House debates

Wednesday, 14 October 2015

Bills

Shipping Legislation Amendment Bill 2015; Consideration in Detail

4:52 pm

Photo of Anthony AlbaneseAnthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | Hansard source

I am somewhat disappointed that the minister chose not to respond to the very specific quote that I used from his own legislation and that he is asking us to vote for. I also refer to the legislation at page 75 and 76 of the explanatory memorandum in the RIS. The government evaluates the savings there of its preferred option. At the bottom of page 75 and the top of page 76, the combined savings are evaluated. What it shows is that some $19 million in the preferred RIS—88 per cent of the savings—are from 'labour cost savings' and $2.4 million—the other 12 per cent—are so-called 'deregulatory savings'. The minister has made a fair bit of so-called red tape issues. What his own legislation shows and what the RIS of the preferred option shows is that 88 per cent of the savings that the government says will come from this legislation are a direct result of the difference between Australian wages and foreign wages. That is what it shows: almost nine in every $10. That includes, of course, taking away workers from their current coverage under the Fair Work Act.

We on this side of the House have used the analogy of the difference between the 'blue highway' and the Hume Highway. If freight is taken from Sydney to Melbourne down the Hume Highway, Australian wage rates apply. The Australian truck industry safety standards of the government apply. But, if it is taken on the 'blue highway'—again, a domestic freight task from Sydney to Melbourne—then foreign wage rates will apply. I wonder where the minister draws a distinction between the 'blue highway' and the Hume Highway. If he accepts the logic that lower wages are lower cost and, therefore, should be allowed to be paid then why is it that we do not allow for Filipino or other truck drivers from Third World nations—the sort of people who are brought in on flags of convenience to work on ships that are registered in flags of convenience—to drive trucks down the Hume Highway and be paid foreign wage rates? The implication for Linfox, for Toll and for other Australian truck operators is that they would go out of business.

The implication for the Australian shipping industry if they have to compete with foreign wages being paid on the domestic freight task is that they will not be able to compete. I go back to my previous contribution. That is why the legislation says very clearly that when you take these two things together ship operators are likely to replace Australian seafarers with foreign seafarers. That is the logic of this government's own legislation. That is the very purpose of this legislation. I would ask the minister to respond very specifically to the savings that are there at page 75 and page 76 of the legislation, which is the explanatory memorandum.

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