I am delighted to join you for the opening up of a new era in the history of AXA, or for those of us who have been around long enough - the old National Mutual, whose history reaches back to 1869.
I am especially pleased to open this building - because it is not just as the headquarters for AXA's Australian and New Zealand operations, but it's the headquarters for financial services operations extending to Hong Kong, China, India, Malaysia, Indonesia, Thailand, the Philippines and Singapore.
I congratulate AXA for the growing strength of your offshore financial services business.
I note particularly the extraordinary growth you are enjoying in India, with 94 branches in 83 cities, and 24,000 AXA agents - all achieved in just two years.
AXA's longstanding and fast-growing presence in Asia demonstrates a theme close to the heart of the Government's vision for our economic future:
The Government's vision for Australia's future is to build a stronger, fairer Australia - capable of meeting the challenges of the future.
Challenges like building long term productivity, preparing for an ageing population, taking decisive action on climate change, engaging fully with the dynamic economies of the Asia-Pacific region.
Part of engaging with the economies of Asia is expanding our reach into the financial services markets of Asia - because financial services is one of the fastest growing sectors of the global economy, and the global economy's strongest growth is being achieved in our own region.
As we know, the past 12 months have brought volatility and continuing uncertainty to global capital markets.
Because of the state of the global economy, like other nations Australia faces tough times ahead.
Australia has an open economy, deeply integrated with global markets - especially through our strong financial linkages.
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For the most part, that brings great benefits and great opportunities.
But we are not immune from global developments when global conditions become more hostile.
Nevertheless, Australia is well-placed to see our way through these difficult challenges.
The Government is committed to building a stronger Australia, through responsible economic management that helps to put downward pressure on interest rates.
We have a major economic reform agenda to strengthen our long term competitiveness and build a seamless national economy - with a highly skilled workforce, advanced infrastructure, competitive markets and more efficient regulation - all of which will underpin the competitiveness of the financial services sector.
And we are committed to investing in the industries of the future - industries like financial services.
As a financial centre, we are well placed despite the uncertainty in global markets.
First, we have a strong, well regulated banking sector.
Second, our banks' balance sheets are still strong compared against comparable global counterparts.
From day one, the Government has encouraged banks to disclose their positions and address any problems - this is part of the proper, transparent functioning of the financial system.
Third, in general, our corporate balance sheets are strong.
Fourth, in addition to a well-regulated financial sector, we have built a strong budget surplus - one of the largest surpluses in almost a decade - as a buffer to help withstand the challenges now unfolding.
Fifth, we have taken steps to strength Australia's financial markets. We have moved to expand the issuance of Commonwealth Government Securities by up to $25 billion, to support an efficient bond market and reduce its vulnerability to adverse shocks.
Sixth, the Treasurer, the Governor of the Reserve Bank and I have all been working through international forums - such as the Financial Stability Forum and the IMF - on the crucial issues of liquidity and transparency in the global financial system.
All of this should help Australia to come out the other side of these challenges in a strong position compared with other economies.
As AXA has recognised, there are enormous long term opportunities for Australia's financial services sector in our region.
Those future prospects are driven by strong long term economic and demographic trends in our region:
* the rapidly increasing flows of capital;
* the growing middle classes throughout Asia, with their propensity to save, and
* ageing populations and the growth in assets under management.
At a global level, financial services present us with great opportunities:
* Worldwide, financial services exports are worth more than $150 billion per year.
* Global trade in financial services has been growing faster than in any other services sector, at an average annual rate of 17 per cent this decade.
* The sophistication and innovation in Australia's financial sector provides us with significant opportunities in global markets - in particular, with the world's fourth largest funds management industry, with $1.1 trillion US dollars in funds under management. AXA is of course a very significant player in this market, with more than $95 billion in funds under management, $20 billion on which is outside Australia.
The Government is committed to supporting businesses like AXA Asia Pacific as they move into regional financial markets and build our position as a financial services hub.
That is why we held the Financial Services Hub Summit in Sydney at the end of last month.
The Summit's purpose was to get the best ideas on the table from all the key stakeholders, so that there is nothing holding this sector back from success in the markets of our region.
A range of priorities were identified at the summit - including taxation, workforce skills and regulation.
We heard concerns about the overlap of Commonwealth and State taxes, where businesses face some 53 different Commonwealth, state and local taxes.
The Government has already begun examining some of the matters identified by industry, as part of the Board of Taxation's review into the tax arrangements that apply to managed funds. The Government has also consulted with industry on Australia's future tax treaty program.
Of course in the Government's recent Budget, we have announced a phasing down of the withholding tax on distributions from foreign funds under management, from 30 per cent to 7.5 per cent by 2010-11.
More broadly, the Henry Commission is conducting a wide-ranging review of the Australian tax system, and the Government is referring a number of the tax issues raised at the Summit to this Review.
The Summit also focused on niche areas of financial services where Australia has particular opportunities offshore, including superannuation.
There was constructive discussion on the workforce training and immigration policies relevant to the sector in Australia.
And there was a push for a permanent Olympic bid style Committee, to help the liaison between Government and industry to drive the push into regional financial services markets.
As I announced at the Summit, a dedicated unit is being established in the Treasury to drive the review and implementation of policy for the financial services sector, under the oversight of the FSAC.
In the meantime, the Government will continue to work with the sector to open up greater access to overseas markets for financial services, which are often subject to significant barriers to entry.
That is why I have hosted financial services industry lunches in my overseas trips to the United States, China and Japan.
I am pleased that we have already achieved some results.
* Just over a month ago, Australia secured approval as an investment destination under the Chinese Qualified Domestic Institutional Investor Scheme. This will open opportunities for Chinese banks to offer investment opportunities in Australia - providing access to one of fastest growing markets for funds management in the world.
* During my visit to China in April, China's leaders and I agreed to accelerate our FTA negotiations. We also agreed that increased access to China's financial services sector was a priority for Australia.
* In subsequent meetings our officials have made some progress and we are hopeful that the FTA negotiations will lead to better access to China's market for Australian financial service providers.
* The Government is also actively pursuing improved access to the Hong Kong market (and indirectly to the mainland Chinese market), by pursuing mutual recognition agreements to help lower barriers for Australian funds managers in the Hong Kong market.
* In the US in March earlier this year, I announced with the Chair of the US Securities and Exchange Commission (SEC) Chris Cox that we would work together to develop mutual recognition of securities regulation.
* And in June, we brought into force an agreement for mutual recognition of securities offerings between Australia and New Zealand.
We want to work with business like AXA to identify the barriers to overseas market access that most restrict your capacity to expand our financial services exports.
And as I said at the Summit two weeks ago, if it will assist our efforts to expand the sector's global opportunities, I would be prepared to lead a delegation of senior industry leaders to key Asian economies, to showcase the strengths and sophistication of Australia's financial services sector.
Across this range of key initiatives in tax, deregulation, education, infrastructure and overseas market access - the Government is serious about making Australia competitive as a global financial services provider.
So that when a business like AXA enters overseas markets, you know the Australian Government is a partner in your efforts to win new business opportunities that will help create future jobs in buildings like this one, and prosperity for all Australians.
Congratulations to all of the staff of AXA and to Rick Allert and his board for your efforts in creating an Australian footprint in the financial markets of the region.
Financial services are a key element of Australia's economic future - and I look forward to this sector becoming part of Australia's global branding.
I hope this outstanding building can itself be a hub for a business that continues to thrive.
And in time, I hope you can outgrow it too.
I am delighted to declare AXA Asia Pacific Holding's new headquarters open for business.