E&OE...........
Well I';d like to thank both the Mayor and Professor Valori for that very warm welcome and also to acknowledge the presence of the Minister, the Honourable Adolfo Urso and Sir James Gobbo, an old friend of mine and Patron of the Global Foundation. And I join the Professor in extending my appreciation to the Global Foundation for the magnificent work it does in promoting the overseas economic interests of Australia and bringing the industrialists of Australia and other countries together.
There is a wonderful symbolism about our meeting here this morning. When I arrived, the Mayor took me to his famous balcony and showed me that magnificent view of the Forum and I thought to myself, that would soothe the greatest anger of the most difficult municipal interlocutor anybody could find. And we do that and we';re reminded of Rome';s ancient glories and then we come in here and we think of the future that both Australia and Italy have together as modern, sophisticated industrialised nations.
Ladies and gentlemen, I have three very simple points that I would like to put to you this morning. The first of those is that Australia when you think about it really does occupy a quite unique historical, geographical and economic intersection in the world. We are the only highly industrialised society that is simultaneously essentially of European origin, with very close political and economic links with North America but located in the Asian Pacific area. And that special intersection gives us, I believe, a special attraction and a special quality to nations such as Italy.
And to emphasise the point, let me remind you that Italy is the largest non-English speaking source of citizens of the modern Australia. Much greater than any other. Yet in Sydney, the largest city in Australia, the language most frequently spoken, other than English of course, is a dialect of Chinese.
The second point I would like to leave with you is that the current strengths and growth potential of the Australian economy has been the result of 15 years of major economic reform which has touched every aspect of Australian economic life. And that if that reform had not been carried out, and I pay proper tribute to the contribution to that reform of both sides of Australian politics, if that reform had not been carried out Australia would not now have probably the fastest growing economy in the highly industrialised world.
That reform essentially covered a number of areas – financial deregulation, reductions in tariff protection, industrial relations reform, taxation reform and very importantly, getting our Budget out of very heavy deficit into balance, which has enabled us to repay very large amounts of Federal Government debt.
And of course, and this is the third point to make, is that I do not believe that that process of reform has finished. That in the modern globalised world, the reform process is never over. And that Australia is pressing ahead in a number of areas including in particular a review of our competition laws, further industrial relations reform, a review of the international aspects of our taxation system. Because we believe that you cannot stand still in the process of economic reform and we think there is a lesson in that for all countries, not only for Australia.
And speaking globally, we believe very strongly that the process of reform must include further reform of the world';s trading system, which works very unfairly against developing countries because trade barriers cost developing countries infinitely more than they gain from direct foreign aid from developed countries.
Australia of course is not a developing country but it is a victim of a world trading system that does unfairly discriminate against our very efficient rural sector where something like 35% of the total value of European Union agricultural production is accounted for by support, about 21% in the United States, yet only 4% in Australia.
Gathered here in the room are industrialists and businessmen and women from both Australia and Italy, who represent the modern face of the economic relationship and also represent much of its future potential. We are both highly sophisticated, modern, technologically driven, IT-literate nations. We therefore, given the base we have of very strong people to people links, I think we have a very strong and bright economic future as partners.
There are already very many highly successful and profitable Italian companies operating in Australia. Many have done so for very long periods of time and I believe that the work of the Global Foundation, and I hope in a small way my own visit, will do something to further build those links. And in that context, I particularly welcome the presence in this room of a number of very prominent members of the Australian business community who have not only been successful activists in Australia, but have also carried Australian investment abroad.
And it is a two-way process. Australia not only seeks investment, but also has the capacity to invest. And it may interest some of our Italian friends to know that over the last 12 months, Australia has in fact directly invested more abroad than has been directly invested in Australia. And that is a sign of the increasing international and global character of the operation of Australian companies and of the Australian economy.
And finally on a personal note may I thank the Italian Government through its representative here today, the Minister, and the Mayor of Rome for their very gracious hospitality. I was saying to the Mayor earlier that I first visited Rome in 1964. On that occasion I think I stayed at the YMCA. I can say that some of the buildings have not changed a lot since 1964. Many have. One thing has remained constant and that is the warmth and the friendship and the vitality of the Italian people which Australians have always been so tremendously attracted to.
Thank you.
[ends]