Steve Irons (Swan, Liberal Party) Share this | Hansard source

I rise to speak on the Migration Amendment (Offshore Resources Activity) Repeal Bill 2014. The purpose of this bill is to repeal the Migration Amendment (Offshore Resources Activity) Act 2013, otherwise known as the ORA Act. I rise with my colleagues the member for Canning and the member for Durack to support this repeal of the bill. The ORA Act seeks to unduly regulate the employment of non-citizens working in the offshore resources industry by way of a visa arrangement, regardless of whether or not they are actually working on a resource installation. The bill was another example of Labor creating a market for unions. As we have just heard, it was supported also by the Greens.

Amendments were introduced by the previous government, who, because of the unions, went after legitimate businesses operating in Australia's exclusive economic zone. The previous government took to the Federal Court in May 2012 a case that became known as the Allseas case. The Allseas case involved two vessels attaching gas pipelines to the seabed within Australia's exclusive economic zone and the waters of the continental shelf. In its judgement, the Federal Court ruled that non-citizens aboard the two vessels were not within the migration zone and therefore not required to hold work visas. This was due to the fact that, as the offshore resources industry had maintained, both vessels fell within an exemption in the Migration Act that specifically provides that a vessel that is used or is to be used wholly or principally in manoeuvring a resources installation, or in operations relating to the attachment of a resources installation to the Australian seabed, is not a resources installation and therefore not part of the migration zone.

Labor and the unions—and, as we have just heard, the Greens—were not happy with the ruling from the Federal Court, and, despite not having a good understanding of the impact of the bill, they set about amending the Migration Act. At the time this legislation was introduced, it is important to note, the previous government stated that it had an incomplete picture of the number of non-citizens working on board vessels who did not hold visas. Instead of seeking to understand the impact of the legislation, they pushed it through. While it is true that determining a precise number of people who are affected by this regulation is difficult, consultation with the industry and the migration advice profession and across government indicates that the number is actually relatively small. One estimate has put the total at no more than 2,000 per year, while others have put the number at considerably fewer than this. When we compare this with the 68,000 overseas workers who were granted 457 visas during the last financial year, let alone with the number who are granted permanent visas each year under the migration program, it becomes even clearer just how small the number really is.

In undertaking to repeal this particular piece of overly burdensome regulation, it is important to note that the offshore resources industry is vital to the Australian economy. The member for Corio spoke earlier about the prosperity supplied by the mining industry to Australia. If he was that concerned about the prosperity supplied by the mining industry to Australia, he would have made sure that the mining tax and the carbon tax were never introduced, which directly affect the mining industry, particularly in Western Australia.

Australia is the world's ninth largest energy producer, and the oil and gas industry accounts for 2½ per cent of our GDP, generating $28 billion in revenue and contributing $9 billion in direct tax payments. The development of Australia's offshore resources contributes significantly to the Australian economy and employs thousands of Australians. It is also critical for our future energy security, accounting for 58 per cent of Australia's primary energy needs.

If we are to continue to derive the substantial economic benefits that this industry provides, it must be allowed to remain internationally competitive and be able to operate in line with international best practice. The industry should not be expected to operate under an increased regulatory burden or additional cost pressures that would put the viability of current and future projects at risk. However, the ORA Act will do exactly that.

The offshore resources industry is a global industry and competes for a limited pool of skilled labour. It employs a highly mobile workforce and relies on the capacity to be able to transfer workers with specialist skills from project to project and from country to country. This means that our migration arrangements must be relatively flexible and not impose an undue administrative burden on industry or create unnecessary barriers for overseas workers when they are genuinely needed, especially when their skills are unavailable in Australia. A leading offshore resource industry group has said:

Australian jobs and our overall economic success relies on a confident, growing offshore oil and gas industry able to do business consistent with international laws and practices ... With this much at stake, it is vital that sectional interests do not come before the national interest and that parliament delivers sustainable, proportionate and balanced regulation affecting offshore operations.

The government could not agree more. Hence we are seeking to repeal the union-led extension of the Migration Act.

The issue of Australia's offshore maritime zones is highly complex. In addition to international conventions, the offshore resources industry is subject to complex and overlapping regulatory frameworks imposed by Commonwealth, state and territory legislati

We therefore need to consider any regulatory changes in this context very carefully and to pursue considered and measured policies.

Repealing this legislation does not mean that the industry is or will be in any way unregulated. For example, noncitizens working on a resource installation will still be required to hold valid visas. They will also still be required to hold the appropriate visa if they wish to come to the Australian mainland. Hence, if a particular employer wants to transfer their overseas workers to a project on the mainland, they must hold a visa with an appropriate work condition, such as a 457 visa.

The ORA Act also fails to take into account the fact that many persons engaged on resource installations and vessels use fly-in fly-out arrangements and frequently transit through an Australian airport, which requires them to hold a valid visa to be immigration cleared. Hence, many of those persons who are not currently required to hold visas for the work they are doing on a vessel are still subject to immigration controls when they enter or leave Australia.

To the extent that persons working in Australia's offshore maritime zones are subject to Australian domestic laws, these laws will still be policed and enforced by the appropriate authorities. Terms and conditions of employment, for example, will continue to be protected under domestic law and, where appropriate, under international law through the Maritime Labour Convention. The National Offshore Petroleum Safety and Environmental Authority, and the Australian Maritime Safety Authority, will continue to ensure the safety of those persons working on board resource installations and vessels operating in Australia's exclusive economic zone and the waters of the Continental Shelf.

The government is committed to promoting the development of Australia's offshore resources, to adhering to Australia's international obligations under the United Nations Convention on the Law of the Sea and to maintaining the integrity of Australia's borders. Repealing the ORA Act would remove an unnecessary and disproportionate legislative burden on an industry that is critical to Australia's future economic growth and the wellbeing of all Australians. I commend the bill to the House.

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