LABOR'S EXPORT PLAN FOR THE 1990S 28 FEBRUARY 1990
Labor will broaden and strengthen Australia's export drive.
The Government's integrated export strategy is important in
reducing Australia's external deficit. The target is clear:
increased exports and reduced imports. Both, increasingly,
will be achieved. I
The particular measures that I am announcing today with
Senator Button strengthen our overall export strategy.
Labor will establish a new support scheme for exporters
which will see $ 55 million over three years devoted to
encouraging exporters to enter new markets and launch new
products. The new scheme, the International Trade Enhancement Scheme,
will be implemented from July 1990 and be funded at
million in the first year and $ 20 million in the second and
third years. It will support established exporters entering
new markets and launching new products; encourage
collaboration and the development of critical mass by
smaller companies with export potential; and support the
efforts of industry associations and groups to promote
exports. Over the next three years, the money to be allocated by a
private sector Board should support significant new export
development efforts by two hundred or more Australian firms
with the greatest potential to increase exports.
In addition, the-Export Market Development Grant ( EMDG)
Scheme will be extended to cover inbound tourist operators,
at a cost of $ 5 million per annum from 1991-92, and health
and legal services, and intellectual property rights.
The International Trade Enhancement Scheme replaces the
current International Business Development and Innovative
Agricultural Marketing Schemes, which had funding of
million in 1990-91 and $ 8 million in outyears. Thus
total new funding announced today is $ 44 million over three
years as shown in the attached scoresheet.
r 1
The Statement I am releasing today describes existing and
future export policies in more detail. It highlights
Labor's future commitment to, and broad strategies for,
increasing Australia's exports.
Under Labor, Australia's export performance has been greatly
improved. Total exports have increased on average by 8 percent per
annum since 1983; manufactured exports and services exports
have both increased by over 50 percent, in real terms, since
1984-85.
Consequently the share of manufactures and services in total
exports has increased from 11 percent and 16 percent in
1984-85 to 14 percent and 19 percent, respectively, in
1988-89.
We are now exporting energy control equipment to Thailand,
fishing vessels to Asia and the Middle East, automotive
components to Japan and the United States, optical lenses
throughout the world and pharmaceuticals to Europe.
It is acknowledged that imports have also risen
significantly in recent years. They are declining now,
however, and policy will aim to ensure that the unwinding of
the previous high growth continues. There can, however, be
continued export growth.
Indeed, while past performance has been extremely good,
Australia's export potential is even more exciting.
We have the $ 49 billion worth of foreign exchange earning or
saving projects identified by Access Economics which are
either committed or under construction. Access Economics
identified $ 5 bil'lion extra exports in the pipeline, equal
to around 30 percent of our current account deficit forecast
for 1989-90 of $ 18.5 billion.
Ross Garnaut's report on " Australia and the North East Asian
Ascendency" identifies a potential for around $ 20 billion
worth of exports of processed raw materials, tourism and
education services to North East Asia alone.
Australia will, under Labor, also move increasingly into the
export of Australian ideas and skills through increased
export of telecommunications, education, legal and health
services. Not only is the potential there, but Australia's productive
capacity is increasing to meet it. Rpnnrd investment and
labour force participation levels combined with rpnnrd
training and education mean that Australia under Labor faces
the 1990s as a much more productive country than it was in
the 1980s.
More workers will have more machines to work with, and they
will be better trained and educated. 155-95
3.
What better base for future productivity growth?
How does Labor intend to support our export effort?
