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

I have received a letter from the honourable member for Gorton proposing that a definite matter of public importance be submitted to the House for discussion, namely:

The Government’s attack on the wages and conditions of working Australians

More than the number of members required by the standing orders having risen in their places—

I call the honourable member for Gorton, who is fortunate not to have been asked to leave under 94(a).

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

Thank you, very much, Madam Speaker! I will start my contribution this afternoon by referring to statements made by the Minister for Employment, who in today's papers has given an indication that the government will no longer be proceeding with changes to the minimum pay rate and to penalty rates.

There is no logical reason why any reasonable person would believe undertakings by either the Minister for Employment or the Prime Minister when it comes to industrial relations. It is clear from the actions of this government that they say one thing before an election and do something entirely different after the election. We saw that writ large in the announcement of the budget last May by the Treasurer, when we saw a budget replete with a litany of lies by this government. As dishonest as it was unfair, it was a budget that looked to cut health, cut education, cut the ABC's funds and cut SBS. Those cuts were seen against the backdrop of a Prime Minister who before the election had made it clear that there would be no cuts in those areas of public policy.

We should have seen early on—indeed, we did see early on—that this government is indifferent to employment, to Australian workers and to our businesses and industries in the labour market. As early in the life of this government as December 2013 we saw the Treasurer of this nation stand at the dispatch box and goad Holden to leave our shores; and Holden left. We have now seen the death of the car industry in this country. Car makers are leaving this nation, aided and abetted by a government that is hostile—indifferent at best—towards that industry and the workers who need to be gainfully employed in that industry. That was clearly the beginning of the government's turning its back on Australian workers, on Australian businesses and on the needs and aspirations of working people in this nation.

Of course, that was not the only time we have seen the government turn its back like that. Prior to the election the former Minister for Defence gave an undertaking that submarines would be built in South Australia. There were no corrections made at the time by the Prime Minister. There were no corrections made by the former defence minister—we know why he is no longer the defence minister. That undertaking was made prior to the election. Instead, we have seen the Prime Minister engage in private with the Prime Minister of Japan to do a deal that fundamentally contradicted the undertaking given by the government before the election. What does that mean for employment in South Australia? Unemployment in South Australia is rising and rising, and the government shows a callous disregard for those workers and for that industry.

It does not stop there. We know that the government cannot help itself. It wants to change fundamentally the landscape of industrial relations in this country. There is no other reason why you would refer to the Productivity Commission a review with terms of reference as wide and deep as the review currently being undertaken by the Productivity Commission. This review goes to penalty rates, to the spread of hours, to the minimum pay rate—to every condition of employment that governs Australian workers, over 11 million workers, who would be subject to changes arising out of the recommendations of Productivity Commission's review, which will be embraced by the government. Never mind the undertakings given by the Minister for Employment or indeed the Prime Minister: when it comes to industrial relations this mob return to Work Choices like a dog returns to its vomit. That is the reality. The government's DNA is such that it cannot do anything but return to an industrial relations system that will see employers holding the whip handle and workers being vulnerable and exposed.

If we were to believe the undertakings given by the Minister for Employment we would see the withdrawal of the Fair Work Amendment Bill. The Fair Work Amendment Bill currently before the parliament refers to provisions that would allow for the trading of penalty rates for so-called non-monetary benefits. If the minister, the Prime Minister and the government are genuine in their concern for exposing vulnerable workers to losing penalty rates they would withdraw the bill. We would also see the Productivity Commission review withdrawn or its terms of reference written in such a way as not to alarm Australian workers, unlike the scope of the current review. We will not hold our breath waiting for those things to happen, because with this government it is not their words you have to listen to it is their deeds you have to witness before you can believe them on industrial relations.

It is not just in the area of policy that the government cannot be believed it is also in the way the government operates as an employer. Let us look at their record on employment and the decisions they have made recently in so far as they affect public sector workers in this country. First we saw the government provide an offer to the Australian Defence Force—an offer that in reality was a pay cut for ADF personnel. If anyone believes that ADF personnel, who place their lives in danger in defence of this nation, should be given an offer by this government that cuts their wages in real terms then I would like to hear them defend it, because in reality that is the offer on the table from this government to the ADF—and it should be withdrawn immediately. It should be withdrawn forthwith because it is an insult to the men and women in uniform who put themselves in harm's way to defend this nation. But this is not just about the government's offers to the ADF. We have seen the offers to front-line staff in Centrelink and Medicare whereby staff are effectively being asked to accept a cut in real terms to their pay packet. This is not acceptable behaviour. However, it really does shine a light on exactly the way in which this government believes employers should operate: offer pay cuts to workers and cut the number of workers in every workplace. This is, of course, what the government is seeking to do.

