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Queensland pursuing 'crazy' protectionism, New Zealand says Queensland pursuing 'crazy' protectionism, New Zealand says
(about 2 hours later)
New Zealand’s trade minister has accused Annastacia Palaszczuk of pursuing “crazy” protectionism and not understanding how trade works.New Zealand’s trade minister has accused Annastacia Palaszczuk of pursuing “crazy” protectionism and not understanding how trade works.
Todd McClay said the Buy Queensland procurement policy, announced at Labor’s state conference last weekend, was “short-sighted”.Todd McClay said the Buy Queensland procurement policy, announced at Labor’s state conference last weekend, was “short-sighted”.
The Queensland premier said local businesses would receive weightings of up to 30% when government contracts were being considered, and the policy would mean reconsidering Australia and New Zealand’s free trade agreement, which was “not good” for the state.The Queensland premier said local businesses would receive weightings of up to 30% when government contracts were being considered, and the policy would mean reconsidering Australia and New Zealand’s free trade agreement, which was “not good” for the state.
“We are not talking about wholesale protectionism, we are talking about putting Queensland first,” she said. “If the Australia-New Zealand government procurement agreement gets in the way of that, we will go it alone.”“We are not talking about wholesale protectionism, we are talking about putting Queensland first,” she said. “If the Australia-New Zealand government procurement agreement gets in the way of that, we will go it alone.”
McClay said legally he didn’t think that was possible, but it was also not how trade worked. “It’s a little bit crazy,” he told ABC radio on Friday.McClay said legally he didn’t think that was possible, but it was also not how trade worked. “It’s a little bit crazy,” he told ABC radio on Friday.
He said Queensland exported $5bn worth of goods and services to New Zealand every year. “There’s probably 20,000 or 30,000 Queensland jobs as a result of that,” he said.He said Queensland exported $5bn worth of goods and services to New Zealand every year. “There’s probably 20,000 or 30,000 Queensland jobs as a result of that,” he said.
“To say that governments are only going to focus on what happens in a square block around their businesses really is going to limit the opportunity for the Queensland economy to grow.”“To say that governments are only going to focus on what happens in a square block around their businesses really is going to limit the opportunity for the Queensland economy to grow.”
Palaszczuk hit back, saying: “I understand that the New Zealand trade minister hasn’t even read the policy.Palaszczuk hit back, saying: “I understand that the New Zealand trade minister hasn’t even read the policy.
“I’m more than happy to send him a copy so he can be familiar with the policy.“I’m more than happy to send him a copy so he can be familiar with the policy.
“What I want to see is local people being able to have the opportunity to put forward their case about keeping jobs within close proximity.”“What I want to see is local people being able to have the opportunity to put forward their case about keeping jobs within close proximity.”
McClay said he had not spoken to Palaszczuk and was seeking advice from lawyers about the legality of the new policy, to be implemented on 1 September.McClay said he had not spoken to Palaszczuk and was seeking advice from lawyers about the legality of the new policy, to be implemented on 1 September.
“I haven’t seen all of the detail of what she’s proposing … I don’t see how it can work and it’s going to cost a lot more money,” he said.“I haven’t seen all of the detail of what she’s proposing … I don’t see how it can work and it’s going to cost a lot more money,” he said.
The federal trade minister, Steve Ciobo, said Palaszczuk’s attitude was rude and he was seeking legal advice about the controversial policy.
“For over 25 years ... this agreement has been important to give Queensland exporters the best possible opportunity,” Ciobo said.
“This Queensland premier says she’s going to tear it up, walk away from it and also insults the New Zealand trade minister at the same time. This premier needs to apologise and she also needs to make sure she dumps this reckless policy.”
Queensland’s exports continued to increase last year, with $65.9bn in goods sold overseas in the 12 months to June.Queensland’s exports continued to increase last year, with $65.9bn in goods sold overseas in the 12 months to June.