stable fiscal environment with a record, as well as a
commitment, on repaying public sector debt
stable wages outcomes, not a blow-out led by strong
unions increased private savings through superannuation to
fund investment
better trained and educated workers
a market-driven exchange rate, not the over-valued
dollar of the Conservatives
a 10 point micro reform agenda for our 4th term
a low rate of company tax
increased tax deductibility for research and
development and specific grants for innovative
commercial research ( GIRD)
reform of government enterprises
a co-ordinated effort between the Foreign Affairs and
the Trade policy advisers, not split as the Coalition
would have them
initiatives such as Asia Pacific Economic Co-operation
to benefit from our location in the world's fastest
growing region
a respected voice calling for fewer international trade
barriers, not a shallow flirtation with trading blocs
increased range and availability of capital ( MICs and
AIDC) effective, practical support through EFIC ( financing
and insurance); the recently boosted National Industry
Extension Service program ( better business management
techniques); and the DIFF scheme ( to match other
nations' aid/ trade financing)
a re-modelled EMDG scheme to increase its effectiveness
special AUSTRADE marketing strategies and industry
development strategies to expand strategic
technology-based industries
significant extra money to promote tourism
9i9
extension of EMDG to inbound tourist operators, health
and legal services and intellectual property rights
export of health and education services referred to the
new Industry Commission
promotion of Australia as an international centre for
commercial arbitration and dispute settlement, and
other measures to promote the export of legal services
establishment of new Australian Education Centres in 11
countries in the region, and other measures to promote
the export of education services
AUSTRADE marketing strategies to promote the export of
processed raw materials
Industry Commission and Resource Assessment Commission
studies on electricity generation, raw material pricing
and forestry
clear environmental guidelines for raw material based
processing projects.
In sum, a more focussed AUSTRADE and EMDG scheme; more
concentrated efforts on the export of various services;
supportive wages, savings and fiscal policies; continued
microeconomic reform; clear environmental guidelines; and
innovative international trade diplomacy. 5597
LABOR'S EXPORT PLAN FOR THE 1990S 2 ERAY19
While Australia has traditionally relied on exports of
commodities, and while these will continue to be important,
increasingly we are broadening and strengthening our export
base. Tourism and exports of services generally have expanded. We
are now exporting energy control equipment to Thailand,
fishing vessels to Asia and the Middle East, automotive
components to Japan and the United States, optical lenses
throughout the world and pharmaceuticals to Europe.
While manufactured and services exports, respectively,
represented 11 percent and 16 percent of total real exports
in 1984-85, in 1988-89 they represented 14 percent and
19 percent.
Since 1984-85 both manufactured and services exports have
increased by over 50 percent in real terms.
Total real exports have grown on average at 8 percent per
annum since 1983. While imports have also risen
significantly, they are declining now and policy will aim to
ensure that the unwinding of the previous high growth
continues. Export growth, however, should continue: indeed,
Government policy will be strongly geared to support such
growth. Australians are increasingly developing an export culture.
This trend will be enhanced under Labor.
My Government's Current Policy Approach
Fundamentally, our export performance depends on the
business sector's ability both to sustain existing markets
and develop new international markets. my whole economic
policy focus has been to internationalise the Australian
economy. The role of government in boosting exports is
significant, as my Government's efforts over the past 7
years illustrate.
First, macroeconomic policy must provide a conducive
setting. By achieving a 12 percent decline in real unit labour costs,
my Government has lifted the corporate profit share from an
average 12.6 percent from 1973-74 to 1982-83, to 16.5
percent in 1988-89.
This has given Australia record job growth and record levels
of business investment. More Australians than ever before
are in the workforce: the participation rate is a record
63.8 percent. Following fifteen years of poor investment
performance ( 2.2 percent per annum growth) the average
increase in business fixed investment in the last five years
has been a remarkable 10.8 percent.
Ui 28 FEBRUARY 1990
Under Labor, Australia's productive capacity has never been
greater. Second, microeconomic reform is essential. Thirty years of
excessive regulation under the conservatives must be
removed. Because such regulation entrenches attitudes and
supporting behaviour, it will take Labor some time to unwind
it. But under Labor Australians can be sure the job will be
done. The Conservatives have refused to take up my ch'allenge to
show any other period in Australia's history when so much
micro reform has been achieved. Their continued silence
confirms my government's record.
We have cut marginal and corporate tax rates; deregulated
the financial sector, aviation and oil marketing; exposed
increasing areas of telecommunications to competition;
significantly lowered tariffs; cut excessive coastal
shipping and waterfront manning levels: a list of reforms
was released by me last week.
