David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

My question is to Senator Sinodinos as Cabinet Secretary and Minister representing the Minister for Trade and Investment. It concerns a large multinational business based at the North Pole but with significant turnover in Australia. If we impose tax transparency on such a business, won't a certain gentleman who wears red suits prefer to do business elsewhere, where he is able to preserve his privacy? If we require this foreigner to get FIRB approval before he can invest in landing sites in Australia, won't this threaten his arrival here on Christmas Eve? Won't the removal of GST-free status for low-value imports see fewer toys arrive from the North Pole? And won't the tariffs on toys mean children receive gifts of lower value?

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

Sadly, I did have notice of this question, I have to say. This is the great nature of our democracy and we all love it, and I thank the honourable senator for his question, indeed. The first point that the honourable senator is seeking to make via his question is that Santa Claus, otherwise known as Father Christmas, is the poster boy for free trade. He has been trading across national boundaries for centuries without tariffs, quotas or other barriers. The North Pole has embraced this competitive advantage and is focused on its strengths.

Honourable Senators:

Honourable senators interjecting—

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

Now, this is serious. The Foreign Investment Review Board, I am advised, says that Mr Claus would be able to invest in developed landing sites in Australia without FIRB approval, provided his investment did not exceed $55 million. But, of course, if he is flying across Sydney, Santa will have to obey the curfew and not make any landings after 11 pm, unless, as my colleague the defence minister would remind me, we get the new airport at Badgerys Creek.

The GST was referred to in the question. It is, of course, an ad valorem tax, and because Mr Claus gives his goods and services away to Australian children free of charge there is no GST applicable. Also, as he does not charge for his goods and services in Australia, I can confirm that he does not generate any income in Australia for taxation purposes. This means he does not engage in any profit-shifting behaviour and would not be subject to any of the proposed tax transparency regime. (Time expired)

Senator Cameron interjecting—

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

Order on my left! Dare I ask, do you have a supplementary question, Senator Leyonhjelm?

David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

You dare ask, Mr President? I have a supplementary question. Senator, can you assure the parents of Australia that the gifts Santa imports meet Australia's exacting standards, including bans on inappropriate toys like toy guns and country-of-origin labelling and assurances regarding the source of any wood products? Regarding the lollies Santa will stuff into our stockings, will they be certified kosher and halal, free of contaminants and given a health star rating?

Sue Lines (WA, Australian Labor Party) Share this | Link to this | Hansard source

Arthur, just take it on notice.

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

I feel I should deal with it now rather than take it on notice. In my capacity representing the Minister for Industry, Innovation and Science I can confirm that we are working with industry on a new country-of-origin labelling framework. We will reform the labelling to enable consumers to make informed choices about food they buy. While we do import foodstuffs from across the world, including candy canes from our north, we are a net exporter in this sector, so it is important for us to have a very strong labelling regime.

The Department of Agriculture and Water Resources has been working closely with parents Australia-wide for many years to ensure our strict biosecurity requirements are met when delivering presents. Our import requirements, biosecurity and otherwise, apply to all equally—Santa, the tooth fairy, the Easter bunny, commercial importers, travellers and online shoppers. I have been advised that the health star rating is a voluntary initiative, as well as kosher and halal certification. It is entirely a matter for Santa to decide if his products are participants. (Time expired)

David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I hear that some of our trading partners with jurisdiction over the North Pole have adopted Australia's workplace laws. All elves now have a right to strike, to flexible work, to the world's highest minimum wages and to penalty rates for weekend work—

Senator Cameron interjecting—

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

Senator Cameron!

David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

I also hear that, as a result, gift production is way behind schedule and Christmas may have to be cancelled. Can the secretary please assure Australia's children that this is not the case?

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

Whether, through the public media or our cables, I have not received any information that Christmas is going to be delayed. You can rest easy, honourable Senator. On workplace laws, let me make this point: it does raise the question of having nimble, agile elves of the 21st century to assist Santa. If we have labour market arrangements that do that, we will all be much better off. What I fear is that, if we were employing Australian elves, there would be some people in this parliament who would seek to make them members of some of the unions represented in this chamber.