Senator says the government has sacrificed ‘many tens of thousands of jobs on the altar of free trade fundamentalism’

This article is more than 4 years old

This article is more than 4 years old

Nick Xenophon says the Turnbull government is fundamentally misguided if it believes a concerted public advocacy effort can turn around a broad-based electoral backlash against globalisation and free trade.



In an interview with Guardian Australia following the confirmation of his Senate bloc on Thursday, Xenophon declared jawboning would not change any of the fundamentals.

“I think [fixing the current disaffection by advocacy] is a deeply superficial analysis,” he said.

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“[The] fact is our trade deficit has gone up, our current account deficit has continued to increase, we are lousy negotiators, we have not negotiated in the context of an industry policy,” he said.

“We have not looked after the national interest, we have sacrificed good manufacturing jobs, many tens of thousands of jobs, on the altar of free trade fundamentalism.”

The parliamentary kingmaker said concrete policy change was necessary, not advocacy – and he flagged an intention to work with the Nationals once parliament resumed as part of a strategy of weaning the Liberal party off its adherence to open markets and trade liberalisation.

“I’m hoping to find some allies with the Nationals in this regard,” Xenophon said. “I think the Nationals get it.”

“Obviously they want trade deals to open up agricultural markets but we ... need to be more hard-headed in our negotiations. We have to be better negotiators. We are the un-negotiators. We ought to open up a company saying we are the un-negotiators.”

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The Turnbull government this week launched a new round of trade talks with Indonesia. The trade minister, Steve Ciobo, has acknowledged since the election that some voters feel alienated by globalisation, but he characterised the problem the government faced as one of advocacy rather than substance.



Ciobo this week told Guardian Australia he wanted to “engage Nick, Pauline [Hanson] and others in a respectful way, counter any misinformation with facts and really reinforce the point that 25 years of continuous economic growth in Australia is driven, not exclusively but partly, by our engagement with the world.”

“Free trade and liberalised trade promotes economic prosperity,” Ciobo said.

Asked about Ciobo’s comments, Xenophon said: “He’s gung-ho about trade, I am not.”

Xenophon had been hopeful his party, the NXT, could pick up the final Senate spot in Queensland, but the results confirmed by the Australian Electoral Commission on Thursday showed the final place went to One Nation.

One Nation – which is also protectionist, anti-free trade and anti-foreign investment – now has the largest crossbench Senate bloc in the new parliament other than the Greens.

On Wednesday Xenophon met the treasurer, Scott Morrison, and his senior staff for a two-hour conversation with the whole NXT team.

“We went through budget measures,” Xenophon said. “I raised concerns with him in terms of manufacturing, health and other things – the auto sector, that goes beyond South Australia of course, and I raised procurement issues and the future of the steel industry. It was a general discussion.”

Xenophon also raised his concerns about the sale of the NSW electricity distributor Ausgrid to China’s biggest state-owned company. “I raised the issue of foreign investment. [The treasurer] is looking at the issue of national security concerns I raised with him.”

Morrison brought up the superannuation package, which remains controversial in government ranks. Xenophon has expressed concerns about the super reforms on equity grounds, and he is concerned some of the changes have retrospective effect.

“We’ll keep talking to the government about [the superannuation package]. We have to look at an overall package of measures, but the government’s position is this will affect very few people ... and it’s not retrospective,” he said.

“I’m inclined to talk about it further with my colleagues. We will work through these issues with the treasurer. The treasurer gave some clarity about the measures and their likely impact.”

Xenophon has indicated gambling reform will be a “core” issue for him in this parliament, and he is continuing to discuss the future of the troubled steel maker Arrium with the prime minister and relevant cabinet ministers.



Asked why he did not enter into a confidence and supply agreement with Malcolm Turnbull as crossbenchers did in the lower house, Xenophon said he didn’t think it was necessary.

“We weren’t asked to make an agreement and events moved on,” he said. “The practical difference is pretty much ... it’s not consequential. There’s really no difference. We are not being difficult, it just doesn’t mean much either way.”

Asked to define his modus operandi in the new parliament, Xenophon said the NXT would deal with legislation on merit.

“It sounds boring perhaps, but we will work carefully and methodically with an eye to the big picture of where we will be as a manufacturing nation.”