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JOURNALIST: There are obviously quite a lot of challenges when operating in Africa. What type of regulatory changes would you like to see appearing on the African continent?

SIMON CREAN: Well I think the greater certainty we can build into the mining laws and regulations is better for investors and that’s been a strong message I have been conveying. Australia has significant investment in the continent, some US$20 billion worth of investment, so clearly there is an appetite and desire to invest, but increasingly the issues with investment, is behind the border regulation. I sent a very strong message today that we look to work with each of the countries in the African continent to try and strengthen their legislation and build that greater certainty.

But there is a second message, the second message is that the Australian mining companies and the Australian Government are not just here to get investments for the sake of the companies. It wants to use the presence of Australian companies and their expertise to develop the capacity of African nations, to ensure that their mining resources and the wealth from it is distributed in a sustainable way and the way we use the issues of skills development and capacity building, assistance at the technical level. The scholarship programme that we announced today for West Africa — half a million dollars to work with the universities to improve capacity in geological surveys is terribly important.

JOURNALIST: You are just back from Davos as well, what was the sentiment on Africa, Africa has been dubbed as the last economic frontier. A lot of opportunities will arise in Africa, but unfortunately there are a lot of problems regarding red tape. Is that the kind of sense you got from people there?

SIMON CREAN: The sense of Davos this year compared to last year — last year it was about survival. This year it is about hope, but there is a concern that hope and the challenges that countries face don’t make those countries start looking inwardly.

All the countries have a commitment to try and develop job opportunities. By far, all of the evidence over the last decade shows the countries that are growing the strongest are those that traded with the rest of the world — being prepared to open up to take advantage of that.

So that trading dimension which carries with it investment and the services economy, these were all the vital ingredients that people were talking about on the economic front. They were also pleased to also find out that what Australia is doing is right because the under current of the message was how is it that Australia — the only developed country in the world that avoided the recession, and it avoided it not just because of it’s stimulus package, but because it undertook the structural reforms over the last 20 years that made us competitive and we focussed on Asia, the fastest growing region in the world. We want to build that focus, look to new development opportunities that understand the importance of building the sustainability of those nations where development occurs.

JOURNALIST: Australia recorded 1 per cent growth in 2009 and was one of the first countries to raise interest rates on a global level and many say that monetary policy trends are usually first seen in Australia. The Australian dollar has been very strong. Here in South Africa the Rand has also been strong and we are worried what it is going to do to our exports. Do you think that the Central Bank here should be intervening and do you think a strong currency is very bad for a country?

SIMON CREAN: A strong currency is a reflection of a number of factors, including the fundamental strength of that economy. One of the most important things that Australia did over 20 years ago to improve its competitiveness was to float the dollar. Now with all the uncertainty that is brought to that, either because of high commodity prices or because of our interest rates rising relative to the rest of the world as a reflection of our growth, they’re factors that exporters have had to build into their planning. But Australia dodged the recession, still grew exports last year, and its future is tied to its continuing competitive strengths. So my message is: understand the vicissitudes, but don’t try and lock your markets in. Don’t try and believe in the name of protecting jobs you revert to protectionism because protectionism destroys job opportunities, it doesn’t grow them.

JOURNALIST: There is a big focus on Asia right now. We also see China trying to reign in some of its stimulus package, other countries though, such as the UK and the US are still very worried about hiking interest rates. What do you think of the global trends emerging right now to try and avoid asset bubbles?

SIMON CREAN: Well obviously it is important to get a rebalancing and not create new bubbles or new imbalances. But the key message I make as countries are grappling with the question of stimulus, exiting from it, all of those things, the most effective tool that the world could embrace that does not cost the budget, is to conclude the Doha Round. Because trade is an economic stimulus that does not hit the budget. So the message I was conveying in Davos, and all of the other forums in which I participate, lets conclude the Doha Round. If there’s one agenda the G20 can seriously conclude, its the Doha Round.

JOURNALIST: Mr Crean, fascinating, thank you very much for your time.

ENDS

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