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United Arab Emirates Trade Mission

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About this Item
Subjects -  Trade; Business; Foreign Affairs
Speakers - Campbell Mr David; Hodgkinson Ms Katrina; Ashton Mr Alan
Business - Matter of Public Importance


    UNITED ARAB EMIRATES TRADE MISSION
Page: 14333


    Matter of Public Importance

    Mr DAVID CAMPBELL (Keira—Minister for Regional Development, Minister for the Illawarra, and Minister for Small Business) [4.32 p.m.]: I ask the House to note as a matter of public importance the valuable role that trade missions and market visits play in business growth in New South Wales, particularly the forthcoming trade mission to the United Arab Emirates [UAE]. This is an important matter for our State because exporting is a proven means of business and jobs growth for companies of all sizes. It is also a contributor to the economic development of New South Wales. Research shows that, on average, exporting companies are more profitable than companies that do not export. Exporting companies also, on average, pay their staff more than non-exporters; they offer more training and career development opportunities, and tend to be more in tune with new and changing technologies. International trade improves our standard of living and accounts for around 20 per cent of Australia's gross domestic product. Significantly, one in five jobs depends on international trade. That figure is one in four in regional areas.

    Trade missions and market visits are part of the New South Wales Government's strong and detailed programs to help our companies win business in international markets. Each year the New South Wales Government organises a series of trade missions and industry-specific market visits to high-potential and emerging markets. These visits, which are tailored to meet the individual objectives of participating companies, are backed up by a wide range of State government services to help companies win business in foreign markets, and retain and create jobs in New South Wales. Our trade missions and market visits have an impressive record of success. In 2003-04 a total of 179 New South Wales companies took part in the State Government's trade missions and market visits. The companies expected sales of $58 million in the following 12 months as a direct result of their participation in the visits.

    This week 21 New South Wales companies are travelling to the Middle East to take part in our latest trade mission to the United Arab Emirates [UAE]. Nine of the companies will travel on to Qatar to seek further business development opportunities. The UAE imports more than 90 per cent of its total goods and services and is also expanding its role as the trading hub for the Middle East, East Africa and Central Asia. The country is undergoing phenomenal growth. The UAE Government is promoting city-within-city projects. Key developments in the area include the Westside Marina, Palm Islands, the Dubai Festival City, the Dubai Health Care City, and the Dubai International Finance Centre. A recent study reported that the UAE Government is spending $US320 billion a year on construction and infrastructure. In 2002 New South Wales exports to the UAE were valued at $A65 million and included a wide range of products and services—building and construction equipment and services, water and waste water technology, food and food processing equipment, education services, and much more.

    This week's trade mission to the UAE is the sixth organised by the New South Wales Government to this important market since 1999. The products and services of the 21 companies are extremely diverse, and include custom lighting, architectural design, management consultancy, biometric security, architectural models, synthetic grass, gourmet macadamia products, decontamination equipment, audiovisual and lighting design, furniture, plastic bottles and caps, industry training, and sprouts. Taking part in this trade mission is St Leonards-based Dimension 5 Design, an innovative architectural practice that has worked on commercial and retail centres, hospitality and recreational facilities, luxury individual housing, medical facilities and educational institutions. Microlatch, from Hurstville, is a designer, manufacturer and distributor of cost-effective biometrics security, access control and identification technologies. Microlatch's main focus is on integration of state-of-the-art biometrics solutions—specifically fingerprint technology.

    OPEC Systems, which is based in Frenchs Forest, provides decontamination shelters and associated equipment such as decontamination showers, all-terrain decontamination trailers, protective suits, and bio-chem isolation chambers. An Alexandria company, Di Emme Creative Solutions, specialises in the design and fabrication of custom lighting, architectural features and water features. PTW Architects, from the Sydney central business district, provides a range of professional services including architectural design, master planning and urban design, and building refurbishment. A significant part of the company's business is sports and event operational planning. Last year PTW won a major design project for the Beijing 2008 Olympic Games. PTW and its joint venture design partner, the Beijing Urban Design Institute, were appointed to undertake a complete architectural and engineering service for the Beijing 2008 Olympic Athletes Village.

