Mr CREAN(1.18 p.m.) —Madam Deputy Speaker, by agreement, there is just over 10 minutes left in this debate and I will be the last speaker from our side in the next five minutes. I am leaving the last five minutes for the Minister for Industry, Science and Tourism (Mr Moore) to get up and defend the fact that he reneged on an agreement with the Australian shipbuilders' industry in this place.

I tell you why you have reneged, Minister, and I want you to take note of this because I want you to use the last five minutes to defend your outrageous position. When you announced the backdown on the ships bounty, you wrote to the Australian Shipbuilders Association outlining what the OECD arrangements were, and you said:

Commitments made to support shipbuilding prior to the date of entry into force continue, provided that a vessel is delivered within three years from the date of commitment. A commitment made in January 1997 would apply to a vessel delivered by January 2000.

That is what you wrote and said to the Australian shipbuilders industry. In case it is news to you, I can hand you a copy of your letter.

The next important step in this equation—keep this in mind, Minister—is that you told them what the OECD arrangements were. They could finish within three years of entering the arrangements. In the press release that you issued with the Treasurer (Mr Costello) announcing the backdown, you said:

The extension of the shipbuilding bounty to 31 December 1997 aligns assistance for the Australian shipbuilding industry with key overseas competitors.

Little wonder that, when members of the Australian Shipbuilders Association saw your subsequent announcement, they sent a letter back to you on 14 February which said:

It seemed, just prior to Christmas, that the industry was back on a level playing field with its OECD country competitors after some sensible reconsidering by the government. That has proven not to be the case. The government has failed to address the issue correctly and, once again, the industry faces turmoil and a very uncertain future.

On 12 February, in a press release headed `Clayton's shipbuilding bounty', the same organisation had this to say:

Whilst the industry was initially very excited and relieved by the announcement, it has proved to be nothing more than a disappointing teaser and, in reality, of no value at all. With construction time of an average car ferry being around 12 months, this effectively means that presently no shipbuilder can enter into a contract to build a ship with the aid of a bounty. It is regrettable that, due to previous deliberations by the government, our industry has lost substantial contracts with a total value exceeding $275 million.

Understand this: the cost to budget was $9 million, and Australia loses $275 million. Great investment, Minister! You dabble in the share market—or you used to until we forced you out of it—and I am sure you would not think that was a great return on the dividend. The Australian Shipbuilders Association goes on to say:

Austel Ships was faced with shedding 300 of their 800-strong work force, with many other yards downsizing proportionately. The issue of moving operations offshore has reignited as a serious option for future viability.

Over 13,000

Australians are employed directly and indirectly by this industry which earned in excess of $500 million in exports last year.

You are decimating this industry, but worst of all you are deceiving them. You tell them that you will reverse the decision, and then you do not implement that.

Minister, did you write to them telling them of the OECD position? Did you, in announcing the backdown, say that the extension was based on, and aligned Australians with, the OECD position? Why have you reneged on that agreement? You have an obligation to this House, in which you are accountable. If you do not answer, you will be seen as a deceitful person who is not prepared to back his decision. You are required to come into this place and explain yourself.

You have betrayed the manufacturing industry but, worst of all, you have deceived the shipbuilding industry of this country. Members of that industry entered discussions in good faith and you have ratted on them. As we all know, people do not like rats. You have an obligation to explain yourself. I invite you to do so. (Time expired)

   Question put:

   That the amendment (Mr Moore's ) be agreed to.