Michelle Landry (Capricornia, National Party) Share this | Hansard source

I move:

That this House:

(1) recognises that 100 per cent fly-in fly-out company workforce agreements in Central Queensland's coal mining belt are causing concern amongst residents and small business owners in small local mining towns; and

(2) encourages Parliament to discuss some of the recommendations in the House of Representatives Standing Committee on Regional Australia's report Cancer of the bush or salvation of our cities (13 February 2013) to determine if they are relevant to the ongoing issue now faced in mining towns in the electoral divisions of Capricornia, Dawson and Flynn.

Once again, the policy of 100 per cent fly-in fly-out workers, otherwise known as FIFO workers, in our mining industry is having a detrimental impact on small towns in Central Queensland. This region is the economic heart of the nation's coalmining sector. In Capricornia, the affected towns include Moranbah, Dysart, Middlemount and Nebo. Under 100 per cent FIFO, workers are flown in directly from Cairns, Brisbane and the Gold Coast to work on some of Central Queensland coalmines. Local people are locked out from applying, even though the mine is less than 30 minutes from where they live.

Today I urge the House of Representatives to recognise that 100 per cent FIFO agreements in the Central Queensland coalmining belt are causing concern amongst residents and small business owners in small mining towns and that parliament discuss some of the recommendations in the 2013 report on FIFO titled Cancer of the bush or salvation for our cities? to determine if they are relevant to the ongoing issue now faced in mining towns in the electorates of Capricornia, Dawson and Flynn.

In Queensland, coal companies were granted permission by the previous state Labor government, under the leadership of Anna Bligh, to initially engage 100 per cent FIFO workforces. This policy has since been supported by the current state LNP government. As the federal member for Capricornia, my view is very different to my state government colleagues'. I say no to 100 per cent FIFO, because it is having a dire impact on morale, small business, schools, families and local towns. If local people cannot get work and live in local communities, they simply leave. The consequence is that small business suffers, schools lose resources and other services begin to dwindle.

Last week I visited Moranbah and was told that 100 per cent FIFO workers are bussed from the airport to an allocated mining camp, where some are told they are not allowed to leave or go into town where they could spend money locally. Many small business owners reported huge falls in revenue. Motel owners in Moranbah and Nebo also report huge drops in business, normally sustained by mining staff or contractors staying in the town. One owner claims to be operating at just 15 per cent occupancy and is likely to be out of business before the end of the year. Another motelier said he was operating at 20 per cent occupancy compared to a year ago, when he had a 95 per cent occupancy rate. Both attribute at least part of the slump to 100 per cent FIFO and the negative hype associated with it.

The exodus of local families being forced to seek work elsewhere has hit the housing sector. Real estate agents report at least 200 rental properties are now vacant in Moranbah, leaving landlords struggling to meet repayments. I was told that a four-bedroom home that cost $1 million in 2011 would be lucky to attract $250,000 today. Of course people investing in property in these towns must always shoulder the financial risk of a fluctuating coal market. But 100 per cent FIFO work practices are being partly blamed by locals. I quote from one letter from a constituent whose job is to issue foreclosure notices in local mining towns:

Homes and vehicles are being repossessed by the banks. Businesses are closing and families are being torn apart. Suburbs are emptying as families have to uproot themselves and move elsewhere while looking for work.

Despite the state government's position, the Rockhampton Liberal National Party branch has called for the clause 100 per cent FIFO to be removed from the government agreements with mining companies where local people can be sourced from towns where the mine is based. In fairness, however, it must be acknowledged that mining companies do contribute to inland Queensland. BMA has advised it spends $1.3 billion annually in the greater Central Queensland region. Mining companies currently face a downturn in coal prices worldwide and as a result are adjusting their business practices to remain sustainable.

Earlier I referred to the 2013 parliamentary committee report which referred to FIFO as a cancer of the bush. Our Deputy Prime Minister is currently reviewing the 21-recommendation report. It should be noted that economic circumstances since the inquiry have changed. But this report did touch on several areas of taxation and called for a reassessment of tax exemptions that may apply to FIFO workers and mining companies that engage in FIFO or residential mining camps that are located near permanent towns. It also called for a review of zone tax offset arrangements to ensure that these are only claimable by permanent residents of our remote mining towns and not by 100 per cent FIFO workers. The potential impact of 100 per cent FIFO on our local towns is an issue that must be taken seriously by all levels of government.

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