Senator Watson asked the Minister for Foreign Affairs and the Minister for Trade, upon notice, on 3 November 1992:

  (1) Is Australia currently receiving a comparatively small proportion, that is, 1.2 per cent of the $132 million total, of the contracts which are awarded each year by the Asian Development Bank.

  (2) Why is the Australian Government not encouraging more the expansion of Australia's trade in the region and the procurement of more contracts by the Asian Development Bank.

Senator Cook —The answer to the honourable senator's question is as follows:

  (1) Set out below are details of the contracts awarded to Australia by the Asian Development Bank 1989-92.

1989  Goods USD27.5 million (1.5%)

  Services $US 2.6 million (5.2%)

  Total share 1.6%

1990  Goods $US 71.6 million (3%)

  Services $US 2.8 million (3.6%)

  Total share 3%

1991  Goods $US 42 million (1.7%)

  Services $US 2.8 million (2.7%)

  Total share 1.8%.

1992  Goods $US 51.1 million (1.99%)

  Services $US 6.5 million (6.06%)

  Total share 2.16% (provisional figures)

(Source : Asian Development Bank Annual Reports)

  (2) It is possible that these figures may understate the level of actual Australian participation in ADB contracts. Statistical reporting by the multilateral development banks does not provide information on indirect procurement, which is the supply of goods by companies not resident in the source country. Asian Development Bank data for major contracts in 1990 shows indirect procurement from Australia amounting to over 40% of direct procurement.

  The Australian Government has been encouraging exporters to participate more actively in trade opportunities offered by the Multilateral Development Banks and particularly the ADB. Earlier this year a specially commissioned report recommended measures to improve the effectiveness of Government resources dedicated to assisting Australian companies to participate successfully in the market for international development assistance projects.

  The report considered actions which could be taken in Australia and at posts overseas to promote participation by Australian business in the market opportunities presented by ADB cofinancing. In this respect, one objective is to promote better awareness of the international development assistance project market among companies in Australia, for example through holding business opportunity seminars in conjunction with the ADB and other multilateral lending institutions. A second objective envisages the provision of a higher level of support to companies in their relations with the executing agencies in the recipient countries.

  Austrade is the principal Government agency with responsibility for supporting the efforts of Australian companies to sell goods and services to the multilateral lending institutions. Austrade's International Procurement Intelligence Network, which includes specialist Trade Commissioners located in Manila and Washington, is the mechanism through which particular attention is given to promoting exports to the ADB and other multilateral lending institutions.

  The Government's work on access to the market provided by the ADB is one part of a much broader effort, which includes the National Trade Strategy, of major Government strategies to integrate Australian business with the Asia-Pacific business community. The assumption which underpins this work is that the principal determinant of success of Australian firms in multilateral markets as well as bilateral export markets is the competitiveness of their products, which includes cost and quality considerations.