Significantly, we have also increased school retention rates
from 36 percent in 1982 to over 60 percent now; increased
higher education places by 36 percent; made training more
attractive through award restructuring; restructured
apprenticeship training and increased apprenticeship
commencements by two-thirds; and recently declared that we
would introduce a training levy to ensure increased private
sector training.
Last week Paul Keating announced we would seek to retrain
the unemployed rather than push them through a social trap
door. Under Labor we have more Australian workers. They have more
capital equipment, and are better educated and trained.
What better base for future productivity?
Third, under Labor Australia has been at the forefront of
international trade negotiations, particularly through the
Cairns Group created by the Hawke Government.
Our exporters need a favourable international trading
environment. Labor's role extends beyond these areas, however, to an
active industry and export policy. 5 99
Industry and Export Policy
Since 1983 industry and export policy has focused on
building competitive strength in existing manufacturing
activities; encouraging new technology-based industries of
world standard; increasing the export capability of
industry; working in partnership with companies to extend
trade and investment links in particular world markets;
attracting new investment from overseas sources to
export-based activities; and promoting an export culture
across the country in business, the workforce and young
people. Industry has been set on its most far reaching restructuring
program ever.
Industry wide policy measures have been introduced such as
the research and development tax incentive and Grants for
Industry Research and Development ( GIRD) Scheme; the
National Industry Extension Service's ( NIES's) quality,
management, design and marketing assistance; and measures to
increase the availability of development and venture capital
to industry ( MIC and AIDC).
1988-89 saw the third full year of operations of the
Australia Trade Commission, AUSTRADE, an organisation
established by the Government in 1986 to consolidate export
promotion services into one effective operation. AUSTRADE
is now a commercially driven statutory body led by a Board
comprised mainly of private sector members.
AUSTRADE provides a comprehensive range of international
business consultancy services through a network of 69
offices in 56 countries and a national network;
in Japan, Australia's largest export market, ( exports
to Japan now amount to over $ 11 billion), AUSTRADE has
launched a major export effort in processed foods,
scientific and medical equipment, computer software,
automotive components and pleasure boats;
in the Republic of Korea, ( Australian exports now $ 2.2
billion a rise of 22 percent on 1987-88), AUSTRADE is
focusing on promoting Australian investment
opportunities, joint ventures, industrial collaboration
and export;
in Europe, AUSTRADE is developing strategies to respond
to the rapid economic and political change in Western
and Eastern Europe;
in North America, Australia's second largest export
market for-elaborately transformed manufacture $ 670
million in 1988-89 AUSTRADE is implementing
industry-specific export strategies, including in
industrial, technical and consumer products;
0 0U(
in South East Asia, AUSTRADE is promoting sales of
education services, mining and power systems,
pharmaceuticals, communications, railways -and
agricultural systems.
AUSTRADE-EFIC provides insurance, guarantee and finance
facilities on a commercial basis to support exporters. EFIC
supported exports and investment insurance of more than S5.6
billion in 1988-89, including 12 percent of Australia's
total merchandise exports.
The Export Market Development Grant ( EMDG) scheme supported
over 3500 Australian exporters in the last year alone.
Their contribution to Australia's exports was in excess of
billion.
AUSTRADE is active in assisting Australian companies into
new markets, particularly in Asia, eg. AUSTRADE helped White
Industries to win a $ 500 million coal mining project in
India.
AUSTRADE's international project division also collaborates
with a growing client base in the private sector to provide
international project intelligence and to assist successful
packaging of competitive Australian consortia bids in
offshore projects. AUSTRADE itself is the prime contractor
in eight overseas projects valued at $ 38 million, mainly on
behalf of smaller high technology Australian companies.
AUSTRADE's relationship with business has led to the
formation of a number of AUSTRADE supported private sector
bodies which market Australian technology, goods and
services overseas. These include railway equipment
services, mining systems, agricultural technology, power
generation, education services, and scientific and medical
equipment. A series of industrj based export strategies have been
developed in close collaboration with the private sector.
Thirteen strategies are in place, and an additional eleven
are being developed. Those in train include computer
software, aerospace, education and training, health
services, processed foods; while newly launched strategies
include textiles, information and communication services,
computer hardware.