If this government and, indeed, if this Prime Minister were genuine about the concerns that we and others have about their intentions, they would revise their offers to the Public Service, provide reasonable offers and engage genuinely with them in order to resolve the outstanding matters between the workforce, the unions and the government. But we will not hold our breath when it comes to that, because, as I say, it is in this government's DNA to attack workers, whether they are in the public or private sector. There are six pieces of legislation in the parliament still waiting for support. Indeed, those six pieces of legislation in myriad ways go to impacting upon working people in this country. Again, we would like to see the withdrawal of those pieces of legislation if the government expects us to believe that it is fair dinkum.

The other thing we should touch upon in relation to this issue is jobs. We listened to the Treasurer today in question time talking about the rate of growth, but the reality is this: the unemployment rate in this country is at its highest for 12 years. In fact, the last time the unemployment rate in this country was 6.4 per cent was when the Prime Minister was the minister for employment. It has been 12 years since it has been that high. Another concerning figure is that since the election 100,000 extra people have joined the unemployment queues in this country. It has gone from 695,000 to 795,000 Australians lining up in unemployment queues, looking for work, since the election. This is not a government that is focused on jobs. This is not a government that has a jobs plan to create employment for Australians in this country. Indeed, this is a government that has, as I say, a disregard for business, a disregard for Australian workers and a lack of a jobs plan for those many, many Australians without work. What we would like to see, if the government could actually focus on Australians' jobs and the Prime Minister could stop thinking about his own, is improvements to the employment market and opportunities for all Australians to find work.

Luke Hartsuyker (Cowper, National Party, Assistant Minister for Employment) Share this | Link to this | Hansard source

I welcome the opportunity to speak on this matter of public importance. It is clear to those on this side of the House that nothing improves the prospects of Australians more effectively than building a strong economy. Nothing creates jobs faster than a strong economy. Nothing improves wages growth more than a strong economy. Nothing provides more opportunity for workers, young and old, to move from welfare to work than a strong economy. But the problem is that members opposite are living in complete denial. They are in denial of what they did to the Australian economy when they were in government. They are in denial of what they continue to do to the Australian economy from the benches of opposition.

When they were in government they built a debt mountain, and they are continuing to work on their very own debt mountain from the opposition treasury bench. At every turn they obstruct the government's efforts to bring the budget back into surplus. At every turn they obstruct the government's efforts to build a strong and secure Australia for the future. They obstruct us, yet they feign concern for workers. They are not concerned for the workers of Australia; they are concerned only for political expediency. The coalition is working to build a strong and prosperous economy. The coalition is working to fix Labor's debt and deficit disaster—and we are doing that not with the assistance of members opposite but despite them.

We have our economic strategy to create jobs and build a strong economy. More than 200,000 jobs were created last year at a rate of nearly 600 jobs a day. I will repeat that: we have created jobs at the rate of 600 a day. That is a new job every 2½ minutes. In 2014 jobs growth was triple the rate seen in 2013 under Labor. Job advertisement levels are at their highest levels in over two years, with yearly growth in job advertisements at a 3½ year high. Consumer confidence, according to the ANZ, sits above long-term average levels. Labor's legacy is one of 200,000 more people who are unemployed, gross debt projected to rise to $667 billion, $123 billion in cumulative deficits and 50,000 illegal arrivals by boat. That is their legacy.

When Labor's $9 billion carbon tax hit business, it made it more difficult for business to employ. It pushed up business costs. It made our businesses less competitive. We have removed that tax. We are about removing Labor's mess. We are about cleaning up their mess—their budget mess and their policy mess. We will continue to create more jobs. We will continue to ease the pressure on families. We will continue to build the roads of the 21st century. And we will continue to work to get the settings right to allow businesses to employ more Australians.

We had a situation where we were faced with billions upon billions of dollars of environmental approvals being held up by those opposite. This government has removed the roadblock that was put in place by the previous government.

We have seen Labor's policy inaction in government. You need look no further for their job creation prowess than the new government of Victoria, investing $1 billion, or wasting $1 billion, in not building a road that would have created 7,000 new jobs. You have to hand it to Labor—spending $1 billion to not build a road, to not create 7,000 jobs.

Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Link to this | Hansard source

Anti progress.

Luke Hartsuyker (Cowper, National Party, Assistant Minister for Employment) Share this | Link to this | Hansard source

Anti progress, anti job opportunities for Australians.

On this side of the House, we are about creating export opportunities through free trade agreements. After years and years of failure to deliver by members opposite, this government, within a very short period of time, concluded free trade agreements with China, South Korea and Japan. The free trade agreement with Korea removes a 300 per cent tariff on the import of Australian potatoes into that country. Some have predicted our agricultural exports to Korea will increase by around 7.3 per cent. That means more jobs for more Australians. Another example of our action on FTAs is the agreement with China, which removes tariffs on importing Australian dairy products. Australia's beef and sheep farmers will benefit from the abolition of tariffs ranging from 12 to 25 per cent; and all tariffs on Australian horticulture will be eliminated. Again, this means more jobs for more Australians. And we are working on a free trade agreement with India. Not content with the three free trade agreements already concluded, we are working on a free trade agreement with India which will unlock massive market potential for Australian exporters of goods and services and will create, again, thousands upon thousands of jobs.

