Speech
Australian Minister for Trade, Mark Vaile
Victorian Farmers Federation Grains Group Annual Conference 2001
Horsham, 20 March 2001
(Check against delivery)
It is a very great pleasure to be in Horsham once again, and to have this opportunity to address and open your Conference.
It's a timely opportunity to reflect on where we have come from and to look at where we might go in the future.
The Grain Industry
Our grains industry is a major contributor to our export effort.
Victoria exported over half a billion dollars of grains, legumes and oil seeds last year alone.
Many positive messages also came out of the recent Outlook Conference with ABARE forecasting continuing improvement in world prices for most cereal grains and oilseeds for this 2001/02.
With worldwide consumption also predicted to exceed production for most cereals in 2001 - 02, which will lead to a run down in stocks, and is a good sign for prices at future harvests.
Our record in Government
When we came to Government we came to do a job, we came to fix the mess that Labor left and we have delivered.
You are no longer paying the 20 plus percent interest rates you were when Keating and Beazley were last in power.
We have reformed the tax system; our tax reform package has taken $3.5 billion in indirect taxes off exporters alone, which has delivered nearly $1 billion in savings to the export sector according to the NFF.
- We have taken 24 cents/litre off heavy diesel road transport;
- We have taken excise completely off rail and;
- We have abolished the indexation of fuel excise forever. This has been a long- standing National Party policy and in Government we have delivered it.
Late last year we announced the Roads to Recovery package which put $1.6 billion over 4 years into your local country roads and earlier in the year John Anderson announced the new $90 million 'Regional Solutions' package, which will help rural and regional communities build their economic base and strengthen their social structure.
The government also recently delivered the new $2.9 billion - 'Backing Australia's Ability' - Innovation Package.
We have taken the value of exports to record levels, opened new markets, and increased export growth so it now accounts for 20% of Australia's total economic output, meaning one in five jobs depends on exports.
We established the $1.5 billion Natural Heritage Trust with $720 million dedicated to water and land degradation, feral animal and noxious weed control and Landcare.
We established the Supermarket to Asia Program to increase food exports and extended the Export Market Development Grants Scheme.
And we helped reform the waterfront to increase efficiency, international competitiveness and to bring down your costs.
Minister Truss has received the NCP report on the wheat single desk and will announce all the details of the Governments response at the forthcoming Grains Week.
You can however, rest assured the Wheat single desk is safe. This is, and will continue to be, National Party policy.
The Victorian Labor Government on the other hand appears to have no regard for your industry and seems determined to see your Barley Single Desk end on June 30 this year. I note and applaud the work that the Victorian National Party under Peter Ryan and Barry Steggall are doing on behalf of your industry in introducing a Private Members Bill in the Victorian Parliament to see the Barley single desk remain.
Trade Strategy
The Government continues to pursue an integrated trade strategy with our top priority being the launch of a new round of WTO negotiations in 2001. A new round is the only way to make major progress on dismantling the network of agricultural barriers and subsidies that shackle our efficient farmers.
We are pressing ahead vigorously with the mandated negotiations on agriculture and I am in close contact with my Cairns Group colleagues on how we build support for broader negotiations.
I have also spoken recently with the new US trade representative Bob Zoellick stressing the importance of active American commitment to a new round.
I can also assure you that I will take up a range of critical farm trade issues when I travel to Washington in two weeks time. Most of you are well aware of the battle we have waged on getting rid of unfair US restrictions on our lamb imports. We are currently fighting attempts by the US to overturn the win in the WTO secured last December.
We are under no illusions that these battles will continue in the future and a key target in this regard will be the 2002 US Farm Bill. We have seen the American Farm Bureau present its proposal on the Farm Bill - a wish list which calls for increases in domestic farm support as well as greater use of export subsidies and food aid to increase market access.
The Government will be undertaking a major research and lobbying effort directed at the Farm Bill. I will be consulting and working closely with industry in this process and I am looking for an early opportunity to meet with industry leaders to develop our joint approach.
In Washington, the message I will give to the Bush Administration and on Capitol Hill will be very clear: The United States can't have it both ways; if you want to play a leadership role in opening markets for agriculture around the world, you must stop the cycle of increasing farm assistance at home.
It is no secret also that I will be talking to policy-makers in Washington about our initiative to explore a free trade agreement with the United States. I approach these discussions very positively. At the same time, it is important not to raise expectations as we would need to be sure there were genuine economic benefits for Australia - as well as a commitment by the US to put sensitive issues (such as agriculture) on the table.
Trade relations with Asia remain a key priority of the Government. Australia and New Zealand are engaged in a dialogue with the ten ASEAN countries through the Closer Economic Partnership process. Our negotiation of a bilateral FTA with Singapore shows our determination to move further and faster with individual countries in the region.
We have also undertaken studies on ways to strengthen bilateral economic relations with Japan and Korea - our largest and third largest export markets respectively.