    I represented the New South Wales Government at the official contract signing ceremony in Beijing in November last year during our trade mission to China. Another participant in the trade mission to the UAE is Sebel Furniture from Bankstown. As honourable members would be aware, the company provides a range of quality furniture for a wide range of uses. I expect the honourable member for East Hills will further inform the House about this highly successful company later in this debate. It is pleasing to note that two regional companies are taking part in this trade mission. Bangalow-based Ant Packaging designs and manufactures a range of plastic bottles and caps for use in the cosmetics and personal products industries and in laboratories. Brookfarm, which is also based in Bangalow, manufactures gourmet macadamia products, including muesli, macadamia oils and nuts. Last year the company won several medals at the prestigious Great Tastes Awards in London. New South Wales companies can find many excellent opportunities in the United Arab Emirates, especially in construction but also in other sectors.

    This week's trade mission to the UAE is the sixth organised by the New South Wales Government since 1999. The Government has also organised one market visit to the UAE, two trips to participate in exhibitions, and six independent market visits. A total of 102 companies have taken part in these visits. They have had impressive business results. Reports indicate that a total of more than $A28 million in export sales has already been generated. A further $A2 million has gone into outward investment and the establishment of local offices in the UAE. Eight companies have taken that step. This represents a significant investment by the private sector in the UAE. At the time of their return from the visits, the participants estimated that they would generate export sales of nearly $A52 million in the next 12 months. So they are well on their way to successful outcomes. The Middle East is an important market of growing significance for New South Wales companies.

    In 2003-04 New South Wales exports to the six Gulf Co-operation Council members—the United Arab Emirates [UAE], Oman, Qatar, Bahrain, Kuwait and Saudi Arabia—amounted to more than A$213 million. This week's trade mission to the UAE follows the successful exhibition visit there late last year. Seventeen New South Wales companies took part in this visit. They were part of a New South Wales contingent at the Big 5 exhibition in Dubai. The Big 5 exhibition is the Gulf region's major trade show covering building and construction, water technology and the environment, airconditioning and refrigeration, and cleaning and maintenance. Here is what two participants had to say. Anwa Khan, director of Acousta Australia Pty Limited, said:

    We are pleased that NSW (Government) has done a very good job and provided our company a helping hand in the UAE and Middle East.

    And Greg Morgan from Waterman AHW had this to say:

    The mission was very well organised. Full credit to the Department of State and Regional Development and the NSW Government.

    The Big 5 is attended by more than 30,000 visitors from many Middle Eastern countries, including Libya, Iran, Syria and Oman, as well as the UAE. The products and services of the 17 participating companies included architectural and engineering services, ventilation systems, specialty paints and acoustic wall and floor panels. There is clearly an opportunity for planning consultants in the UAE, and Wollongong planning consultant TCW may well be interested at looking at those opportunities. I am sure Terry Wetherall, who is in the public gallery, finds that comment particularly pleasing.

    The Big 5 provided these New South Wales companies with a good understanding of the Gulf region market, and it gave them an opportunity to view the products and services of competitors and make contact with potential business partners and distributors. This was the second year the New South Wales Government has provided a New South Wales booth at this important exhibition. It has proved to be of considerable benefit to the participating companies, as preliminary reports from the companies show. To date, the companies have reported that they expect to generate more than $A17.25 million in new export sales over the next 12 months as a result of exhibiting at the Big 5.

    The New South Wales Government has a busy program of trade missions and market visits, but a program that is well worth pursuing because of the benefits that exporting brings to New South Wales companies, their employees and their communities. It is very satisfying to hear reports back from participating companies about their successes. Invariably they are extremely impressed by the programs and meetings arranged for them. I wish every success to the companies taking part in the trade mission to the United Arab Emirates this week. I am sure all honourable members will look forward to hearing about their progress in winning new international business and, through that, securing more jobs for New South Wales workers and providing a secure future for those workers' families.

    Ms KATRINA HODGKINSON (Burrinjuck) [4.42 p.m.]: I start my contribution by wishing the 21 companies, which will be travelling this week, all the best of luck in expanding their markets in the United Arab Emirates. I have not been there personally but certainly all that I have read about it leads me to believe that it is a fantastic part of the world. There are obviously many, many opportunities there for Australian businesses.

    When the Clerk announced this matter of public importance this afternoon on behalf of the Minister, I started doing a bit of research and my mind went back to the last Federal election and the attitude of the Labor Government in relation to the free trade agreements [FTAs]. I know that there has been very, very strong opposition from Federal Labor in relation to free trade agreements. Free trade agreements are of enormous benefit to businesses in Australia. They continually open up markets for businesses, they increase employment, and they are fantastic for our own development as far as businesses are concerned.