The AUSTRADE/ DITAC investment promotion program is aiming to
attract overseas investment to increase industrial capacity,
enhance the flow of technology and business skills, and
widen access to foreign markets. In its first year,
1988-89, the program yielded 200 inquiries, and it is hoped
that a significant number will lead to new investment in
Australian export-based activity. 56P) 01.
The Government's DIFF program applies aid funds to assisting
companies to finance large export projects in the region.
Over the past few years, with DIFF support, BHP has designed
and built a $ 50 million cement plant at Shunchang in China;
VTTC supplied over $ 40 million of Australian scientific
equipment to Indonesian universities; and TRANSFIELD is
building steel bridges in Indonesia, involving the supply of
steel and engineering services valued at over $ 300 million.
Industry plans in steel, passenger motor vehicles, heavy
engineering, shipbuilding and textile, clothing and footwear
have exposed our mature, previously highly protected
industries to world competition. This has occurred within a
planned structure which commits employers to substantial new
investment and advanced technologies, and the workforce to
more productive work practices.
Commodity export volumes have increased b~ y over 23 percent
over the past five years. These exports remain vital to our
economy. The Government has reformed the Commonwealth's
Primary Industry Statutory Marketing Authorities to make
them more commercial, flexible and responsive to market
conditions. AUSTRADE has also implemented special marketing
programs, such as the Innovative Agricultural Marketing
Program, to improve marketing performance.
Research arrangements have been reformed and research
funding increased, through Rural Industry Research Funds,
Research and Development Corporations, and the National
Energy Research, Development and Demonstration Program
( NERDDP).
We continue to provide price support measures, albeit at
lower levels in some cases, for the wool industry ( through
the reserve price scheme), the wheat, dairy, apples and
pears and dried vine fruits industries ( through
underwriting), and the citrus, wine, and sugar industries
( through tariffs).
Our commodity-specific initiatives include the progressive
commercialisation of the domestic wheat market, more
market-oriented dairy arrangements, the creation of the
Australian Horticu. ltural Corporation and the implementation
of effective fisheries management arrangements.
Tourism has benefited particularly from Government
attention. The Government has increased funding for overseas promotion
through the Australian Tourist Commission by almost 400
percent from $ 10 million in 1982-83 to $ 37 million in
1989-90. We have substantially improved the available
statistical base through the establishment of the Bureau of
Tourism Research -in September 1987.
G 2
My Government launched the highly successful Paul Hogan
series of television commercials which revolutionised the
promotion of Australia overseas. In co-operation with the
States/ Territories and Industry, we launched a domestic
tourism campaign from 1984-87 to increase awareness of the
importance of tourism and to encourage Australians to
holiday within their own country.
We created the environment for a'dramatic increase in
tourism infrastructure development through an increase in
depreciation rates on buildings for the tourist industry
from 2.5 percent to 4 percent during the period 1984-87, the
easing of FIRE guidelines to allow foreign equity in the
provision of tourism infrastructure, and the organisation of
a tourism investment mission to Japan in November 1987.
We have also provided $ 10 million to the Hunter and
Illawarra regions of New South Wales under the Steel Regions
Assistance Program for the development of tourism
infrastructure projects; restored interlining rights to
Qantas form July 1988; introduced a new approach to
negotiation of air service agreements which ensures all
interests, including tourism interests, are taken into
account; and substantially upgraded infrastructure at major
airports including Sydney, Brisbane and Perth airports.
We introduced an enhanced visa insurance system to reduce
delays and minimise inconvenience to international tourists.
Importantly, we provided over $ 50 million between 1982 and
1988 for capital funding of tourism training facilities in
TAFE Colleges ( 2000 new student places) and $ 70 million per
annum on training placement activities of direct benefit to
the tourism industry through the TAFE system, labour market
programs, CES hospitality placement activity and the skills
training program.
Outcomes The various ' plan' industries have enjoyed spectacular
success. The ' steel plan' has seen an industry that was in crisis
only six years ago become one where BHP is now proudly
proclaiming that their steel output will double by 1992 but
due to the value-added nature of the product, the value in
dollar terms will treble-to more than $ 2 billion.
