Mr TAYLOR(6.02 p.m.) —On behalf of the Parliamentary Joint Standing Committee on Treaties, I present the following reports entitled The Oakey Agreement: Australia and Singapore—6th report and Australia's withdrawal from UNIDO and Treaties tabled on 11 February 1997—7th report , incorporating a dissenting report, together with the minutes of proceedings and evidence received by the committee.

Ordered that the reports be printed.

Mr TAYLOR —The two committee reports, Nos. 6 and 7, which I have presented today have both domestic and international importance. Report No. 6 deals with the agreement between Australia and Singapore to locate a helicopter squadron at the Army Aviation Centre near Oakey in Queensland. We recommend early ratification of this agreement.

Report No. 7 is an omnibus report that examined a number of matters, the most significant being Australia's withdrawal from the United Nations Industrial Development Organisation—UNIDO—and a double-taxation agreement with Vietnam.

The Oakey agreement covers the location of a Singaporean helicopter squadron at the Army Aviation Centre to conduct helicopter flying training activities, supported by approximately 250 Republic of Singapore Air Force personnel and their dependants, and will include the establishment of purpose built on-base facilities at a cost to Singapore of approximately $30 million.

Australia regards Singapore as an important regional partner, maintaining a strong bilateral relationship that draws on longstanding shared strategic interests. This relationship also conveys vital strategic, commercial and political benefits. Australia's interest in the security of Singapore and the region as a whole is formally reflected in our membership of the five-power defence arrangement. Furthermore, Singapore's defence forces have already made a substantial investment in the construction of facilities at RAAF Base Pearce in Western Australia and have made a significant commitment to the conduct of training at the Shoalwater Bay training area near Rockhampton in Queensland.

There is widespread support for this agreement amongst the local communities of Toowoomba and Oakey. Both local councils believe that the presence of the Singaporeans will provide significant economic benefits to the local communities. In addition to the $30 million capital investment, ongoing annual maintenance requirements will be in the vicinity of $5 million per year. The Department of Defence also estimates that a further $9 million per annum will be injected into the local economy through the expenditure of Singaporean salaries in the Oakey-Toowoomba area.

While local organisations voiced their support for the agreement, the committee was concerned that the provision and coordination of essential services to the Singaporeans, such as housing, health and education, lacked a central focus. We have therefore recommended that a coordinating group, established by the Queensland Department of Premier and Cabinet, facilitate the provision of a single housing coordinating agency and that a plan be developed outlining the provision of essential services.

Evidence presented to the committee by three individuals opposed the agreement. We noted, however, that this opposition came from outside the Toowoomba-Oakey region and issues raised included concerns over religious allegiance and the stationing and training of foreign troops in Australia. The committee rejects completely any suggestion that the Singaporeans would not be welcome on the basis of race or religious affiliations. We concluded that the evidence presented by the local communities supporting the agreement and the benefits in general to Australia far outweighed these objections.

The first issue dealt with in report No. 7 was Australia's withdrawal from UNIDO, initiated by the Minister for Foreign Affairs (Mr Downer) in December 1996. Binding treaty action was taken by the minister in this case before a full 15 sitting days had elapsed for parliamentary review of the proposal. We note that, given the time constraints, it was not possible to consult fully with all interested organisations and firms before the decision was made. However, in the report we stressed that consultation ought to have been undertaken before the decision was announced.

The committee also acknowledged the significant reforms that have taken place within UNIDO, particularly in the areas of management processes and the reduction of administrative overheads. However, apart from a relatively small number of firms benefiting from our membership of UNIDO, there would be very few other tangible procurement benefits from membership. The honourable member for Lyons (Mr Adams) opposite will present a dissenting view on this issue shortly.

In the limited time remaining I would like to comment briefly on the double-taxation agreement with Vietnam. While the committee supports early ratification of this agreement, I wish to stress that we were concerned over a number of issues. In particular, we were concerned that the consultation between the Australian Taxation Office and professional accounting bodies and the quality of the national interest analysis that accompanied the agreement were less than satisfactory. We were particularly concerned that the NIA not only omitted necessary information but it was also unduly complex and difficult to understand. We made some other comments about banking, insurance, accounting, auditing and commercial services. The honourable member for Wide Bay (Mr Truss) will expand on this and other matters shortly. I commend these reports to the House.