    I would like to know whether the Minister supports free trade agreements. He is the Minister for Small Business. Perhaps he would be able to enlighten the House in his reply as to how he feels about FTAs and if he agrees with Federal Labor or is opposed to what Federal Labor has been saying in relation to the Government's trade policy agenda. Our Government's trade policy agenda has a balance between multilateral negotiations and bilateral negotiations as its approach to trade liberalisation. The Labor Party federally is still stuck in the past and continues to put out its purist mantra about multilateral systems.

    The United Arab Emirates is a very important destination. As I was doing research for this contribution to the debate I was reminded that in the last election campaign the Federal Government said it was going to be looking at a free trade agreement between the United Arab Emirates and Australia. I understand that there are still some negotiations taking place in relation to that at the moment. I commend the United Arab Emirates on appointing Sheikha Lubna as the first female Minister ever appointed in the UAE. She is a highly successful and very well-regarded businesswoman in her own right. I understand that the Federal Minister for Trade, Mark Vaile, recently met with her in Davis, and I am sure that she will make a very energetic and dynamic contribution to trade negotiations on behalf of the United Arab Emirates and Australia.

    As the Minister said, there is a construction boom happening in Dubai at the moment. A multibillion-dollar estate development project, the Dubai Waterfront, is currently taking place, and I know that there are many Australian companies involved in the UAE construction sector. I believe that Australian-made Toyotas are being exported to the UAE, amongst, obviously, many other exports. Dubai is positioning itself as a significant international investor and it should certainly be considered seriously by future Australian trade and investment delegations to the UAE. I am very pleased that the sixth delegation is about to depart from our shores. I wish them all the very best of luck.

    I also understand that the consumption of high-value food and wine is very strong in the UAE, which is a very important factor for our own markets in New South Wales. We are a very strong producer of high-quality wines and gourmet foods. Many gourmet foods and many, many fine wines are produced in my electorate of Burrinjuck. I know that those fine wines are exported at a very reasonable export cost to the four corners of the globe. I trust that our relationship with the UAE will only enhance that export growth.

    The UAE, which has four million people, is a federation of seven Emirates: Abu Dhabi, Dubai, Sarah, Raps Al Kamiah, Amman, Umm al Taiwan and Filaria. The Use's gross domestic product [GDP] is $US93.1 billion and the total global two-way trade in goods is $102 billion. It has the world's fifth-largest conventional oil reserves and the fifth-largest natural gas reserves, and there is a vibrant services sector representing 48.2 per cent of its GDP. I think that the types of exports from Australia to the UAE will be very beneficial for any future free trade agreement between Australia and the UAE. I expect that the Federal Government will continue to work to the commitment that it made during the last election campaign. I know that a commitment made by The Nationals in an election campaign is one that it will keep. I trust that the trade Minister, Mark Vaile, will make an announcement in due course about an FTA in relation to that.

    The Use's rapid development and associated need for imports, together with its high levels of disposable income, means it is an attractive and expanding market for Australia. It is currently our second-largest trading partner in the Middle East and there is a lot of potential for continuing growth. Merchandise exports grew by an impressive 15 per cent between 2003 and 2004, from $1.1 billion to $1.3 billion, and services exports grew even more strongly, up 55 per cent to $472 million over the same period. Over the past decade Australia's trade with the UAE has expanded and diversified from traditional primary products and processed foods to include more complex manufactures and services exports—I mentioned previously the example of Toyota.

    Like Australia, the UAE has a relatively open trading environment but exports in some key sectors continue to face barriers. A comprehensive FTA could address remaining tariff and non-tariff barriers to trade, opening up a raft of new opportunities in both countries. There is a total two-way trade in merchandise goods between Australia and the UAE worth $1.9 billion in 2003-04, with Australia recording a trade surplus of $443 million. Australia's merchandise trade with the UAE has undergone a significant transformation in recent years, away from traditional commodities to a growing emphasis on elaborate early transformed manufactures [Elms]. These have grown from 19 per cent of our total merchandise exports to the UAE in 1994 to 37 per cent in 2004.

    Australia's largest export to the UAE is passenger motor vehicles, representing 18 per cent of total exports. In 2004 this was worth $235 million or 9 per cent of all Australian passenger motor vehicles sold overseas. But the important merchandise exports include alumina, telecommunications equipment, meat, dairy products, wheat, and processed foods. Australia's imports from the UAE are dominated by crude petroleum. We also import minerals and metals such as liquefied propane and butane, as well as metal structures and glassware.

