PRODUCTIVE DIVERSITY IN BUSINESS CONFERENCE
MELBOURNE, 28 OCTOBER 1992
Ladies and gentlemen
I welcome you to this conference on Productive Diversity.
It is a timely and important event which may well be seen
as a turning point in the way we regard multicultural
Australia. in the past decade and a half Australia's policies of
cultural pluralism have been among the most innovative
and creative in the world. They have also been the
hallmark of a decent and far-sighted society.
In a world very often afflicted by ethnic and cultural
tension, bitterness and bloodshed, Australia stands among
those few countries which actually relish their
diversity. under the umbrella of an overall commitment to the nation
and its uniting values and institutions, a society of
great richness and variety and remarkable harmony has
evolved here.
It has been In part the product of policy, and in part, I
think, the product of democratic and egalitarian values
which have always run deep in Australia.
This is something of which Australians can be very proud.
it should give us confidence.
If this conference should mark a turning point it will
not be in the nature of a break with the past, but rather
a Significant Change of emphasis.
It is a matter of building on achievements and creating a
new multicultural agenda.-
There have been three distinct phases In Australia's
post-war response to its immigrants.
The first phase was characterised by an expectation that
immigrants would fit into the dominant Anglo-Australian
culture. The second was characterised by the encouragement of
tolerance and respect for diversity, and the effort to
ensure access and equity regardless of ethnic origin,
And this effort will continue.
But we now have the beginnings of a third phase.
We now nmust take advantage of the potentially huge
national economic asset which multiculturalism
represents. That is what Productive Diversity is about. It is the
harvest on the crop sown and nurtured by our immigration
and multicultural policies.
The inspiration for this Conference is the perception
that two things must be brought together:*
the need for a still more competitive and
d4vereified economy with a strong export base and
the cultural affinities Australians have with
virtually all the countries with whom we want to do
business.
These affinities might be likened to having
representatives in the field who, through their
understanding of our customers' culture, language and
preferences, can increase our competitive edge.
To give you some examples:
At a time when the prospect is for increased
economic opportunities in Vietnam we have in this
country sixty thousand speakers of Vietnamese.
At a time when the triangle of southern China, Hong
Kong and Taiwan is achieving staggering economic
growth rates, we have in this country one hundred
and seventy two thousand Australians to whom the
Chinese culture and language are a given, not
something which needs to be learned.
At a time when Australian industry aspires to pick
up contracts in Eastern Europe and the Middle East,
we have in this country eighty two thousand
Australians whose origins were there.
And we have a market in Australia whose diversity is
a virtual microcosm of the world into which we
trade.
The inspiration for this Conference is the realisation
that we must as a nation find ways to capitalise on these
assets.
How can we use our diverse cultural knowledge and
language skills to penetrate overseas markets and boost
Australian exports?
How can companies reach Australia's diverse domestic
markets and increase profits at home?
How can we better manage the diversity of Australian
workplaces and improve our productivity?
Australia is a country of extraordinary achievements and
equally extraordinary potential.
In no small measure, this is because we are a country of
immigrants. It takes imagination, ambition and courage to emigrate to
a new land.
And in my view, it is precisely these qualities that have
contributed to our past achievements, and will enable us
to use our potential to the full In the future.
During my recent visit to Asia, I stressed our country's
capacity and willingness to change.
I said there, as I have said in various forums in
Australia the proof of our capacity to change is in the
change we have already made.
We now see ourselves very differently, and we are
starting to be seen differently by others.
And we are different.
Australia has opened up, both culturally and
economically. We have realised that our future depends on making
ourselves relevant to the rest of the world, and
especially relevant to the most dynamic region of the
world which sits at our front door the Asia-Pacific.
If only to take advantage of this great opportunity, the
development of an export culture is a national priority
for Australia.
The change is already well underway.
Australian export earnings have reached record levels,
despite subdued world trading conditions and depressed
commodity prices.
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Our export volumes have risen strongly in the nine
m~ onths ended March 1992 they were over 10 per cent above
year earlier levels.
