2017 EABC Business Delegation to

Parliament House, Canberra 24-25 October 2017

Mission Report

Overview

On Tuesday 24 and Wednesday 25 October 2017, a delegation of EABC Members visited Parliament House in Canberra to meet with members of the Federal Government and Opposition. The delegation provided opportunities for members to engage in direct dialogue on the broad economic and business agenda, as well as the preparations underway for launching negotiations for an -EU FTA.

Programme

The delegation programme on Tuesday 24 October included roundtable discussions with the Hon Michael McCormack MP, Minister for Small Business and the Hon MP, Minister for Infrastructure and Transport; followed by a Cocktail Reception with Guests of Honour the Hon MP, Deputy Prime Minister, Minister for Agriculture and Water Resources, Minister for Resources and Northern Australia; the Hon MP, Assistant Minister for Trade, Tourism and Investment; the Hon MP, Shadow Treasurer; and Senator the Hon , Minister for Finance and Deputy Leader of the Government in the Senate. The programme continued with a working dinner with ministerial guests including the Hon Kelly O’Dwyer MP, Minister for Revenue and Financial Services; the Hon MP, Assistant Minister for Industry, Innovation and Science; and Justin Brown, Deputy Secretary, Department of Foreign Affairs and Trade.

The programme on Wednesday 25 October included roundtable discussions with Tom Skladzien, Chief of Staff to the Shadow Minister for Climate Change and Energy; the Hon MP, Shadow Minister for Agriculture, Fisheries and Forestry and Shadow Minister for Rural and Regional Australia; Peter Woolcott AO, Chief of Staff to the Prime Minister; Senator the Hon , Minister for Education and Training; the Hon MP, Minister for Immigration and Border Protection; Senator the Hon QC, Attorney-General; the Hon MP, Minister for Human Services; and the Hon Dr Andrew Leigh MP, Shadow Minister for Competition and Productivity; Shadow Minister for Trade in Services; and Shadow Assistant Treasurer.

Participants

EABC Members participating in the programme included senior representatives from a diverse range of companies, sectors and organisations. The delegation was led by EABC Deputy Chair the Hon (Monash University) and EABC CEO Jason Collins.

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The Hon Michael McCormack MP Minister for Small Business

The Minister underlined the importance of trade liberalisation and opportunities that a comprehensive and ambitious economic partnership (FTA) with the EU would create for Australian SMEs, in particular in healthcare, education, the digital economy, advanced manufacturing and other cutting-edge sectors. The Government is committed to involving SMEs in the FTA discussions and ensuring that the benefits flow towards the whole economy, as this spread will contribute to the success of the deal and address the growing discontent towards free trade, in particular in regional electorates.

Discussion with participants included reduction of red tape for SMEs; and initiatives to attract international students to Australia‘s regional universities.

The Hon Darren Chester MP Minister for Infrastructure and Transport

Stressing that the 2017-2018 Federal Budget demonstrates the importance given by the Government to infrastructure and transport, with $75 billion allocated to long-term infrastructure projects, Minister Chester outlined the current projects supported by the Commonwealth, including Melbourne Airport Rail Link, the Bruce Highway update, WestConnex and Pacific Highway expansion.

The Government is also engaging with State governments to identify infrastructure priorities, and to study opportunities for asset recycling. Decision-making on long-term projects necessarily implies higher levels of transparency and communication, and the need to seek bipartisanship.

Participants then engaged in discussion on the Productivity Commission’s five-year productivity review and the need for productivity-enhancing infrastructure policies; the role of major defence contracts in attracting European companies across all sectors, including transport and infrastructure; current developments and innovation in intelligent infrastructure and the growing relationship with ICT; technology contribution to road safety; as well as disruptions that drones and autonomous vehicles are creating.

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Cocktail Reception

At the Reception, the EABC Delegation was delighted to welcome Deputy Prime Minister and Minister for Agriculture and Water Resources, the Hon Barnaby Joyce MP; Minister for Finance and Deputy Leader of the Government in the Senate, Senator the Hon Mathias Cormann; Assistant Minister for Trade, Tourism and Investment, the Hon Keith Pitt MP; and Shadow Treasurer, the Hon Chris Bowen MP, along with many other special guests.

