Tony Pasin (Barker, Liberal Party) Share this | Hansard source

I am pleased to speak today and contribute to this very important debate around supporting the export potential of small and medium-size businesses in Australia, particularly in my electorate of Barker. Few of the elected members in this place could claim to represent electorates as reliant on exports as the seat of Barker. As such, I am very much in favour of this bill, which I believe will significantly improve the Export Market Development Grants scheme. The work the coalition government is undertaking to enhance the way the EMDG scheme is administered is even more significant given that the scheme was cut by $25 million a year by the previous Labor administration. I think that funding cut is another sad reminder of the lack of understanding Labor has for the small and medium-size business sector, particularly in agriculture.

I am proud to be a member of a broad political organization which understands the mechanics of our economy and is willing to support its engine room—private enterprise—rather than get in the way of the business community and job creation. I am proud to be a member of this coalition government, because this bill will progressively restore funding to export market development grants, starting with an initial $50 million boost

When I was growing up, my father produced, packed and exported onions to the world. Though his business enjoyed much success, I saw firsthand how the profound lack of support from government for export businesses such as his ultimately drove my father to pursue other business and farming opportunities. Whilst he has enjoyed those other business and farming opportunities, the sad reality is that he employs far fewer than he did when he was operating a large-scale exporting business. That is the reality that we hear today: this is a program that is not focused on providing jobs and opportunity for Australians in, as the previous speaker indicated, the Asian sector during the Asian century.

That sort of firsthand experience means that I know how important it is for the government to play a positive role in helping small and medium businesses help themselves when it comes to export growth. That is why EMDG scheme grants, which assist small and medium-size enterprises to enter new export markets and become self-sustaining exporters, are just so important. I know that the allocation of an addition $50 million over the forward estimates in the 2013 Mid-Year Economic and Fiscal Outlook will be very much welcomed by my constituents in Barker.

I want to ensure that Barker is one of the best places to start and grow a business, and these grants assist small and medium-size businesses to enter new export markets and become self-sustaining. What is more, the bill clearly shows the coalition is delivering on its election promises by driving real growth and innovation in our economy. The improvements the coalition is making will benefit many small business exporters in rural and regional areas across Barker, whether they are based in the south-east, the Mallee, the Riverland, the Murraylands or the Barossa.

All of these regions in Barker boast very proud export histories, and their local economies are all major beneficiaries of a range of sectors such as grain, red meat, dairy and wine. In fact, local businesses are already benefiting from this program, with some 15 recipients across Barker sharing in $565,370 from the 2012-13 round of funding. Some of those businesses include: the De Bruin family near Millicent, who are involved in wagyu production; the Almond Board of Australia at Berri; the Barossa Grape and Wine Association, based at Tanunda; BMD Wines at Berri; Farmer's Leap at Padthaway; First Drop Wines at Nurioopta; Hobbs Vintners at Angaston; International Timber Solutions at Mount Gambier; Irvine Wines at Eden Valley; John Duval Wines at Nurioopta; Koonara Wines at Penola; Ringbolt at Angaston; and State Peters Investments (SA) at Renmark. The breadth of the agricultural production and export potential in Barker is on show in that list.

I am sure these and other recipient businesses in Barker echo my strong endorsement of this bill and would speak very highly of the positives they have derived through the EMDG scheme. I believe very strongly that strong export markets are the key to generating economic wealth and job creation in Barker and the nation more generally; and, as such, I know these grants will help small businesses with market access which may not otherwise have been possible.

This provides an opportunity for me to place on record my thanks and the thanks of the constituents in Barker for the very good work that was done and finalised late last year by the Minister for Trade and Investment, the Hon. Andrew Robb, in securing the Korea-Australia Free Trade Agreement. This is a significant development in Australia's trade relations with Asia. I note with interest that negotiations with respect to the agreement meandered and ultimately stagnated under the former administration but were finalised thanks to the very diligent hard work of the minister. Why is the achievement of this agreement so important to the people of Barker? It is so important because of the following. For those in my electorate involved in the sheepmeat industry—like my father, producing lamb, sheepmeat and goatmeat products—a tariff of 22.5 per cent will be phased to zero over 10 years. For those involved in the dairy sector, the current eight per cent tariff on Australian dairy spreads into Korea will be eliminated over three years. In this regard, I think of Kraft International in Mt Gambier.

Australian table grape growers in my electorate currently face a 45 per cent tariff into Korea. This will be cut by half on day one and then phased to zero over five years. Growers of chipping potatoes face, wait for it, a 304 per cent tariff into Korea. This will be cut to zero when the FTA enters into force. I should say that my electorate includes the single largest producer of chipping potatoes in the nation. Oranges will benefit from a reduction of a tariff of 50 per cent to zero over seven years. That of course comes as good news to those blockies in the Riverland who have faced the vicissitudes of drought over recent years. Korea's 24 per cent tariff on Australian cherries will be eliminated when the FTA enters into force. Cherry producers at Kalangadoo have hailed that a great success. Australia's $10 million wine exports into Korea face tariffs of between 15 and 30 per cent. These will be eliminated. Exporters of crayfish fished off the rugged coast of my electorate face a 20 per cent tariff, which will be reduced to zero over three years.

I take this opportunity to remind the House that this agreement is critical and it is critical that it is finalised so it can come into force in advance of 1 January 2015, so that we can enjoy the first step down in tariffs for these various commodity groups on that date. Any delay will effectively increase the competitiveness of other countries relative to ours, and will also delay the reductions that I have just outlined that are of such importance to primary producers throughout Barker. Again, I place on record my thanks to the hardworking achievements of the Minister for Trade and Investment on behalf not of myself but of the primary producers in my electorate.

Returning to the bill before the House, an important aspect of the legislation is also to make the scheme more accessible to businesses looking to export. As anyone who has experience in the small- and medium-business sector knows, time is often the most precious commodity. This improved accessibility will also be welcome. For example, regional businesses in Barker looking to pursue their first export sales will now be eligible for a $5,000 grant if they spend $15,000 on export promotion. This is a significant improvement on the existing settings where such businesses would have received nothing and would have had to spend a minimum of $20,000 before they were eligible for any EMDGS funding assistance. I understand that in the past some exporters chose not to apply because they were not confident of meeting the grant threshold, which is why we are lowering that threshold. I believe this will be a catalyst for many small and medium enterprises to think about exporting for the first time or exporting into a novel market.

I note that the Australian Chamber of Commerce and Industry's Director, Trade and International Affairs, Mr Bryan Clark, praised the initiative and in particular the minister for trade for his commitment to opening up new markets through market visitation and through advancing talks on trade liberalisation in our region. I share the view of the Australian Chamber of Commerce and Industry that these changes to the EMDGS will provide direct assistance to companies seeking to secure more commercial contracts, underpinning their viability and profitability, and ultimately providing more jobs and investment to our country. I enthusiastically commend this bill to the House.

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