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PIMiE MINIST-R.
FOR PRESS. 19 FEBRUARY, 1979
" EXPORT NOW" CAMPAIGN
It's a great pleasure to address this conference and to
launch the " Export Now" Campaign.
Some people might say that the first thing we should export
are our politicians. But in all fairness I must warn you that
such action would be viewed by our trading partners as an
act of war and in breach of the international conventions
against cruel and inhuman weapons. Nevertheless, we must
export our goods and services for it's largely by selling
what we have that we can get what we want.
What we all want for Australia is economic growth, rising
living standards, and greater employment opportunities.
This national export campaign concerns all Australians,
so it is fitting that there are representatives of all
sections of our nation here today. Your presence here is
clear evidence of a determination to help Australia
" lext ort now". Your leadership is crucial to the success
of campaign.
In t~ ne 1960' s we had the highly successful " Export Action"
campaign and now, as then, we rely on export earnings to
pay for our imports and keep the Australian dollar strong.
Now, as then, we rely on exports to develop our industries
and emplo y more Australians. Now, as then, the need
for exports is compelling, but Australia has changed
enormously over the last 20 years.
Just look at our language twenty years ago " to be
busted" meant you were out of money; " to be a swinger"
meant that you liked jazz and " to be gay" was simply a
mood. Australian exports have also changed dramatically.
In 1952/ 53 our major'exports comprised 5 percent manufactures,
7 percent minerals, and 83 percent farm products. By last
year those proportions had been transformed to 21 percent
manufactures, 31 percent minerals and farm products were
only 43 percent although we're hoping that this will be
up a bit this year.
The markets in which Australia trades have also changed. our
traditional market was the United Kingdom. In 1953 more than
one third of our exports went there and there were only a
dozen countries to which Australia exported more than
million worth of goods. Today, the U. K. takes barely / 2
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four percent of our exports; 64 countries take more
than $ 10 million worth of our exports; and 22 countries
take over $ 100 million. It is now Japan that takes
a third of our products. China is now our fourth largest
export market.
ASEAN is now a major customer our exports to ASEAN
countries have risen 260 percent from $ 329 million in
1971/ 72 to $ 853 million in 1977/ 78. And, in turn, even
in the sensitive areas such as footwear, textiles and
clothing, we are a large importer of ASEAN products.
If the United States, the E. E. C. and Japan took the same
per capita quantity of these items from ASEAN as we do,
ASEAN would be selling $ 1,000 million more.
On anyv reasonable comparative basis which must include
embargoes, quantitative restrictionsand subsidies as
well as tariffs we have an open trading policy. While
percent of our exports face significant non-tariff
barriers in some world markets less than 7 percent of
our own imports are subject to non-tariff barriers.
Even in the case of the imports upon which we impose
restraint a considerable part of the Australian market
is available for overseas goods. For example, in the
case of motor vehicles, 20 percent of the Australian market
is available for imported cars although I believe that the.
quality of Australian cars will make it hard for foreign
makes to sell in Australia. But if we consider the position
in Europe despite the advantage their manufacturers have
market access is much more restricted. Furthermore, our
agricultural goods are almost totally excluded from
important world markets like the E. E. C.
A large part of our trading future lies in Asia but to
ignore other markets in Europe would be to compr6mise the
national interest. Europe is one of the world's largest
and most affluent markets. It is important to us. We
object to our efficient producers being unfairly excluded
from many parts of that market. And it is not just a
question of access to Europe.
Australia's sales in other overseas markets are undercut
by European agricultural and wage subsidies which on
some counts run as high as $ 25 billion. We can spend years
developing a market in Asia only to have it taken away from
us by subsidised European products. There is no way that
a country with 14 million can compete with the subsidies
financed by 260 million Europeans. We cannot ignore
European policies it is not just a question of access,
it is also a question of the disruption of other markets in
which we sell. As a trading nation we must be concerned
with Europe and its policies. And as a trading nation we
have to become more competitive. We have to get out and
sell; we have to do better than our competitors; we
have to get a larger share of markets in Australia and overseas.
/ 3
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Australia is a great raw materials exporter but
we cannot be satisfied with that. We have abundant
cheap energy and we want to process more materials.
Together with the States we are examining how this
can be done.
We must diversify our markets overdependence on any one
buyer is not good business sense and it is not good
export sense. We must diversify our exports. Traditionally
Australia has relied on primary industry, minerals and
on some manufactures for its export earnings. Australia
will be stronger if our exports are more diverse.