We will be releasing a families package in the coming months to keep parents' costs down and put more money in their pockets. At the heart of our efforts to create more jobs is our small business strategy. On 1 July, we will be reducing the tax rate for small companies by 1½ per cent. Big business will pay no more. We are taking steps to lay this foundation for a stronger and more prosperous Australia, despite the efforts of members opposite to frustrate us at every turn.

This MPI is just another example of Labor's scaremongering. There is no plan to change the situation with regards to the minimum wage or penalty rates. The rates are determined by the independent umpire, the Fair Work Commission. In line with our election commitments, the government have commissioned the Productivity Commission to undertake a review of the workplace relations framework. The terms of reference for the review seek recommendations for improvements that balance the need for workers to be protected and for businesses to thrive. All interested parties are encouraged to make a contribution to the review. Labor's scaremongering on this issue shows just how morally bankrupt they are.

When we came to government, we inherited an employment services system that was mired in red tape and not meeting the needs of job seekers or the needs of employers. I am pleased to advise the House that, from 1 July, there will be a new system, which will more efficiently and more effectively help job seekers move from welfare into work. Our new system will be based and focused on results, and the result we want to see is more Australians in work: more young Australians in work, more older Australians in work, more Indigenous job seekers finding work. We want opportunity for all Australians because we on this side of the House know that there is huge benefit in a job—not just a financial benefit but the benefit of a better quality of life and a sense of contributing to the community.

Our new employment system will replace Labor's system, which was wasting hundreds of millions of dollars on training for training's sake and was not delivering job outcomes. Our system is focused on paying employment providers to deliver the result we want, which is more Australians in work. The more Australians we have in work, the fewer Australians we have on benefits, the stronger our economy will be. Members opposite feign concern for the workers of Australia, but all they do is obstruct us in our efforts to create jobs, to create opportunities and to create a better employment services system that will better meet the needs of job seekers.

We have a new work-for-the-dole program starting on 1 July. Phase 1 has been very successful. Rolled out in 18 locations around the country, it is offering young people the opportunity to learn new skills that will put them on the path to a job. Many employers are telling me as I go around the country that, regrettably, young people are presenting at the gates of their business without the necessary skills to get by in the workplace. Well, work for the dole has the potential to give young people those skills and the opportunity of a job. Phase 1 of our work for the dole goes national on 1 July. With the implementation of the new employment services system, we will see work for the dole offered right around the country to workers under the age of 30 for 25 hours a week and to older workers up to the age of 50 for 15 hours a week. It will allow these people to contribute to their community, learn new skills and be better placed to get into work.

We are about better terms and conditions for Australian workers through growing a strong economy. Those opposite are about scaremongering. They are about holding the Australian economy back and, in doing so, holding the Australian people back. The best way to deliver higher wages for all Australians and a better standard of living for all Australians is to build a strong economy. It is a shame members opposite have not woken up to that.

Terri Butler (Griffith, Australian Labor Party) Share this | Link to this | Hansard source

The only ones scaring Australian workers are this Prime Minister, this government and this Minister for Employment. When the Minister for Employment said that penalty rates would stay, regardless of the Productivity Commission review, it demonstrated again to me how much the government and their ministers do not understand the bills they have before the parliament. If the government were serious about backing down on cuts to penalty rates, they would withdraw their amendments to the Fair Work Act. The individual flexibility agreements in the bills that are sitting before the Senate do one thing: they make people trade away their penalty rates; they make people give up their penalty rates in order to keep their jobs. And we know that this is what they do, because of the way in which workers have spoken out about their concerns over the six pieces of legislation that attack working people that are sitting before the Senate as we speak. You cannot trust this government when it comes to industrial relations. Working people do not trust this government. That is why they are speaking out in such opposition to this government's plans for industrial relations.

You have to hand it to this minister for creativity. He tries to bring in cuts to penalty rates by amending the Fair Work Act. We caught him out and working people spoke up. Then he announces a Productivity Commission review that is so broad that it goes to the effort of making specific reference to penalty rates. Then today we have seen another backdown, or backflip, from this minister. What is next? Is he going to try to introduce legislation to cut the minimum wage and cut penalty rates? You just cannot trust this government when it comes to industrial relations. Take the Prime Minister's contradictions on this very particular issue. He was declaring that Work Choices was dead, buried and cremated in 2010, on the eve of an election, and then in a radio interview only a few weekends ago he was talking about penalty rates. He said:

If you don't want to work on a weekend, fair enough, don't work on a weekend, but if you do want to work on a weekend and lots of people, particularly young people, particularly students, would love to work on the weekend, you want to see the employers open to provide jobs ... there are lots of places that are now closed that used to be open.

