The Minister for Trade, Senator Bob McMullan
The Minister for Industry, Science and Technology, Senator Peter Cook
MT89

21 June 1995

AUSTRADE TO EXPAND INVESTMENT PROMOTION ROLE

In keeping with the trade policy directions of the Winning Markets statement released today by the Prime Minister, Austrade will be placing greater emphasis on the promotion and facilitation of inward and outward investment, the Minister for Trade, Senator Bob McMullan, and the Minister for Industry, Science and Technology, Senator Peter Cook, said today.

"Austrade will expand its efforts in attracting foreign direct investment (FDI) into Australia and helping Australian firms establish productive operations in offshore markets," Senator McMullan said.

"The Federal Government's flagship program for attracting FDI is the Investment Promotion Program (IPP), for which Austrade and the Department of Industry, Science and Technology (DIST) respectively have operational and policy responsibility."

Senator Cook said the IPP promotes Australia's manufacturing and service industries directly to prospective investors overseas, and Australia as the preferred location for Asia-Pacific regional headquarters.

"Since 1 July 1992, the IPP has secured new FDI in more than 100 projects worth $2.0 billion, generating some 4500 new jobs and exports of at least $675 million.

"The focus of this efficient and highly successful program will continue to be sharpened through cooperation between Austrade and DIST," Senator Cook said.

Senator McMullan said Austrade was now helping more Australian companies establish manufacturing and other joint venture operations in their key overseas markets.

"In these markets, the ability of Australian companies to gain significant market share depends on their ability to operate from within the market.

"This is especially the case for industries such as food processing, where local production of foodstuffs is essential.

"Austrade helps Australian companies by identifying reliable joint-venture partners and arranging introductions to the right local development agencies.

"A study of emerging exporters by the Australian Manufacturing Council and McKinsey & Company has found that Australian firms expanding overseas do so without cost to Australia's job-base.

"On the contrary, they contribute to the growth of Australia's national wealth.

"It is estimated that total Australian investment in industry offshore is now worth some $45 billion.

"Of this, $7.5 billion is invested in mining, $14.7 billion in manufacturing, and $16.5 billion in finance, property and business services," Senator McMullan said.

Further information:

Senator McMullan's office: John Flannery, (06) 277 7420, 018 482 887

Senator Cook's office: Russell Faull, (06) 277 7580

Austrade: Joe Parkes, (02) 390 2118

Investment Australia: Tony Baker, (02) 390 2036