Senator FERRIS (2:46 PM) —My question is to the Minister for the Arts and Sport, Senator Kemp. Will the minister inform the Senate of the government's efforts to secure the benefits of free trade while ensuring the protection of Australia's vital cultural interests, including the very important audiovisual sector?

Senator KEMP (Minister for the Arts and Sport) —Thank you, Senator Ferris, for that very important question. Today is a historic day. It is the day the Labor Party has decided to do one of the greatest backflips since Federation and support the free trade agreement. The question as to why the Labor Party could not make up its mind five months ago has been asked. The short answer to that is that it has a leader called Mark Latham who cannot tackle the hard issues, to be quite frank. This was a difficult issue for the Labor Party and it is one on which the Labor Party has allowed a debate to run for a very long period of time. In my portfolio responsibilities I have had to listen to Senator Lundy debate this issue at Senate estimates and on radio and TV, and Senator Lundy has always made the point that the Labor Party would not be signing the free trade agreement unless there was a cultural carve-out.

Senator Lundy —Tell me this: are you going to support our amendment?

Senator KEMP —If I am wrong, Senator Lundy, you can correct me, but the truth is that you opposed the free trade agreement. We debated this issue in front of the cultural sector last Monday and you were very opposed to the free trade agreement. I made a prediction at that debate—and Senator Ridgeway was there, and he can confirm it. I said, `Senator Lundy, you have attacked the free trade agreement tonight, but let me tell you that you will be walking into this parliament and voting for it.' That is precisely what has happened.

What I think was disturbing about this debate was the misinformation that was conveyed to the cultural sector. This government, as always, protects the national interest. This government is one that has an acute sense of the national interest. This government said from day one that it would protect Australia's cultural objectives in the free trade agreement. I am pleased to report to you, Mr President, that that is exactly what the government has done. I can assure Senator Lundy that the government has kept its commitment to the cultural sector and has retained the capacity to support the sector, to regulate audiovisual media and to meet our cultural objectives now and in the future. Importantly, the government's capacity to provide grants and subsidies, including tax incentives, and to support cultural institutions and agencies—including, for example, the ABC and SBS—remains unaffected.

In audiovisual services the government have negotiated an agreement with the US that retains existing regulations for local content, including on advertising. We have the ability to introduce local content requirements on possible digital multichannelling on free-to-air commercial television. We have the ability—and this has not come through in any of Senator Lundy's statements—to double the current 10 per cent expenditure requirement on drama channels for subscription television. We have the ability to impose expenditure requirements of up to 10 per cent on four additional program formats on subscription television—that is, on arts programming, children's programming, documentaries and educational programming. The agreement preserves our ability to direct money into new production activity. We have the ability to introduce local content requirements on new media—and this was one of the major demands of the cultural sector—and interactive radio or video services. The agreement can apply to new types of interactive platforms that have yet to be conceived. Most importantly, the decisions on these matters will be made by Australians. The US does not have the power of veto. (Time expired)