House debates

Monday, 21 June 2010

Questions without Notice

Budget

2:33 pm

Photo of Ms Julie BishopMs Julie Bishop (Curtin, Liberal Party, Deputy Leader of the Opposition) Share this | | Hansard source

I refer the Prime Minister to the comments of Indigenous leader and Western Australian magistrate Sue Gordon, who said that the job prospects of thousands of Aborigines were at risk unless the new tax on mining was scrapped and that:

We are now beginning to be part of wealth creation in this country … but not if projects don’t go ahead.

Will the Prime Minister listen to Indigenous leaders like Sue Gordon and scrap his tax or will he guarantee that no Indigenous community will be worse off as a result of developments suspended or mining projects not proceeded with because of his tax grab?

Photo of Kevin RuddKevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | | Hansard source

I thank the Deputy Leader of the Opposition for her question. She asked specifically about the impact of our proposed tax reform on employment and Indigenous Australians. I would say in response to the Deputy Leader of the Opposition that the government’s advice is that we will see an overall increase in employment in the mining industry to the tune of some seven per cent. Activity in the mining industry would increase by 4.5 to 5.5 per cent.

Furthermore, I thank the Deputy Leader of the Opposition for this particular question, because it goes to what I would describe as previous campaigns concerning the impact of reforms by previous Labor governments on employment and in this sector in particular. I recall in particular the virulent position of those opposite to the introduction of native title legislation. I recall in particular the position of those opposite, which was that if we were to introduce native title legislation in the 1990s that would be the end of the mining industry, it would be the end of certainty in the mining industry, there would be no growth in the mining industry and there would be no further jobs in the mining industry. That proved to be false, false, false and false.

Photo of Ms Julie BishopMs Julie Bishop (Curtin, Liberal Party, Deputy Leader of the Opposition) Share this | | Hansard source

Mr Speaker, on a point of order: the Prime Minister is dismissing the concerns of an Indigenous leader and I ask him to answer the question: will he scrap the tax or will he give a guarantee that no Indigenous—

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The Deputy Leader of the Opposition will resume her seat. The deputy leader knows that she should approach the dispatch box with her point of order first. On relevance, the Prime Minister is responding to the question.

Photo of Kevin RuddKevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | | Hansard source

Therefore, the deputy leader’s question goes to the impact of our proposed tax reform on employment in the mining industry and, as a consequence therefore, for Indigenous Australians. I would simply again say to the Deputy Leader of the Opposition: when it comes to consistency of standards, she should reflect fully and honestly on the campaign waged by those opposite against the introduction of native title legislation and its impact on employment in the 1990s.

Photo of Tony AbbottTony Abbott (Warringah, Liberal Party, Leader of the Opposition) Share this | | Hansard source

Mr Abbott interjecting

Photo of Kevin RuddKevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | | Hansard source

The Leader of the Opposition interjects, ‘Why is this faintly relevant?’ I seem to remember he had something to do with Work Choices and the campaign which was run—

Photo of Christopher PyneChristopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | | Hansard source

Mr Speaker, I raise a point of order. The Prime Minister was not asked about either Work Choices or native title; he was asked about the job-destroying impact of his great big new tax on mining. I would ask you to bring him back to the question.

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The Manager of Opposition Business will resume his seat. As indicated by the Manager of Opposition Business’s—

Photo of Don RandallDon Randall (Canning, Liberal Party, Shadow Parliamentary Secretary for Roads and Transport) Share this | | Hansard source

Mr Randall interjecting

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

I thank the member for Canning for his addenda that those words were not actually used in the question, but, as the Manager of Opposition Business’s point of order goes, amongst the matters raised by the question are job prospects for Indigenous Australians. The Prime Minister is responding to the question.

Photo of Kevin RuddKevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | | Hansard source

Therefore, when it goes to the impact on employment as a result of government policy change and government policy reform, we have already seen two very large fear campaigns in the past, one on native title and the other on Work Choices, which those opposite projected would result in the collapse of the mining industry, a collapse of investment and a collapse in confidence—and, frankly, all of those claims have been proven to be untrue.

The second point I would make is this, in terms of the role of the mining industry in generating employment. I was talking to the Minister for Resources and Energy about this just the other day—in the recession last year, the global recession, can I say to those opposite there are some claims around that in fact the mining industry, on the employment impact, helped see Australia through. Well, of course, the mining industry played a role. I would also draw attention to the fact that they were the first sector in the economy to shed jobs during the global financial crisis—

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

Fifteen per cent in six weeks.

Photo of Kevin RuddKevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | | Hansard source

Fifteen thousand jobs, I am advised, in the middle of 2009 had gone from the major companies across the various sectors of Australia. I would simply ask people to reflect on that fact. I am advised by various ministers behind me that that the fall in employment in the sector could have been by as much as 15 per cent. The rest of the economy, backed by a government stimulus strategy, continued to generate employment, including in retail, including in small business and including in the rest of the economy, because we got in there and we worked together to generate further activity, further profits and, therefore, further employment. Therefore, the overall argument that employment was somehow held up as a consequence of a 15 per cent shedding of jobs by the mining industry during the GFC is palpably untrue.

Again, let us simply confront a few facts here, because what we have dealt with is the hypocrisy of the opposition’s claims concerning previous campaigns. But, on this theme, let us also reflect on how the share price is going for the member for Dickson. The member for Dickson’s share prices have been doing very well—

Photo of Ms Julie BishopMs Julie Bishop (Curtin, Liberal Party, Deputy Leader of the Opposition) Share this | | Hansard source

Mr Speaker, I raise a point of order. So far you have indicated that, whenever the Prime Minister talks about employment, in even a general sense, it is relevant to the question. This is about the stock market, and under no circumstances could this be deemed relevant.

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The Deputy Leader of the Opposition will resume her place. The Prime Minister will relate his material to the question.

Photo of Kevin RuddKevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | | Hansard source

I would have thought the House would be interested to see how the member for Dickson’s share price had been performing.

Photo of Christopher PyneChristopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | | Hansard source

Mr Speaker—

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The Manager of Opposition Business will resume his place. The Prime Minister will respond to the question. The member for Dickson was not involved in the question. The Prime Minister will relate his material to the question.

Photo of Kevin RuddKevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | | Hansard source

In my discussions with the mining companies over time, both Rio and BHP—and other mining companies, including FMG—in fact have been providing significant employment programs for Indigenous Australians, and we have welcomed that. In fact, the work that we are doing in terms of GenerationTwo with ‘Twiggy’ Forrest for added employment for Aboriginal Australians, both in the mining sector and beyond the mining sector, has been important. BHP has been one of those companies, which brings me to their share price—on 4 May it was $38.59—

Photo of Christopher PyneChristopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | | Hansard source

Mr Speaker, I raise a point of order. Apart from being deeply un-prime-ministerial, it is also irrelevant and I would ask you to sit the Prime Minister down.

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

The Manager of Opposition Business will resume his seat. Yet again he destroyed a solid case he could have put by adding the preamble, which is the debate. The Prime Minister will come to the conclusion of his answer and relate material to the question.

Photo of Kevin RuddKevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | | Hansard source

BHP, like other companies, have actually performed well over the course of the last month. Their share price is up. Therefore, that reflects that in fact the sector overall, despite the fear campaign being mounted by some, is actually progressing well relative to other resource companies around the world. So, on the question of employment and activity in the mining sector, can I say to those opposite, who continue to interject on this matter in their new-found concern for Indigenous employment in Australia, that once again this flies in the face of facts and reality.