Introduction

John Larkin, Chairman, Macquarie Industry Network, Mark Vaile, Federal Minister for Transport and Regional Development, Michael Cobb, Federal Member for Parkes, and Gerry Peacock, State member for Dubbo, Councillor Anthony McGrane, Mayor of Dubbo, other distinguished guests.

It is a very great pleasure to be here today in Dubbo to celebrate the official launch of the Macquarie Industry Network.

Mi-Net (pronounced MY-net) is a laudable example of a group of small-to-medium sized businesses thinking creatively about how best to market themselves in an increasingly competitive and, indeed, an increasingly international trading environment.

I applaud the vision of the twenty odd SMEs which have come together to form this network. Together you can offer a very diverse range of goods and services as well as potential synergies for members coming together to bid in partnership for projects both in Australia and overseas.

The Government's Reform Agenda

The Government came to office with a very clear goal of improving the economic and business conditions in Australia for SMEs and for regional Australia.

Much has been achieved already, particularly in respect of fiscal consolidation. Australia's economic outlook now is for strong growth in activity, low inflation and faster employment growth.

The Government is pressing ahead with reforms to improve our competitiveness. We have announced significant reforms to industrial relations, business regulation, the financial system and to industry policy.

East Asia and the Government's Response

I know that Mi-Net has recently been exploring the possibilities of exporting to Asia and therefore Asia's situation and how the Government is responding to it will be of some interest to you.

There is no denying that Asia is now facing a period of economic instability and uncertainty but we remain very confident that the region will rebound in the next few years. We would be very foolish to write Asia off at this point.

It is certainly the case that Australian exporters to this region will have to work harder over the next twelve months both to retain their existing customers and to look for new markets to grow their business.

The government is actively taking steps to address this situation.

I have personally conducted roundtables with exporters to the region to hear where the problems are and whether there is anything that can be done about it.

The Government also aims to ensure that appropriate levels of trade credit and insurance are available to assist Australian firms maintain our vital trade with the region. We have enhanced EFIC's capacity to provide insurance cover for Australian exports to Indonesia and Korea, setting aside $300 million for Korea and looking at Indonesia on a case-by-case basis.

We will also be keeping up the pressure on our major trading partners not to retreat from their firm commitments to remove barriers to trade and investment.

So the Government is doing what it can to preserve Australia's existing sales in Asia but it is also encouraging potential new exporters to dip their toe in the water both in Asia and in other markets.

Industry Statement and Supermarket to Asia

Let me give you a couple of examples of how we are specifically targeting SMEs and regional Australia in our efforts to encourage export growth.

In December last year, the Prime Minister launched Investing for Growth, which set out the Government's industry policy. Additional funding of $300 million was announced to continue the Export Market Development Grants Scheme - which targets SMEs.

Moreover, Austrade was given a particular brief to target rural and regional SMEs in implementing its existing Export Access program and the new TradeStart program.

TradeStart will coordinate Austrade's Regional Trade Commissioners and new associate offices which are positioned to deliver selected Austrade services in regional centres.

TradeStart will draw on the resources of the private sector and links with State government bodies to ensure that Australian businesses outside the major metropolitan centres have improved access to export assistance.

Also, in 1996 the Prime Minister established the Supermarket to Asia Council to address impediments to export - right from production in Australia to supermarket shelves in Asia. This will enable industry to take full advantage of potential markets in our region.

The Council established regional forums to identify emerging exporters, bring leading and potential exporters together and generate enthusiasm and share knowledge. Some thirty or more forums were held last year. And some here today may have attended one of these.

Conclusion

I'd like to conclude by thanking all of you for coming today - and I know that there are people here from as far afield as Cobar and Lightning Ridge. I also want to encourage you to look at export as a potential source of added income.

Even in these difficult times for the region the Government is doing all it can, particularly for SMEs and rural Australia, to make the international marketplace accessible to you.

In particular I want to congratulate the companies which make up Mi-Net for taking this important step towards making yourselves competitive in the international marketplace. Your combined talents and strengths will help you access markets which otherwise would have remained close to you.

I certainly wish you well in all your trading endeavours.