The Deputy Prime Minister addressed the participants, calling for deeper relations between Government, business representatives and European Member States, in particular through their Embassies in Canberra, in light of the prospective FTA negotiations.

Despite sensitivities around agriculture, there is a strong commitment on both sides to achieve an ambitious FTA between Australia and the EU.

Minister Cormann highlighted the shift in attitude of European leaders towards Australia over the last few years, and the growing interest in Europe for an FTA that would not only increase two-way trade and investment flows but also strengthen collaboration in many strategic sectors.

The Minister stressed the role played by the EABC Business Missions to Europe in engaging with European governments and institutions and in demonstrating the significance of Australia as a major business partner for Europe.

Underlining the importance of the trade and investment relationship with the EU, Australia’s second largest trade partner and largest foreign investor, Assistant Minister Pitt emphasised the Government’s commitment to negotiating an ambitious and comprehensive FTA with the EU.

Shadow Treasurer Bowen underscored the strong ties with Europe, in particular cultural and people-to-people linkages, and expressed the Opposition’s support of Australia’s external trade policy, as Australia’s economy is built on openness and free trade.

Other Guests of Honour included European Ambassadors to Australia; Australian MPs and Senators; senior officials from DFAT including DFAT Secretary Frances Adamson; Chairman of the Productivity Commission Peter Harris AO; and other leaders, organisations representatives and senior political staffers.

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The Hon Kelly O’Dwyer MP Minister for Revenue and Financial Services

Minister O’Dwyer touched upon the political challenges facing the Government, the difficulties involved in building bipartisan support on many issues, and the increasing influence of crossbenchers, in particular in the Senate.

Regarding her portfolio, the Minister presented the Government’s ambitious superannuation reforms, whose objective is to ensure the stability, integrity and ongoing performance of Australia’s superannuation system over the next decades. Other reforms include reinforcing the role of ASIC in the fight against financial crimes, to improve public confidence in the financial system in Australia.

Discussion with the Minister included the mandate of superannuation trustees and the possibility to earmark the funds for specific sectors; as well as Double Taxation Agreements and their importance in the ease of doing business with other countries.

The Hon Craig Laundy MP Assistant Minister for Industry, Innovation and Science

Regretting the general lack of business understanding in Canberra, Minister Laundy outlined his vision for the State, as both a regulator and a business partner. Although red tape and regulation will always exist, processes should be made easier and quicker for companies through technology, in particular with the digitisation of the administration. The Government recently launched a public testing of a new ‘one stop shop’ business registration service to streamline application processes for new businesses.

The discussion then moved to defence contracts as catalysts for foreign investment in a wide range of sectors and as drivers for R&D and innovation, while European defence companies’ development in Australia, through the Australian Industry Capability Programme (AIC), strongly benefits Australian firms in particular SMEs.

Other topics for discussion included the role of universities and CRCs in innovation in Australia, and initiatives from the government to foster collaboration between SMEs and the research community, including online platforms such as Data61 and Expert Connect.

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Justin Brown Deputy Secretary, DFAT

Justin Brown engaged with the Delegation on the prospective Australia-EU FTA, and the expected postponement of the launch of the negotiations following disagreements among EU Member States on the European Commission’s mandate. Australia’s approach to the negotiations will be to remain committed to maximizing trade and investment liberalisation and ensuring that the agreement remains consistent with Australia’s values and laws.

Although environmental and social standards in FTAs are under great scrutiny in Europe, Australia’s high sets of standards should prevent tensions on these aspects. As with every FTA negotiation, negotiators will face difficulties and can expect crises along the way, but will not deviate from their shared objective to establish a comprehensive and ambitious economic partnership between Australia and the EU. Discussion then included the role businesses can play in the process towards an FTA. Justin Brown also updated the Delegation on other plurilateral agreements being negotiated, including TiSA and TPP-11.