The shipbuilding industry has revived and is focused on
niche markets overseas. From a zero base in 1984, exports
in train now exceed $ 600 million; over half the industry's
output is destined for world markets. 96 0 3
In the automotive industry almost $ 3 billion of investment
in new plant and technologies for car manufacture is
underway. Exports of components now exceed $ 500 million and
total automotive exports are forecast to rise to $ 1.2
billion per year by 1992. Following a $ 300 million dollar
investment, Ford Australia will soon be exporting Capri
sports cars to the United States.
In TCF, the signs are promising for the establishment of an
increasing range of export-based ventures in wool, hide and
cotton processing. Five new plants for wool and hides
processing commenced last year. Four of these involve
investment of about $ 90 million and will contribute
significantly to export income.
In the information industries, exports have risen from a
very low base of $ 140 million in 1986-87 to exceed $ 700
million in. 1988-89. The strategy has raised exports by the
19 transnationals which signed Partnerships agreements with
the Government involving commitments to R& D, manufacture and
export from Australia. By 1995, exports are targeted to
rise to $ 1.5 billion, a ten fold increase on the base figure
in 1986-87.
The pharmaceuticals industry strategy, introduced in 1987,
will help to raise Australian exports in real terms from
million in 1987-88 to $ 360 million by 1992-93.
Industry wide policy measures are working to lift
productivity and innovation within Australian enterprises.
Private business enterprise research and development
increased by 89 percent in real terms between 1984-85 and
1987-88. NIES has assisted over 3000 small and medium-sized
firms to improve product quality, design, management skills,
and is preparing Australian firms to enter export markets.
The Bureau of Industry Economics report on Manufacturing
Investment released today provides unambiguous evidence that
the investment surge currently underway is assisting in the
restructuring of.. Australian industry and is leading to a
significant capacity expansion. The capacity expansion will
lead to further rapid growth in manufactured exports in the
1990s.
Access Economics' October 1989 survey of investment projects
( each with a value of more than $ 5 million and with a
potential to earn or save foreign exchange) listed 500
projects worth $ 49 billion under construction or committed.
This survey highlights the sharp contrast of the current
investment surge with the last " investment boom" of the
early 1980s. While the earlier boom was dominated by mining
and minerals processing ( particularly aluminium) the current
surge is spread over a wide range of manufactures and
tourist activities.
) 01
Access Economics identify 6 major investment projects either
coming on stream or already. under construction which in a
few years are expected to generate close to $ 5 billion per
annum in foreign exchange.
This is equivalent to about 10 percent of the value of goods
and services exports in 1988-89 ( or in terms of our current
account deficit about 30 percent for the same period).
Importantly, the six projects probably have their main
importing stages behind them.
Ross Garnaut's report on " Australia and the Northeast Asian
Ascerdancy" speculates that, due to the neglect over
previous decades, and after allowing for the trade-reducing
effects of geographic isolation, Australia's exports are at
least $ 20 billion less than we should expect.
He then identifies, simply through the North East Asian
market, how the deficiency could be filled: exports of.
semi-processed materials could generate half the
' deficiency', tourism exports one-third, and exports of
education services one-tenth.
Future Labor Export Strategy
Boosting Australia's exports requires an integrated approach
largely directed to general scene-setting, but also
including more specific effort aimed at broad sectors of
great promise ( eg. such as those identified by Garnaut).
The Government's macroeconomic policy will provide known and
affordable wages outcomes, a continued contribution Qf the
public sector to national savings, superannuation policies
to boost private savings, with these public and private
savings allowing further, investment, and therefore lower
weight on monetary policy than would otherwise be the case.
Last week I listed ten priority areas of micro reform to be
pursued throughout my fourth term.
My recent Asia Pacific Economic Co-operation initiative is
one of many we have taken to benefit from our location in
the world's fastest growing region. The Garnaut report
suggested many ways our foreign affairs and international
trade efforts can be directed to co-ordinated pursuit of our
trade objectives.
