Belt and Road still a good fit, says Daniel Andrews

Victorian Premier Dan Andrews has defended signing the Belt and Road Initiative with China.

Victorian Premier Daniel Andrews at a meeting of the national cabinet in Canberra on Friday. Picture: Gary Ramage

Victorian Premier Dan Andrews has defended signing the Belt and Road Initiative with China, saying the agreement was about creating jobs in his state.

Mr Andrews said he was “comfortable with the arrangements in place” as he sat next to Scott Morrison, whose government will consider using new commonwealth powers to tear up the infrastructure agreement with the Chinese Communist Party.

“Like all agreements that Victoria enters into, and I expect the commonwealth and other states are no different, (it) is making sure our Victorian products (are sold) to our biggest and smallest customers,” Mr Andrews said.

“We are comfortable with the arrangements we have in place.

“We will be better off in the relationship if we focus on the fact that all of us (state, federal and territory leaders) are all about having the best economic partnership with customers large and small in every part of the world because that means jobs and prosperity and profitability for families back home.”

Parliament this week passed the government's foreign relations legislation that gives Foreign Minister Marise Payne the power to terminate agreements signed with foreign nations by universities, state and territory governments or local councils.

The Prime Minister said he would assess whether to intervene on the deal between Vic­toria and China, which was opposed by the federal government when it was signed in 2018.

“We will follow through on the legislation that has passed the parliament in accordance with the process, which will sit there and make the appropriate assessments and then make any decisions from there,” Mr Morrison said.

Mr Andrews and Queensland Premier Annastacia Palaszczuk also endorsed Mr Morrison’s plan to streamline environmental approvals processes, giving green-tape decisions to states based off new federal guidelines.

The government’s plan to leave the approvals in the hands of the states before formulating national green-tape guidelines is opposed by Labor and key crossbenchers. “This is a really important change and one we are pleased to support,” Mr Andrews said. “Now is a time to make good decisions but make them as quickly as you can because our economy and community across the nation need those jobs.”