I don't begrudge people the money … but in the end there's a balance …

So he is saying there needs to be a balance struck between people who want to work on weekends and people who do not want to work on weekends. All that says is that, if you work on the weekend, be prepared not to get paid penalty rates. They are the words of the Prime Minister—a longwinded attack saying, 'Fine, work on the weekends but you won't get penalty rates.' Just how much are these penalty rates worth? This is what members of the backbench of the government do not understand. In hospitality, the very industry where the Prime Minister is saying fine, don't work on the weekend, penalty rates are worth $235 per week. That is a third of their wage. I would like to see the entire government, every MP, give up a third of their wage. If they want workers to give up a third of their wage, then they should be prepared to give up a third of their wage. Do they work on weekends? Do they work long hours? They get paid extra. If they want these workers to give up a third of their wages, they should be prepared to do the same.

This is the contradiction of this government. They are saying right here, right now, that they want to cut penalty rates. They are all trying to interject, supporting the Prime Minister's comments that penalty rates should be cut. But we know that is unpopular, and we know it is unpopular because the polls prove it. Essential Media suggests that a large majority of voters do not buy the argument being put forward by the Prime Minister and the government. Only 18 per cent of voters believe that lower weekend penalty rates would mean that businesses would employ more workers. It is an absolute furphy. All this government wishes to do is attack working people—they are not interested in creating jobs and they are not interested in protecting some of our lowest paid workers.

Tony Pasin (Barker, Liberal Party) Share this | Link to this | Hansard source

Oh, how much I enjoyed the dulcet tones of the member for Bendigo. It is almost worth travelling all the way to Canberra from Mount Gambier simply to hear her. This place can be a bit depressing. I thought I was coming to a place where we would engage in battles of big ideas with intellectual giants. Instead of that, we have another day, another matter of public importance and another scare campaign. There is a surprise! If gold medals were given out for running scare campaigns, those opposite would be a atop the dais. Even the member for Shortland would get a gold medal. I cannot say that that would happen in every category.

I could go through at length what is happening—and of course we all know that there is a Productivity Commission review being undertaken, consistent with the commitment we took to the election. I thought I would spend the few minutes I have talking about some comments that have been made by some members opposite—one of whom is still in the chamber. I am sure he will enjoy this. Before I get to the member for Gorton—and I will get to him—I want to talk about Dr Andrew Leigh, the shadow Assistant Treasurer. We have all seen Clockwork Orange, or at least I have, and we all know that he has been on a Clockwork Orange-style re-education program. To be honest, I reckon Labor should get their money back because the re-education campaign did not quite work. On 24 January this year—not two years ago and not five years ago, not when he was penning his most recent book—he was asked by Linda Mottram on the ABC:

Nonetheless, the Productivity Commission review is going ahead and the sacred cows are all on the list: penalty rates, minimum wages, unfair dismissal laws. Is there any room for restructuring any of those things in the dynamic economic environment that you're describing?

Andrew Leigh answered:

Linda, I'm always up for an evidence-based discussion.

So there we have the shadow Assistant Treasurer talking about an evidence based discussion, not ruling out penalty rate changes like the Prime Minister has.

I want to move to the shadow employment minister. This is the person who has the temerity to come in here and submit a matter of public importance about the government's attack on the wages and conditions of working Australians. Do you know what he has had to say? On 24 January—I wonder whether the member for Gorton remembers this—he made some comments. I would not call him a hypocrite—I would not do it—but this is what he said:

There are particular provisions in each award or agreement that I think should be reviewed and I'm not suggesting for a moment that there aren't provisions including penalty rates that shouldn't be looked at.

This is the man who has the temerity to come into this place and raise a matter of public importance.

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

You're a fool!

Tony Pasin (Barker, Liberal Party) Share this | Link to this | Hansard source

I am a fraud.

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

Fool!

Tony Pasin (Barker, Liberal Party) Share this | Link to this | Hansard source

Oh—I am a fool! That might be unparliamentary. But what I did not do is come into this place and say 'Oh, this is a matter of public importance; we need to discuss this in detail.' Look, I do not blame him; what he has forgotten—what he has conveniently forgotten—is that there is a review being undertaken, right now, of penalty rates. It is not the Productivity Commission's review; that is a review that is happening quite separately. The review that is being conducted is being conducted by the Fair Work Commission.

A government member: Who set that up?

I wonder: who initiated it? It was the then minister and now Leader of the Opposition—the guy who comes in here and tries to lecture us about the direction in which the country needs to head. It was Bill Shorten, ladies and gentlemen. The thing the member for Gorton forgets is that—unlike the Productivity Commission review which can only make recommendations; it is a report to government, not a report of government—if the Fair Work Commission changes the rules, that has the effect of law. So what we have here are A-grade hypocrites coming into this place, trying to scare the workers of Australia. What we are doing is getting on with the business of making a strong and secure economy to secure their conditions of employment. (Time expired)

Jill Hall (Shortland, Australian Labor Party) Share this | Link to this | Hansard source

I have to say that was one of the most interesting, irrelevant contributions to a matter of public importance I have ever heard.

An opposition member: I'm sorry you didn't follow it, Jill!

