Kirsten Livermore (Capricornia, Australian Labor Party) Share this | Hansard source

I rise today to support the Coal Mining Industry (Long Service Leave Funding) Amendment Bill 2009. This bill shows the Rudd Labor government’s continued commitment to the coalmining industry and, particularly, to those thousands of men and women, who are the backbone of the industry, working in coalmines and to the coalmining communities of the Bowen Basin in my electorate. The coal industry has a unique set of arrangements for the accrual and payment of long service leave entitlements, dating back to 1949. This bill will guarantee the continuation of the long service leave arrangements in the black coal mining industry. Specifically, the amendments will clarify that the long service leave entitlements that have been preserved within the Fair Work Act 2009 will be covered by the Coal Mining Industry (Long Service Leave Funding) Act 1992. This bill means that employees in the black coal mining industry can be secure in the knowledge that their long service leave entitlements remain unchanged. Employers know that they will continue to be reimbursed by the Coal Mining Industry (Long Service Leave) Fund for long service leave payments that they make to individual employees.

The bill will establish definitions of ‘black coal mining industry’, ‘employee’ and ‘employer’ and also adjust the definition of ‘eligible employee’ in the funding act to ensure that the scheme applies universally in the black coal mining industry. As we have heard, in the coalmining industry employees are entitled to long service leave based on their time in the industry, not their time with an individual employer. Mobility of the workforce has always been a feature of the coalmining industry, and the ever-increasing demand for skilled miners will make it even more likely that miners will move from mine to mine and employer to employer as opportunities open up for them. The scheme was designed to accommodate this mobility as well as protect the entitlements of miners in the event of company insolvency. That is not such a problem these days, but it was a definite consideration in the original establishment of the scheme.

Funding for long service leave is maintained by an industry scheme created by the Coal Mining Industry (Long Service Leave Funding) Act 1992 and related legislation. Under this act, employers are reimbursed from the Coal Mining Industry (Long Service Leave) Fund for any long service payments that are made to an employee. From January 2010 the current industry awards covering long service leave will be taken over by ‘modern awards’ under the Fair Work Act 2009. Modern awards will not include long service leave entitlements. Instead, existing award based entitlements will be preserved as a statutory entitlement under the National Employment Standards, pending development of national long service leave arrangements. Due to these changes, and as the funding act does not currently cover entitlements determined by the National Employment Standards, employers will not be entitled to reimbursement for the fund in respect of the long service payments they make to employees. This bill will ensure that this situation is rectified.

The amendments that this bill represents will ensure that as of 1 January 2010 employers will be entitled to reimbursement from the fund in respect of long service payments that they make to employees pursuant to the preserved entitlements in the Fair work Act. This is in addition to the current arrangements for reimbursement of entitlements paid under industrial instruments and contracts. The changes in this bill will not affect an employee’s long service leave or an employer’s long service leave fund obligations. It guarantees that employees will not lose their current long service leave entitlements.

This bill contains only minor technical amendments but, in doing so, provides certainty and security for employers and employees in the black coal industry. It recognises—and the government recognises—the unique history of the industry and its special significance to regions like Central Queensland. There can be no doubt that the government recognises the vital importance of the coal industry as our biggest exporter, a major employer and a driver of economic growth.

I remind the House that, contrary to the scare campaign mounted by the Australian Coal Association in recent months, the latest Treasury modelling shows the coal industry growing by at least 50 per cent by the year 2050. Consistent with that, we will see 10,000 new jobs created in the coal industry in the next 10 years. The ads paid for by the coal companies might be convincing if it were not for these and other independent predictions, and the evidence all around us in Central Queensland, that the industry is strong and is in fact gearing up for further growth.

As members know—and they know because I keep telling them—there have been some major announcements for the Central Queensland coal mining industry in the last few months. Only last week the Rudd Labor government granted major project facilitation status to Waratah Coal’s proposed northern export facility infrastructure project. This gives support to a $7.5 billion commitment to develop a new coalmine as well as associated rail and port facilities in the Galilee Basin, near Alpha, which is just west of my electorate of Capricornia. This mine will service the international export market for thermal coal. In addition to the mine, the project will involve construction of a railway potentially in excess of 400 kilometres long, depending upon the option chosen, to transport processed coal to an expanded facility at Abbot Point, near Bowen, or to a new export terminal to be established at Dudgeon Point. New major water and power supply infrastructure would be necessary to service the mine and port. The proposed open-cut mine is expected to be developed in stages and have an initial export capacity of 30 million tonnes per annum with a mine life in excess of 30 years. Initial exports are targeted for 2013. Construction of the mine will involve an estimated 6,000 jobs.

This is a massive investment in the mining industry in Central Queensland. Importantly, it is another example of the disconnect between the claims of the Coal Association and those opportunists who see political advantage in opposing the CPRS and the reality of what is happening in the coal industry, where companies are backing their belief in the future of the coal industry with substantial amounts of money. Talk in this debate is cheap—unless you are talking about the Coal Association’s ads—but the big-dollar investments going on all around us tell the real story.

