11 May 1995
SERVICES EXPORTS CREATING INDUSTRY LINKS - McMULLAN
Forthcoming Australian Bureau of Statistics (ABS) on international trade in services, due for release at the end of May, highlight the dynamism of Australia's service exports and the development of links between Australia's financial services, legal services and computer software export sectors, the Minister for Trade, Senator Bob McMullan, said today.
Senator McMullan said the ABS figures show that financial services exports more than doubled to $424 million between 1989-90 and 1993-94.
"Australia ran a deficit in financial services just five years ago, but we now enjoy an annual surplus of nearly $220 million," Senator McMullan said.
"This surge in financial services exports, due partly to Australian banks expanding offshore, has provided rewarding spin-offs for other sectors.
"There has been a corresponding strong demand for Australian legal services and packages for computer software.
"Legal services exports have almost doubled to $116 million, with major increases to South East Asia.
"Exports of computer software (including licence fees) amount to almost $400 million."
Senator McMullan said the linking effect also extended to engineering and construction exports.
"There have been substantial increases in engineering service exports from $104 million to $172 million over the five years to 1993-94, and construction services exports grew from $33 million to $85 million over the same period," Senator McMullan said.
"Australia can expect the growth in other services sectors such as telecommunications will almost certainly flow on to related sectors, in much the same way that financial services gains have flowed on to associated sectors.
"The ABS figures indicate strong overall growth in services exports.
"In 1993-94, services exports amounted to almost $19 billion, or 23 per cent of total exports.
"The overall deficit in services - just over $800 million in 1993-94 - continued to fall.
"We are still on track with our forecast that Australia could be a net exporter of services by the end of 1995-96.
"The ABS figures and evidence of growing links between the various services exports endorse the findings of the 'Intelligent Exports and the Silent Revolution in Services' study, which was released by the Prime Minister last year."
Further information:
Senator McMullan's office: John Flannery, (06) 277 7420
DFAT: Maria Martin, (06) 261 3529
ABS: Mark Lund, (06) 252 6069