I notice that, before I even commence my contribution to this debate, the sensitive members on the other side of the House are interjecting. What I say is: the more they protest, the more they know they have been caught out.

The one thing every Australian knows is that you cannot trust the Liberal and National parties when it comes to protecting the wages and conditions of Australians. This is an antiworker government—a government that is planning to attack Australian workers and their conditions. By attacking Australian workers and their conditions they are attacking Australian families and their standard of living; they are really attacking the whole of our Australian economy. Our economy depends on Australian workers getting a decent income. If they do not get a decent income then, as a nation, our economy will flounder.

Before the election this government said they would make no substantial cuts to wages and conditions—no cuts to wages and no cuts to conditions—just as they said they would make no cuts to health, no cuts to education and no cuts to the ABC. We can all see just how false that commitment was, with cuts to health and this government on a vendetta to undermine Medicare. This government is on a vendetta to destroy our health system. This government constantly attacks education and the Gonski reforms. What they are doing to universities is an absolute disgrace.

Opposition members interjecting—

Members on the other side of this House may think it is funny. They may not take it seriously, but I can tell them: out in each and every one of their electorates, the people who vote for them know that they are being treated with contempt. Each and every day I hear from constituents saying, 'This is a bad government. This is a government you cannot trust.' You cannot trust them one iota when it comes to wages and conditions. Not only are they attacking wages and conditions—jobs are disappearing. They are disappearing faster than new jobs are being created. Unemployment has skyrocketed under the Abbott Liberal-National government.

Opposition members interjecting—

I notice there are members on the other side who find this quite funny. There are 100,000 more people unemployed now than when this government came to power. The unemployment rate is 6.4 per cent—quite a significant increase. That is the highest rate since 2006. It is the highest number of people who have been out of work since 12 years ago when the Prime Minister was the minister for employment.

The writing has on the wall. He has the runs on the board. Everyone knows he has failed in that area. In the electorate I represent—in the Hunter on the Central Coast—unemployment rates are very high. I notice the member for Dobell sitting opposite and I am sure she is very concerned, as am I, about the high level of unemployment on the Central Coast. On the Central Coast the unemployment rate for youth is 16.8 per cent, which is phenomenal. They are young people who do not have jobs.

Instead of attacking peoples' working conditions and wages, what we need to do is make a commitment to see that each and every worker receives the pay they deserve for putting in a fair day's work. This government has been trading away penalty rates for non-monetary benefits. There is a loss of entitlements if the company goes into liquidation through no fault of the employee. This government has attacked workers in each and every corner and it will continue to do so. (Time expired)

Louise Markus (Macquarie, Liberal Party) Share this | Link to this | Hansard source

The coalition government is absolutely committed to building a strong and prosperous economy for all Australians. We have an economic action strategy to grow the Australian economy and to fix the Labor debt and deficit disaster.

Today I have not heard a plan from the other side. Members opposite have failed to describe what they would do to strengthen our economy and create an environment where business can create more jobs. The shadow minister for employment today has made false and misleading statements. Firstly, the shadow minister for employment needs to check his facts. He claimed this morning that 1.5 million Australians rely on the minimum wage. In 2012, nationwide, 211,900 employees were paid the national minimum wage, not the 1.5 million claimed by Labor.

Secondly, the shadow minister for employment needs to brush up on the history of his own party's policies. As was pointed out earlier by members on this side, in 2012 the current Leader of the Opposition, Mr Shorten, reviewed the fair work laws. The member for Gorton failed to mention that it was Mr Shorten, following the review of the fair work laws, who made recommendations to reduce the number of public holidays on which penalty rates could be paid. In fact, Mr Shorten initiated the Fair Work Commission's current review of penalty rates. This current review actually has the power to reduce and/or abolish penalty rates.

In the 2013 election the coalition government committed to engaging the Productivity Commission on a review of the workplace relations framework. The terms of reference for this review seek to identify how to balance the protections for workers with ensuring that businesses are able to grow, prosper and employ more workers. Members opposite are fully aware that the Productivity Commission has no power to make changes to either the minimum wage or penalty rates, unlike the Fair Work Commission review requested by the Leader of the Opposition.

The Minister for Employment has made it very clear that, if recommendations are made by the Productivity Commission in regard to minimum wages or penalty rates, the government will not move on them. It is not the place of this government to abolish or change penalty rates; it is the responsibility of the Fair Work Commission, an independent umpire, to determine the minimum wage and penalty rates.

The Abbott government is getting on with the job of building a strong and prosperous economy. That is the foundation for job growth. The best way to create jobs is to build a strong and prosperous economy that promotes workforce participation, productivity and job creation. Last year 213,900 jobs were created. That is one new job every 2½ minutes. During Labor's time in office unemployment went from 4.4 per cent in November 2007 to 5.7 per cent in September 2013 and the jobless queue grew to 200,000. Today job advertisement levels are at their highest in over two years, with a yearly growth of job advertisements at a 3½-year high.