Tom Skladzien Chief of Staff to the Shadow Minister for Climate Change and Energy

Mark Butler’s Chief of Staff reaffirmed Labor’s commitment to supporting investment in the energy sector, especially to foster the transition towards renewable energy sources while providing the industry with reliable energy schemes.

Crucial questions such as the carbon market and the limits of international offsetting need to be addressed in the design of a new energy framework. The Opposition favours an ambitious target for clean energy generation and long-term objectives to provide investors with greater clarity.

Australian domestic policies should echo its international commitment under the Paris Agreement. Exchanges between the delegation and the Chief of Staff touched on the next COAG Energy meeting in November; the challenges posed by climate change to the insurance sector; as well as the Clean Energy Finance Corporation and the proposition for a Australian Manufacturing Future Fund.

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The Hon Joel Fitzgibbon MP Shadow Minister for Agriculture, Fisheries and Forestry; Shadow Minister for Rural and Regional Australia

Regretting the relative failure of multilateral trade negotiations, Joel Fitzgibbon commented on the Australia-EU FTA, emphasising Australia’s bipartisan support for the agriculture sector and the importance of gaining greater market access for agriculture exports. The EU is Australia’s highest value market, in particular for red meat, and represents great growth opportunities for the sector.

There is, however, a need to balance Australian farmers’ expectations regarding the role of the FTAs and exports potentials, as it is too often incorrectly perceived that greater market access solves all other issues. In addition, Australia is currently losing global market share and needs to undertake strategic adjustment to foster competitiveness in the agri-food sector, as well as to ensure better resources allocation, create economies of scale and increase the size and technological advancement of farms.

Other topics for discussion included water management; food security; innovation in agribusiness and technological challenges facing the sector.

Peter Woolcott AO Chief of Staff, Office of the Prime Minister

The Chief of Staff to the Prime Minister outlined the Government’s current reform agenda, including the clean energy reform. The Government chose a pragmatic approach, aiming to create a framework to enable long- term investment whilst also providing reliable and affordable energy to businesses and citizens alike.

The Prime Minister is also engaging with his European counterparts to advocate for an ambitious and comprehensive FTA between Australia and the EU, and is receiving strong support from individual governments in each European capital. Other priorities include the responses to the Productivity Review; the same sex marriage postal survey; and the upcoming release of the Foreign Policy White Paper. The latter, expected by the end of 2017, will include a significant part on free trade and highlight the importance of business to government relations in Australia’s trade agenda.

Participants also discussed Gonski 2.0 and future education reforms; and recommendations from the Harper report and more recently the Productivity Review for the health sector.

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The Hon Simon Birmingham MP Minister for Education and Training

Minister Birmingham exchanged with the Delegation on solutions to encourage closer collaboration between businesses and the education sector, particularly to foster innovation and close the gap between fundamental research and the commercialisation of products.

Education and vocational training will also play a crucial role in training workers for emerging and fast-growing sectors in need of skilled labour, as is notably the case for Australia’s major defence contracts, with an increasing demand for engineers particularly in .

The reform of the temporary work visa 457 was also discussed, as its replacement could create difficulties for European companies in bringing skilled workers to Australia. Finally, participants discussed the salient points of the Productivity Review and elements on human capital.

The Hon Peter Dutton MP Minister for Immigration and Border Protection

Minister Dutton presented the Government’s reform of the 457 visa, criticised by the general public regarding its too wide application and the tensions it created on the labour market for Australian workers. The Minister described the new Temporary Skills Shortage (TSS) visa as more adapted to Australia’s needs, with a reduced skills list and an emphasis on the economic outcome of migrants.

The Minister then commented on the creation of a Home Affairs portfolio, which is expected to launch by early 2018, and its responsibility in addressing both physical and cyber threats against Australia.

The Government has started a discussion with telecommunications and other critical infrastructure stakeholders (including electricity, water and ports), on ways to better protect Australian networks from potential malicious risks and interference.

The Delegation then exchanged with the Minister on the use of technology to balance security requirements and convenience for users (e.g. eGates systems).

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Senator the Hon George Brandis QC Attorney General

Beginning with the importance of the bilateral relationship with the EU and the Government’s support of the FTA, the Attorney General continued with the political challenges facing the in the Senate, including same sex marriage, the clean energy reform and national security measures.