The extent to which our economy relies on trade has risen
by around 50 per cent since the early 1980s exports now
account for over one fifth of our total output.
There are various steps we must take to build on this
success.
We need a more informed and aggressive national attitude
to exporting.
We must better educate and train our workforce.
And, most critically perhaps, we must use all the
resources at our disposal one of which is our cultural
and linguistic diversity.
Changes in our markets tell us this.
In the 1950s, only one quarter of our exports were sold
to non-English speaking countries. Today, over three
quarters of our trade is with non-English speaking
countries. Moreover, our fastest growing major markets over the past
four years have all been in non-English speaking
countries principally, but by no means only, in Asia.
In the next decade income levels in Asia will rise
dramatically. The potential market for Australians goods
will grow in direct proportion.
The challenge for Australian business is to develop
export and international business plans that take account
of these new markets.
We are dealing with countries which are very different.
But they are not " foreign" to all Australians.
Indeed, for every country which constitutes a potential
market for Australian companies, there are Australians
who know their way around.
The key to gaining better access to all markets is
knowledge knowledge of their cultures and languages, of
their business practices and networks, and of their
political and legal systems.
in an address to the National Conference on Arabic last
year, the Deputy Director of the National Farmers'
Federation, Mr Phillip Eliason, pointed out that we do
not necessarily enjoy a great advantage because we speak
the language of international business.
TEL:
Advantage often lies, he said, with the country or
language group whose communications are difficult to
penetrate. Our-Asian Australian communities, through their own
small-business networks, are making considerable progress
in opening up new avenues of trade and consolidating
commercial links with all parts of the Asia-Pacific
region. A recent study of Australian entrepreneurs from Chinese
and Indian backgrounds has shown how personal networks
are crucial in building export markets.
This is not confined to Asia.
The Middle East is a significant export market for
Australia. It has also been a significant source of
migrants. The same applies to Eastern Europe, as well as the
traditional markets of Western Europe.
Today, well over 20 per cent of Australians were born in
another country. Mure than half of them came to
Australia from non-English speaking countries In Europe,
the middle East, Asia and South America.
Combined with their Australian-born children, they
constitute 40 per cent of our population.
Such diversity in human resources Is rare by any
standards.
The advantages of such diversity are not confined to
" ethnic" businesses. All Australi~ an businesses have easy
access to it. All Australian businesses can profit from
this specialised knowledge.
Australian firms can draw upon the wealth of language and
cultural skills that resides in their own workforce, or
they can draw upon them by forging partnerships between
" mainstream" and " ethnic" businesses.
The Government, through the Office of MultIcultural
Affgair shas been piloting and exploring 8 number of
initiatives which illustrate these possibilities.
For example: In conjunction with New South Wales TAFE, a pilot
program to train exporters of primary products in
selling to Asian and MIddle-Eastern countries.
A proposal to create from ethnic chambers of
commerce and other agencies a supportive national
network for small and medium sized businesses.
A pilot program to place overseas-trained
professionals into Australian businesses.
Sponsoring a consultancy group which provides
cultural, linguistic and market expertise to
companies.
The opportunities go beyond exports. They concern
productivity and efficiency.
A study of migrant skills undertaken I-n 1989 showed that
some Australian employers fail to understand or discount
the value of training acquired overseas.
It fur Lher showed that employers tend to perceive
immigrants from non-English speaking backgrounds as
identical, whether or not they have skills.
Through the National office of Overseas Skills
RecQnition, the Government 18 attempting to stem this
waste of talent.
of course, there is a significant issue of 800181 justice
involved here, as well.
But rational self-interest alone dictates that we try to
liberate resources locked away.
And, in the interests of both fairness and economic
efficiency, the Government is taking further measures to
assist those job seekers whose lack of functional English
is impeding their employment prospects.
As part of the Employment Package, an additional
million has been allocated over the next three years so
that all registered job seekers without functional
English can be referred to English as Second Language
classes. This will assist approximately 48,000 job
seekers.