Under Labor, 129,000 manufacturing jobs disappeared completely—that is, over one in every 10. This year 223,013 new companies were registered in Australia—21,000 more than the previous year, an increase of 10.2 per cent. This is a record number since Australian Securities and Investments Commission records began in 1999.

Under Labor we lost 412,000 jobs in small business. The coalition government recognises that small business is the engine room for growth and jobs in Australia. Small businesses represent more than 97 per cent of all Australian businesses and employ two out of five individuals in the workforce. There are around two million actively trading small businesses in Australia. Last year alone we had the largest number of start-up businesses in Australian history. The coalition government has a plan to build a strong and prosperous Australia. The Labor Party and members who have spoken today have demonstrated that they have no plan.

Chris Hayes (Fowler, Australian Labor Party) Share this | Link to this | Hansard source

I am happy to participate in this MPI debate, but I tell you what, sitting over here it is like being lectured to by those who are holier than thou. We have actually heard a few of these things before. As a matter of fact those of us who have been in the parliament will think they have almost plagiarised some of the speeches made in the Work Choices debate. This is coming from the same people who said, 'We promise that there will be no cuts to health, no cuts to education, no cuts to pensions and no cuts to the ABC and SBS.' They also promised to build 12 submarines. Where? In Adelaide. They came before us and said: 'We said all those things but things have changed here. We have to make some change.' They came back to this place and said, 'In terms of health and education, we are taking $80 billion out of the budget.' They did not mention the GP tax before the election, but they thought they would put that in there too. They are putting pensions on a lower indexation rate. With the subs—I tell you what—as far as we know they are doing a private deal with Prime Minister Abe in Japan. They do not want to answer questions on subs now. They will not commit to building these subs in Adelaide, which is what they said before the election they were going to do.

They come to this debate and say: 'You should trust us. We are not going to touch penalty rates. We are not going to cut conditions of workers. That is not us.' They want us to believe that they are the workers' best friend. These people have form. They are the people who introduced Work Choices. Those who were around then saw what they sought to do. They attacked people on minimum rates of pay. They made it legal for the first time in our history to pay people below award rates. You could attack penalty rates, could attack overtime and force people to sign contracts where they got paid lower than the award and they said, 'This is all about improving our economy and making us more productive'—all the things they are saying now is what they trotted out in Work Choices. And they say: 'Trust us. We are not going to do anything.'

The Minister for Employment, Senator Abetz, says that he is not going to accept the recommendations of the Productivity Commission if they are about overtime, conditions and penalty rates. This is the very same minister who wrote the terms of reference for the Productivity Commission and put those very specific things in them. So do not come along and say: 'I'm not going to accept these recommendations. I never was, but I thought I would put them in just to see what would happen.' This is not a place where you play suck it and see. This mob over there are trying to do precisely what I said they would before the last election—say one thing and do the exact opposite, but this time they are going to blame the Productivity Commission: 'It was not us; it was the Productivity Commission recommendation.' They are saying this because it is going to improve the productivity of workers, the land, the industry and all the other things they want to trot out, but one thing is constant: they will be attacking Australian workers.

I imagine quite a few of those opposite represent electorates which have living in them doctors who work in hospitals, nurses, cleaners, firies and cops, all of whom rely on penalty rates to make up their take-home pay. I hope you have the courage to stand up and tell them what you are trying to do here, which is to pull the wool over their eyes. They will not forget Work Choices, but do it twice and they will be coming for you.

It is interesting to have these people over there lecture us on employee relations. They say they are the workers best friends! We have seen what you have done. You have got a higher education bill in the parliament at the moment to deregulate university fees so that universities can charge what they like. On the other hand, you are going to cut funds to the universities. So you are actually forcing the universities to cost-shift. If you apply the same notion to industrial relations, do you really want to trust this mob? They are the party of Work Choices. They are the ones who have brought industrial relations reform to this place—not sitting down and negotiating positive improvements in productivity benefits for industry and workers but simply kowtowing to the backers of and donors to the Liberal Party, those who are pushing for IR reform. So when they say 'trust us', don't.

Angus Taylor (Hume, Liberal Party) Share this | Link to this | Hansard source

From listening to this debate today it seems to me that the real issue at the heart of it is: which side of the House can deliver better wages and conditions to Australians? From listening to those opposite, it is very clear that Santa Claus has arrived. Santa Claus, on the other side of the House, is telling us there is no requirement for hard work, productivity gains are not necessary, wages can be high and unemployment can below. Well, let me give you a little lesson in economics: it doesn't work! Let's go to what every credible economist tells us is the secret to high real wages and low unemployment. It is two very simple things: higher labour productivity and limited immigration of unskilled Labor. Those are the keys; they always have been and always will be. The opposition should listen a little more to the member for Fraser because in 2003, in the Australian Economic Review, he showed us convincingly that that is absolutely right.