The Government will undertake reforms on espionage and foreign interference laws, including a scheme to monitor foreign organisations whose objective is to influence Australia’s political system. The Delegation then discussed the implications of this particular reform for Australia’s universities. Other topics for discussion included cybersecurity and the need to raise cyber-awareness, in particular among SMEs.

The Hon Alan Tudge MP Minister for Human Services

Underscoring that welfare now comprises one third of the federal government’s budget, with yearly expenditure at $160 billion, Minister Tudge commented on the Government’s initiatives to encourage people to move out of welfare dependency including a $96 million ‘try, test and learn fund’ aiming to allow states, territories and non- government bodies such as academia and stakeholders to road test ideas for reform.

Another key reform is the introduction of cashless welfare cards, designed to prevent welfare money being spent on gambling, or buying drugs or alcohol. The Government also wishes to pursue the digitisation of Australia’s welfare system. Delegates then exchanged views with Minister Tudge on digital identity; digitisation of government services in Scandinavian countries and Estonia; and the balance between digitisation and privacy.

The Hon Dr Andrew Leigh MP Shadow Assistant Treasurer

Shadow Minister Leigh commented on his recent trips to Europe and the US, and the rising populism he witnessed in different countries despite post-GFC economic recovery. As detailed in his recent book Choosing Openness, Andrew Leigh argued that such populism stems from an uneven redistribution of wealth in a globalised world.

Favouring multilateral trade agreements over bilateral ones, Andrew Leigh also called for the creation of an International Agreement on Migration to deal more broadly with this growing issue, and highlighted the strong gains for developing countries of temporary migration, to help build skilled workers who then return to their countries of origin.

Discussion then included the Productivity Commission’s Review and management initiatives to foster productivity and creativity within a company; innovation policies in Australia, the gap between fundamental research and the commercialisation of products and the correlation with Australia’s competition policy; education reforms and the Scandinavian education model; as well as parenting and gender equality policies.

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Delegation Profiles

EABC Deputy Chair - The Hon Simon Crean Member, Monash University Council; Chairman, Australian Livestock Exporters Council; Director, Linfox; former Minister for Trade; former Leader of the Opposition; former Minister for Education; former Minister for Employment and Workplace Relations, former President, Australian Council of Trade Unions

Angus Armour (EABC Board) Managing Director and CEO, Australian Institute of Company Directors; Trustee, Committee for Economic Development of Australia; Adjunct Professor, School of Business, University of Technology ; former Principal Advisor, Business Council of Australia; Deputy Secretary for Industry, Innovation, Hospitality and the Arts, NSW Department of Industry; former CEO & Managing Director, Export Finance and Insurance Corporation

Lisa Backhouse Executive Manager Government, Industry and Public Policy, Suncorp Group; former Director, Southern Country Tourism; former Manager Corporate Affairs, New Hope Group; former Director, Premium Public Relations; former National News Presenter & Reporter, ABC, Channel 9, and Network Ten

Michel-Henri Carriol Chairman and Managing Director, Filatex; Advisor to the French Government on International Trade; former Chairman & Managing Director, Trimex; former Trade Attaché, Embassy of France in Australia

Gary Dawson Vice President Strategy, Thales Australia; former Chief Executive, Australian Food and Grocery Council; former Vice President Communications & External Affairs, Thales; former Director Communications, ABC; former Director Communications, Law Society of NSW; former Senior Advisor, Prime Minister of Australia; former Director Economics, ACT Chief Minister

Håkan Eriksson (EABC Corporate Council) Group CTO, Telstra; Victoria National Councillor and Vice President, Australia Industry Group; former Group CTO, Ericsson; former CEO Ericsson Australia and New Zealand; former CSO, Ericsson South East Asia and Oceania; former Deputy Chairman, Australian Mobile Telecommunications Association

Gavin Jackman (EABC Board) Principal, Antinomies Pty Ltd; Member of the Faculty, Centre for Corporate Public Affairs; Adviser - Homes for Homes, The Big Issue; Former Executive Global Head of Corporate Affairs, Orica; former Group Executive Public Affairs, Santos; former Director of Government Affairs, BP Australia; former Senior Advisor to the Prime Minister of Australia, former Chief of Staff to a Federal Cabinet Minister

