Tasmanian Government Submission SENATE STANDING COMMITTEE ON FOREIGN AFFAIRS, DEFENCE AND TRADE ON THE AUSTRALIA’S FOREIGN RELATIONS (STATE AND TERRITORY ARRANGEMENTS) BILL 2020

September 2020

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The Tasmanian Government welcomes the opportunity to provide a submission to the Senate Standing Committee on Foreign Affairs, Defence and Trade on the Australia’s Foreign Relations (State and Territory Arrangements) Bill 2020 (the Bill).

The Tasmanian Government recognises the Australian Government’s central role in managing Australia’s foreign relations and setting Australia’s foreign policy. For this reason, Tasmania’s economic diplomacy has always been undertaken in close consultation with the Australian Government. The Tasmanian Government therefore supports the broad intent of the Bill to formally enable the Australian Government to ensure state and territory arrangements with foreign government entities do not adversely affect Australia’s foreign relations and are not inconsistent with Australia’s foreign policy.

This submission is in three parts. Part 1 highlights the importance of Tasmania’s ability to create arrangements with foreign government entities. Part 2 emphasises the key role the Australian Government already plays in shaping these arrangements. Part 3 makes some high level comments on the Bill and its implications for Tasmania.

1 TASMANIA’S ECONOMIC DIPLOMACY Tasmania benefits from arrangements with foreign government entities across several areas of mutual interest including enhancing trade relationships, Antarctic cooperation, agricultural research and collaboration, tourism, education, and skills and training partnerships. These high level arrangements provide the framework for important relationships that deliver trade and other benefits to Tasmania by establishing relationships that either deliver these benefits directly or create an environment of trust for businesses to work together. Tasmania has several current arrangements with foreign government entities. These arrangements are typically high level and have no formal legal status, but they establish relationships that deliver substantial benefits to Tasmania. For example, the Tasmanian Department of Education has established several sister relationships with foreign departments of education and schools, facilitating the recruitment of overseas students to Tasmania. Benefits for Tasmanian students arising from these arrangements include language skill development, personal growth, broadened cultural awareness and educational aspiration; setting our students up for more successful life trajectories. Another example is the Tasmanian Government’s Memorandum of Understanding (MoU) with the French Polar Institute Paul-Emile Victor, signed in 2019 by the Tasmanian Premier. This MoU reflects ongoing close cooperation between France and Australia on Antarctic logistics, science and environmental protection. The MoU secured the continuation of the French Antarctic and Southern Ocean program operations from Hobart, contributing to the Tasmanian economy. Arrangements with foreign government entities establish relationships that deliver substantial benefits to Tasmania. The Tasmanian Government therefore considers it important that it can continue to create these arrangements into the future. We recognise the importance of protecting the national interest and the need to balance national and state objectives. The Tasmanian Government believes the best way to achieve this is through open collaboration with the Australian Government.

2 AUSTRALIAN GOVERNMENT’S ROLE IN TASMANIA’S ECONOMIC DIPLOMACY With a limited international footprint and without a network of trade commissioners overseas, Tasmania’s outbound trade and investment missions are undertaken in close cooperation with the Department of Foreign Affairs and Trade (DFAT) and Austrade. DFAT and Austrade are also involved in pre-mission planning and are welcome to join Tasmanian missions on any official calls of interest. Input from the Australian Government therefore forms a critical part of shaping Tasmanian missions. Tasmania has previously made the case for closer collaboration with the Australian Government during the planning and delivery of trade and investment missions through fora such as the Senior Official Trade and Investment Group and the Trade and Investment Ministers Meeting. Consequently, the Tasmanian Government supports the Bill’s broad intent to facilitate state and territory engagement with the Australian Government on arrangements with foreign government entities. Tasmania has a long and strong relationship with the Australian Government and looks forward to this continuing.

3 THE BILL The Tasmanian Government recognises the Australian Government’s central role in managing Australia’s foreign relations and setting Australia’s foreign policy. The Government therefore supports the broad intent of the Bill to formally enable the Australian Government to ensure state and territory arrangements with foreign government entities do not adversely affect Australia’s foreign relations and are not inconsistent with Australia’s foreign policy. The Tasmanian Government notes that the Bill’s broad definition of foreign policy encompasses policy whether or not it is written or publicly available; and whether or not it has been formulated, decided upon, or approved by any particular member or body of the Commonwealth. It is hence unknown what the criteria arrangements will be assessed against, allowing the Minister a high level of discretion and creating uncertainty for states and territories. The Tasmanian Government would appreciate, and benefit from, greater clarity on the criteria arrangements will be assessed against. Furthermore, some of the Bill’s provisions may impact the independence of states and territories. It is important the Bill protects the national interest without impacting the decision making of states and territories. An unintended consequence of the Bill may be that it disadvantages the government sector in comparison with the private sector. The Bill places an administrative burden on the government sector and increases the level of regulation to which it is subject. In doing so, the Bill may unintentionally hamper the ability of states and territories to engage with programs and relationships which directly benefit them. The Tasmanian Government acknowledges the Bill may have benefits for Tasmania. In particular, Tasmania welcomes the additional layer of scrutiny of prospective arrangements the Bill will provide where these arrangements may be sensitive. However, the Bill also creates an additional layer of bureaucracy and uncertainty for what would often be considered uncontroversial activities and arrangements. This is particularly true of non-legally binding arrangements between parties which symbolise an intent to further objectives together as such arrangements impose no obligations on signatories and present no risks to Australia’s sovereignty.

It is also important to note that opportunities to develop such arrangements often arise through chance meetings at marketing events or during general visits, not through formal processes. This means the requirement to consult the Minister before making arrangements may unnecessarily hamper Tasmania’s ability to enter into mutually beneficial arrangements with foreign government entities. Finally, the Tasmanian Government notes the Bill’s provision to increase transparency by establishing a Public Register of Australia’s arrangements with foreign government entities. Since 2014, the Tasmanian Government Department of State Growth has published all MoUs and agreements with international partners that it is signatory to, except where these are considered commercial-in- confidence, on its webpage. Trade and investment mission programs, budgets and outcome reports are also published through routine disclosures. The Government is therefore already committed to transparency regarding its arrangements with foreign government entities. As previously emphasised, the Tasmanian Government recognises and supports the Australian Government’s role in managing Australia’s foreign relations and setting Australia’s foreign policy. The Tasmanian Government welcomes this opportunity to provide a submission to the Committee on the Bill and looks forward to engaging cooperatively with the Australian Government on this matter.

Department of Premier and Cabinet www.dpac.tas.gov.au