Mr TAYLOR —My question is addressed to the Minister for Foreign Affairs. Can the minister inform the House about the Australia/European Union ministerial consultations held this morning and the current state of Australia's relations with that union?

Mr DOWNER (Foreign Affairs) —I thank the honourable member for Groom for his question. Mr Speaker, this morning, the Deputy Prime Minister, the Minister for Primary Industries and Energy and I had the opportunity to meet with the Vice President of the European Commission, Sir Leon Brittan, in what are the 15th annual Australia-European Commission ministerial consultations.

These talks were extremely successful. It was an opportunity for the government to continue the task of revitalising Australia's relationship with the European Union. We are revamping and rebuilding the relationship with the European Union. I believe, following the signing this time last year of the joint declaration on relations between Australia and the European Union and the initiatives that have flowed from that, as well as today's meetings, that the relationship is going through a period of substantial strengthening.

Mr Speaker, let me just make sure that everybody understands the importance of this relationship to Australia. Europe, the European Union, invests $155 billion in the Australian economy. Some people are opposed to foreign investment in Australia, but that $155 billion worth of investment creates 300,000 jobs in Australia. That is money worth having and they are jobs well worth having.

Australia invests, in direct investment in Europe, about $24 billion, and we earn about $500 million a year from that. Over the last year our exports to the European Union grew by around 21 per cent. So, Mr Speaker, the economic relationship is extremely strong. Our exports are growing strongly to the European Union.

Where there have been disputes in the past over climate change, those disputes have been resolved. Where there have been disputes over agriculture, there still are tensions, but we are heading in the right direction. So this is a relationship which is growing and strengthening all the time.