E&OE...........
Thank you very much Ambassador for your very kind remarks. The Honourable Antonio Marzano, Minister for Productive Activities, Senator Lamberto Dini, the Vice-President of the Senate and former Foreign Minister who I recall visited my country not so long ago, Professor Valori, the Chairman of the Rome Union of Industrialists, Dr Marzotto, the President of the Italian-Australian Business Council, and Sir James Gobbo, Patron of the Global Foundation.
May I say how delighted I am as the leader of a free enterprise Government that a central part of my visit to Rome is this gathering which brings together business leaders of our two countries.
The human and family links between Australia and Italy are very deep and emotionally felt. The contribution of Australians of Italian heritage to the building of the modern Australia is something that Italians all around the world should be immensely proud of. And as Prime Minister of the modern Australia, can I say that those of your fellow countrymen and women who made their way to our country over the years have made a massive and never to be forgotten contribution to the building of our country.
For that reason alone, a visit by an Australian Prime Minister to Italy is important and very necessary. But in addition I want to speak of the economic links and even more importantly, the economic future of our two countries.
I hope with no sense of complacency, because none is intended, I can say to you today that the Australian economy is performing as well as I can remember in my lifetime, probably better. And our rate of growth is probably the best in the industrialised world. This economic growth is no accident. It is the product of 15 years or more of sustained economic reform and contributions have been made to that economic reform by both sides of Australian politics.
Those reforms have included almost total deregulation of Australia';s financial system which was completed in the early 1980s, major reductions in the level of tariff protection so that the Australian economy is now one of the most open in the world, the total or near total restructuring of Australia';s taxation system, a very difficult reform that was carried out some two years ago, major industrial relations reform and very importantly, the conversion of a very large Budget deficit into a significant Budget surplus.
The result of the last mentioned change in relation to the Budget surplus is that over the last six and a half years we have paid off about 57 billion Australian dollars of Federal Government debt. And our Government debt to GDP ratio is only 4.6% against an average of the OECD area of something like 35%.
Australia is now an aggressive, diverse exporter. We see ourselves as a country not only seeking direct foreign investment, but also a country which is now in the business of large direct foreign investment itself. And in the room today are examples of Australian and Italian companies which have practised that.
Over the last 12 months in fact Australia has sent more direct foreign investment from her shores than we have received from other countries. We see our economic future as being tied up with all of the major economic centres of the world. We have in Japan our best customer. We';re also a major exporter to countries such as Korea. But in terms of an overall economic partnership, our relationship with the European Union and the individual countries of the Union is of equal importance.
We also have a major economic partnership with the United States and the Americans are still the largest single source of foreign investment in Australia, although the direct foreign investment from the United Kingdom and other European countries follows it as a close second.
I don';t know whether I should say this before an Italian audience, but although Japan is our best customer, I should inform you that our largest export to the United Kingdom is now Australian wine, it having replaced the old reliance on dairy products which of course disappeared with the entry of the United Kingdom into the common market.
It is therefore a good economic story that I with every conviction bring to you today. But I don';t say that in any sense of complacency. And if I have learnt anything and my Government has learnt anything from the experience of the past few years, it is one simple fact and that is that the task of economic reform and change is never completed.
Australia needs more economic reform. We are embarked at present in an assessment of the international aspects of our taxation system to ensure that they adequately promote our aims. We have embarked upon an important examination of the operation of our tertiary education institutions, which are so very important to the educational and economic future of our country. We are also embarked upon an examination of the adequacy of our competition laws and importantly, my Government is advocating and pressing for further reform of our industrial relations system.
We think Australia needs more economic reform. We also respectfully believe that the industrialised world as a group needs to pursue further economic reform including importantly reform of the world trading system. I welcome indications that are emerging of a willingness of the European Union to examine some aspects of the operation of the Common Agricultural Policy. It is important that the next World Trade Organisation series of negotiations not fail as the Seattle meeting so abysmally failed a few years ago. It will be necessary for both the United States and the European Union as well as other large nations such as Japan to contribute together towards ensuring the next round is successful.
There is every reason ladies and gentlemen to believe that the economic relationship between Australia and Italy can be expanded in just about every field of investment and business activity. We start from the very sound base of warm relations between our two countries, the Australian experience over decades of highly successful, profitable Italian companies investing in Australia and increasingly the same experience in the opposite direction. [inaudible] me and I know those of my Australian colleagues who have come here today, we can build further on that very sound foundation.
And as I look around the room, I think of the diversity of that relationship. The resource sector, airport ownership, financial houses, airlines, so the list goes on. And when I reflect on the economic development of Australia from the 1950s onwards, just about every area of that activity has involved at some point the commitment and investment of the funds of Italian enterprise.
Ladies and gentlemen, can I finally say to you that I am a very passionate believer in the benefits of globalisation. If you look at the balance sheet over the past 20 or 30 years, you can find examples of previously very poorly developed countries but whose condition has been transformed by them opening up their economies and thereby obtaining the benefits of globalisation.
But I think it is fair to say that globalisation enjoys a bad press. And that is not meant to be a criticism of journalists. I think it is a recognition though that sometimes Governments and businessmen are not as good as they should be at explaining and selling and communicating the benefits of globalisation.
I often think of the Korean example – 30 or 40 years ago that country';s major export was wigs. You would hardly think of that as an export or feature of the Korean economy of the year 2002. And it is a very good example of what the benefits of greater openness and globalisation have brought to a previously poorly developed country.
But this is a joint responsibility for business and Government. It is an issue that I will naturally, amongst other things, talk to the Italian Prime Minister Mr Berlusconi about when I meet him tomorrow.
I finally say again how very happy I am on a personal note to be in this beautiful city and to have the opportunity of reaffirming to all of my Italian friends here today the immense warmth and affection that all Australians feel for Italians and for your wonderful society.
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