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Legislative Council - Fifty-Fourth Parliament, Second Session (54-2)
2020-07-02 Daily Xml
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International Trade

The Hon. N.J. CENTOFANTI (14:34): My question is to the Minister for Trade and Investment. Can the minister share with the council trade opportunities for South Australia with the United Kingdom?

The Hon. D.W. RIDGWAY (Minister for Trade and Investment) (14:34): I thank the honourable member for her ongoing interest in great opportunities that exist in the United Kingdom. We all know that exports play a critical role in supporting our economy, with South Australian goods and services exports estimated to support over 79,000 jobs (11 per cent) of the state's workforce. I welcomed, on 17 June, the announcements by prime ministers Scott Morrison and Boris Johnson confirming the commencement of negotiations for a free trade agreement between the United Kingdom and Australia.

We all know Britain was traditionally Australia's go-to partner for trade and investment until recent decades, when Britain began looking more towards Europe and, of course, we began looking more towards economies in our region, in South-East Asia and Asia. The UK now represents just 3.1 per cent, or $342 million, of Australia's total exports as of 2019. With the UK formally scheduled to exit the European Union on 31 December this year, there are exciting opportunities for South Australia. As our former foreign minister, immediate past high commissioner to the United Kingdom and proud South Australian, the Hon. Alexander Downer, puts it:

Brexit will free Britain up and allow it to do bilateral trade deals with partners around the world instead of having to negotiate with 28 other countries via the EU.

Members interjecting:

The PRESIDENT: The Hon. Mr Hunter and the honourable Leader of the Opposition!

The Hon. D.W. RIDGWAY: I met with Alexander two weeks ago and agree with him that South Australia is a great place for British investment—

Members interjecting:

The PRESIDENT: Order!

The Hon. D.W. RIDGWAY: —and we have an open economy with good growth prospects and close connections to third markets in Asia and China.

Members interjecting:

The PRESIDENT: Order!

The Hon. D.W. RIDGWAY: In fact, UK companies already represent the second highest number of foreign headquartered companies in South Australia.

The Hon. I.K. Hunter interjecting:

The PRESIDENT: The Hon. Mr Hunter!

The Hon. D.W. RIDGWAY: It's disappointing that the members opposite are not interested in growing our economy. It's the third source of nations for foreign direct—

The Hon. R.P. Wortley: You look like Elmer Fudd.

The PRESIDENT: The Hon. Mr Wortley, that's a bit personal. I think you can withdraw that.

The Hon. R.P. WORTLEY: I withdraw that, Mr President.

The PRESIDENT: Thank you, the Hon. Mr Wortley. Minister, please continue. Can we please listen in silence. Minister.

The Hon. D.W. RIDGWAY: I will repeat, the UK consistently ranks in the top three source nations of foreign direct investment to Australia. I spoke to minister Birmingham earlier this week, and we discussed the likely benefits of a free trade agreement between the UK and South Australia. Truly, there are some obvious opportunities in South Australia, which include the services sector, which is different to most other markets currently—

Members interjecting:

The Hon. D.W. RIDGWAY: Mr President, I will repeat that for the members opposite. Our services—

The Hon. K.J. Maher interjecting:

The PRESIDENT: The honourable leader! Minister, sit down.

Members interjecting:

The PRESIDENT: Order! I want to be able to hear the minister. Minister, continue, please.

The Hon. D.W. RIDGWAY: Thank you for your protection, Mr President. Unlike most other markets, the service sector—

The Hon. J.E. Hanson interjecting:

The PRESIDENT: The Hon. Mr Hanson!

The Hon. D.W. RIDGWAY: —our exports in the service sector exceed other merchandise exports to the United Kingdom. Service opportunities include those within the health and medical sector—

The Hon. K.J. Maher interjecting:

The PRESIDENT: The honourable Leader of the Opposition: courtesy, please.

The Hon. D.W. RIDGWAY: —and within tourism, post-COVID. Agribusiness is also a clear opportunity for South Australia, and I share the example of beef exports. Prior to the UK joining the EU in 1973, Australia exported 102,000 tonnes of beef to that market. In 2018-19, the figure was just 4,000 tonnes. Wine could be another winner, with an FTA with the UK. Wine already makes up 60 per cent of our state's exports to the UK, and so a reduction in tariffs will really open up that market to our wineries.

I also discussed with Senator Birmingham our burgeoning craft distilling sector in regard to the opportunities within the UK and Europe. I am grateful for minister Birmingham's insight and the strong support the federal government will give to our burgeoning South Australian exporters.

Of course, South Australia is fortunate to have the Office of the Agent General in London, headed up by Bill Muirhead. Following the Joyce review, the Marshall Liberal government revised the role of the UK office to be much more focused on trade and investment. The Agent General's office has been very active during this time; for example, engaging with and supporting South Australian businesses. They have hosted four in-market webinars, with over 100 businesses participating to date.

I encourage South Australian exporters to reconsider the UK market in light of the free trade negotiations in Brexit and I can assure them that the Marshall Liberal government will continue to support our businesses to expand into that market to grow our economy, create jobs and make South Australia stronger than before.

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