Mr MITCHELL - 1998-02-18
With the important part played by the South-East Asian nations in Australian economic activity, particularly in the Northern Territory, what are the details of any specific moves the Territory may make to help improve circumstances to our north and any steps which may be taken, given the current financial situation, to maintain the healthy trading activity that has grown so much in recent years?
ANSWER
Madam Speaker, the currency crisis is of great concern to us all. I must stress that the Northern Territory is always looking for ways in which to further strengthen our trading ties with that region. To that end, the Territory government, through the Department of Asian Relations, Trade and Industry, is organising a capital markets tour to encourage investment and to develop business and trade with the BIMP-EAGA region - that is, the nations of Brunei, Indonesia, Malaysia, Philippines and the East ASEAN Growth Area. I shall be leading a group of senior representatives from the BIMP area to meet with senior investment company representatives from the capital markets of Sydney and Melbourne. The BIMP-EAGA representatives will be able to outline business and investment opportunities in their countries to Australia’s top 150 invited business people. The idea is to provide at first-hand details of opportunities that are still available and that have emerged in the South-East Asian region.
The inaugural tour has received a great deal of interest from the region, despite the current economic situation. I suppose that, given the financial challenges being faced by some of the BIMP countries, this tour may appear to be a little ill-timed. However, the difficulties being experienced by those countries are the very reason why the capital markets tour has been scheduled for the end of March and the beginning of April. Many Australian business people are watching closely the changes that are taking place in the Asian region. They are aware that, while these changes may have a negative short-term impact on trade and business in the region, they will also bring with them new opportunities. I am sure that our business leaders will be very interested to hear a precise report on the current circumstances and on the future of the region from their senior counterparts and, in some cases, senior ministers and senior bureaucrats from Brunei, Indonesia, Malaysia and the Philippines.
The tour is an initiative of the Territory government. It will highlight to our neighbours in the region that we are not simply fair weather friends, and that the relationships that we have developed are stronger than the current economic turmoil. It will be a demonstration of our faith in the region and of our intention to focus on the long-term future of the area.
People may ask how the Northern Territory will benefit from this. Obviously, as the coordinator and the facilitator of these seminars, the Territory will be in a perfect position to sell the benefits of using the Territory as a base from which to develop business and investment links into the BIMP-EAGA region, using our new port, our new railway, our emerging communications industry and, obviously, our ever-expanding service industry base. This tour will provide us with an excellent marketing opportunity. The audience will include some of the most influential business people in Australia - precisely the people whom we need to influence on what is occurring in this part of the world, especially in the Territory.
With the current focus on South-East Asia, I expect that this tour will generate considerable interest, not only in our local business community, but nationally and in the national media. The tour will include South Australia and Tasmania, and the ACT will be invited to participate in the Sydney seminar. I believe honourable members are aware that the Territory has established bilateral agreements of cooperation with the states and it is important that we utilise the benefits that that may bring.
Another important area in which we are working in our efforts to improve or maintain trading activity with our neighbours is an investigation of the possibility of countertrade agreements - bartering. Businesses exporting to the South-East Asian region may need to use some lateral thinking to overcome the current problems in trading in hard currency, given the situation in the area. Yesterday, the Department of Asian Relations, Trade and Industry conducted a countertrade seminar for Territory exporters with Malcolm Taylor, president of the Australian Countertrade Association, providing advice on bartering and offering it as an alternative in our trading relationships. Business people from both the Territory and South-East Asia were present.
That seminar followed a meeting on Monday between representatives of the Territory Livestock Exporters Association and a representative of a consortium of cattle buyers from Indonesia. They explored the possibility of countertrade for live cattle exports. Among goods considered as an alternative form of payment were Indonesian dressed timber and cement products. For example, one cow might be deemed worth several bags of cement. The value of the cow would not vary very much and the value of the cement would not vary very much, despite the fluctuating value of the paper money. The idea is to try to establish mechanisms that will enable traders to carry on their business. For example, the cattle exporters might be paid by the importers of cement. They would pay our local people here, and other arrangements would have to occur in Indonesia, Malaysia or wherever else we were to set these trading processes in place. Although to us it is an unconventional way of doing business, it is a form of trade that has been used in the region for quite some time. In view of the fluctuations in paper currency, and the expertise which has been developed by organisations such as the one Malcolm Taylor is involved with, that concept could be used very effectively to enable us to continue trading. It has been reported that the company that is run by Malcolm Taylor engaged in trade worth about $50m last year alone.