Central to the Government's micro-economic reform agenda
and to our national prosperity is the determination
to revolutionise vocational training based on key
competencies. Australians from Non English Speaking Backgrounds and the
value of the languages they speak cannot be ignored in
this process.
This conference will hear of work to identify and
document the practical methods some companies have
employed to make the most of competencies in languages
other than English, or to work around language barriers,
or to communicate cross-culturally.
It is not just the opening up of overseas markets that
can enhance our economic future. There are also markets
on the home front.
Ethnic niche markets in suburbs where 70 per cent of the
population speak languages other than English at home.
The National Australia Ban-k has put in special efforts to
reach ethnic niche markets.
Indeed NAB has sponsored an ethnic small business award
scheme and I look forward to speaking to the award
cer-emony tonight in Sydney, via satellite.
Telecom Australia, for example, recently commissioned a
study of the needs of Its clients from non-English
speaking backgrounds.
The study will also identify any cultural or linguistic
barriers to telephone use among this client group.
Telecom already advertises on SBS television, and I
believe that the motivation for this study combines two
aspects of the Government's multicultural policies
social justice and economic growth.
In fact the Government has itself seen the need to
understand its domestic market better. Through the
Office of Multicultural Affairs we've set up a network of
more than 600 people who are experts in communicating
with ethnic communities and groups.
The network was developed in response to the Government's
need to identify the views of individuals or groups when
planning policies and services.
It acts as a channel for the views of those Australians
who for reasons of language, culture or geography have
been overlooked in the past.
Tonight I am pleased to announce that, subject to
ensuring that the public interest is not compromised in
any particular case, this network will be made available
to the business sector on a commercial basis to test
products, services and advertising for local niche
markets and potential excport markets.
Managing a culturally diverse workforce may not be
perceived as a challenge by managers and business owners,
many of whom think that their workforce is able to speakc
and communicate adequately in English.
But a number of studies have shown that there are
producL. Lvity costs in not paying attention to
communication issues, And some companies have seen that
it is shrewd to invest in English language training
themselves.
We are also exploring the option of contributing, along
with business and community partners, to a scholarship
scheme for Australians with language and cultural skills
to develop international management and marketing skills
at the University of Sydney Graduate School of Business.
This would complement Austrade's existing business
fellowship scheme for Asia.
I said before that the Government itself is not exempt
from the need to make better use of Australia's
multicultural skills.
We need to ensure that; key agencies providing economic
and trade advice and support to business the Department
of Industry, Trade and Commerce, the department of
Foreign Affairs and Trade, as well as Austrade also tap
into these skills.
On the face of it, the evidence suggests that Government
could do better. for the public service is
dispropoxrtionately of English-speaking background.
So as another practical step, I'm asking the Public
Service Commission and relevant agency heads to look
closely at what special efforts can be made to ensure
that we recruit people from culturally diverse
backgrounds and utilise their particular skills.
We are a nation rich not only in natural resources, but
in human resources as well.
If we are to maximise our potential, to achieve all that
we are capable of achieving, we need to harness these
resources. In doing so, we will achieve our twin aims of economic
development and social justice for all Australians.
Tomorrow, the conference will focus on how we can best
use the local knowledge and language skills of our
diverse worktorce to penetrate foreign markets, how
companies can lift their profits by tapping domestic
niche markets, and how we can exploit our manifold
workplace skills to lift productivity.
you will be exchanging ideas and, I hope, developing
strategies which will do much to guarantee our economic
place in the world and, with it, growth and prosperity.
Lodies and gentlemen
I am very confident about the future of Australia, and
one of the principal reasons for my confidence is our
proven capacity in recent years to adapt and meet new
challenges.
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This is a very determined generation of Australians. It
is also a very worldly and knowledgeable one.
This conference is a means of ensuring that for
Australia's sake and for theirs we do not waste their
ambition and skills.
It is, itself, another reason for confidence in our
future.
Whatever you come up with whatever you say I can
assure you, I'll be listening.
I congratulate CEDA, the Office of Multicultural Affairs,
and all those who have contributed to this very important
conference and I wish you well.
Thank you.