Because of the significance of our services exports we have
the ambitious objective in the Uruguay Round of the GATT
trade negotiations of securing a new area of agreement for
international trade liberalisation. We know such agreements
are possible because of our rewarding experience under the
Closer Economic Relations Services Protocol with New
Zealand. I-060
in the Uruguay Round we are seeking a much more liberal
trading environment f or our agricultural producers, an
agreement whose principles will cover all traded services
and strong rules on non-discrimination, national treatment,
and transparency of rules and regulations.
Export Promotion
The EMDG Scheme will remain in place until 1995. Following
the Hughes Report, a number of changes will be made to the
scheme to increase its effectiveness and a new export
development fund will be created to support innovative
export projects.
The new, discretionary scheme for export market development
will be implemented from July 1990 running for four years.
It will be funded at $ 15 million in the f irst year and
million in the second and third years. It will support
established exporters to enter new markets and launch new
products; encourage collaboration and the development of
critical mass by smaller companies with export potential;
and support the efforts of industry associations and groups
to promote exports.
Over the next three years, the S55 million to be allocated
to this scheme by a private sector Board should support
significant new export development efforts by two hundred or
more Australian firms with the greatest potential to
increase exports.
The Exports Market Developments Grants Scheme ( EMDGS) is to
be revised and extended for a further five years, effective
from 1 July 1990. The key changes to the EMDGS are:
the maximum grant will be increased from $ 200,000 to
$ 250,000 and the export ceiling from $ 20 million to
million; the grant rate will be reduced from 70 percent to
percent of eligible expenditure;
the number of incentive payments will be limited to
eight: however, firms that have received eight
incentive payments under the EMDGS will not be excluded
from participating in the new discretionary scheme;
a new category of claimaists Approved Trading Bodies
will be introduced to encourage smaller companies to
collaborate among themselves and with larger companies;
the minimum expenditure threshold is to be increased
from $ 10,000 to $ 30,000, with expenditure after the
first $ 15,000 being eligible for reimbursement under
the Scheme;
the range of eligible services will be expanded to
include health services provided in Australia; film
making, recording and similar services carried out in
Australia on behalf of overseas clients; legal
services; and
the cost of attending education courses in exporting
will be allowed as eligible expenditure.
Industry wide measures will of course continue for the
fourth term. The National Industry Extention Scheme ( NIES)
will be maintained in real terms'through until 1995. Grants
for Industry Research and Development ( GIRD) will remain in
place through to 1995: the discretionary grants scheme
( GIRD) will be expanded to include services and. market
research. Generic technology areas under GIRD in future
will encompass waste management and environmental
management. The research and development tax incentive will operate
through until 1995. The current MIC program will continue
until mid 1991, prior to which a review of the scheme will
decide the future mode of Government assistance to increase
the availability of venture capital. The AIDC will continue
to provide development capital to Australian enterprises
which can profitably compete with imports or deliver
substantial increases in export capability.
Finally, the National Procurement Development Program ( NPDP)
will continue, with an expanded capacity to assist
innovative Australian companies to develop and test
strategic information technology products.
There will also be further expansion of our capabilities in
those strategic technology-based industries, such as the
information, communication, medical and scientific
equipment, and pharmaceuticals industries, where we can
build a significant export base in Australia, especially for
the Asia Pacific region. This will mainly occur through
AUSTRADE marketing strategies and industry development
strategies. Tourism As already stated, tourism promotion has been a major
priority for Labor. On top of previous efforts, last year I
announced new measures to promote tourism. An extra $ 31.25
million in 1989-90 was provided to promote both
international tourism, and to promote Australia as a holiday
venue for Australians.
In response to strong representations from the industry,
inbound tourist operators will in future be eligible for
EMDG grants. 15607
Other Services
In addition, EMDG will also be extended to cover health and
legal services and intellectual property rights.
AUSTRADE has identified health services as an industry with
potential to be a major foreign exchange earner with
earnings of $ 150 million per annum expected by 1991-92.
The legal services sector had total exports in 1987-88 of
$ 58 million. A recent study jointly commissioned by
AUSTRADE and the Law Council of Australia suggests that the
current figure may be in the order of $ 100 million per
annum. This outlook is hardly surprising given the
international opportunities for our legal services sector
particularly in the Asia Pacific region.