We are working very hard because the basis of all this is to create jobs in the Territory. It is important that we do not run away from what is happening in South-East Asia. We must maximise opportunities to create jobs for Territorians. This government will not step back from that at any stage.
ANSWER
Madam Speaker, the currency crisis is of great concern to us all. I must stress that the Northern Territory is always looking for ways in which to further strengthen our trading ties with that region. To that end, the Territory government, through the Department of Asian Relations, Trade and Industry, is organising a capital markets tour to encourage investment and to develop business and trade with the BIMP-EAGA region - that is, the nations of Brunei, Indonesia, Malaysia, Philippines and the East ASEAN Growth Area. I shall be leading a group of senior representatives from the BIMP area to meet with senior investment company representatives from the capital markets of Sydney and Melbourne. The BIMP-EAGA representatives will be able to outline business and investment opportunities in their countries to Australia’s top 150 invited business people. The idea is to provide at first-hand details of opportunities that are still available and that have emerged in the South-East Asian region.
The inaugural tour has received a great deal of interest from the region, despite the current economic situation. I suppose that, given the financial challenges being faced by some of the BIMP countries, this tour may appear to be a little ill-timed. However, the difficulties being experienced by those countries are the very reason why the capital markets tour has been scheduled for the end of March and the beginning of April. Many Australian business people are watching closely the changes that are taking place in the Asian region. They are aware that, while these changes may have a negative short-term impact on trade and business in the region, they will also bring with them new opportunities. I am sure that our business leaders will be very interested to hear a precise report on the current circumstances and on the future of the region from their senior counterparts and, in some cases, senior ministers and senior bureaucrats from Brunei, Indonesia, Malaysia and the Philippines.
The tour is an initiative of the Territory government. It will highlight to our neighbours in the region that we are not simply fair weather friends, and that the relationships that we have developed are stronger than the current economic turmoil. It will be a demonstration of our faith in the region and of our intention to focus on the long-term future of the area.
People may ask how the Northern Territory will benefit from this. Obviously, as the coordinator and the facilitator of these seminars, the Territory will be in a perfect position to sell the benefits of using the Territory as a base from which to develop business and investment links into the BIMP-EAGA region, using our new port, our new railway, our emerging communications industry and, obviously, our ever-expanding service industry base. This tour will provide us with an excellent marketing opportunity. The audience will include some of the most influential business people in Australia - precisely the people whom we need to influence on what is occurring in this part of the world, especially in the Territory.
With the current focus on South-East Asia, I expect that this tour will generate considerable interest, not only in our local business community, but nationally and in the national media. The tour will include South Australia and Tasmania, and the ACT will be invited to participate in the Sydney seminar. I believe honourable members are aware that the Territory has established bilateral agreements of cooperation with the states and it is important that we utilise the benefits that that may bring.
Another important area in which we are working in our efforts to improve or maintain trading activity with our neighbours is an investigation of the possibility of countertrade agreements - bartering. Businesses exporting to the South-East Asian region may need to use some lateral thinking to overcome the current problems in trading in hard currency, given the situation in the area. Yesterday, the Department of Asian Relations, Trade and Industry conducted a countertrade seminar for Territory exporters with Malcolm Taylor, president of the Australian Countertrade Association, providing advice on bartering and offering it as an alternative in our trading relationships. Business people from both the Territory and South-East Asia were present.
That seminar followed a meeting on Monday between representatives of the Territory Livestock Exporters Association and a representative of a consortium of cattle buyers from Indonesia. They explored the possibility of countertrade for live cattle exports. Among goods considered as an alternative form of payment were Indonesian dressed timber and cement products. For example, one cow might be deemed worth several bags of cement. The value of the cow would not vary very much and the value of the cement would not vary very much, despite the fluctuating value of the paper money. The idea is to try to establish mechanisms that will enable traders to carry on their business. For example, the cattle exporters might be paid by the importers of cement. They would pay our local people here, and other arrangements would have to occur in Indonesia, Malaysia or wherever else we were to set these trading processes in place. Although to us it is an unconventional way of doing business, it is a form of trade that has been used in the region for quite some time. In view of the fluctuations in paper currency, and the expertise which has been developed by organisations such as the one Malcolm Taylor is involved with, that concept could be used very effectively to enable us to continue trading. It has been reported that the company that is run by Malcolm Taylor engaged in trade worth about $50m last year alone.
We are working very hard because the basis of all this is to create jobs in the Territory. It is important that we do not run away from what is happening in South-East Asia. We must maximise opportunities to create jobs for Territorians. This government will not step back from that at any stage.
Last updated: 09 Aug 2016