7 May 2009
Interview: Doorstop with local media in Shanghai, China
Reporter: ….I want to ask you about impacts of the financial crisis on the energy efficiency projects
Minister: Well it’s true that what we’ve done is to delay the implementation of the CPRS by one year but that hasn’t stopped a very strong investment by the Australian Government in energy efficiency and remediation capacity in terms of smart energy solutions.
Reporter: So what’s the major reason for the postpone?
Minister: The main reason for the postponement is the importance of getting the system right and of also understanding that the global financial crisis has hit a lot of our export directed industries so they are going through difficult times at the moment. We would have liked to have done it in normal circumstances at the time that we set ourselves which was from 2010 which was very ambitious. The ambition has been detracted from because of the global financial crisis.
Reporter: Excuse me, this is a reporter from Shanghai Daily. I want to ask a question about the FTA negotiations between the two countries. What is the status now and what do you, Australia expect China to do to promote this process?
Minister: We had very good discussions in Beijing last month to reengage at the political level. At the technical level the talks are stalled. What’s really needed is a re-injection of the political will. I think we achieved that re-injection of political will and we’re now waiting for the responses.
Reporter: What are the main obstacles at the moment?
Minister: Well there are a number of different issues; sensitivity obviously in agriculture which we fully understand but believe can be met. There are also issues of important access opportunities for us in services and investment and we want to develop the new investment framework between our two countries because that really is an important basis of the new trade between our two economies. Investment flows not just product flows.
Reporter: What do you, what does Australia expect China to do?
Minister: Well we expect to reach an agreement with China – that’s what we are aiming for and that’s what I think we can achieve
Reporter: I also have another question for you… what is Australia’s attitude towards Chinese investment…
Minister: We are welcoming of Chinese investment in Australia. Australia is welcoming of foreign investment as part of the basis for expanding its economy. We always have been and we will continue to be. We do not discriminate on the basis of the source of that investment. But all major investments have to go through a regulatory procedure under the foreign investment review board. Each case has to be considered case by case. What I believe very strongly is that the importance of investment between our two economies is only going to increase - that investment is a two way street and what we want is a new framework that recognises the importance of investment flows both ways.
Reporter: But in March Australia blocked the China MinMetals acquisition of Aussie Minerals on security grounds, so Australia [is] very anxious about China’s entering Australia’s market?
Minister: Well I think the MinMetals one…there was an adjustment to the proposal and it has been approved, MinMetals. So too has been the Fortescue Deal with Hunan Valin. That has been approved. The major one that is still outstanding, because the process has not been concluded, is the Chinalco one. But last year Australia approved thirty billion Australian dollars worth of investment initiatives from China alone. Last year.
Reporter: Recently there was some disagreement between Rio Tinto and some Chinese companies about the price of iron coals. Do you think the price dispute actually will influence a little bit about the trade between Chinalco and Rio Tinto?
Minister: No it’s the market…its negotiations - vigorous negotiations in the market. Because everyone is trying to get the best deal… that’s what a market…
Reporter: … Rio Tinto and China government maybe have control over the price...that’s a major concern
Minister: Well they can’t have control over the price because we operate in a market economy and we recognise China as a market economy. Both economies have to act like markets…thank you.
[ENDS]
Media Inquiries: Departmental Media Liaison 02 6261 1555