Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Cabinet Secretary representing the Minister for Trade, Tourism and Investment, Senator Sinodinos. Will the Cabinet Secretary update the Senate on the government's plan for generating jobs and growth as the economy transitions from its traditionally heavy reliance on investment in the still important mining and resources sector?

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

I thank Senator Duniam for his question and his ongoing interest in matters of tourism, trade and investment, all very important to the great state of Tasmania, which under its Liberal state government and a munificent federal government is going really great guns. Before I begin my answer, I say it has been literally a year and a day since the opposition have asked me a question about trade. But I can report that the economy is diversifying. Our services sector is picking up the slack. It now represents over 70 per cent of our gross domestic product and employs four out of five Australians. Many Australian service companies are small- and medium-size enterprises in states like Tasmania and are involved in a range of industry sectors like tourism, education, IT and transport.

While services are playing a crucial role in our domestic economy, they are also stepping up to the mark when it comes to exports, although we can do better than the current proportion, which is that the services sector accounts for around 20 per cent of our total exports. We have a big opportunity here to grow our service exports. That opportunity is being provided by the ambitious trade agenda laid down by the great Andrew Robb and now being followed so competently by Mr Ciobo in the other place. Our services sector will have a significant advantage in capturing the gains from the growth in Asia's middle class, because incomes are rising and, as incomes rise, so goes up the demand for services—particularly more sophisticated services. It is projected the Asian middle class will grow from 600 million today to three billion by 2030, and we will be seeking out opportunities even further afield, from Indonesia to Europe.

The early report card on this government's economic plan and ambitious trade agenda shows that we are getting runs on the board.

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

Senator Duniam, a supplementary question?

Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Can the Cabinet Secretary outline how services exports are performing and how the government plans to capitalise on these results?

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

Trade data for the 12 months to August show that value of our services exports has surpassed the value of our iron ore exports for the first time in six years and in 2015 grew by 10 per cent. The share of services exports as a proportion of our total exports has increased by over a third over the past four years. What does this mean? It means our future FTAs will seek to replicate what we have achieved in our North Asian FTAs, seeking guaranteed access for our health, aged-care, tourism, education, logistics and financial services providers and allowing them to establish a presence in those overseas markets. There is no doubt these agreements will translate into real jobs for all Australians, who are already starting to see the benefits particularly from the China-Australia Free Trade Agreement, which is creating jobs in Australia, stimulating growth and leading to stronger business and cultural ties between our two nations through the exchange of services. (Time expired)

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

Senator Duniam, a final supplementary question?

Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I would like to thank the Cabinet Secretary for those very good answers. Finally, can he outline for the Senate any trade negotiations currently underway?

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

Thank you, Senator Duniam. Our trade agenda will see those service providers gain greater access in our region very soon. Recently, the Prime Minister and several of my colleagues signed the Australia-Singapore Comprehensive Strategic Partnership with the Prime Minister of Singapore and his ministers. This is the third update for the Singapore-Australia Free Trade Agreement, a broad agreement signed under the Howard government which continues to open further doors to Australian business and workers in one of Asia's most dynamic service markets. That agreement will also lead to significant investment in northern Australia. In North Queensland it will power growth that is defence related as well as other infrastructure related activities.

And we do not stop there. We have the Trade in Services Agreement, another historic negotiation Australia is leading with 50 countries. It will set new standards in trade rules, reduce red tape, increase transparency and certainty for our service exporters and be the most significant upgrade in 20 years. (Time expired)