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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2015-10-14 Daily Xml
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Free Trade Agreements

Mr KNOLL (Schubert) (15:26): In politics we deal a lot with the day-to-day cut and thrust of debate on issues. Whilst we are often passionate and strident in our defence of our policies, over time the legacy of a party or government is viewed quite differently. The book is still being written on the Abbott/Turnbull government but in the future I have no doubt that some of the crowning achievements will be the four free trade agreements the government has done deals on. This will stand the test of time and deliver for Australia and South Australia for generations to come. These are the agreements with Japan, Korea, China and now the Trans-Pacific Partnership.

The opening up of international markets is great for an export-focused nation such as Australia, and indeed South Australia and our export capabilities. It means that we can get on and do more of the things that we are good at, sell the goods and services that we are great at and indeed in some cases, such as making a good glass of shiraz from the electorate of Schubert, do what we are the best in the world at. We saw that, once again, only last week when Thorn-Clarke and their 2012 Ron Thorn Shiraz was voted the best shiraz in the world. This comes on the back of a whole host of similar accolades. I can remember the Wild Witch at Kellermeister receiving a similar accolade.

The jobs that are created in these industries are sustainable and, as we talk about a transitioning economy, I think this is a very important fact. They are sustainable because they do not rely on subsidy or tariff to survive and because, thanks to these agreements, these industries will be growing, which means that the job creation in these industries will hopefully help to transition our economy. The Chinese free trade agreement, and the others, are great for the Barossa, Schubert and South Australia more broadly.

Here are some of the facts about China. China buys almost a third of all Australian exports. China buys more of Australia's agricultural produce than any other country in the world. In 2014, Australian beef exports to China totalled 128,000 tonnes, worth $655 million. The total Chinese imports of sheep meat reached 281,000 tonnes, up from 124,000 tonnes in 2012, so we see over a doubling of the market in only two years. China's wine import market is growing dramatically, almost doubling in size since 2010 to be worth over $1.7 billion.

Can I say that, on the wine front, China is the third largest market for Australian wine, but what is most exciting is that the US and UK, as the number one and number two markets, especially the UK market, the price per case sits at only around the $50 to $60 mark, whereas the price per case of what goes into China and Hong Kong is around the $100 per case mark. So, we see that it is a better quality and more premium standard of wine that we are able to export into this market, which is hugely important.

The Chinese free trade agreement delivers a reduction of tariffs on beef over nine years, a reduction in tariffs on wine over four years and introduces a new Australia-only duty free quota. My electorate desperately wants this agreement to go ahead. As a wine and agricultural produce region, we need this deal. Here is what the Premier had to say on the matter:

...the China free trade agreement is a massive opportunity for us, especially in our wine and food sector, where the possibilities it opens up are extraordinary.

I totally agree. Unfortunately, it does not seem that Bill Shorten got that memo. The Premier has, on occasions, stated that Bill Shorten is irrelevant. In this case, he is not, because the passing of this free trade agreement hangs in the balance in the Senate, and it is Bill Shorten who stands in the way of us getting the deal that we want and need.

The Labor Party has given into fear on this issue, has given into a fear campaign that has been run by the CFMEU and others, and it threatens to derail a deal that, in the Premier's own words, will deliver for South Australia. The bill on the Chinese free trade agreement is set to be debated in parliament this week, and this is a true test of whether Labor has regressed to the fear protectionist days of old or whether they are going to grip that mantle of reform and truly look forward.

I believe that this is a true test for our Premier. He has called Bill Shorten irrelevant, and it is obvious to all that the relationship is not the best, but this is a time when we need him to deliver for South Australia. It is interesting that in six years of Labor we did not see any sort of agreement like this, but in only two short years of a Coalition government at a federal level we have delivered four agreements. What I would ask is for Labor at a federal and state level to do the decent thing, get out of the way, and give credit where credit is due.

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