We are actively promoting Australia as an % international
centre for commercial arbitration and dispute settlement
where alternatives are wanted to the normal court processes.
We are also promoting our legal services, by involvement in
international fora such as UNCITRAL. We ensure by this that
Australian professionals and business people have access to
developing international standards and develop the expertise
that can be drawn upon anywhere. We are at the same time
also reducing transaction costs for exporters and importers,
by promoting uniformity in international commercial law.
Telecommunications exports already are significant at $ 400
million ( in 1987-88).
OTC and Telecom are leading the way into substantial markets
offshore. OTC International, Australia's worldwide
communications company, has won major contracts in Vietnam,
Sri Lanka and elsewhere in the region, and is developing a
vast Pacific Area Telecommunications ( PACT) network.
Telecom's international arm has benefited from the
Government's decision to enable Telecom to compete in world
markets and is cr~ ating new export opportunities for Telecom
and importantly, for other Australian high-tech companies.
So far, Telecom has won 150 contracts in 30 countries,
including an $ 86 million contract to manage Saudi Arabia's
telecommunications network.
Total foreign exchange earnings from the education and
training sector are expected to reach $ 400 million in the
1989 academic year an increase of almost 70 percent on the
previous year.
In 1986 the Government responded to growing demand from
overseas students -for Australian education courses by
introducing the full-fee overseas student program.
Revenue earned from fees is retained by institutions to meet
all costs incurred by overseas students, and any surplus is
used to expand facilities which benefit both Australian and
overseas students.
In recognition of the demand for Australian education
services from Asia and the Pacific, the Government is to
establish, under contract, Australian Education Centres in
11 countries in the region.
To ensure that Australia maintains its reptutation for
quality education, a national code of conduct for the
provision of Australian education services has been adopted
by institutions and organisations involved with overseas
students. Of course the Government is aware there are obstacles to
continued growth in these sectors. Late last year my
Government received an IAC Report on International Trade in
Services. We will be responding fully to the detailed
recommendations of this report this year. My Government has
already responded, in part, to the report by sending new
references to the new Industry Commission on export of
education and health services.
Commodities and Raw Material Processing
General macroeconomic and microeconomic as well as trade
policy are most important for promotion of our commodity and
raw material processing exports.*
Garnaut has emphasised particularly improved efficiency in
electricity generation and coastal shipping, and clear
environmental standards as important for improved exports of
processed raw materials. My fourth term micro agenda
highlights the first two items. While an appropriate
balance is not straightforward, I have already stated that
clear environmental gUidelines will be provided across most
sectors over the next year.
My Government has actively pursued strategies in many areas
of processed raw materials, usually tapping expertise from a
wide variety of sources, especially in industry.
For example, reports in four areas of raw material
processing wool processing, skins and hides, fish and
minerals identify areas for action by the industry ( eg. a
co-ordinated marketing effort in the fishing industry) and
for government ( eg. training, transport costs). They have
led to a range of continuing activity, such as AUSTRADE's
Investment Promotion Program for value added in hides,
skins, wool and cotton and information programs to match
Australian firms with interested overseas firms; AIDC's $ 27
million which is available for equity involvement in further
processing of wool, cotton, skins and hides; and the Basic
Metals Industry Council's " Action Plan" aimed at zinc and
titanium oxide. ti
Industry and Government assessments suggest that Australia
could increase value added exports of wool, cotton, skins
and hides from $ 1.7 billion currently ( 1988-89) to
billion by the late 1990s.
Substantial investments to lift capacity and export
capability are underway in wool, hide and food processing,
and rare earths developments are being piloted at several
locations. Our strategy for the fourth term will comprise, first,
development of sector specific marketing plans through
AUSTRADE working in conjunction with industry.
Second, the attraction of domestic and overseas investment
into export-based development by working with companies and
industry organisations.
Third, continuing the agenda set for the Industry Commission
and the Resource Assessment Commission in examining key
factors affecting the business climate for raw material
processing ( eg. a reference on energy generation and
distribution as already mentioned, and references on raw
material pricing and forestry) and establishing new
references as warranted.
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