Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. The Treasurer met with Qantas in early December last year. A massive profit write-down was announced by Qantas on 5 December last year. There has been ongoing speculation that the government would provide Qantas with a stand-by facility. Prime Minister, given the tragic loss of 5,000 jobs today, when will the speculation end? When will the government act? Will the government provide a stand-by facility to Australia's national airline?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

As the Leader of the Opposition well knows and has just said, this government have been in regular contact with Qantas. As you would expect, we have been in regular contact with Qantas.

Opposition Members:

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

Order! The question has been asked; listen to the answer.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

There are a number of things that Qantas would like. This government will do what we can for Qantas consistent with responsible economic management. We are determined to do what we can for Qantas consistent with responsible economic management. That essentially means that we should ensure that Qantas can compete on a level playing field. We want to ensure that Qantas is not competing against its rivals with a ball and chain around its leg. That is what we are trying to ensure.

As for the other measure that the Leader of the Opposition has sought assurances on, the difficulty is this: what we do for one business, in fairness, we have to make available to all businesses. But I accept that Qantas wants a level playing field, and the government are determined to ensure that it gets an appropriate level playing field. In that sense at least, Qantas does need this government's help. But it also needs the parliament's help. In fact, it needs the opposition's help too. I say to the Leader of the Opposition: join with me in helping Qantas by scrapping the carbon tax and repealing the—

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Madam Speaker, I rise on a point of order. It is not open to the Prime Minister to be speculating on opposition policy.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

That is not a point of order. Indeed, it is an abuse of the standing orders. The Prime Minister has completed his answer.

Jane Prentice (Ryan, Liberal Party) Share this | Link to this | Hansard source

My question is to the Deputy Prime Minister and Minister for Infrastructure and Regional Development. Minister, will you please update the House on issues that are impacting on Qantas and the airline's profitability?

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

I thank the member for Ryan for her question. This is certainly a tough day—

Mr Champion interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Wakefield is a slow learner. He is warned.

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

for Qantas and its workers and their families. Indeed, it is an important day for the future of aviation in Australia. It is obviously a particularly difficult time for those families that are uncertain about their future. It is vital that Qantas works constructively with its workforce, the unions and others associated with the industry to try to make the transition that they are going through as smooth and painless as possible.

The reality is that Qantas plays a vital role in providing air services through our nation and it will have a key role also into the future. This government and all Australians want Qantas to be a strong company in the years ahead so that it can continue to be a national icon known around the world. But the reality is that aviation is changing. New aircraft have modern technology, and so many of the jobs that were required in the past will not be needed in the future. We do not put our cars in for a grease-and-oil change every 1,000 kilometres anymore, and new aircraft are the same. They do not require the same level of service as required in the past. You cannot maintain a 747 maintenance facility if you have only eight aircraft. You cannot open up a new service facility if you have only a dozen 380s. So many of the jobs that were required in the past are not required for the future. New technology is making such a difference.

Qantas must work its way through these kinds of issues and ensure that it takes control of its own future destiny. The board and the management have a responsibility to the shareholders to make sure that their company is profitable and a national icon to the people of Australia and to ensure that they are able to provide the services that are required.

But there are more issues than this. The carbon tax will cost Qantas $106 million this year. Next year it will be $168 million. Honourable members opposite think that that is unimportant. Those two numbers together are more than the loss that Qantas announced today. If you look forward over the coming few years, if there were no carbon tax a good quarter of the $3 billion that Qantas want to save would be saved. That $3 billion could be saved if Labor were prepared to vote to get rid of the carbon tax. And the mining tax has similar figures. Labor can help to make Qantas more profitable.

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

My question is to the Deputy Prime Minister and minister for transport. Does the Deputy Prime Minister stand by his comments of today that workers' entitlements at Qantas are responsible for some of the job losses that have occurred today? I say to the Deputy Prime Minister: is there any occasion on which workers lose their jobs when this government does not blame those very workers themselves?

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The latter part of the question is ruled out of order. The first part of it will stand.

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Madam Speaker, I rise on a point of order. We have had answer after answer in this parliament where those opposite have blamed the workers, and we are entitled to put that back to the minister.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

There is no point of order. As the Manager of Opposition Business is perfectly aware, the rules apply to questions, not to answers. I call the honourable the Deputy Prime Minister.

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

Just let me clarify this: there are no rules on answers under your Speakership—not a rule at all.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

Is the member for McMahon reflecting on the chair, or does he wish to withdraw?

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

I withdraw.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

Thank you. The member for Grayndler on a point of order.

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

I referred in the question to the fact of the Deputy Prime Minister's own comments this morning that spoke about—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

I said that part of the question stands.

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

workers entitlements, including 'The Qantas wage and cost structure places them at a significant disadvantage'.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

There is no point of order, and the former manager of government business knows there is no point of order.

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

Madam Speaker, it might assist you if I tabled the Deputy Prime Minister's own comments—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

No, it would not assist me. It would not assist me at all.

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

in the Sydney Morning Herald this morning.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member will resume his seat.

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

Madam Speaker, I sought leave to table this document.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

He will answer your question at this stage, so far as I am aware. Do you want an answer or not?

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

He can give me the answer and then I will seek leave.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

You can seek leave later; that is fine.

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

The shadow minister is misrepresenting my comments. I do not blame the workers for the fact that technology has moved on, that aircraft do not require as much servicing as they previously did. I do not blame the workers for that. That is simply a statement of fact. However, it is important to note that the significant losses that Qantas is currently incurring and which it has incurred over the last year or two have been in its international division. That is where the major difficulties are for Qantas. It is simply beyond dispute that Qantas is faced with the difficulty of having to compete with airlines in countries where the wage structure is very different from what it is in Australia. That is not the fault of our workers. It is a reflection of the fact that there are lower wages paid in other parts of the world. That does not mean that I am arguing that our workers should not be well paid—of course they should be. I want not just our airlines to be prosperous; I want their workers to be prosperous as well.

But one of the real challenges that Qantas face is that its new competitors are not European airlines or American airlines, where the wage structures are perhaps closer to Australia's; their competitors are from Asia, their competitors are from the Middle East, where the wage structures are different. That is one of the many challenges that Qantas has to face if it is going to be a competitive airline in the years ahead. It has to find ways that it can make up for the fact that costs in Australia are higher, so that it can continue to be competitive in the future. That does not mean that the wage structure in Australia is going to change dramatically. We appreciate that those wages reflect the cost of living and the lifestyle of Australians, which we all enjoy, but it is an issue which Qantas has to address in being a competitive airline globally.

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

Madam Speaker, I seek leave to table the article from The SMH today: 'High costs and wages key to Qantas' problems, says Deputy PM Warren Truss.'

Leave not granted.