Mr TREVOR (2:55 PM) —My question is to the Minister for Resources and Energy and Minister for Tourism. Will the minister advise the House of the strength and importance of the relationship between China and Australia with regard to the resources sector?

Mr MARTIN FERGUSON (Minister for Resources and Energy and Minister for Tourism) —I thank the member for Flynn for his question. The visit to Australia by a high-level delegation led by His Excellency the Vice-President of China is a very strong statement about the strength of the trading relationship between Australia and China. Nowhere is that more important than for my own portfolio responsibilities of Resources, Energy and Tourism. In 2010 alone China was Australia’s largest two-way goods and services trading partner with over $85 billion in total trade. I therefore welcome, on behalf of the House today, the signing of 10 agreements between Australia and China worth over $10 billion, seven of which relate specifically to my Resources and Energy portfolio. These agreements will see major upgrades to infrastructure and in doing so deliver jobs and economic prosperity not only to Australia but especially to our major regional communities.

For example, I go to the Bowen Basin and I refer to a US$8 billion agreement relating to China First Coal Development, Resourcehouse, the Export-Import Bank of China, Metallurgical Corporation of China and China Power Holdings. That agreement alone will lead to the construction of a mine, a 476-kilometre railway to the port of Abbott Point, near Bowen, and a coal-loading terminal. It could result in approximately $4 billion in export earnings a year for 25 years alone. Other agreements refer, for example, to an undertaking reached between Fortescue Metals Group and China for procurement, engineering and design services to fast-track the expansion of Fortescue’s iron-ore project in the Pilbara. On current estimates the expansion will add more than $5 billion to the annual export revenue of Australia.

I then go to the agreement between Karara Mining, the China Development Bank and the Bank of China, which goes to the potential development of the Oakajee iron ore project in Western Australia, a project supported by an investment by the current government of $343 million to facilitate the port development for that key project, a project neglected by the previous government. In terms of South Australia, I refer to the Arckaringa Energy project, which could see high-value, clean-energy products including liquid fuels, chemical feedstocks and power as a result of that particular opportunity. I am also pleased to report that my department has entered into a memorandum of understanding with China’s National Energy Administration for further close cooperation on energy, notably in oil and gas, coal, coal seam methane, low-emissions technologies, renewable energy and uranium.

Also, I do not forget the importance of tourism in a $30 million marketing package announced by the Prime Minister, going to boost tourism from China. That market alone is currently worth $2.8 billion to Australia’s burgeoning tourism sector and is expected to grow by over 10 per cent on average to $5.5 billion by 2017. I am pleased to say that a high-level engagement will be held with the Chinese administration in tropical North Queensland for the purposes of trying to extend some of that growth out of the Chinese market to Cairns and related regions.

These announcements are a very strong statement about the strength of the trade relationship between Australia and China. They are also a very strong statement about the fact that Australia is a very attractive place for investment. I simply say that from the Australian government’s point of view we will continue to work to deliver agreements such as this. I also indicate that we will continue to engage with the resources sector to put in place major taxation reform which delivers a profits based tax system whilst also ensuring as a result of those consultations, as evidenced by the announcements today between Australia and China, that Australia is a very attractive place for investment and that there will be jobs growth and ongoing investment in Australia.