Brumby to fight protectionism at ALP conferenceFont Size: Decrease Increase Print Page: Print Rick Wallace, Victorian political reporter
July 25, 2009
Article from: The Australian

JOHN Brumby has slammed a union push for new trade barriers and vowed to join the fight against protectionism at next week's ALP conference, warning that it could invite international retaliation.

In an interview with The Weekend Australian, the Victorian Premier took aim at the US, the NSW government and the union movement for lapsing into protectionism.

"If you want more growth opportunities in the future, more job opportunities in the future, the answer to that is not to put up trade barriers around Australia and around other countries," he said.

In an interview to mark two years since he assumed power in Victoria, Mr Brumby criticised the Rees government's move to give local suppliers a 20 per cent price advantage in government tenders. "We strongly oppose that, and it's not something that we have done here in Victoria," he said.

Unions have seized on NSW's move and are pushing for this approach to be rolled out nationally at next week's ALP conference.

Mr Brumby said it was "absolutely right" for federal frontbenchers Kim Carr and Lindsay Tanner to strongly resist that push, and he volunteered to join the fray.

"If necessary I will speak on this issue at the national conference. The more you put up barriers in Australia, blanket across-the-board barriers, the more you invite retaliation from other countries. We are busy opening up markets all over the world," he said.

"I have never been a protectionist. It's not what we have put in place in Victoria and I don't believe it's the way to generate jobs, opportunities and growth in the future."

Mr Brumby's comments are likely to put him on a collision course with both unions and industry in the nation's manufacturing heartland.

But he said trade had been the biggest driver of world growth in the past two decades and it remained a positive influence for Australia.

He took a swipe at the US for recently renewing export subsidies on milk -- a major blow to dairy farmers throughout Australia.

"It has disturbed me greatly to see in the US the Farm Bill recently recommitted for another three years, which is just straight-out fat subsidies paid to American dairy farmers, which damage our dairy farmers here in Victoria," he said.

"It's always been my view that the sooner the world moves away from these subsidies, the better off we will be."

The Premier has introduced his own rules mandating 40 per cent local content on certain projects, but denies they are protectionist, portraying them as aspirational goals rather than hard and fast limits.

Mr Brumby also acknowledged the recent spate of attacks on Indian students had the potential to affect the state's multi-billion-dollar a year foreign student market. He plans to visit India in September on a face-saving mission.

He admitted yesterday that some private colleges were more interested in a "quick buck" than the welfare of students, and promised they would be dealt with.

"I think it's unquestionable there has been some brand damage to Australia and Victoria, and that will take a little while to repair, but I think we can repair that."

"I think there are some issues with some of the private providers -- as you know, they are being reviewed.

"There are some there who are more interested in a quick buck than the quality of the education and the welfare of the student. We need to sort some of that out, but I think we can repair the damage."