So let's look at Australia's history in this phenomenon. Australia, for over 200 years of European settlement, has had among the highest real wages in the world. Why have we had that? Because we have had limited unskilled immigration and high labour productivity. We can go back to the great debates in the 1830s and the 1840s between the squatters and the rest of the colonies. Those debates were about whether to allow unskilled immigration to this country. And guess how they came out? The squatters lost—and so they should have. We saw then high real wages sustained throughout our history and we saw extraordinary innovation. The stump-jump plough, the shearing machine and the stripper harvesting machine were all built on the back of extraordinary innovation and high labour productivity.

We should look at Labor's track record on this. They ran down the economy and they ran down productivity. An excellent speech was given midway through last year by outgoing Treasury Secretary Martin Parkinson. He said that, between 1996 and 2007, productivity rose by close to two per cent per annum. That happens to be the same time period as the Howard government. That was one of the best performances in the western world. But from the mid-2000s productivity gains collapsed to about one per cent and wages kept going up. And what do economists predict happens then? Unemployment goes up.

So let's see what actually happened. Under the Howard government we saw 13 per cent growth in youth employment. In the time of the last Labor government we saw an eight per cent loss of jobs among the young unemployed, which is exactly what the member for Fraser predicted would happen in his paper in the Australian Economic Review in 2003. The participation rate dropped from 71 per cent to six per cent and youth unemployment went from nine per cent to 12.4 per cent. And you pretend to be a friend of the Australian worker! Clearly, you are not.

We have seen how productivity was under your government, but let's see how you went on unskilled immigration. We know the story: 50,000 on boats. But we also know, from a report written to your government in 2012, that there was an estimate of over 100,000 people working illegally in this country as unskilled Labor. No wonder we were not able to sustain higher real wages and low unemployment. No wonder you were not a friend of the worker in your time in government.

In contrast, we are working hard to increase the pace of innovation and employment and productivity in this country. We are opening up massive new markets to our north—and you need only look at the cattle price to see the impact that we are having there. We are getting rid of the red tape that you laid on—layer by layer by layer—in your time in government. We are driving unprecedented investment in infrastructure and we are encouraging private sector investment. And guess what the key to labour productivity is? More investment, primarily from the private sector. This government has made it clear that we are not going to abolish penalty rates. We are going to leave those decisions to the Fair Work Commission. We are the party of high real wages. We, not those opposite, are the friends of Australian workers.

Clive Palmer (Fairfax, Palmer United Party) Share this | Link to this | Hansard source

It is in the public interest that we have proper governance of political parties. The Prime Minister took a major step in the right direction when, in his first cabinet meeting, he declared that members of the Liberal Party executive could not act as political lobbyists at the same time as they held office. A number of the Liberal Party executive resigned as a consequence of that decision. When I was a life member of the Liberal Party the funding of the Liberal Party, its application and those who funded it were of great concern to me. I was a life member of the Liberal Party and a member of its national conference. I had been a National Party official spokesman and a member of the conservative side of politics for over 40 years.

Despite all of that, in 2011 and 2012, despite the fact that I had been one of the strongest supporters of the party and one of its largest donors, it was impossible to get a copy of the accounts of the party and a veil of secrecy hung over the application and use of party funds. At that time corporate governance was non-existent in the Liberal Party. Elected members of the national executive, holding the highest offices other than that of president of the party, complained personally to me that they were denied any access to the accounts of the party, about how money was donated to the party and how it was actually spent. There was no accountability which one would normally expect to see in a body receiving funding from the public and its members.

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

Order! I remind the member of the topic for discussion, which is the government's attack on the wages and conditions of working Australians.

Clive Palmer (Fairfax, Palmer United Party) Share this | Link to this | Hansard source

It is a wide-ranging topic. I believe I can discuss this.

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

You may want to start!

Clive Palmer (Fairfax, Palmer United Party) Share this | Link to this | Hansard source

At that time Alan Stockdale was president of the party and refused point blank to provide details even to the vice-presidents of the Liberal Party.

Alan Tudge (Aston, Liberal Party, Parliamentary Secretary to the Prime Minister) Share this | Link to this | Hansard source

I rise on a point of order. He has just ignored your ruling for him to go back to the topic of the MPI. What he has been saying clearly has nothing to do with the topic. The topic actually concerns industrial relations. That is the matter which we are debating across this chamber. That is to do with an internal Liberal Party matter that he is discussing, so I ask that he brought back to the topic of the MPI.

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

The member for Fairfax is well aware of what the topic is. I ask him to be relevant to the topic, or he can cede his position.

Clive Palmer (Fairfax, Palmer United Party) Share this | Link to this | Hansard source

Certainly industrial relations and the fact that Liberal Party workers went unpaid and worked not in accordance with the act was a great disgrace for the Liberal Party at that time. That is why many of its vice-presidents did not know where the funds were. They did not know where the money was to pay—

Alan Tudge (Aston, Liberal Party, Parliamentary Secretary to the Prime Minister) Share this | Link to this | Hansard source

I rise on a point of order. With due respect, the activities of the Liberal Party and what might or might not occur inside the Liberal Party have nothing to do with this matter of public importance, which concerns public policy concerning industrial relations.

