Former Minister for Trade
Australian Commonwealth Coat of Arms

Transcript of Australia Network NewsHour interview with Jim Middleton from New Delhi

Main Topics: Indian students, FTA with India, Commonwealth Games security

Transcript, E&OE

4 May 2010

JIM MIDDLETON: Minister, I see here in New Delhi you are still getting questions about the treatment of Indian students in Australia. Are you frustrated that you cannot get doubts, concerns out of Indian minds about this problem?

SIMON CREAN: Not frustrated because we are making progress. There are still questions, the media runs the incidents when they occur, but I am satisfied in our engagement with government, that they appreciate the steps that we have taken. And if, in fact, the numbers have dropped then they reflect the fact that we have cleaned up some of the shonks. That is a good thing because Australia is not just about selling education numbers, it is selling a quality education product. And that is important to us in terms of the brand but it is important to India because India needs to develop its skill base. I think what the student issue has highlighted is the importance of underpinning that quality brand as much as it is about underpinning commitment to the safety of the students in Australia.

JIM MIDDLETON: It cannot help though that Indian students in Australia, as reported this week, are still having difficulties getting their upfront fees paid back as educational institutes fail. That is not a help, is it?

SIMON CREAN: No, it is not and we have taken very strong steps in this regard. We have said that our first effort will be to try and get them into a course they felt they were enrolling in, in other words, a legitimate course, if that cannot be done, there will be reimbursement.

JIM MIDDLETON: So you can guarantee, can you, that no Indian student in Australia will be out of pocket as a consequence of...

SIMON CREAN: …they will either be in a course or be reimbursed.

JIM MIDDLETON: Fair enough. How seriously has this issue impeded the desire on the part of Australia to build a closer, stronger relationship?

SIMON CREAN: I think it has strengthen our desire to do that if anything the fact that we have acted so comprehensively to address the problem, demonstrates the importance, not just of the sector but of strengthening the Australian brand within the Indian economy. What I found in all the visits that I have made here is that there has not been a great understanding of the diversity of what Australia has to offer.

So it is not just the ministerial visits or the prime-ministerial engagements that are important in addressing that point, it is also our engagement with the business community, it is the joint business delegations, it is the commercial interests, it is the encouragement to investment. When you look at the challenges that India faces, food security, energy resource security, skills development, water management, these are all spaces where Australia can play and play a game that is not just to our advantage, it is also to the advantage of the Indian economy. But getting that message through, developing those synergies, identifying the complementarities is where this engagement is about. It will not come simply by talking to government, government is important in terms of setting a framework for all but critically it has to occur through the people to people exchanges. That is why the education exchange is so important, that is the people to people engagement in its best form. But it is the business to business engagement, it is the joint ventures, the shared objectives, that is what we want to foster.

JIM MIDDLETON: You are here primarily to talk trade. What is it going to take Australia to have a trading relationship with India, as strong and as important as those that the country currently has with China and Japan?

SIMON CREAN: It is an interesting point because I think our determination to focus importantly on India is really a rounding-out of our engagement with non-traditional markets. There has been a lot said about our engagement with China but whilst China has been an important part on why we have dodged the recession bullet, it is not the only reason. It is our engagement with Asia as a whole. We see India in that frame. We see it as a key trading partner going forward. But it a relationship that has been very much under-done. We want to strengthen the relationship because business is seeing the opportunities going forward. India has been our fastest growing market for both goods and services over the last three years. That says something itself. But we think it can be strengthened even further. It will happen if we get a better understanding of the diversities of our respective economies, but a framework that encourages is conducive to encouraging trade, not just in goods but in services, because this is a very diversified economy, but also in investment, investment is the under-done part of the equation. Trade is actually strong in a two- way sense. It can be a lot stronger but investment two way…

JIM MIDDLETON: As you say two-way investment is under-done, what are the main impediments to growth there?

SIMON CREAN: I think it will come. It is a part of the natural development with a mature relationship that investment in many ways is the new form of trade. Trade is not about sending goods anymore. People make investment in countries because they want to either secure their supply line or they want to get closer to bigger markets. That is the opportunity for investment between the two countries and it has been encouraging talking to the business interests over here. The focus of the business missions going to Australia, one that recently went there, was looking at urban development, green building, smart building and I see Australia as an important player in that space. Why is it important here is because there is going to be a massive challenge over the next couple of decades in housing a lot of people in India. Here is a space in which again we can play.

JIM MIDDLETON: Australia and India are looking at a possibility of a Free Trade Agreement. Will you leave India with a time table for the actual negotiations on the FTAI?

SIMON CREAN: I do not think that the timetable is as crucial as the commitment. I think what we have is a feasibility study that says, there is significant benefit for both countries, the evidence is there if we want to take advantage of it. That requires the political will. What we need now is a commitment to move forward. We make that commitment, we will set time tables in terms of negotiations. Time tables for conclusions are never set, or we become hostage to the end deadline. But we are determined to strengthen this relationship and we will do what we can. We will visit here as often as is necessary, we will have the engagements that I have talked about as often as is necessary. But what I want is to make progress on submitting the framework.

JIM MIDDLETON: You are also having discussions while you are here in New Delhi about that Commonwealth games that are coming up. How concerned is the Australian government about the question of security particularly given the persistent terror alerts one is recently as we came.

SIMON CREAN: We are very concerned but so too is the Indian government, so too are all the other countries that want to participate. Part of my visit is to meet with the Commonwealth Games Association. It is important because we are already undertaking very strong exchange of information and assistance in getting the security right. We want to be in a position where we can give the best possible advice to the Commonwealth Games Association, so that it make its judgement about the teams.

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