    Services trade with the UAE has grown significantly in recent years and is now a key element of our trading relationship. Two-way trade in services was worth almost $1.5 billion last year, with Australia recognised as a major supplier of professional services such as architectural, financial and construction services. Australia's services imports from the UAE are mainly transport and travel-related services. Some of those facts and figures speak for themselves, but certainly tourism and educational ties between Australia and the UAE are also growing at a rapid rate. I understand that the University of Wollongong actually has a campus in Dubai, which is doing very well. I believe that there is an issue about the word "Dubai" being behind the title "University of Wollongong" on the degrees, but that is being worked on.

    Mr David Campbell: That is not a problem.

    Ms KATRINA HODGKINSON: The Minister says that has been resolved. I understand that the campus is doing very well and is another example of New South Wales and Australia dealing with the UAE in a positive, productive and proactive manner. I understand that the Minister is not joining the delegation, but I wish every business participating in the delegation the very best of luck and future success. [Time expired.]

    Mr ALAN ASHTON (East Hills) [4.52 p.m.]: I join with the Minister for Small Business in wishing every success to the 21 New South Wales companies that will participate in the upcoming trade mission to the United Arab Emirates [UAE]. Among the companies joining the mission will be the famous furniture maker Sebel Furniture, which I am proud to say is based in my electorate of East Hills. Sebel is a great Australian success story that has a history dating back to the late 1940s. I doubt that there is an Aussie backside that has not come into contact with a Sebel chair at some stage. I can remember years ago when my mother was very ill we needed to buy special chairs and we were able to buy the correct ones from Sebel.

    Although I do not have shares in the company, I do have chairs from the company. Whenever I drive along Canterbury Road my wife often encourages me to stop at Sebel to check out its sales and displays. The chairs are comfortable, stylish and durable. I am a proud consumer of Sebel furniture and I am glad that this thriving company within my electorate will be part of the delegation to the UAE. The Sebel web site states:

    If you have ever watched your favourite team score the winning goal, screamed yourself hoarse at a rock concert, sat at a school desk for what seemed an eternity [I did that for 20-odd years] visited a loved one in hospital, enjoyed a great meal at as stylish restaurant or just lazed by the pool in a top resort, then chances are you have sat on a chair from Australia's leading furniture manufacturer—Sebel.

    We have all done that. It is a matter of particular pride that a long-established company from the East Hills electorate is again taking the chance to expand its overseas markets, generate new sales and continue to provide a solid future for its employees and future employees. Sebel is a great example of an Aussie company that has a long and proud past but is not content to rest on its laurels. It is inspiring and exciting to see a company continue to build on its success, continue to develop innovative new products to meet changing markets, continue to work hard to find new buyers and secure new sales and continue to literally get bums on seats.

    Sebel management recognises that the world is an ever-changing place. This is the key to ongoing business success. It was not long ago that this proud Western Sydney company won a contract to supply outdoor furniture to the UAE company responsible for building the world's largest skyscraper and shopping centre. The products were selected because they were designed to suit harsh Australian weather conditions, which, therefore, makes them ideal for the Middle East. Contracts like this $300,000 deal do not come about merely because a business produces great products or supplies a great service. Those deals happen because a company works hard to promote its products, pushes them into new markets, something that needs government support also. This Government has always been at the forefront of promoting small business and I congratulate the Minister on the role he has played.

    Buyers do not always come knocking on doors; businesses need to promote their products, and the success of Sebel is the result of smart thinking and hard work. The harder one works the more luck one seems to have. The harder one trains in sport, such as football, the luckier one will become on the football field. In the same way companies that work hard will win more contracts. Sebel has approximately 260 workers, who mostly live in the Bankstown area and are the mainstay of the company's continuing success. I congratulate them on their important role in helping Sebel grow and prosper. I am sure that if past successes are any guide, the company's regional expert or manager, Richard Howell, who leaves for the UAE on Thursday, will come back with a stack of orders.

    This is the second time that Sebel Furniture has participated in a New South Wales Government trade mission to the United Arab Emirates. The UAE was the subject of our State's largest ever trade mission last year and Sebel was present. That trade mission was expected to generate more than $12 million worth of business for some 25 New South Wales companies, including the sale of ice cream, herbs, and software and security systems. It was during that trade mission that Sebel, a wholly owned subsidiary of GWA International Ltd, which includes household names like Derf and Ceroma, finalised its contract with Ear Properties, one of the Use's largest companies with an asset base of $US7.7 billion. Ear is building the world's tallest skyscraper, Bur Dubai, and the world's largest shopping centre, the Dubai mall.

