Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

) ( ): My question is to Senator Cormann, the Minister for Finance and Minister representing the Treasurer. Will the minister advise the Senate about the opportunities the China-Australia Free Trade Agreement delivers to the Australian economy?

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

I thank Senator Reynolds for that very important question. The historic China-Australia Free Trade Agreement is a central part of our plan for stronger growth and more jobs. The Australian economy continues to grow, despite the biggest fall in our terms of trade in about 50 years. The Australian economy continues to grow when other commodity based economies, like Canada and Brazil, are actually in recession. Australia as a trading nation always needs to look for opportunities in key markets around the world to get better access for our businesses to sell their products. China, the second biggest economy in the world and a key market for Australian product, is a very important market for us, and the opportunities for Australian services providers and for Australian agriculture and fisheries exporters are indeed significant.

Already $9 billion worth of agriculture and fisheries product is exported into China every year. Already about $7 billion worth of services are exported to China every year. As a result of the China-Australia Free Trade Agreement, we will be able to grow that strongly, moving forward, and that will create more jobs and more opportunities here in Australia. Don't take my word for it. Let me talk to the Senate through the voice of agricultural producer Geoff McLarty, in the seat of Canning, at Pinjarra. He said the trade deal with China is the 'best bit of news' of the past years. He said:

He still has a bad taste in his mouth from Labor's ban on live exports in 2011 and does not share Opposition Leader Bill Shorten's concerns about the FTA jeopardising Australian jobs.

I am quoting him directly:

'The free trade agreement is one of the best bits of news we've had in the last few years,' he said. 'Beef prices have improved generally, but to be able to export—'

(Time expired)

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

I ask a supplementary question. Will the minister inform the Senate how the China-Australia Free Trade Agreement will support growth and jobs in Australia's financial services sector?

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

I thank Senator Reynolds for that very insightful supplementary question. Australia's financial services sector provides high-skill, high-wage jobs for Australians. The Financial Services Council has said that the China FTA will create 10,000 new jobs in its sector alone by 2030 and add $4 billion to economic output. While Australia has the third biggest asset management industry in the world, less than five per cent of managed funds are sourced offshore. Today, China is a nation with a household savings pool of US$8 trillion, and it is predicted it will see one billion of its people, or 70 per cent of its population, move into the middle class by 2030. There are great opportunities here for providers of financial services here in Australia. There are great opportunities here—

Ian Macdonald (Queensland, Liberal Party) Share this | Link to this | Hansard source

And Labor wants to stop it.

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

and, as Senator Macdonald quite rightly points out, Labor wants to stop it—although the Leader of the Opposition is increasingly isolated in Australia when it comes to that. (Time expired)

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

I ask a further supplementary question. Can the minister advise the Senate of any risks to the China-Australia Free Trade Agreement and their implications for new investment, growth and jobs?

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

The risks to the great opportunities for our economy and the jobs that come with the China-Australia Free Trade Agreement are the militant unions across Australia, like the CFMEU, and a Leader of the Opposition that is too weak to stand up to them. We have a Leader of the Opposition who wants to be Prime Minister who cannot even stand up for the national interest on an issue as significant, as important, as this. We have a Leader of the Opposition who cannot even stand up for the national interest when former Prime Minister Hawke, former trade minister Simon Crean and former foreign minister Bob Carr and all of the Labor leaders at the state level can see what is right—that we should unequivocally support this very good deal for Australia. We have a pathetic Leader of the Opposition here in Canberra who cannot see what it is right, who cannot do what is right, for Australia's national interests and who is out there doing the bidding of a militant union movement and who, quite frankly, is not focused on the national interest and is not focused on jobs and growth. (Time expired)