We are working with China this year as they chair APEC and last month I led trade missions to Taiwan and Indonesia.
The bottom line in all we do is simple: the Government will leave no stone unturned in seeking out new markets for our exporters and will not shirk from challenging unfair restrictions on Australian products.
From Sheep's Back to Cyberspace
Today also provides the opportunity for me to launch the latest publication by the Department of Foreign Affairs and Trade - From Sheep's Back to Cyberspace: Trade and Regional Australia in Changing Times.
It is a very timely contribution to the discussion of issues affecting regional and rural Australia. Its title also reminds us of the far-reaching changes that Australia's regional and rural export industries have undergone in recent years.
The book provides a snapshot of the very diverse range of businesses based in regional Australia that are excelling in the international market place. It covers not only the traditional mainstays in the agricultural and mining sectors, but also a wide variety of manufacturing and services exports. They include automotive components, aeronautics, textiles, construction, software, tourism and education. These are often overlooked, but they tell the story of how far export businesses in regional Australia have evolved.
As Trade Minister, I place great importance on ensuring that all our policies and initiatives deliver clear benefits to the average business person, especially those in regional and rural Australia.
A great year for exports
This book should be read against the background of a record year for Australian exports. Our exporters did their nation proud in 2000 with total exports up by 25 per cent, to more than $142 billion. We also saw a significant fall in the trade deficit to $7.3 billion in 2000 - less than half the $16.5 billion of 1999.
In the same period, rural exports rose to $26.1 billion, representing about 20 per cent of all Australia's exports. The year saw standout performances by wool, meat and dairy - all key elements of the Victorian farm sector. This strong growth in export earnings is expected to continue, with ABARE forecasting rural exports of $29.6 billion in financial year 2001/2002.
Exports - powerhouse for regional growth
The publication shows how people outside the capital cities are contributing to the export boom. But, more than that, it contains a new vision for an export-driven regional Australia.
The key to success of our regional exports lies in building strong partnerships between exporters and allies at all levels of government and industry. The book demonstrates how to plug into such networks, and how that can result in greater sales and many more jobs.
Changing face of regional exports
As I have said, the title of this book - From Sheep's Back to Cyberspace - encapsulates the changing face of exports in regional Australia.
Australia was once able to enjoy a "free ride", as our principal exports were so valued that they just about sold themselves. All Australian exporters have had to come to grips with an increasingly competitive and challenging global marketplace by lifting productivity, seeking new markets, and becoming more innovative in both marketing and production.
The reference to cyberspace reminds us of the technological changes that have revolutionised the way Australia does business in an ever-changing global environment. Change poses great challenges, but also offers immense opportunities.
Developments in e-commerce also have the potential to help us overcome the limitations of distance that have plagued us since our ancestors first settled this nation, giving businesses and industries access to world markets.
There are plenty of examples of successful exporters right here in Horsham and its surrounding district. For example, Horsham's Australian Mower Company manufactures a range of mowers and light machinery, which it exports to Hong Kong and New Zealand. The Company employs 16 full time staff in the local area.
The book itself highlights The Lentil Company. Horsham-based, the Company has been a stand-out success amongst regional exporters, shipping over 75,000 tonnes of lentils produced by 1000 growers, from Victoria, South Australia and Western Australia.
We often see stories about the problems facing regional Australia. I'm not denying that they exist - and our Government is taking decisive action to address them. But, as Trade Minister, I'm disappointed that the many success stories of rural and regional Australia often go untold. One of my priorities is to rekindle the pride that people in regional Australia, and the rest of the country, should take in their export industries.
Exports and regional prosperity
We need to foster better understanding of just how significant trade and exports are to the continuing prosperity of regional Australia. Research done by my Department has shown that less than half the population understands the impact international trade has on their personal standard of living.
Considerable attention is devoted in this new book to the continuing importance of trade to regional Australia in terms of jobs and incomes, as well as the importance of regional Australia to the economy as a whole.
It is remarkable to think that 1 in 5 jobs in our country rely on exports - that is, a total of 1.7 million Australians in the workforce. In regional Australia, that figure rises to 1 in 4 jobs. And with one third of Australia's workforce, regional Australia generates around half of Australia's export income. There deserves to be a greater understanding right across Australia of how important it is for us, as a nation, to be supporting industries that are generating the income to create those jobs.
Conclusion
Ladies and gentlemen, Australia faces a very complex and competitive international trading environment, and some in regional Australia find the pace of change daunting. Still, shutting ourselves off from the world is not an option.
This publication shows regional Australia has the skills, the ingenuity and the determination to compete and win in the global economy. Our Government is committed to helping you, our exporters, and to ensuring a long-term future for your communities as they go from strength to strength.
Again thank you for the opportunity to be here today. It is with a great deal of pleasure that I declare your Conference officially open. I wish you well for your Conference and for 2001.
Local Date: Tuesday, 22-May-2012 07:29:51 EST