Members who have heard me speak in the last few weeks will know that there is even more to the story. Just two weeks ago a new coalmining deal was announced between Stanwell, a power generator in my electorate, and Wesfarmers. This will see the Curragh mine, at Blackwater, expanded, creating up to 300 construction jobs. This agreement will also create 90 full-time positions in a long-term boost for the Central Queensland economy. The new deal allows coal from Stanwell’s excess reserves to be mined by Wesfarmers, with Stanwell to share in the revenue generated from the export of the coal.

There is also more to come for Central Queensland, with Xstrata accelerating its proposal to build Queensland’s fourth coal port, at Port Alma, along with its plans for a new billion-dollar harbour between Gladstone and Rockhampton. This would service the Wandoan Coal project, which has the potential to become Australia’s most productive coalmine. This terminal would provide 100 full-time jobs and could export up to 100 million tonnes of coal. Extensive environmental impact investigations have already been done on this area. If all goes well, work will commence as early as 2012 and Port Alma may be able to ship coal by 2014.

As you can see, Madam Deputy Speaker Burke, there are great developments happening in the coalmining industry in Central Queensland that will create jobs and continue to boost our economy. We on this side of the House believe that coal has a strong future. We also want it to have a sustainable future. That is why the government is making huge investments in accelerating the development of clean coal technology through its support for carbon capture and storage. We are contributing millions of dollars towards carbon capture and storage projects and demonstrating international leadership through the establishment of the Global Carbon Institute.

The Rudd Labor government is committed to securing the future of the coal industry through these investments in research and development. All the evidence tells us that coal will continue to be a major source of energy for the world well into the future, but we cannot ignore the imperative to reduce carbon emissions. The future for Australia’s coal industry lies, therefore, in exporting not just coal but also the technology that will enable our overseas customers to generate low-emission energy.

The government’s support for the coal industry cannot be questioned. It was further confirmed today in the offer made to the opposition to amend the Carbon Pollution Reduction Scheme to increase transitional assistance to coalmines. Overall, we are putting forward a total of $1.5 billion for the coal industry over the first five years of the scheme. As announced by the Minister for Climate Change and Water earlier today, there will be two components to this assistance—if it is agreed to by the opposition, of course. The Coal Sector Adjustment Scheme will provide free permits to the most emissions intensive mines. This will enable the fugitive emissions carbon liability for the most gassy mines to be reduced from around $20 per saleable tonne of coal to around $5 per tonne at a carbon price of $25 per tonne. I stress that this refers to the most gassy mines. We should not forget that many mines will face a carbon liability of less than $1 per tonne of saleable coal under the CPRS.

I noted in a speech last week—and, Madam Deputy Speaker, I think you were in the chair when I made the speech—that Macarthur Coal reported a drop in its profits. The losses were attributed to unexpected demurrage costs for ships waiting to load from Dalrymple Bay coal loading facility. They also referred to the impact of the strong Australian dollar. I mention that because it highlights the many factors that go into the profitability of coalmines and puts into perspective the additional cost that carbon permits represent for companies. It is less than $1 per tonne for some mines. When companies are selling coal for $65 or $80 per tonne, or even more, and are subject to many more costs—not to mention state government royalties—that does not sound like the end of the world for the majority of mines.

Of course, the CPRS has always included compensation targeted to the most gassy mines, and today’s announcement represents an offer to increase that targeted compensation. In addition, there will be a coalmining abatement fund within the Climate Change Action Fund. The coalmining abatement fund will be increased by $20 million to a total of $270 million. It will fund coalmine abatement projects and capital grants, with priority for waste coalmine gas electricity generation projects. Coal companies in my electorate have already entered into successful partnerships with waste coal gas generators such as Energy Development Ltd and Envirogen to use their fugitive emissions to generate electricity, thus abating fugitive emissions while also displacing emissions intensive coal fired power generation.

I welcome the measures put forward by the government to facilitate the expansion of such partnerships because I know there is real scope for that to create jobs and benefit communities in my electorate as well as making a significant contribution to reducing carbon emissions. Specifically, I support the possibility, announced today, of a review of the renewable energy target, through the COAG process, to consider whether new waste coalmine gas projects should be eligible under the renewable energy target.

On this the second anniversary of the election of the Rudd Labor government I want to assure all coalminers and their families, particularly the members of the CFMEU, that I have not forgotten the tremendous support you gave me in our fight against Work Choices. It was a mighty battle and a successful one. Work Choices is gone and the Labor government wants to provide to workers in the coalmining industry the security they deserve as they work hard to bring this country unprecedented prosperity. This bill adds to that security by preserving the coalmining industry long service leave arrangements that have served employers and employees in the coalmining industry well for so long. I commend the bill to the House and, by the way, I also commend to the House the government’s offer to amend the CPRS.

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