Steve Irons (Swan, Liberal Party, Assistant Minister to the Prime Minister) Share this | Hansard source

For the member for Gorton, just before he leaves the chamber—he opened the door—his supposed MPI was on the interests of working Australians who are struggling with record-low wages but definitely strayed well from that to get to this side of the chamber. But, to qualify a document I've got here, which was on 20 April 2018, which goes directly to the member for Gorton's accusations towards the minister sitting at the table here—wild accusations. I'm reading from the document and I'm happy to table the document if the opposition allows me to.

Mr Rob Mitchell interjecting—

If the member for McEwen would like to hear it, I'll read it out to him if he'd stop interjecting. I think he was warned during question time too. Anyway, the actual correspondence says: 'Afternoon, Minister.'—addressed to Michael Keenan MP. 'I acknowledge receipt of your statement.' This is on 20 April 2018. 'AFP investigators'—and I hope everyone can hear this. This is from the detective superintendent of the AFP, coordinator, head office investigations, crime operations. I'll start again. On 20 April 2018, addressed to Michael Keenan MP, subject: AFP investigation, unauthorised disclosure of information to media. 'Afternoon, Minister. I acknowledge receipt of your statement. AFP investigators will review the statement and, if we require further clarification, we may reach out to you. Regards.' I seek leave to table this. Is leave granted?

Leave not granted.

What we saw is the subject of the government only acting in its own interest and not for the interest of working Australians, who are struggling with record low wages. The member for Gorton actually said during his statement, while he was focusing on his actual MPI, that that side of the House were focusing on working Australians. Well, this side of the House is focusing on all Australians. We're focusing on unemployed Australians and trying to get them into jobs, and you've seen that from our record jobs over the last five years. We've got over 1.2 million people back into work. I'm happy to not only defend our government's strong record on delivering for hardworking Australians but to remind those opposite just how difficult their attempt at running the country made it for everyday Australians.

On this side of the House we are making decisions every day to ensure every Australian has the opportunity to get ahead in life. As the Prime Minister has said, if you have a go, you will get a go. That's why, as a government, we're committed to keeping our economy strong through lower taxes, supporting small and medium-sized family businesses—and I see the member for Wright. He's here in the chamber and he ran a business. I ran a business. I know the member for Stirling ran a business at one stage as well. Small and medium enterprises are the major employers of people in Australia. They are the ones who actually pay the wages; it is not the people who negotiate them. I'd like to relate a story about a transport company which would have been of a similar size to the member for Wright's. I was working for a national company back in the eighties. During that period of time, the union came to the transport company and said, 'We want to get a $20 a week wage rise for the 150 employees.' The actual company said to the union at the time—the Transport Workers' Union—'We can't afford that. If we do that, we'll go broke.' The union insisted. There were stop-work meetings. They went all the way, and it ended up with the company going broke and 150 transport workers losing their jobs because the unions went hard at them. So, for all the efforts you talk about—getting wage rises and those types of things—you've got to understand that it's the actual businesses who pay them, not you guys who always go ahead and put it on the businesses and small and medium enterprises, who drive the economy in Australia.

We are committed to our stronger economy. Because we are, we can guarantee the essential services Australians rely on. That's really what a stronger economy is for. It continues to deliver Medicare, hospitals, schools, affordable medicines, aged care and support for our veterans. We're so focused on achieving a stronger economy because that's what realises those services.

Today's wages growth results continue to show the importance of this government's economic plan. The wage price index increased by 2.3 per cent over the year to the December quarter 2018. This remains the equal-best result in four years. This wages growth results from a 2.3 per cent increase over the year to the September quarter 2018 and 2.1 per cent in the June quarter 2018. The ACT's recent claim that real wages growth is near record lows is incorrect. The CPI inflation over the year to the December quarter 2018 was 1.8 per cent. This means today's result is a real wage increase of 0.5 per cent, the highest real wage growth since September 2016. Importantly, private sector wage growth picked up 2.3 per cent through the year to the December quarter 2018, from 2.1 per cent in the year to the September quarter 2018. Again, this is the best result in four years, since the December quarter 2014.

The latest data also shows that the total hourly pay rates, including bonuses, are increasing at 2.8 per cent a year, up from 2.7 per cent in the September quarter of 2018, 2.1 per cent in the December quarter 2017 and 1.9 per cent in the December quarter 2016. This further supports the RBA governor's statement just this month, in which he said:

The other important element of the labour market is how fast wages are increasing. For some time, we have been expecting wages growth to pick up, but to do so gradually. The latest data are consistent with this, with a turning point now evident in the wage price index.

We are setting the right conditions for strong economic and jobs growth, with employment growth of 348,000 in the 2017-18 year, the largest increase in a financial year since 2004-05. This is now also translating to better wages growth. As I said before, RBA governor Philip Lowe noted just this month that the gradual pick-up of wages growth is expected to continue, consistent with information from the bank's liaison program and the expectation of a decline in labour market spare capacity. In a point of rebuke of Bill Shorten and Labor's plans to overturn the independent umpire and allow industry-wide strike policies, RBA governor Lowe also recently noted, 'I don't think further intervention is necessary.'

Since the coalition came into government in September 2013, we've created 1,239,200 jobs in the environment we've created. Over the last year, full-time employment has increased strongly, by 162,000, or 1.9 per cent. This is about jobs for people in Australia. We're focusing on those who are unemployed and getting them into jobs. This stands at a record high of 8,678,800 in December 2018.

Ms Madeleine King interjecting—

I hear the member for Brand cheering us on for the record of all the jobs we've created since 2013. Unlike those opposite, we know the laws of supply and demand still hold true. Lower unemployment is a key driver of higher wages. For workers, that is why our employment record is so critical. According to the RBA's latest statement of monetary policy, wages growth has increased a little in recent quarters, consistent with a gradually tightening labour market. A recent AI Group economics research paper highlighted that the three key reasons for Australia's recent slow wages growth are weak productivity growth, spare labour capacity and weak inflation. We need to work on the factors we can influence, and that all comes down to creating the economic circumstances for improved productivity growth. This is the focus of this government's attention. Total employment is projected to increase by 886,100, or 7.1 per cent, over the five years to May 2023.

The government also supports workers to keep more of what they earn. Our personal income tax relief, which Labor voted against, allows workers to keep more of their own money and boost their disposable income. Of course, we welcome stronger wage growth. It's important to note that, whether it be over the past one, five or 10 years, wages have outpaced the cost of living, which is different from what those on the other side are saying. It's also important to understand that, when we talk about our wages, we're talking about putting more money in people's pockets. Under the coalition's plan for lower taxes, they will keep more of what they earn, leading to more choices and to more opportunity. Labor, they talk about wage growth but why do they want to hit Australians with a $200 billion in higher taxes? There's a bit of hypocrisy there—hit them with higher taxes and take away the wages growth that you want to give them.

To finish off, I'd just like to say: the best of luck to the member for Jagajaga. She and I have had a long association with redress and the Forgotten Australians over many years. Good luck with your future out of this place. I'm sure you will enjoy it.

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