AUSTRALIA'S refusal to sell uranium
to India had been an "obstacle" to getting a larger slice of the
benefits of the booming Indian economy, Prime Minister Julia Gillard
said last night.
Arriving in New Delhi for a three-day state visit, the PM said the
rise of the Indian middle-class would play a big role in Australia's
future.
She played down concerns by anti-nuclear campaigners that selling uranium would lead to a build up of weapons in Asia.
Pictures: Julia Gillard visits IndiaMs Gillard said Australia would negotiate safeguards that would be backed by the International Atomic Energy Agency.
She
said Australian uranium would only be used for peaceful purposes and it
was in India's interests to have a robust and safe nuclear industry.
The PM said Labor's previous ban on uranium sales to India "had become an obstacle in our relationship".
Australia is already a big supplier of education services with high numbers of Indian students in Australia.
But
the PM believes the uranium deal will open the way to selling expertise
in health, legal, financial services, technical innovation and water
technology.
Ms Gillard said Australia and India had a history of
shared values and strategic interests and it was time to broaden and
deepen ties.
"This is a very important relationship for Australia," she said.
"India
is one of those nations that in our region of the world in this Asian
century we will see grow spectacularly in economic weight, we will see
the rise of its middle-class."
Ms Gillard's visit will aim to
boost wider business and cultural ties with the world's largest
democracy and massively growing economy of 1.3 billion people.
Trucking boss Lindsay Fox is leading a business delegation which includes ANZ chief Mike Smith and Rio Tinto's Sam Walsh.
Relations
with India turned sour when Kevin Rudd cancelled talks about selling
uranium after the Howard Government had backed the idea.
Trade
Minister Craig Emerson yesterday admitted there "had been a difficulty
in the relationship between Australia and India" over the uranium issue.
Dr
Emerson said Ms Gillard's visit aimed to "deepen and enrich this
relationship as part of our push on Australia in the Asian Century".
There is expected to be a big focus on India in the upcoming White Paper being prepared by Ken Henry.
Dr
Emerson said India was "pleased" talks were back on after last year's
ALP national conference voted to overturn the ban on uranium sales to
India amid high emotion.
Three Cabinet ministers, including Right-winger Stephen Conroy who was in tears during the debate, voted against Ms Gillard.
Left-winger Doug Cameron said Labor's light on the hill would become a green pulsating nuclear light.
Dr Emerson said safeguards would be negotiated before any sale took place and it would "take time" to get it right.
The
Government already has 22 agreements with other countries to sell
uranium but India has not signed the Nuclear Non-Proliferation Treaty.
The
Government wants the safeguards to have the same strict rules to make
sure Australian uranium is only used for domestic energy purposes.
Australia has the world's largest deposits of uranium.
The
International Campaign to Abolish Nuclear Weapons (ICAN) said India had
nuclear weapons and it would be impossible to verify that Australian
uranium was not diverted for weapons.
“If this deal goes ahead,
Australian uranium will likely fuel – directly or indirectly – the
build-up of nuclear arms in South Asia. India is still producing both
highly enriched uranium and plutonium for weapons, expanding its nuclear
arsenal and investing heavily in new nuclear-capable missiles and
submarines,” said ICAN co-chair Dr Tilman Ruff.
“India used a
reactor supplied by Canada and fuel provided by the US – both supplied
only for peaceful purposes – to make the plutonium for its first nuclear
bombs."
India is not a party to any nuclear disarmament treaty,
and nuclear safeguards agreements don’t apply to India’s military
facilities, meaning that it’s impossible to verify that Australian
uranium is not diverted for weapons purposes.”
India has shot
dead two anti-nuclear campaigners in recent weeks and there have been
reports India's auditor-general raised safety concerns about a possible
Chernobyl-style disaster.
Greens Senator Scott Ludlum said India was ranked 28 out of 32 countries for safety of its nuclear stockpile.
“The
Prime Minister should put human rights and safety before uranium
profits during her current visit to India,” Senator Ludlam said.
The
Opposition supports selling uranium to India. Frontbencher Mitch
Fifield said it would help increase living standards in India by
providing cheap energy.
Australia's relationship with India also
suffered a blow in 2009 when attacks against Indian students were
labelled racial attacks and led to a storm of protest against Australia
in the India media.
Ms Gillard made her first official visit to India in 2009 as Education Minister to try and address concerns.
The PM last night said she belived the problem had been fixed but would find out on this trip if there was any lingering strain.
"My sense is since then we have addressed those concerns," she said.
She
told one story about how the community in Melbourne's west in her own
electorate went out of their way to "strengthen their embrace of Indian
students" after there had been an attack at Werribee train station.
"The Aussie character was on display as we responded to it," she said.
The Australian