Mr SLIPPER (Parliamentary Secretary to the Minister for Finance and Administration) (10:30 AM) —I move:

Customs Tariff Proposal No. 5 (2001), which I have just tabled, contains an alteration to schedule 4 of the Customs Tariff Act 1995 to provide for the duty free entry of goods imported into Australia for use in space projects. The tabling of this proposal is a domestic procedure that is necessary for `the agreement between the government of the Russian Federation and the government of Australia on cooperation in the field of the exploration and use of outer space for peaceful purposes' to enter into force. Under the agreement, both parties agree that the movement of certain goods across their customs borders shall be free of customs duties. Once the agreement has entered into force, it will facilitate the transfer to Australia of sophisticated space related technology and technical expertise. It will also enhance collaboration between Australia and the Russian Federation in scientific research and technology development.

The concession will only be available to goods imported for use in space projects authorised by the Minister for Industry, Science and Resources. Access to the concession will be through determinations made by the chief executive officer of Customs. So as not to disadvantage companies proposing to use technology sourced from countries other than Russia, and to ensure consistency with World Trade Organisation rules, the concession will apply to all goods imported into Australia for use in space projects, regardless of country of origin. There will be no need for an international agreement to be in place for the concession to be available. The concession will take effect from 1 August this year. It is expected to be of significant benefit to companies proposing to establish and develop in Australia operations in the high-technology high value added space sector. I commend the proposal to the House.

Debate (on motion by Mr Bevis) adjourned.