Mr CLAYTON BARR (Cessnock) (17:01): I move:
That this House:
(1)Notes that a trade war with increasing tariffs and quotas is in no-one’s interest.
(2)Notes that in 2023-24, New South Wales’ total steel and aluminium exports to the United States were worth $511 million, representing 16 per cent of New South Wales’ total steel and aluminium exports.
(3)Notes that Australian steel and aluminium products compete with the rest of the world with no tariffs and quotas.
(4)Calls on all governments to act quickly on preventing foreign dumping of steel and aluminium products that could cost Aussie jobs.
I hope that the House can stand united on the importance of our various economies and industries having a free trade approach to meeting the demands of communities across the world, and the fact that our businesses are and have been competing on the global front for decades. Those that are doing and continuing to do well today have done so on their own two feet. They have created a fantastic product at a desirable price. A bunch of businesses are no longer with us today because they have not been able to make that transition to the global free trade market. On that last point, I speak about the incredible industrial hub of the Hunter, which is matched only by Western Sydney and the Illawarra. I know we will hear from the members in those areas soon, but the Hunter has been an incredible industrial community for decades.
Indeed, when I reflect on my time at Marist Brothers in Maitland, an all-boys school, about two-thirds of students left school by the end of year 10 and got trades. Most of them were in industry and manufacturing, and they became tradespeople in their own right. Many of them do it extremely well. That is the history of the Hunter Valley. A lot of those jobs and industries no longer exist, which is sad and disappointing. The most significant disappearance of one of those industries was BHP Steel. More recently in my time as the member representing that wonderful community, we lost Hydro Aluminium at Kurri Kurri. A whole bunch of global pressures in place at the time meant that Hydro Aluminium had to make a decision about its closure and departure from the market. At that particular time massive amounts of aluminium were being dumped into the global market, which basically meant that a hardworking, multi-decade business known as Hydro Aluminium, which originally started as Alcan Aluminium, could not compete in that environment. It could not get through that difficult period.
Because Hydro Aluminium could not ride out the amount of aluminium dumping on the market at that time, 500 people in the Cessnock electorate lost their jobs. Around 20 or 30 per cent of those workers would never find work again. Even the local tyre shop lost about a million dollars a year worth of business. The local bowling club lost 20 or 30 per cent of its trade and turnover. The flow-on effect of our workers losing their jobs was significant, in the coffee shops, the hairdressers, the supermarkets and the bike shops. The flow-on effect on that particular occasion, with that particular business and that particular aluminium manufacturing industry was because of the dumping of aluminium products. That is the risk that we face right now with regard to potential tariffs in different parts of the world.
I speak about another tariff imposed more recently in the Hunter, which was on our wine industry. That had a really significant effect on our ability to manufacture and export wines to different countries. Again, that was because of trade tariffs. Tariffs can be really damaging to not only the community on which they are imposed but also communities globally that have set up business models that rely on exports or imports that do not have tariffs attached to them. For example, a significant portion of the Australian steel imported into the United States, one of our wonderful trade partners, goes into US defence markets. As our defence ally, the US uses Australian steel to prop up its wonderful businesses and industry that manufacture important defence products and to create brilliant, permanent, full-time jobs in the US.
Of course, that then brings us to the concept of the AUKUS deal, which Australia and Britain and the United States have entered into together. Australia is relying on the US and Britain to manufacture the submarines that we will ultimately benefit from. I hope the House will note that tariffs can be dangerous. We need good businesses to stand on their own two feet and operate in a global market. A number of businesses are doing that. One of the risks facing Australia at the moment is that tariffs imposed may well lead to foreign dumping of steel and aluminium, which could have a significant flow-on effect to many businesses in our community.
Mr CLAYTON BARR (Cessnock) (17:33): In reply: I welcome the support from across the Parliament in this brief debate about the importance of free trade, the dangers of tariffs and the concerns we all have about product dumping, particularly of steel and aluminium, on the international market. Literally thousands of jobs are at risk right here in Australia, good jobs that people can build a career around to, hopefully, buy their own home, put food on their table, keep a roof over their head, pay their bills and go about building a family. I recognise the members who contributed to the bipartisan debate on the motion this afternoon. I appreciate listening to the member for Oatley. I have heard about the potential for people to operate in different dimensions while occupying the same space. He is a good guy and really funny. I do love it when he is on his feet, but I think his criticism of our ambassador to the United States [US], Kevin Rudd, was a little unfair.
Mr Rudd was successful in making sure that our foreign affairs Minister, Penny Wong, visited the United States and attended the presidential inauguration. Defence Minister Richard Marles is meeting with the United States Secretary of Defense today, and the Prime Minister had what sounds like a successful phone call with the US President this morning. The member for Shellharbour gave us an excellent history lesson about what exactly has happened in this Chamber in recent years. I reiterate her point about Port Kembla steel being the strongest in the world.
There is no steel better. In the Ultimate Fighting Championship of steel, it is the world champion. The member for Upper Hunter, a neighbour of mine, pointed out that there is a positive net surplus trade position for Australia with the US. The US sends us more than it buys from us, which hopefully gives us strong leverage in the conversation. The member referred to Tomago Aluminium, which employs 1,000 people in the Hunter. The member for Prospect gave an extensive list of local businesses that export successfully from his electorate. The member for Davidson always has been and always will be a strong supporter of free trade. I commend the motion to the House.