Ross Hart (Bass, Australian Labor Party) Share this | Hansard source

Yes, I second the motion. I rise to speak in support of the motion moved by the member for Braddon. Penalty rates play an important part in sustaining those in insecure work, the low paid and workers in hospitality and retail. But also, in a climate of low wages growth, penalty rates play a part in sustaining communities, particularly those communities where underemployment is an increasing problem.

It was often said during the mining boom that Australia suffered from a two-speed economy. Now, commentators are forced to confront the fact that there is rising inequality within the Australian community, particularly when considering the ability of some within our community to engage with and participate in paid work. There are those who are fortunate enough to be in secure work. They are well paid. For them, penalty rates are irrelevant. These are the people who benefit from tax cuts delivered by this government, whilst low-paid workers are threatened with cuts to their wages. While some, like the Treasurer and certain newspaper commentators, place an issue whether there is rising inequality, there appears to be a consensus that there is a significant portion of the Australian workforce facing a reduction in standards of living. This may be from insecure work, the reduction in hours of work, unemployment or underemployment or, whilst fully employed, the rising cost of living not keeping pace with wages growth.

I have spoken in the House recently about the importance of higher education in delivering high-paid jobs for graduates and about the effect on the economy which adds employment as a result of additional graduates taking up employment. The evidence suggests that increased educational attainment of itself improves economic prospects of not only graduates but also other workers within the economy. Nevertheless, the problem is that regional Australia, in particular Northern Tasmania, has lower educational attainment. It has lower educational attainment, fewer graduates, lower productivity and higher unemployment and underemployment.

With investment in the University of Tasmania transformation project, the aim is to transform that outlook over the next 10 years or more. In the meantime, our focus needs to be on jobs and wages growth, which is at historically low levels. The problem of low wages growth is that this is a constraint upon growth, particularly growth in consumer demand. The often-made assumption is that as a consequence of a reduction in penalty rates there will be additional employment which will facilitate the transfer of unemployed to the rank of the employed. This assumption is not supported by evidence. It's equally likely, indeed probable, that a rational employer will simply require an existing workforce to work additional hours. In other words, the employer takes the benefits of a reduction in costs and the employee either works additional hours to sustain their income or receives a reduction in income as a consequence of the reduction of the Sunday rate.

The financial consequences for regional communities are identified in the member's motion. Lower consumption affects all within the small communities that I serve, from the supermarket to the cafe. Discretionary expenditure is minimised and businesses subsist instead of thriving. Low-paid workers tend to expend most of their income consumption, with little put aside for investment or saving. This presents an immediate issue with respect to demand for services in small communities, particularly if there is a large workforce with a reduced income. I've previously addressed this chamber about the secondary effects within regional communities in northern Tasmania arising from the failure of Gunns Limited, in particular about the loss of jobs within the retail and service industries that followed some months after the loss of contracting, harvesting and transport jobs within the timber industry. This ultimately sees communities hollowed out, as the effect of job losses cascades through a community.

One of my first tasks, as an endorsed candidate, was to attend a forum that was addressed by retail workers. They explained the importance of penalty rates to their weekly or fortnightly budget. I have no doubt that these personal stories accurately described the extent to which real families struggle to make ends meet. These stories emphasised the extent to which penalty rates on a Sunday, sometimes on a fortnightly roster, mean that a child can attend the movies, participate in sport or go on a school excursion. These activities are only possible, I'm told time and time again, through the income received from those hours worked on a Sunday. Many university students have confirmed to me that their studies were only made possible by the fact that penalty rates earned on a Sunday provided them with the income to be able to devote time to study as well as support themselves. I commend the motion to the Chamber.

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