Senator IAN CAMPBELL (9:48 AM) —I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard .

Leave granted.

The speeches read as follows—

CUSTOMS TARIFF AMENDMENT BILL (No. 1) 1999

This bill is the second of two bills which implement the Government's Response to the Industry Commission's Report into the Textiles, Clothing and Footwear (TCF) Industries. This bill is titled the Customs Tariff Amendment Bill (No. 1) 1999 which contains amendments to the Customs Tariff Act 1995.

The economic conditions under which Australia's TCF industries have operated in the past twenty years have undergone dramatic changes, particularly in relation to tariff protection.

In the 1980s the effective tariff rate for clothing and footwear was 250 per cent; by 1995, the rate for clothing had fallen to 40 per cent.

The tariff rate in the year 2000 for clothing will be 25 per cent and 15 per cent for footwear.

After a pause in duty reductions from the first of July 2000, the proposed legislation implements a further reduction of TCF tariffs on the first of January 2005.

Madam President, the pause will give Australia's TCF industries an opportunity to consolidate and strengthen by investing, restructuring and identifying global business opportunities through governmental incentives contained in the TCF strategic investment programme bill.

These stimuli will enhance sustainability and make the TCF industries internationally competitive in a low protection trade environment.

This bill provides for tariff levels on clothing and finished textiles to reduce from 25 per cent to 17.5 per cent; for cotton sheeting, woven fabrics carpets and footwear from 15 to 10 per cent, and from 10 to 7.5 per cent for sleeping bags, table linen and footwear parts with effect from 1 January 2005.

The bill also terminates on the thirtieth of June 2000 the textiles, clothing and footwear import credit scheme under which import duty concessions are earned on the value of goods exported from Australia.

I commend the bill.

EXPORT MARKET DEVELOPMENT GRANTS LEGISLATION AMENDMENT BILL 1999

Madam President, this bill delivers on the government's election commitment to Australian exporters, and particularly small and medium exporters, to continue to support in a very tangible way their efforts to expand into new markets overseas.

The bill does this by extending the life of the Export Market Development Grants Scheme for a further two years, to the 2000/2001 grant year.

The bill also continues the process of simplification of the EMDG scheme, a process that the government initiated in 1997 with the passage of the streamlined and more carefully targeted Export Market Development Grants Act 1997.

Madam President, I can report that this process of simplification has been well received by the exporting community. In the first year of operation of the 1997 act, all grant recipients received a full 100 cents in the dollar of their entitlement, attesting to the accurate matching of the scheme to eligible exporters for that year.

Furthermore, over 200 new small and medium exporters entered the scheme because of the lowering of the minimum expenditure threshold from $30,000 to $20,000.

In total, 2,933 exporters were assisted by the scheme in 1997/98, and those exporters received an average grant of $52,626.

However, as might be expected with a completely new act, usage has revealed areas where some fine-tuning is now required.

In addition to extending the scheme for a further two years, the bill therefore introduces twelve amendments of a housekeeping nature that restore or clarify the original intention of the 1997 act, and assist the smooth administration of the scheme. There are no major policy issues associated with these amendments.

The amendments:

. Ensure that certain exclusions to grants history as specified in the act are applicable to all circumstances associated with a first time applicant;

. Rename the "grants entry test";

. Ensure that trusts must be "genuinely carrying on business in Australia";

. Ensure that trusts have access to "new markets";

. Ensure that the limitation on claiming first class airfares applies to all travellers;

. Correct an incorrect reference and some illogical wording;

. Ensure that late-lodged applications cannot be received;

. Provide that applicants may receive three grants in respect of each "new market"; and

. Provide that the three year limit on the life of an "approved body" is also applicable to an "approved body" established under the previous act.

The bill also safeguards the effective operation of the scheme by making some administrative matters non-disallowable, and further facilitates the fulfilment of Austrade's charter by improving that organisation's ability to disseminate EMDG data.

The EMDG scheme is delivering real benefits to exporters and this bill will further improve it.

I commend this bill to honourable senators.

Ordered that further consideration of the second reading of the bills be adjourned until the first day of the 1999 winter sittings, in accordance with standing order 111.

Ordered that these bills be listed on the Notice Paper as separate orders of the day.