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

The member for Fairfax should be aware that most of those positions are voluntary positions and therefore not subject to penalty rates of wages. I remind him again to be relevant to the topic or cede his position.

Clive Palmer (Fairfax, Palmer United Party) Share this | Link to this | Hansard source

I just have to say that I did not know Brian Loughnane's position was a voluntary position! I didn't know funds from the Liberal Party would be spent on various things other than re-election of Liberal members, which I would like to tell you about here, but I will have to save it for another day and keep the suspense going!

Karen McNamara (Dobell, Liberal Party) Share this | Link to this | Hansard source

I see the member for Shortland is here. I don't know if that's a gold medal, Jill—more like a gold Oscar!

But it gives me great pleasure to speak to this matter of public importance, because the Australian people deserve the truth. We are delivering more jobs for the people of Australia. I will start with a couple of facts that may be of interest to members opposite and in particular the member for Gorton. Firstly, there are more Australians in work today than at any stage under your six years of government. This means more jobs in the Australian economy that any stage under Labor's six years of government. Secondly, the wages and conditions of Australian workers are not set by the government, so clearly you missed the info session on how the Australian industrial relations system works.

The minimum wage and penalty rates are determined by the Fair Work Commission, an independent umpire. The government has made it clear in the media that, even if there are recommendations from the Productivity Commission about minimum wages or penalty rates, the government will not move on them; so, quite frankly, with each passing day I am finding it harder to take the members opposite seriously. I think all of us are finding it very hard. You are devoid of ideas and you are so steadfast in your opposition to everything that it makes you wonder where your expertise on wages and conditions of Australian workers come from. You do not have an original idea between you, so it must come from something in your past, but what could that be? Who could that be? Perhaps it comes from your ticket into federal parliament—a trade union membership? Or perhaps it comes from Labor's favourite son, and who is that? Craig Thomson, the post boy of denial and self-indulgence whose economic philosophy focused on getting more bang for his buck—sorry, I meant the HSU members' bucks—

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

Order! As with the member for Fairfax, let's not stray too far from the topic here.

Karen McNamara (Dobell, Liberal Party) Share this | Link to this | Hansard source

I am getting to the point.

Nick Champion (Wakefield, Australian Labor Party) Share this | Link to this | Hansard source

Why don't you tell us about fundraising?

Karen McNamara (Dobell, Liberal Party) Share this | Link to this | Hansard source

Don't even go there! That is irrelevant.

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

Direct your remarks through the chair. The member for Wakefield is warned again. Come on.

Karen McNamara (Dobell, Liberal Party) Share this | Link to this | Hansard source

Why don't you ask Obeid while you're on the subject?

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

That's enough out of you too!

Karen McNamara (Dobell, Liberal Party) Share this | Link to this | Hansard source

The hypocrisy! To get back to the MPI: how rich is it that members opposite come in here and attack this government on wages when they sat in this parliament and defended the actions of Craig Thomson? To get back to the relevance—

Mark Dreyfus (Isaacs, Australian Labor Party, Shadow Attorney General) Share this | Link to this | Hansard source

Eight by Five. Is that what you're going to tell us about?

Karen McNamara (Dobell, Liberal Party) Share this | Link to this | Hansard source

I have nothing to tell you or anyone else. You are nothing but a hypocrite.

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

The member for Dobell will resume her seat. The member for Dobell will withdraw.

Karen McNamara (Dobell, Liberal Party) Share this | Link to this | Hansard source

I withdraw.

Mark Dreyfus (Isaacs, Australian Labor Party, Shadow Attorney General) Share this | Link to this | Hansard source

The member for Dobell has been now several times warned by you—

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

Sit down. The member for Dobell will be relevant to the topic, thank you very much—and direct your remarks through the chair.

Karen McNamara (Dobell, Liberal Party) Share this | Link to this | Hansard source

Alright. To get back to the MPI: Australians will only have wages and conditions as long as they have a job, and let's not forget what happened to Australian jobs under Labor's watch. Two hundred thousand more Australians were unemployed, 129,000 manufacturing jobs were lost—over one in 10 disappeared completely—and, in the period that the Leader of the Opposition was Minister for Employment and Workplace Relations, unemployment rose from 5.2 per cent to 5.7 per cent and the number of unemployed people increased by 80,000. During Labor's time in office, unemployment went from 4.4 per cent in November 2007 to 5.7 per cent in September 2013. Getting back to the other topic we were talking about before, the reality is that, under Labor's watch, in Dobell more small businesses shut their doors than anywhere else in Australia, and under Labor 412,000 jobs were lost in small business.

Unlike members opposite we saw this as a serious problem that needed to be addressed, and unlike members opposite we have a plan to build a stronger economy, to get more people off welfare and into jobs, and to support the growth and sustainability of Australia's small business. It is our plan to see more Australians in jobs. (Time expired)

Ewen Jones (Herbert, Liberal Party) Share this | Link to this | Hansard source

The discussion has concluded.