Good evening.
I'd like to thank the Committee of St Peters Old Collegians for the invitation to discuss a number of issues that are central to my work as a Minister and to the Government's priorities.
Tonight I want to talk about the opportunities provided by globalisation and the rapid expansion of electronic commerce.
As many of you know, businesses in Australia, whether large or small, are competing in the global economy. And the implications of this are felt differently across various sectors of the economy.
At the end of the day, globalisation has and continues to promote competition on a grand scale.
And while it has promoted competition it has also provided great opportunities for Australian businesses and Australian consumers.
Technological advances mean that we can deliver information to any corner of the world with a simple key stroke or click of a mouse.
And this global interaction between business and consumers will continue to be the driving force in the international economy over the coming years.
Ladies and gentlemen, developments like the Internet, have provided greater choices for both businesses and for consumers. Now we can buy products from suppliers in any number of countries and we can sell to an increasingly connected international marketplace.
And we now have the opportunity to purchase products that were previously unavailable.
In the past, we might have included shopping as a priority on overseas trips. But now, we can purchase products from home or from the office.
And niche marketing will expand on the Internet, where highly specific products can be delivered to individual customers around the world.
And being able to sell to the world has opened up a whole new market for small businesses.
For consumers, the Internet has produced what we might call a personal globalisation. That is, every person now has greater access to information and greater access to products simply by logging on to an Internet terminal.
Suddenly, consumers are no longer limited by their location. They have enormous choice not only in the products they buy, and who they buy them from, but also where they buy them.
Today's consumers are totally mobile, able to shop in virtual shopping malls selling products made on the other side of the world.
So, electronic commerce can offer a number of benefits:
It can offer greater convenience;
It can offer increased choice leading to greater competition;
It can offer lower prices through the removal of intermediaries;
It can offer more information on products;
It can offer the ability to personalise products; and
It can offer improved after sales services.
Ladies and gentlemen, it is important to recognise that e‑commerce will particularly benefit people who are unable to be a part of the traditional marketplace.
For example, people living in rural and regional areas will have access to a range of goods and services normally only available in cities.
And people who have an illness or a disability will also benefit from the convenience of online shopping.
This outline suggests that everyone is using e‑commerce to spend their money. This is not the case yet.
Compared with the US, the number of Australians shopping online is still pretty low.
The latest ABS figures show that just over 18 percent of all households have Internet access. However, only 4 per cent or 480 000 adults used the Internet to buy products or services for their private use.
These shoppers carried out an estimated 1.9 million transactions, with nearly 77 percent of these paid for online.
In Australia then, less than 10 per cent of those people using the Internet are engaging in electronic commerce.
Similar studies in the US show that 38 per cent of households that are connected to the Internet engage in online shopping.
So, the overall trend in Australia shows a very rapid increase in Internet use but a more modest uptake of electronic commerce.
These statistics highlight the need for an appropriate policy framework for consumer protection in electronic commerce a framework that addresses the factors inhibiting consumer uptake of e‑commerce, and ensures that consumers can obtain the benefits that it offers.
And, as the Minister responsible for consumer affairs, as well as financial services, regulation and competition policy, I'm pursuing a range of initiatives to provide this framework.
We have adopted an approach in e‑commerce that encourages partnerships between government, business and consumers.
And Australia is leading the way, both at the government and business ends, to promote consumer protection in electronic commerce in general and to provide confidence in this method of transaction.
Ladies and gentlemen, the Government wants to build a world class consumer protection environment for e‑commerce in Australia.
And to do that, we are building a policy framework that contains a number of elements.
First, we are developing a model code of conduct for e‑commerce. This code will set standards in a range of areas including: the provision of information to consumers; good business practice and security of payments.
The second part of the framework is international co‑operation.
The consumer protection issues confronting Australia are also confronting other countries.
When it comes to international co‑operation, a unified approach will ensure consumers can confidently participate in e‑commerce.
The Government is committed to working with other governments to promote dialogue, information exchange and co‑operation on all issues in this area.
Indeed, we've gained agreement with the United States on a number of e‑commerce issues, including a shared commitment to consumer protection.
And, just last month, the Prime Minister announced a similar agreement with Japan.
The third element is education.
Information can help consumers assess the advantages and minimise the risks of online shopping.
And the Government can help provide this information.
As such, education material will be provided to consumers online - as well as in more conventional ways - so that consumers who are not yet using the Internet can get to grips with the very real advantages e‑commerce has to offer.
In fact, we recently issued a number of 'fact sheets' which, in plain English, spelt out some of the pros and cons of shopping online.
To fill out our e‑commerce framework, the Government is monitoring the legal environment surrounding e‑transactions.
And we are encouraging even better co‑operation between the enforcement agencies, such as the Australian Competition and Consumer Commission and the State and Territory Fair Trading agencies.
This work on e‑commerce should give consumers more confidence to venture on to the net and make their first purchases, and encourage businesses to expand by generating sales via e‑commerce.
Ladies and gentlemen, all of this is about consumers having the power to drive the economy and in so doing, delivering higher overall economic growth and higher living standards.
And this empowerment of consumers is central to the notion of consumer sovereignty.
That is, the idea that provided consumers have the best possible information at their disposal and provided they are protected from shady business practices, each consumer is the person best suited to make decisions about what goods and services they buy.
Furthermore, this new breed of consumer, one that is empowered to make more discerning choices, is now a driving force in a more competitive market place.
For now, consumers can participate in a market when and where they choose like never before.
And, consumers have contributed to the strong economic growth in Australia. In fact, for the past 6 years, Australia has had average growth above 4%.
Consumer spending is one of the key factors now driving the economy against the downturn in exports or possible levelling out in business investment. And consumer confidence remains high.
This confidence is being expressed through consumer spending on cars, clothing and footwear - and significantly on technology, particularly computers.
And while consumer confidence remains high, while employment growth remains solid and while household wealth continues at high levels, there is potential for ongoing strength in consumption.
Ladies and gentlemen, the Government has helped develop an environment in which consumers can feel optimistic about the future.
Interest rates remain low, at around 30‑year lows. A sensible level of credit is available for both businesses and for consumers. Household wealth has increased and employment growth continues.
And all of this emerges from the Government's delivery of strong economic growth based on low inflation and low interest rates.
We have delivered on tax reform.
We have delivered on industrial relations reform.
And we have delivered on regulatory reform.
We have also continued on a path of trade liberalisation that has provided massive economic benefits for our economy.
And these conditions have meant that Australia has prospered when our neighbours in the Asia Pacific have been in financial crisis.
Ladies and gentlemen, tonight I have briefly traversed the landscape facing Australia's consumers in the cyber age.
And it is a landscape that is dominated by globalisation and dominated by technology.
And to survive and thrive in such an environment, I urge you to take action.
I urge you to revel in the opportunities that globalisation provides.
I urge you to build your businesses through e‑commerce.
And I urge you to become powerful consumers demanding high‑quality products and high‑quality services.
And if you do this, I pledge that I will support you by providing a regulatory framework in which you can truly succeed.
Thank you