Arthur Sinodinos (NSW, Liberal 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. Will the minister outline to the Senate how the government's free trade agreements will stimulate jobs and growth for all Australians? Why is it essential that the China-Australia Free Trade Agreement is implemented as soon as possible?

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

I particularly thank Senator Sinodinos for his ongoing interest in this very important aspect of Australia's international trade engagement. This trifecta of trade agreements is about placing this nation in the best possible position to take advantage of the opportunities that are emerging in the region around us. In fact, the results of independent modelling show, in terms of jobs and growth, that these three FTAs are worth $24 billion in total additional income to Australia by 2035—$24 billion additional total income. In 2016, next year, if all three of the FTAs have taken effect—so, if that China-Australia Free Trade Agreement is passed—GDP is forecast to be a billion dollars higher. Those increased exports, logically, will then allow Australian businesses to hire more workers, with an annual net jobs increase of almost 8,000 people in 2016 and 15,000 people in 2020. So, in terms of jobs and growth, $24 billion in total additional income to Australia by 2035 and 15,000 extra jobs by 2020.

If the China-Australia Free Trade Agreement is implemented this year, it will result in a double bonus of tariff cuts for our exporters: one round of tariff cuts this year and a second round of tariff cuts in January 2016. So it is essential that the opposition supports this trade agreement to allow the benefits to flow immediately. It also explains why the agreement is being backed by luminary figures like Bob Hawke, like Bob Carr, like Martin Ferguson, like Simon Crean, like every Labor Premier in Australia, because they realise the benefits, they realise the advantages and they are actually prepared to engage on the international stage for Australia to bring those to fruition. (Time expired)

Arthur Sinodinos (NSW, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Will the minister inform the Senate of the benefits of the China-Australia Free Trade Agreement for Australia's great tourism industry?

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

That is a very important question from Senator Sinodinos. The tourism industry in Australia currently employs over a million Australians, but, even more importantly, it is a critical developer of regional Australia, because 45c in every tourism dollar is spent in regional Australia. The Chinese tourism market alone is worth some $5 billion to Australia and this is the market that effectively kept Australian tourism strong, particularly throughout the global financial crisis. What the China-Australia Free Trade Agreement will do is enable continued jobs and growth in Australian tourism. There will be greater investment into much needed tourism infrastructure and it will also put, for the first time, Australian travel agencies in the unique position to independently establish local operations in China. So it is no wonder that the Australian Tourism Export Council has said:

Our industry is very concerned about the shortsighted focus of the union's campaign ...

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Arthur Sinodinos (NSW, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a final supplementary question. Will the minister inform the Senate of the significance of the business events sector and how it will benefit from the China-Australia Free Trade Agreement?

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

Both tourism and the business events sector are very important in this regard. The ATEC is very concerned about the short-sighted focus of the union's campaign in the tourism space because it fails to recognise the importance of the agreement to a broad range of export industries and the flow-on benefits it will bring to the broader economy. Business events themselves are an economic powerhouse for this nation in trade, in export, in investment, in diplomacy, in education and in knowledge transfer. In fact, in 2013-14, over 37 million people attended more than 412,000 business events across Australia, and China is already a significant contributor to that sector, earning $260 million alone last year. So, if we are able to expand trade with China under the China-Australia Free Trade Agreement, that will have a flow-on effect to meetings, events, conferences, exhibitions and the incentive industry. As the chairman of the Business Events Council of Australia has stated:

What is often forgotten in these disputes ...

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