LIVE BLOG: BHP Competitive Advantage Forum

Join John Durie and Rowan Callick in discussion with Mike Baird, David Gonski, Josh Frydenberg and Sam Mostyn | LIVE

How Australia can maximise its competitive advantage at all levels.

Welcome to The Australian’s Competitive Advantage Forum, presented by BHP Billiton.

It’s all too easy for Australia to talk a good game without taking the actions that maximise competitive advantage. From risk aversion in government to corporate reluctance towards innovation and agility, our country still has plenty of work to do.

Join Mike Baird, David Gonski, Josh Frydenberg and Sam Mostyn in discussion with John Durie and Rowan Callick.

Frydenebrg says country's future is in Asia: "it's not just economic but political and strategic". #AUSCAF2016 #ausvotes

— Sarah-Jane Tasker (@SarahJaneTasker) May 19, 2016

1.56pm:Foreign investment

DURIE: “Is it more difficult being in a company with foreign investors? And how can we encourage it?”

Mostyn (speaking as a Virgin Australia board member): “Our investors are strategic investors, for strategic purposes. What we learned is to be very respectful of the cultures.

“It’s only more difficult in that you have to be reasonable and listen and learn.”

DURIE: “How do you react when a foreign buyer wants to buy land and the govt says no?”

Baird: “There are a whole lot of factors that need to be looked at the see whether speciifc investments are in the national interest.

“But for our economy to survive we have to welcome foreign investment.

“Last year around 55 per cent of investment capital for NSW came from overseas. That’s a very good thing. We welcome foreign investors from across the globe, and we should.

“It’s certainly something that we need to work harder on. It’s easy to run scare captions. Our ability to survive and thrive in a global economy is linked to it [foreign investment].”

DURIE: “Josh, what’s your excuse?”

FRYDENBERG: “Foreign investment is indispensable to Australia. We never would have developed the Pilbara without it. We have to encourage and facilitate foreign investment.

“Every treasurer has had certain challenges in this area but by and large this country has had an open door to foreign investment.”

1.46pm:Election campaign

DURIE: “Mike how do you think the election campaign is going?”

BAIRD: “I think it’s going well.

“The federal government is blessed with a lot of talent, there is a long way to go but hopefully we get to see that.

“What are the problems? How do we deal with them? What are the opportunities? And where are you going to take us?

“That’s what the people are looking for.”

@sammostyn says the election campaign long term issues need to be on agenda. Not daily point scoring #AUSCAF2016 pic.twitter.com/814EVUtEAy

— Business Review (@aus_business) May 19, 2016

Mike Baird says election campaigns should showcase talented teams behind the leaders. #AUSCAF2016 #ausvotes2016

— Sarah-Jane Tasker (@SarahJaneTasker) May 19, 2016

1.36pm:On education funding

BAIRD: “An endless stream of money doesn’t mean the outcomes are there. If you follow the education statistics versus spending it’s not a positive story.

“We need to make sure this money is delivering the outcome.”

DURIE: “Are you happy with the money?”

BAIRD: “We’ve argued for more but the needs-based funding is something we’ve embraced. We understand the pressure the Federal Budget is under.”

Gonski: “The essence of what we put is needs-based funding.

“On the funding. We actually didn’t say how much money had to go in. What we implored was to look at the needs-based funding thing.

“The Premier has done it right and neither party are now against needs-based funding. So we got what we put forward.

“The question of how much money they spend is a questions for them. It’s not for me to say.”

1.26pm:Panel discussion

Sam Mostyn speaks on diversity:

“The economic power in diversity is one of the most misunderstood things in this country. If we successfully closed our gender employment gap we would improve our GDP by 10 per cent.

“At a global level it would see a direct impact of $US12 trillion.

“But cultural diversity is where we really need to take a hard look at ourselves. We have a cultural diversity problem. It’s a complete waste of talent.

“Nine point six per cent of Australia has Asian cultural heritage but only 1.6 per cent of ASX leaders have an Asian cultural heritage.

“Against the backdrop spoken about today, that is a missed opportunity. There’s a big story here.”

1:11pm:Mike Baird: What’s next for NSW?

What happens next for NSW?

1. Investment funds under management

2. International tourism and expenditure

“We’ve only really just started. For the first time Australian visitors have overtaken New Zealand.”

3. Foreign enrolments in tertiary education

“State governments don’t do enough here, we’ve been trying to promote this area with our various trade missions.”

4. Fin Tech

“If we don’t embrace the fin tech space, our competitive advantage will be lost. To not manage this would make it a huge risk.”

5. Agribusiness

“Demand for our agri-products is essentially driven by China and India - how we connect those needs much more strategic discussion.

“If we connect that start-up space, that tech space, with the agri space... that’s a critical part of the future.”

NSW Premier Mike Baird addresses the Forum.

1.04pm:Mike Baird on the NSW advantage

NSW is set to take advantage of Australia’s next big shift towards services and productivity., Premier Mike Baird says.

“The Asian middle class is shifting massively.”

“By 2030 the Asia Pacific middle class will account for two thirds of the world purchasing power. And importantly it’s a lot of discretionary spending.”

“NSW has a competitive advantage in services and services exports in areas like Financial services, business services, tourism and education.”

#AUSCAF2016 @mikebairdMP talking China opportunity in Investment FUM, education and tourism-embrace fintech, medtech pic.twitter.com/vP8oO5P05N

— Louise Eyres (@eyres1) May 19, 2016

12.59pm:Mike Baird

“Asia is undoubtedly the centre of growth. That becomes more clear when you look at the numbers.

“By the time we get to 2020 the economic growth shifts east, it’s from 10 per cent to over 30 per cent of the global economy. and importantly it’s right on our doorstep.

“An increasing and a significant proportion of our exports are heading straight to Asia.”

Today's #AUSCAF2016 forum getting underway! Follow the live blog on https://t.co/VXUyr2mkPW pic.twitter.com/f1hQ9NNHlA

— Chris Kohler (@_chriskohler) May 19, 2016

12:42:Welcome

BHP Head of sustainability and public policy Tony Cudmore has welcomed the audience as Premier Mike Baird joins his table.

Mr Cudmore speaks about the giant emerging economies such as China and India as trade partners for Australia and welcomes The Australian’s China correspondent to the stage.

What's really happening in China 2day? Oz China correspondent 2 explain @ Oz Competitive Advantage Forum #auscaf2016

— Glenda Korporaal (@GlendaKorporaal) May 19, 2016

12.19:Arrivals

The panelists have shaken hands with one another and topped up their sparkling water as they prepare to take their seats at today’s Competitive Advantage Forum, held by The Australian in Sydney.

Josh Frydenberg, minister for Resources, Energy and Northern Australia; ANZ and Coca Cola Amatil Chairman David Gonski; head of sustainability and public policy BHP Billiton Tony Cudmore; and multiple company director Sam Mostyn are speaking with The Australian’s Rowan Callick, Jon Durie and CEO Nicholas Gray as guests begin to filter into the Ivy Ballroom.