Speech by the Deputy Prime Minister Leader of the National Party Minister for Trade The Hon. Tim Fischer MP to the Canberra Business Council's Diplomatic Reception

CANBERRA TRADES UP

Boathouse, Lake Burley Griffin, Canberra
Canberra, 4 March 1997

Mr. Page, Chairman of the Canberra Business Council, Mrs. Carnell, ACT Chief Minister, Your Excellency Mr. Feesago Fepulea'i, Dean of the Diplomatic Corps, my colleague, Mr. Warwick Smith, Federal Minister for Territories, Mr. Andrew Whitecross, Leader of the Opposition in the ACT, Mr. Steve Dargaval, Member for Fraser, Mr. Gary Nairn, Member for Eden Monaro and my other colleagues from Federal Parliament and other prominent figures from the region, including Mayor Tim Collins from Bega Valley, Mayor Geoff Collinson from Yarrowlumla, Deputy Mayor Chris O'Rourke from Queanbeyan, Councillor Paul Fitzgerald from Yass and Councillor Keith Cole from Goulburn, I am very pleased to be able to address tonight this eminent group brought together by the Canberra Business Council.

It is good to see so many representatives of the Canberra business community and the diplomatic corps here. I would also like to take this opportunity to wish your outgoing Dean well for his new posting to Wellington after he departs Canberra on Thursday.

The Business Strengths of the Canberra Region

Our capacity to create new jobs, and to raise the living standards of all Australians, depends vitally on increasing our national wealth through trade. Taking advantage of trade opportunities is, of course, particularly important now for Canberra and its surrounding regions.

The main reason we are here tonight is to celebrate the Canberra region's competitive business strengths. These include its active business community, its numerous centres of higher learning and research, its highly educated workforce, its proximity to the nation's centre of administration, its clean environment, its culturally diverse population and the quality of its rural production.

Another very important strength is, of course, the presence of the diplomatic community, but I will come back to that shortly.

The Coalition Government is committed to promoting growth and supporting small and medium-sized enterprises in the Australian Capital Region, which comprises the ACT and south east New South Wales. In the past it was the case that the Canberra economy, in particular, had consisted substantially of the public sector. Today, however, the region has a strong and active business sector. Since 1989 the majority of economic activity in Canberra has taken place in the private sector.

Our commitment to fiscal responsibility has necessarily meant a reduction in the size of the public sector. It will, therefore, be all the more important for businesses in this region to look to trade internationally and with other parts of Australia to maintain and, indeed, increase their profits.

Moving to a smaller public sector also provides significant opportunities for the private sector. We are looking to outsource many activities previously carried out by the public service. The Minister for Administrative Services has estimated that, in his portfolio alone, there will be up to 2,500 jobs created in the private sector.

The focus of much regional activity and growth is likely to progressively shift to the private sector. Canberra will be able to "trade up" to an even more private sector-oriented model for its economy. I would like to congratulate the Chief Minister on her Government's positive approach to tackling the challenge which that presents.

Her recent trip to China to promote the region's business successes is but one example of that positive approach. I look forward to hearing more of the follow-up visit in June.

And I would note also in this context the very fruitful sister-city relationship Canberra enjoys with the Japanese city of Nara.

I have already mentioned that Canberra has a number of very great strengths. Canberra has five high-calibre tertiary institutions which contribute to Canberra's export efforts in their own right. Equally, however, they provide an educational base which underpins Canberra's advanced technology sector.

Hundreds of companies which make their base in Canberra are associated with defence technology, science, communications, space and computer technology and optic fibre research. These include a string of major national and international companies but most importantly a number of smaller highly competitive local ones.

By way of example, I am aware that one small high-tech company involved in advanced electronic surveillance techniques has won millions of dollars of contracts in the US in recent years and is this week, together with a number of other Canberra companies, in South-East Asia looking at doing further business.

This particular mission has been made possible through grants provided by Austrade. I wholeheartedly encourage this sort of initiative.

There are more such success stories. Environmental technology and management techniques is another important example as the ACT Electricity and Water Corporation has also been singularly successful in marketing its expertise overseas, particularly in Shanghai. Sports and sports medicine, as well as a burgeoning tourist industry, are two other important sectors.

What the Federal Government is Doing

The Federal Government is also doing what it can to assist small and medium sized businesses and potential exporters in this region to promote themselves.

The Austrade Regional Office covering the ACT and Southern NSW will continue its policy of working closely with the ACT administration to advance the interests of local export-oriented businesses. Austrade will continue to deliver the same high quality advice on potential markets and opportunities and will seek to forge closer links with industry allies to assist companies to become export-ready. It will continue to provide assistance to companies under the Export Access Program and the Export Market Development Grants (EMDG) Scheme.

These programs increasingly have a focus on small and medium-sized businesses as they make up over 70 per cent of all exporters and account for more than 25 per cent of the value of export sales.

Similarly, for those more focused on the domestic market, AusIndustry will continue to offer direct support to eligible companies through the Enterprise Development Program and the Research and Development Program.

The Contribution of the Diplomatic Corps

I mentioned earlier that the presence of the Diplomatic Corps was one of Canberra's most valuable assets. Canberra benefits from your involvement in a number of ways.

The primary functions of the diplomatic corps, namely to maintain and strengthen political, economic and cultural relations between Australia and your respective countries, are of vital importance, and your own cultural and trade exhibits contribute greatly to the life of our capital city.

Your presence also contributes to the vitality of the local economy in other more direct ways, however. There are around 900 diplomats and their families and over 90 diplomatic missions and representative offices in Canberra. All need offices, local staff, accommodation, vehicles, furniture and office supplies and equipment. This is a very substantial financial input to Canberra's economy, estimated at around $100 million by the Dean of the Corps last year in a letter to the Canberra Times. A contribution of this magnitude is most welcome indeed.

I therefore applaud the efforts of the Council in conducting a survey of missions to establish how Canberra businesses can better meet their needs.

Conclusion

In conclusion, the current climate of liberalised trade and a contracting public sector will pose challenges for all of Australia but certainly for the Canberra region. At the same time these developments open up opportunities for those with the energy and determination to seize them. Without doubt, the Canberra region's unique combination of economic strengths position it well to meet these challenges.