Mr NEVILLE (2:44 PM) —My question is addressed to the Deputy Prime Minister and Minister for Trade. Would the Deputy Prime Minister, in his capacity as Minister for Trade, update the House on the latest good news in Australia’s export performance? In particular, how are manufacturers performing, including those in my electorate of Hinkler?

Mr VAILE (Minister for Trade) —I thank the member for Hinkler for his question. The member for Hinkler represents a part of the north coast of Queensland that is an exporting engine room of Queensland. One of the industries up there which is a home-grown manufacturing industry is Jabiru Aircraft. They export right across the world to about 31 countries. The member for Hinkler is a great supporter of that industry.

In answer to the member’s question, Australia’s manufactured exports increased in value terms by 12 per cent in 2005-06 to a record $39.5 billion. Figures released by the ABS on Friday show that in volume terms manufactured exports rose by 6.4 per cent. So they rose in value terms and in volume terms in the last financial year. Some of the manufactured exports to rise in the last financial year in dollar terms are quite significant. Aluminium, for example, is up by 28 per cent to a record $4.8 billion. Motor vehicles, where exports increased by 14 per cent, are up to a record $3.1 billion. Medicines rose 18 per cent to a record $3 billion. They are all very important sectors in the Australian manufacturing industry base that are generating with that growth many jobs for Australians.

The outlook for manufactured exports and the manufacturing industry is positive. The Australian Industry Group August survey shows that manufacturing activity is continuing to grow, partly driven by the increase in exports and the expectation of an increase in exports in that sector. The government have continued to support the manufacturing industries in Australia and particularly their competitiveness in the international marketplace. For example, we removed the three per cent tariff on imported inputs, where there are no domestically produced substitutes, to make the outputs, the manufactured products, more competitive in the international marketplace.

We should never forget that in the tax reforms we introduced a number of years ago, under A New Tax System, we removed $3 billion worth of taxes off the back of Australian exports. It is good to recognise that in the current political debate in Queensland another coalition is offering to further enhance the competitiveness and the cost structure of business by offering to phase out and remove stamp duty for that sector in Queensland. It would be a good thing if every state in Australia followed suit to work with the federal government to increase the competitiveness and the viability of businesses, particularly manufacturing businesses. The coalition will continue to encourage business to help strengthen its base in the domestic economy and be more competitive on the international stage.