Brett Raguse (Forde, Australian Labor Party) Share this | Link to this | Hansard source

My question is the Minister for Employment Participation. Will the minister inform the House about how the government will support Australians looking for work?

Brendan O'Connor (Gorton, Australian Labor Party, Minister for Employment Participation) Share this | Link to this | Hansard source

I would like to thank the member for Forde for his question. It is a very important question, and I know he shows a great deal of concern about job seekers in his electorate. The government wants to boost the nation’s workforce to improve productivity and ensure that we stay globally competitive. Employment participation is one of the key elements of the government’s war on inflation. This inflation legacy—the highest inflation in 16 years—was bestowed upon the Australian people by the previous Liberal government and needs to be tackled on all fronts. Increasing participation in our workforce, of course, is also a foundation of the government’s social inclusion agenda. We know that having a job creates opportunities for financial independence and personal fulfilment.

The previous government were lucky but lazy. An unprecedented mining boom, of course, led to a welcome fall in unemployment, but the Howard government sat back and did what all Tory governments always do: they let the nation’s natural resources do the work for them instead of doing the work as a government. They ignored, for example, 20 Reserve Bank warnings on the skills crisis that besets this country. They constantly ignored the warnings of the Business Council of Australia, the Australian Industry Group and other employer bodies who were crying out for the government to address the skills crisis.

Of course, as we know, recently the shadow Treasurer has informed us, either in this place or publicly, that he does not believe there is a skills shortage in this country. The only skills shortages he likes to talk about are those that are exhibited by the Leader of the Opposition. That is the reality in this place. The only thing the shadow Treasurer likes to do is to get on the phone, and also use his email, to indicate how much he thinks the Leader of the Opposition is deficient as the leader of the party opposite. He is happy to talk about those skills shortages all day long. We know that the Howard government also ignored those who remain unemployed and failed to adjust employment programs to suit the new workforce circumstances.

Luke Simpkins (Cowan, Liberal Party) Share this | Link to this | Hansard source

That’s not right!

Brendan O'Connor (Gorton, Australian Labor Party, Minister for Employment Participation) Share this | Link to this | Hansard source

I will give you a few facts, Sunshine. There is no greater reminder of the Howard government’s policy inertia than the fact that the proportion of the very long-term unemployed more than doubled over the life of the Howard government. In 1999, one in 10 job seekers had been on income support for longer than five years. By 2007, this rose dramatically to almost one in four—one in four job seekers who had been on income support for more than five years. The current Job Network system as we know it is outdated and is being strangled by red tape. Job Network fails to sufficiently assist the highly disadvantaged people and we are going to address those concerns.

The other thing that the Rudd government has done because of the failure of the previous government is to listen to employers who have been crying out for training to provide the proper skills for the vacancies that exist in this country. That is why this government has a plan to provide 238,000 training places for job seekers over the course of the next five years at the cost of $880 million. This is a massive boost in training for job seekers and it is something that employer bodies and employers have been asking for. It is something they asked the previous government to attend to and of course they failed. We know that is a critical area and we will address that.

The second fundamental change in our approach to assisting job seekers is providing a work culture. The government will deliver a new system commencing in July next year that will instil a work culture through a no show, no pay rule. If you turn up and do what is required you will receive your benefit but if you do not turn up without reasonable excuse your income will be docked—just like a real job. Just like a real job, your income will be docked if you do not turn up without reasonable excuse. This approach will be more effective than the harsh and counterproductive imposition of the eight-week non-payment period. Not only does this current approach push job seekers further away from employment; there is mounting evidence to show it is leading to family breakdown, homelessness and impoverishment. We know that we have got this new proposal right.

I welcome the support across the political spectrum with respect to our new proposal. We have certainly been applauded by the Brotherhood of St Laurence with respect to this particular matter. They believe it is a fair and more effective system. The Executive Director of the Institute of Public Affairs, John Roskam—no friend of the Labor Party—the former chief of staff of former education minister David Kemp has said he agrees with the Brotherhood of St Laurence in supporting the government’s position with respect to this. He said that it is a better approach. He said:

I agree with Tony Nicholson on this. If we can make the system more flexible it will get a better result, mainly to get people to stay engaged.

So we have the Institute of Public Affairs and the Brotherhood of St Laurence and many other bodies coming out and supporting this system because we are attending to the training issues that were ignored by the previous government and a skills crisis that was ignored by the previous ministers that sit opposite. That is the reality. We are attending to that.

Luke Simpkins (Cowan, Liberal Party) Share this | Link to this | Hansard source

Mr Simpkins interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Cowan is now warned!

Brendan O'Connor (Gorton, Australian Labor Party, Minister for Employment Participation) Share this | Link to this | Hansard source

We are not into playing games like those opposite. We are about getting on with the business of government, addressing the skills crisis in this country and putting productivity back on the nation’s agenda.

Nicola Roxon (Gellibrand, Australian Labor Party, Minister for Health and Ageing) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order. During that answer I heard the member for Bowman make a quite offensive comment about the Brotherhood of St Laurence. I ask that he withdraw that comment.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Speaker, on that point of order, I certainly did not hear that, but at the same time when a comment is made it is asked to be withdrawn at the time the comment is made; therefore, I would suggest that it should be ruled out of order.

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

Mr Speaker, if it assists you, the comment was also offensive to members of this side of the House. The comment was, ‘How much did you pay them?’ alleging that we had bribed the Brotherhood of St Laurence. That is offensive to us and it is offensive to them.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Without going into who said what to whom, I did hear what the member for Bowman said. Upon reflection, I think that it would best suit the proper dignity of the House if the member were to withdraw.

Andrew Laming (Bowman, Liberal Party) Share this | Link to this | Hansard source

I am happy to withdraw unreservedly.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

I thank the member.