    They also received a follow-up order worth approximately $35,000. During the trade mission that commences later this week Sebel aims to appoint more agents in the Middle East and to promote its products in the growing education sector. I know honourable members will join with me in wishing Mr Howell and the other participants all the best for their mission. It should be noted that 30 per cent of the furniture produced at Bankstown is exported, with Sebel products going to 62 countries. I conclude by stating that Sebel exports to numerous countries, including the United States of America, the United Kingdom and Denmark. My daughter is in Denmark and she has probably sat in a Sebel chair. I have heard that even Princess Mary and Prince Frederic might be interested in purchasing some Sebel furniture. Indeed, anybody closely watching the Denton show last night would have seen them sitting on a Sebel chair. I congratulate the delegation that is attending the UAE and look forward to its great success. [Time expired.]

    Mr DAVID CAMPBELL (Keira—Minister for Regional Development, Minister for the Illawarra, and Minister for Small Business) [4.57 p.m.], in reply: I thank the honourable member for East Hills for his contribution to the debate and note his salesman skills in trying to sell Sebel furniture to the Danish royal family. I acknowledge also the contribution of the honourable member for Burrinjuck. She spoke about her research, but if she had carried out more detailed research into the free trade agreement [FTAs], she would know that in this place, on behalf of the Government, I have talked positively about the opportunities for FTAs in building a strong local economy and for growing local jobs.

    She would have been better off to have highlighted the fact that the work of the Labor Opposition in Canberra led to a better result in the American free trade agreement, particularly in the area of medicines and the Pharmaceutical Benefits Scheme, probably saving that scheme in the process. At the end of the day the Federal Parliament undertook rigorous scrutiny, thereby providing a better result. Notwithstanding that core research, I know that the honourable member for Burrinjuck effectively endorsed the strong and detailed plan that this Government has for trade missions and I thank her for encouraging exports. The honourable member for Burrinjuck also talked about the University of Wollongong. The courses that the University of Wollongong offers at its campus in Dubai are fully endorsed and accredited by the United Arab Emirates Government. That is good news for educational exports from New South Wales. I acknowledge that the University of Wollongong is on the honourable member for Burrinjuck's radar.

    Mr John Brogden: It's a great university.

    Mr DAVID CAMPBELL: It is a great university. Last year a good friend of mine, Dr Stephen Martin, spent a number of months in Dubai as the operational head of the University of Wollongong campus. No doubt that campus makes a significant contribution to the work of the University of Wollongong. Last year the Premier welcomed to Sydney his Highness Sheikh Hammed Bin Bayed Al Nahant from the United Arab Emirates. Their talks focused on building business and trade links. Sheikh Hammed chairs the Abu Dhabi Economic Department and heads the Abu Dhabi General Health Authority.

    The United Arab Emirates is the third largest economy in the Middle East, with a gross domestic product of $US71 billion in 2002, and one of the highest per capita incomes in the world. There are more than 4,000 Australian nationals and 70 Australian companies in the United Arab Emirates. The United Arab Emirates is a focus of the New South Wales Government's export development initiatives, but it is not only the market we are targeting. This upcoming trade mission is part of a broad, strong and detailed plan we have to assist exporters to extend their overseas markets.

    As I said earlier, the Government organised a trade mission to China last year, in which 16 companies from across New South Wales took part. Those companies covered a wide range of goods and services, including wine, architectural design, energy efficient lighting, management consulting, water saving shower devices, medical and nurse training and recruitment, dairy products, event management, and construction and planning. China is another country that represents excellent export opportunities for New South Wales companies. China is the world's fastest growing economy, with an average annual growth of 8 per cent over the past six years.

    This growth, combined with the introduction of many trade and business reforms, means that there are many emerging business opportunities for New South Wales exporters of goods and services. It is important to point out that export is about not only commodities and manufactured goods but also services. More and more Australian service companies are earning export dollars and, as a consequence of earning those export dollars, employing more people and providing support through that employment to more and more families in New South Wales. The results from the China trade mission were very encouraging. One participant, Kristina Friend from Orchard Hills company Eco Balance Discovery Tours, said she had identified three potential markets for her business. She said:

    The whole program was fantastic—well organised to every detail. All the business matching was "spot on". The amount of interest shown by the Chinese agents was overwhelming.

    Another participant, Michael Quam from Parramatta's Triple 8 Studios, commented:

    The trip to Shanghai and Guangzhou to meet with local businesses was invaluable …

    Trade will promote local jobs and, through that, security for local families. [Time expired.]

    Discussion concluded.


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