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

I think the Deputy Prime Minister knows very well the distinction that he is drawing. The letter from Mr Mike Mrdak, the secretary of the department that was subject to the FOI application—which was only granted, it must be said, after a Senate direction was carried by a majority of the Senate—has in it very carefully chosen words. It says:

Commercial advice was not provided.

It says that and I accept that. It is not up to a department to give advice as to the running of a company. What it does confirm, however, are the various options available under the new framework and the option that was available and that was presented very clearly to Mr Milby. I do not know if the Deputy Prime Minister watched Mr Milby give evidence before the Senate. This was not a seasoned political operator; this was a businessman from Western Australia who went out of his way to attend the launch of the policy by the Deputy Prime Minister. He approached the Deputy Prime Minister for advice and was referred by the Deputy Prime Minster himself to Ms Zielke, who was at the launch at the curiously named Shipping Australia

In great Orwellian tradition, Shipping Australia represents the non-Australian shipping industry. This indicates that Australians want a shipping industry—that is why Shipping Australia call themselves Shipping Australia rather than 'Foreign Shippers'.

There is an important role for foreign shipping in this country—we do not argue that. The essential argument here is very clear, and the flaw in this legislation is very clear—the minister exposed it with his last contribution when he said 'we want fair opportunities for Australian business.' But this legislation does not present fair opportunities. It will have businesses operating side-by-side, working the same routes, whether it be in the freight industry around our coast or in the cruise ship industry, one of them paying Australian wages and their competitor paying cheaper foreign wages. In an industry where the margins are not substantial, that means that the Australian ship, to be able to compete, will have to remove the Australian flag and replace it with a foreign flag and replace their Australian workforce—with a couple of exceptions, I accept—with a foreign workforce being paid foreign wages. That is the purpose of the legislation. That is what the modelling says in this legislation.

It did not take Mr Milby to expose this—it is there in the legislation. Mr Milby's evidence made it, if you like, a much more retail discussion—it put a face to the consequences. I congratulate Mr Milby on his courage in standing up for Australian jobs. One of the things Mr Milby said in his evidence was yes you can do that, but he wants Australians to show visitors, whether they be from other parts of Australia or overseas, the great wonders of the Kimberley and the Australian coast—our pristine natural environment. That is why this is important. (Extension of time granted) Page 75 of the RIS of the preferred option says under the heading 'Costs':

The modelling undertaken for the cost-benefit analysis did not include the cost of the potential loss of Australian seafarer jobs.

It is extraordinary, Minister, that you have legislation before this parliament that says that 88 per cent of the savings will be due to labour cost savings, that says clearly what the job losses are estimated to be by sector and region, but which has no analysis of the economic consequences of those Australian job losses. I would have thought it was appropriate to have modelling of the following, at least: firstly, what are the consequences of the fact that you have less money in the economy as a result of Australian seafarers who live and work and have families and spend their income here in Australia being replaced by foreign crews who do not live and spend money here and create jobs in the local supermarket and local retail outlets, or buy services here in Australia; secondly, what are the consequences, therefore, of less GST being paid because of the fact that you are removing the income of those Australian workers; thirdly, what is the cost of less income tax being paid; and, fourthly, what is the cost of higher welfare costs? Northern Tasmania, in particular, has higher unemployment rates than is the average around Australia. The minister has accepted that the evidence in the modelling assumes that two SeaRoad and two Toll ships from Tasmania will re-flag, replacing their Australian workforce, with a couple of exceptions, with foreign workers. That leads to higher unemployment benefits and social security costs. Social costs occur when you have higher unemployment. The other area that does have higher unemployment than other parts of Australia is Northern Australia—Cairns and around the north-west of Australia. What are the social consequences of that loss? It is beyond me why the RIS of the preferred option did not undertake the modelling of the costs of 'the potential loss of Australian seafarer jobs'. I wonder whether the minister can respond to that.

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