We must exploit our advantages in abundant resources;
our highly skilled labour force; our management and
productEion talents.
We need to embrace, not reject, the new technology.
By doing so new industries will develop, new products
will be sold, and more people will be employed.
During part of the 1970' s there were reasons why our
manufacturing exports did not increase as fast as we
hoped. Inflation eroded our competitiveness. Costs
in Australia sky-rocketed. Average weekly earnings in Australia
increased by 45 percent over the two years 1972/ 73 to
19741/ 75. The investment allowance was discontinued.
Uncertainty delayed investment decisions. So it was
perhaps understandable that Australian manufacturers
lagged behind in world markets.
But -we are now in a position where Australian industry
can compete. We are more competitive than at any time
during the last seven years. Contracts are being written
for zroducts and in markets that would have seemed beyond
reach only a few years ago. But it is up to Australian
manufacturers and of course our traditional exporters
as well to take full advantage of the opportunities
we have in world markets.
The timing of the " Export Now" campaign is no accident.
It has been made possible by Australia's success in
lowering inflation. Lower inflation creates confidence and
is a vital stimulus for our exporters.
The Government has also introduced a package of measures
to assist exporters, although I cannot think of a better
incentive than having a lower inflation rate than that
in your competitor's country. There is: the expanded
Export Market Development Scheme, which assists exporters
to develop new markets; the Export Expansion Grants Scheme
to encourage exporters to expand their markets; the
Australian Overseas Projects Corporation to assist Australians
with large-scale projects overseas; and the Export Finance
Insurance Corporation which now has an expanded charter to
allow it to provide export credit, and limit some of the
risks of overseas ventures. The recently established $ 50 million
credit line to China is an excellent example of the way in
which E. F. I. C. funds can back Australian exporters entering
new and expanding markets. / 4
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Australia's trading opportunities are vast. One need
only look at the Middle East to see the possibilities
for our exporters of foodstuffs, materials, manufactures,
consultancy services and know-how.
Australia is already capitalising on this new market.
In the five years to 1977/ 78 our exports to the Middle
East grew at an annual rate of 41 percent. That is only
a beginning and the outlook for oil revenues suggests
further massive increases in the wealth of some countries
in this ar-ea.
The opening up of the China market presents further
exciting opportunities for Australian traders.
Our export sales to China have been increasing at
over 40 percent a year. We are a technologically
and industrially developed middle power. We can
contribute to China's modernisation and, because of
our geograpThy, because we are a middle power, we
are better placed than many to take advantage of the
new opoortunities opening in China.
In the region of -the East and South East Asia many countries
are rapidly industrialising and real incomes are growing
at a rat. e faster than more advanced economies.
Singapore, Hong Kong and South Korea are prime examples
all offer excellent prospects for Australian exporters.
India has a real interest in obtaining long term and
reliable supplies of hard coking coal from Australia.
Thelre -is no shortage of opportunities the time has come
for a united effort by all Australians to take
advantage of them.
The success of this campaign is important. It will require
determined, sustained effort, marketing flair, and ability
to perform when contracts are won.
Shortly the three winners of the Governor-General's
award -for export excellence will be announced, but there
are many more organisations which have achieved notable
export successes. A Melbourne-based company has won a
multi-million dollar contract to supply and erect a number
of motel units in China complete with cars! Wormald
International sold the Chinese a fire protection system
for a power station.
We have companies exporting plastic kitchenware to Japan,
door knobs to the United States that should open some
other markets, concrete pipe making technology to the
visual education equipment to Africa and
South America, Analog computers to many countries, and
fishing boats, quarrying and mining equipment to
South East Asia. Many other examples could be given of
Australian companies some even labour intensive
exporting effectively.
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"'" These " export experts" have shown the enterprise that
Australia needs. There is a world of opportunity awaiting
them and companies like them and the Government has shown
its determination to provide the backing to support
their efforts.
It is vital for Australia that our companies make
export part of a long term strategy for growth. A strong
and growing export sector is a prerequisite to a strong
and growing Australia. It deserves the highest rating
in our priorities.
It is through our own efforts that we will be able to
export more and create more jobs. To achieve export
growthi we need to act now we must " export now".
Ladies and gentlemen, I have great pleasure in opening
this conference and launching the " Export Now" campaign.
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