James Paterson (Victoria, Liberal Party) Share this | Link to this | Hansard source

My question is for the Minister for Foreign Affairs, Senator Payne. Can the minister advise the Senate how the Morrison government is protecting and advancing Australia's interests by ensuring a consistent foreign policy?

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

I thank Senator Paterson for his question and his interest in particular in this issue. It is vital that Australia and all levels of government in Australia speak with one voice in our dealings with other countries. The Australian people expect and deserve that. That's why this government will introduce the Australia's foreign relations bill 2020.

The bill will require states and territories to consult the foreign minister on arrangements with foreign governments and other entities. The scheme will establish an approval regime and a notification regime. Both regimes apply to proposed arrangements and to existing arrangements. If they are proposed, the foreign minister is able to declare that they not proceed. If they are already in place, the foreign minister is able to declare that they are not valid.

States or territories wanting to make an arrangement with a national government of another country or one of that government's departments or agencies will be required to notify and receive approval from the foreign minister. If a state or a territory wants to make an arrangement with a foreign entity—such as another state, province or local government—the state or territory must notify the foreign minister. The foreign minister's approval in the instances just mentioned is not required. However, the foreign minister does have discretion to declare that they are invalid or that they not proceed if inconsistent with foreign policy. These laws will ensure that we as a nation are consistent with how we deal with the world and that we are all taking a national perspective in our national interest.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Paterson, a supplementary question?

James Paterson (Victoria, Liberal Party) Share this | Link to this | Hansard source

Can the minister inform the Senate about the test that will apply under the Australian foreign relations bill 2020 to arrangements by states and territories with foreign governments?

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

The legislation will provide a framework for the Commonwealth to measure state and territory arrangements against established foreign policy. The test is whether the foreign minister is satisfied that an arrangement or its negotiation does not adversely affect Australia's foreign relations or is unlikely to do so and is not inconsistent with Australia's foreign policy or is unlikely to be so. If the minister is not satisfied, he or she will have to refuse approval or may declare an existing arrangement to be invalid or may declare that negotiations not be continued. Subsidiary arrangements entered into under the auspices of an invalid arrangement may also be invalidated. For transparency, the Department of Foreign Affairs and Trade will also be maintaining a publicly accessible register of decisions.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Paterson, a final supplementary question?

James Paterson (Victoria, Liberal Party) Share this | Link to this | Hansard source

Can the minister advise the Senate of why this bill is necessary?

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

The government has identified from an open-source search at least 135 arrangements between states and territories and foreign governments across 30 countries. We can't say with certainty how many more there are—a fact that underscores why this bill is necessary. To date there's been no requirement that states and territories consult with the Commonwealth on these arrangements and therefore no opportunity for Commonwealth expertise to be applied—that is, the work of the Department of Foreign Affairs and Trade, in particular.

We don't want to impede business links. We don't want to impede people-to-people links. As an outward-looking trading nation, Australia wants those relationships; we benefit from them. Rather, the legislation will give state and territory governments confidence that they are acting in a way that serves Australia's national interests and assure Australians that we are exercising due diligence in our international engagements.