Australia's Foreign Relations (State and Territory Arrangements) Bill 2020

Senator VAN (Victoria) (21:29): I rise to speak in support of the Australia’s Foreign Relations (State and Territory Arrangements) Bill 2020 and the related bill which are before the Senate today. Before I go into the details of these bills, I recognise the government's continued commitment to participating in the international rules based order and our ongoing efforts to ensure that Australia's best interests are at the forefront of our thinking. I think it's also important to note that just today we've seen a display of the sort of appalling behaviour that can occur when nation-states feel that they are above the rules based order and resort to belligerence rather than diplomacy.

As I've said earlier in this place, Australia has a proud history of helping to found and support various international frameworks, rules and institutions that have evolved since the destruction and carnage of the two world wars last century. Through the work of organisations such as the UN, the World Bank, the IMF and the WTO, Australia and countries in our region have benefited from the expertise and assistance that those bodies have brought to bear in times of crisis. But I think it is important to remind people how important these international institutions are in providing a stable and prosperous international community. Without them, things such as trade agreements, international aid and responses to health crises would have been difficult to achieve. The capacity to raise standards of living in developing nations, to lift people out of poverty, would also not be possible.

Australia, as a trading nation, relies on an open and free world trading system, and that is supported by an international rules based order to maintain peace and prosperity. Without that system, Australia would not have enjoyed 28 years of uninterrupted growth, expanded export markets for both goods and services and an international reputation for low sovereign risk and measured diplomacy. Of course, no system is perfect, and I will not stand here and say that I think all multilateral bodies are perfect. They are not, and some reform is needed and inevitable. That is why it is important that Australia has a consistent approach to dealing with the vagaries of international events through a measured and thoughtful approach to foreign policy. Australia cannot afford to have a fragmented approach to developing foreign policy. International agreements that bind Australia's academia, research and state, territory and local governments to actions that are inconsistent with Australia's foreign policy should not be entered into. If they are, they show naivety, wilful ignorance or blind incompetence in their development.

These bills will provide the public with confidence that the arrangements of state and territory entities with foreign governments are consistent with Australia's foreign policy interests. The Australian government, through the Department of Foreign Affairs and Trade, has the expertise necessary to assess whether arrangements with foreign governments are consistent with our foreign policy and therefore consistent with our national interest. Without consultation, the Australian government has no opportunity to review the proposed arrangements and apply that expertise. Without due diligence and consultation, we risk having a patchwork of relationships, contracts, MOUs and collaborations that could be counter to or have an adverse effect on our foreign policy interests. The Australian government and our states and territories need to work together on the international stage to speak with one voice.

There is no better example of how important this is than in my home state of Victoria. The Andrews government signing up to China's Belt and Road Initiative is just another example of how badly they manage Victoria's interests. Premier Andrews signing up to an international $1.5 trillion initiative without even consulting those who are responsible for Australia's foreign policy is just wilful irresponsibility on behalf of his government. I cannot imagine why a government, let alone its premier, thought that signing a memorandum of understanding with a foreign government without thinking about its impact on Australia's interests was the right way to go. The secretive nature of how this agreement came about, the lack of consultation and the poor way it has been handled since just confirms that this ineptitude is business as usual for the Andrews government.

We've seen this ineptitude and secretiveness more recently with the failed hotel quarantine program, resulting in a lockdown that has destroyed Victoria's economy. Just today we hear ratings agencies saying it's a fifty-fifty bet that Victoria will lose its AAA credit rating. As reported in the Financial Review today, an S&P analyst said:

We consider the downside risks to Victoria's AAA rating are rising substantially.

These bills will establish an approval regime and a notification regime—a regime that applies to the proposed and existing international agreements. If they're proposed, the foreign minister can declare that they will not go ahead. If they're already in place, the minister can declare that they are invalid. State and territory entities wanting to enter into agreement with the government of another country or one of its agencies will be required to notify and get approval from the foreign minister. The state, territory, local government or Australian university which wishes to make an arrangement with a foreign entity must notify the foreign minister of that arrangement. The foreign minister's approval in these instances is not required. However, the foreign minister does have the discretion to declare they are invalid or cannot proceed if they are inconsistent with foreign policy.

These laws will ensure that, as a nation, we are consistent in how we deal with the world and that all states and territories conclude foreign arrangements that are only in our national interest. The test is whether the foreign minister is satisfied that an arrangement or its negotiation does not adversely affect Australia's foreign relations or is unlikely to do so, and that it's not inconsistent with Australia's foreign policy and is unlikely to be so.

In concluding my remarks, it must be emphasised that these bills intend to address foreign engagement for state and territory governments and their entities. This approach reflects this government's focus on ensuring consistency of Australia's foreign policy and foreign relations across all levels of government. Through our network of academic, economic, trade and security agreements, alliances and membership, Australia draws numerous benefits. Our economic prosperity relies on them, but they must overall be in the country's national interest first and last. Sovereignty can and should outweigh money. Without a measured and thoughtful approach that takes in Australia's national interest when entering into these agreements, we'll find ourselves appearing fragmented, inconsistent and ununited in our approach to foreign affairs. I commend the bill.