Senator WATSON —My question is directed to the Minister for Resources and Energy. Minister, reports indicate that meetings with the Chinese delegation led by Vice Premier Zhu Rongji were significant and encouraging in terms of the future relationship between both countries. Will you outline for the Senate the implications of these talks for Australia?

Senator PARER —I thank Senator Watson for that question. I think it is interesting that here we have had a visit to Australia—

Opposition senators interjecting—

The PRESIDENT —Order! There is too much noise in the chamber.

Senator PARER —Here we have had a visit to Australia by one of the most high-powered Chinese delegations ever and we have had heard nothing whatsoever about it from members of the Labor Party. They have no interest in it whatsoever.

Opposition senators interjecting—

The PRESIDENT —Order! There is far too much noise in the chamber for anyone to hear the answer.

Senator PARER —The Minister for Primary Industries and Energy and I met with Vice Premier Zhu Rongji yesterday evening. Vice Premier Zhu was accompanied by Mr Liu, the Chinese Minister for Metallurgical Industry, and other Chinese officials. Vice Premier Zhu had earlier met with the Prime Minister and other Australian senior ministers, including the Treasurer and the Minister for Foreign Affairs.

In the lead-up to these discussions, the Vice Premier and his delegation had visited portfolio projects of interest in Western Australia in regard to iron ore and in South Australia in regard to both wool and wine.

Opposition senators interjecting—

The PRESIDENT —Order! There is far too much noise in the chamber. I am having difficult hearing Senator Parer.

Senator PARER —Two Australian companies, Ausi and Mineralogy, had also signed letters of intent with the representatives of China Iron and Steel and the Shanghai Metallurgical Holding Corporation regarding direct reduced iron ore. It has been as a result of gas developments in Western Australia that we have been able to see this downstream processing and the interest now in countries like China in relation to DRI.

On the resources side, I reassured the Vice Premier that Australia welcomed Chinese investment in our projects. Chinese investors also, I might point out, have a major stakeholding already in the Channar iron ore project and the Portland aluminium smelter. I welcome the recent conclusion of letters of intent, which I witnessed with Minister Anderson, of the two Australian DRI companies and said the government would be happy to facilitate further contact between Australian companies and Chinese investors.

Senator Bolkus —In the House of Representatives it's a big day. Howard's talking about long-range vision.

Senator Conroy —What about Tibet?

Senator PARER —I reminded the Vice Premier that an outcome of the Prime Minister's recent visit to China was an agreement for a separate delegation to visit Australia to examine the feasibility of investing in these projects. This has flowed from that. I assured him we would be happy to facilitate the visit, which I understand will now take place in June.

Senator Bolkus —Biggest customers in the world. Look, tell us his name again.

Senator PARER —It is interesting to hear the interjections from those opposite. They have no interest whatsoever in the fact that we are looking at trade, export income and downstream processing. The last thing they want to hear about is that we are about the creation of real jobs.

In addition to the iron ore projects and resource projects, Minister Anderson welcomed the Vice Premier's visit in respect of wool development. I remind senators on the other side—who may not know that China imports about $800 million worth, or thereabouts, of wool from Australia—about the Vice Premier's comments on the excellent prospects for future growth in the wool trade between our two countries. That was the major thrust of those discussions.

Senator Cook —Tell us his name again.

Senator PARER —You have no interest, Senator?

Senator Cook —Yes.

Senator PARER —You have no interest whatsoever. Those opposite think it is a joke. There remains a significant commitment between China and Australia for the wool trade, and this is extremely pleasing given that wool is our biggest trade and China is our largest and fastest growing market.

Another aspect that was covered was in regard to tourism. Development of tourism between Australia and China is an important objective for the Australian government. Minister Moore reiterated to the Vice Premier Australia's desire to expand such links with China to obtain preferred destination status for incoming Chinese tourists. (Time expired)