Mr BAIRD (12:31 PM) —On behalf of the Joint Standing Committee on Foreign Affairs, Defence and Trade, I present the committee's report entitled Enterprising Australia—planning, preparing and profiting from trade and investment: a short report on the proceedings of the inquiry, together with evidence received by the committee.

Ordered that the report be printed.

Mr BAIRD —by leave—This is a short report on the proceedings of the inquiry. The Minister for Trade referred the inquiry to the joint committee on 2 November 2000. With the calling of the 2001 federal election, the inquiry automatically lapsed on the dissolution of the 39th Parliament on 8 October 2001.

The committee gave consideration to the re-referral of the terms of reference of the report, Enterprising Australia, in this the 40th Parliament. We decided not to continue with the inquiry. Our decision was based on a number of factors:

· the poor response to the call for submissions;

· the quality of the evidence;

· a review of the Commonwealth's investment promotion and attraction efforts by a task force headed by Dr Ian Blackburne that embraced significant aspects of the Enterprising Australia terms of reference; and

· broad acceptance by the government of the recommendations made by Dr Blackburne in his August 2001 report Winning investment—strategy, people and partnerships.

Notwithstanding the lapse of the inquiry, we took the view that a short report should be tabled in the parliament outlining some of the issues and conclusions that came out of the evidence. These reflect a similarity of view between our observations and the findings of Dr Blackburne's review team. I do wish to place on record our appreciation of the assistance the former Irish Ambassador, His Excellency Mr Richard O'Brien, and the Singapore High Commissioner, His Excellency Mr Ashok Kumar Mirpuri, gave to the inquiry.

We see a number of challenges for Australia in planning, preparing and profiting from trade and investment. No specific development agency model, whether it is an Ireland or a Singapore model, fits the Australian context. What is paramount is a national strategic approach to trade and investment. Additional challenges are developing regional initiatives that can build a diverse base for regional economic wealth, developing the skills in Australia that will underpin research and development initiatives, and ensuring Australia's global competitiveness and the comparative effectiveness of the incentives we offer.

A national strategic approach to planning, preparing and profiting from trade and investment promotes and increases Australia's international competitiveness. Evidence to the inquiry showed there were a number of federal government agencies that played a role in promoting investment and exports and—as Dr Blackburne noted in his investment review—this is not efficient and does not allow for a single Australian brand.

In the climate of global competitiveness where national leadership is paramount, the multiple-player approach promotes the insular culture of the bureaucracy and the notion of `turf', with government processes cumbersome and unresponsive. It was evident to us that the degree of commitment to a national strategic approach is a key to advancing Australia's trade and investment competitiveness. The government has agreed to the development of a national strategic framework for investment promotion and attraction, with the employment and infrastructure committee of cabinet to oversee operations. We are hopeful that this will indeed provide the capacity and capability to implement a whole-of-nation approach.

With the intention that this framework is to be developed in the context of Australia's overall economic growth and industry and regional development objectives, we regard the major national issues raised during Dr Blackburne's consultations as very important and they need to be addressed. These major national issues are set out in appendix E of our report. We are concerned that these issues, which were to be included in the work program of the Blackburne review's proposed prime ministerial investment council, will not be addressed under the new arrangements of the revamped Invest Australia. These major national issues should not be dismissed as not applicable and lost to examination within the changed operational arrangements of Invest Australia.

In our report we comment on the issues of tax, seen as an impediment to business; the adequacy of Australia's skills base, with investment in education critical to the future of Australia; and the commercialisation of R&D in Australia. On this last issue we are of the view that, in pursuing commercial outcomes, the capability to reach commercialisation should not become the sole criterion for funding an R&D project.

In conclusion, irrespective of Australia's achievements in encouraging inward investment and promoting export sales, the challenge for Australia and its policy makers at all levels of government is to move forward and put us ahead of our competitors. We need to focus on becoming even more competitive than our competitors and not to be both outmarketed and insufficiently aggressive in the pursuit of opportunities. I commend the report to the House.