Address by The Hon Tim Fischer MP, Deputy Prime Minister, Leader of the National Party, Minister for Trade, to the Official Opening of the Sydney Office of the Council on International Educational Exchange, The University Centre, Sydney, 6 August 1997

Introduction

It is a pleasure to be here today to address you at the launch of the Sydney Office of the International Council on Education Exchange.

As I like to remind everyone I address, our capacity to create new jobs, and to raise the living standards of all Australians, depends vitally on increasing our national wealth through trade.

The education sector, of course, makes a vital contribution to our exports: both directly, through fee-paying students, and indirectly, by equipping Australian business with the skills they require to succeed in a fiercely competitive global trading environment.

Today I would like first to talk about that changing business environment. Second, I would like to talk in more detail about the economic contribution of services and education.

The Globalisation of Business

The globalisation of business is a fact of life. Production processes are becoming integrated among many countries. There is also greater competition in every market. Globalisation is one of the main reasons why the trade effort is becoming much more complex and more challenging.

Competition is intensifying, national boundaries are becoming less relevant in global trade, and industries are no longer dependent on domestic markets to nurture them.

Technology is driving major changes in our economic, political and social environment. A major task for us as a nation is to adapt quickly and maximise the returns in this rapidly changing environment.

Technological change also drives the development of international trade. It opens up borders that otherwise would remain closed. While tariffs are still an important impediment to the expansion of our exports, market access is no longer only about border protection. Investment, market presence, movement of professional people and the protection of ideas have become crucial for the expansion of international trade.

Australia's dynamic services sector

Australia's services sector is demonstrating that it can well meet the challenges posed by technological change. Our services exports are growing very rapidly, and they in particular offer scope for adding value and promoting employment.

Over the past decade, Australia's exports of services have grown 50 per cent faster than our imports of services. As a result, in 1996, Australia's balance of payments benefited from a surplus in our services trade with the rest of the world - for the first time in the history of the statistics which goes back forty years.

Exports of over $23 billion represented 23 per cent of total exports, up from only 16 per cent a decade ago. Current estimates for 1996-97 indicate the figure could well be in excess of $25 billion.

In practical terms, this means that our recreation and hospitality industry is reaping the benefits from many tourists and visitors from the region. It means that our insurance, financial and legal service sectors are finding exciting new opportunities for expansion.

And, of course, it means that Australian universities and colleges are making an increasingly important contribution to the training of young people in our region, from Korea to Indonesia, India, Bhutan and beyond.

The Importance of Education

Education is a crucial part of our great success in increasing services exports.

Responding to increased economic interdependence between countries and industries Australia has developed strong links between the education sector, industry and their counterparts around the globe.

The results have been great. Australian universities have thrived in the international market place following the introduction of full-fee paying courses for international students.

Numbers of international students have grown quickly and today make up around 8 per cent of the total student population of our universities. This year international students, numbering around 140,000, will make a contribution of approximately $3 billion to the Australian economy.

This, of course, is only their direct financial contribution. The value of the contribution they make in terms of raising other countries' awareness of Australia and its products and services is incalculable.

We are now seeing large communities of graduates return home with a special understanding, high regard and often strong affection for Australia. Similarly, Australians are enriched through their interactions with students from all over the world.

We have already seen the benefits of a growing Australian "alumnus" around the world but particularly in the Asia-Pacific region. Many senior figures in South-East Asian governments and businesses received part of their education in Australia.

I cannot stress enough how important these kinds of links are for furthering Australia's interests in the region and enhancing mutual understanding.

The marketing success of Australian education has meant, however, that the traffic has been, to some extent, just in the one direction. We would also like to see more Australian students attending tertiary centres throughout the region.

If we are to take full advantage of the opportunities emerging in the vibrant Asia-Pacific economy Australians themselves need to be more familiar with our neighbouring cultures and, most importantly, the subtleties of communication in what are very complex societies. Business certainly works best when there is good communication between the parties involved.

The activities of the International Council on Education Exchange are therefore most welcome. Promoting greater educational interchange between Australia, the Asia Pacific and the rest of the world brings important benefits to Australia and its partners in educational exchange.

I commend the Council for recognising that Australia is the place for an Asia-Pacific regional headquarters. I wish you well with your venture. By investing in Australia's booming education sector you are off to a very good start.

Conclusion

Through educational exchange, such as the Council will be promoting, Australia can sustain its international competitiveness through awareness of other cultures and of international best practice. Through educational exchange we also raise awareness of the quality goods and services Australia has to offer. Moreover, the all important links we make with future business and government leaders will stand us in good stead for generations.

Australia's vision of being an education leader in our region has quickly become a reality. I look forward to seeing Australian education exports, already a great success story, going on to even better things.