred to Labor Premier Neville Wran when it should have been former Labor Premier Bob Carr. Mr President, I ask that further questions be placed on the Notice Paper.