Stuart Henry (Hasluck, Liberal Party) Share this | Hansard source

The Migration Amendment (Employer Sanctions) Bill 2006 provides for a scheme of sanctions relating to employers, labour suppliers and others who knowingly or recklessly employ illegal workers or refer them for work. The bill is designed to protect the Australian labour market, prevent illegal workers from being exploited and preserve the integrity of the visa system to which Australia has international legal obligations. The traditional approach to dealing with the problem of illegal workers in Australia continues to be reasonably successful. This approach includes highly effective visa-processing arrangements for overseas visitors, students and other temporary residents. Sound immigration clearance ensures that those who enter have authority to do so, are who they claim to be and are able to provide other information about themselves if required.

However, no matter how good Australia’s visa arrangements are, there will be some people who seek to take advantage of our desire to attract genuine visitors, students and other temporary visitors. During this time of our rapidly expanding economy it is essential that we as a government provide employers and employees alike the opportunity to confidently have the work choices that fulfil each other’s needs. The incidence of illegal work in Australia is a potentially significant problem that not only denies Australians the opportunity to gain employment but could result in the exploitation of noncitizens. The incidence of illegal work and exploitation is a very real concern to the government. It has a close association with the cash economy industries, which are often characterised by abuses of Australia’s tax, employment and welfare laws.

The Australian government has worked assiduously at the protection of the Australian economy from exploitative elements of the so-called ‘cash’ or ‘black’ economy. The tightening of the welfare system, Work for the Dole programs, additional vocational training opportunities—not to mention the GST—have all been developed by the Australian government for the safety and prosperity of the labour market. In doing so, the government has provided sound opportunity for integration to all Australians, including those who are in the process of becoming Australians or those who legally are able to freely work in Australia.

This bill introduces definitions for new offences for employers, labour suppliers and other persons who engage illegal workers or who knowingly allow unlawful noncitizens to work or allow lawful noncitizens to work in breach of their visa conditions. Specifically, the offences apply to businesses that allow illegal work through employment, found in section 245AB and section 245AC, and businesses that refer illegal workers for work with other businesses, found in section 245AD and section 245AE, such as you would find with cross-referencing in HR or labour hire agencies.

The offences will only apply where an employer knows an employee is an illegal worker or is reckless to this fact. The bill provides for higher penalties where an illegal worker is being exploited through forced labour, sexual servitude or slavery, and will increase the mandatory prison sentence from two years to five years or equivalent fines. The Australian government acknowledges that an absence of effective penalties as deterrents for employers of illegal workers could potentially encourage people smuggling and trafficking activities for the purpose of illegal work.

We are only too familiar with other countries, some in our region, which have given rise to the unscrupulous business of illegal people trafficking. Those victims who do slip through the net could become likely candidates for compromising the goodwill of Australian employers and the Australian system. It is the moral duty of Australia, a signatory to the United Nations International Labour Organisation, to make certain it does all it can to curb and penalise the presence of illegal workers and to legislate against schemes which may allow unscrupulous employers to benefit from illegal labour at the expense of the Australian community.

It is important to note that the Australian government is not expecting or intending for Australian employers to be migration law enforcement authorities. Indeed, the legislation is there to ensure that they do not have to bear the responsibility of conducting any form of internal investigations. The law, after all, is the best guarantee for the economy. In Australia, employees are free to negotiate their terms of engagement in the context of workplace and labour agreements to mutual satisfaction, especially in times of labour shortages as the economy continues to boom.

Labour agreements cover both permanent and temporary entry visa subclasses, such as visa subclass 457. These are formal agreements negotiated to meet special circumstances that cannot be covered by standard sponsorship agreements. Labour agreements can be negotiated between government bodies; employers, including industry or employer associations and specific employers; and other interested parties, including unions and professional associations, where all parties agree that the overseas recruitment of a specified number of workers to a defined set of vacancies is warranted. Section 457 visas are a valuable tool for business and for the economy in particular during times of skill shortages and for helping to provide a safeguard against those who would otherwise abuse the privilege, whether they are visitors or employers.

In an article published in the Australian Financial Review last year, Kevin McDonald raised some very pertinent points about the 457 debate. Mr McDonald reminded us that over the past two years the size of the Australian workforce has grown by an incredible 603,000. This equates to the staggering amount of 1,160 new jobs being created every working day for two years. It demonstrates the remarkable strength of the economy, with job creation as its staple. Mr McDonald went on to say that, in spite of this emerging shortage of workers, the federal opposition and the trade unions are trying to create the impression that Australian workers are lying idle in unemployment lines because of the use of 457 visas, particularly with cheap labour supply from developing countries taking away local jobs.

Nothing could be further from the truth. As we know, unemployment is at its lowest level for over 30 years and, in Western Australia, there is considerably less unemployment than we have seen for many years. I also point out that this notion is bordering on racial incitement, as much of it is simply not a statistical fact. With more than 10 million Australians in the workforce, the number of people gaining work through 457s and coming from overseas for employment is less than half of a per cent of the workforce. According to the Australian today:

Latest immigration department figures show demand for temporary foreign workers grew to 39,530 in 2005-06 ...

As I said a moment ago, that is less than 0.5 per cent of the existing workforce. Two and a half times as many English-speaking workers come to Australia as those from non-English-speaking backgrounds, yet the opponents in the debate regarding the 457 visas selectively refer to only these nationals as taking Australian jobs. Instead of focusing on the skills the workers bring, which are carefully matched to Australian industry needs, opponents are focusing on the countries that these people come from. We cannot have this selectivity in this all-important debate, particularly when the Australian government is ensuring the best legislation to help protect employers and employees and to create more opportunities for people to become new Australians.

The education campaigns that the Australian government has developed in managing and safeguarding against possible abuse are working and, more importantly, are providing more flexible work choices. For example, DIAC’s employer awareness campaign allows DIAC to exchange information with employers on a direct basis in order to responsibly manage changes in status that the employer may not yet be aware of. Sometimes the employees themselves accidentally overlook their responsibilities to communicate changes in their visa status. With the department’s new legislative measures, all components of the equation—employer, employee, department and the taxpaying community—are protected. I seek leave to continue my remarks.

Leave granted.

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