Dr Alex Joiner Chief Economist, IFM Investors; Member, IFM Investment Committee; former Chief Economist, Bank of America Merrill Lynch for Australia and New Zealand; former Senior Economist, ANZ Bank

Andrew Low (EABC Board) Chairman, CITIC CLSA Australia; Head of Global M&A, CITIC CLSA; Member, Australian Institute of Company Directors; Executive, Australia Japan Business Council; Board Member, Advisory Board of Asia Society in Hong Kong; former Head of Macquarie Capital Asia, Macquarie Group

Andrew McCallum Global Manager - Trade & Market Access, Meat & Livestock Australia; former GM, Solutions Marketing & Research; former Senior Research Officer, Australia Bureau of Agriculture and Resource Economics

Paul McClintock AO (EABC Corporate Council) Chairman, Broadspectrum; NSW Ports; I-MED Network; Myer; CEDA; Director, The George Institute for Global Health; Director, St Vincent’s Health Australia; former Secretary to Cabinet and Head of the Cabinet Policy Unit; former Chairman, Thales Australia

David McCredie CEO, Australian British Chamber of Commerce; former Relationship Manager, Hunter Business Chamber

Russell Miller AM (EABC Corporate Council) Convenor, Centre for Strategy & Governance; Commissioner, NSW Planning Assessment Commission; Chair, Royal Australian Mint Advisory Board; former Chair - Minter Ellison, International Air Services Commission; former Director, National Electricity Code; Administrator, Australian Bureau of Meteorology

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Delegation Profiles

Sue Morphet (EABC Corporate Council) Chairman, National Tiles; Director, Noni B; Director, Godfreys; Director, Asaleo Care; Director Fisher & Paykel Appliances Holdings New Zealand; former Chairman, Manufacturing Australia; former CEO and Board Director, Pacific Brands

Peter Murphy Director, Public Affairs and Communications, Novartis Australia & New Zealand; former Head of Oncology Affairs Asia Pacific & South Africa Region, Novartis; former Senior Account Manager, Edelman Public Relations

Kate O’Loughlin Head of Government Relations & Industry Affairs, QBE Australia & New Zealand; former Company Secretary Governance & Regulatory Affairs Australia, QBE Insurance; former General Counsel/Company Secretary, QBE LMI

Nick Park Head of Australian Federal Government Relations, BHP; former Manager Issues Management and Public Policy, BHP; former Senior Manager Government Relations and Public Policy - Coal, BHP; former Manager Government Affairs, BG Group

François Romanet (EABC Board) President, French Australian Chamber of Commerce and Industry; President Australasia, Naval Group; former CEO, SAFRAN Pacific; Member, French Foreign Trade Advisors (Australian Committee); former Managing Director, Sagem Australasia; former Chairman, Board of the French International School of Sydney

Nicholas Scofield Chief Corporate Affairs Officer, Allianz Australia; former Senior Economic Advisor, Department of the Prime Minister and Cabinet; former Executive Assistant to the Secretary; former Member, Republic Referendum Taskforce

Melanie Sutton General Manager, Markets and Policy, Acciona Energy; former Associate Director, Strategic Economies Consultancy Group; former Director, SAHA International; former Associate Director, PwC; former Environmental Products Trader, Nuon; former Associate, Enron

Vicki Thomson (EABC Board) Chief Executive, The Group of Eight; former Executive Director, Australian Technology Network of Universities; former Director of Communications, Universities Australia; former Chief of Staff, South ; former Political Reporter, ABC

EABC Secretariat

Jason Collins Chief Executive Officer, European Australian Business Council; Board Member, European Business Organisations Worldwide; Member, NSW Export & Investment Advisory Board (NSW Government), Director, Australia Youth Trust

Tim Goulain Director, Policy & Networks, European Australian Business Council

Jo Johns Director, Membership & Programmes and Company Secretary, European Australian Business Council

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