Natasha Griggs (Solomon, Country Liberal Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) commends the fantastic work that the Minister for Trade and Investment and the Government have done to secure the monumental Free Trade Agreement (FTA) with China, Australia's largest trading partner;

(2) acknowledges that the China-Australia FTA provides significant advantages for Australian businesses, particularly by:

(a)removing tariffs on key agricultural exports such as beef, dairy, lamb and horticulture;

(b) providing certainty for the resource and energy sector by locking in zero tariffs on major exports such as iron ore, crude petroleum oils and liquefied natural gas; and

(c)securing new or improved market access for service providers in areas such as banking, insurance, hospitality, health and travel;

(3) recognises the opportunities that this agreement presents for Australian businesses to grow and create new jobs, providing increased economic prosperity for all Australians; and

(4) condemns the union movement's reckless misinformation campaign, backed by Labor, for jeopardising this agreement and the opportunity that it presents to create new jobs for Australian workers.

I would like to start with a fact. Australian exports to China were worth $107.5 billion in 2013-14. Under the new agreement, 95 per cent of Australian goods exported to China will be tariff-free, which means there will be good opportunities for resources, agriculture, manufacturing, knowledge and service industries.

It is always hard to deal with people who tell deliberate lies, as is the case with this China free-trade agreement. We have unions and their Labor members of parliament in electorates like mine telling deliberate lies. Another example of this deliberate campaign of lies comes from an MUA member posting on a Facebook site Darwin and Surrounds—Buy, Swap and Sell, organising a rally and telling my constituents that I am responsible for selling TIO. Not true. They say I am responsible for sacking teachers and nurses—also not true! As you know, Madam Deputy Speaker, the federal government does not employ teachers or nurses. The unions are misinformed and should stop telling lies. Here in this room we are bound by standing orders, particularly regarding the language that we use. We must tell the truth and there are certain words we cannot use to describe our opponents, even if they are true.

Out there on the streets of my electorate where the Construction, Forestry, Mining and Energy Union is distributing pamphlets in the letterboxes of Darwin and Palmerston residents, where Labor politicians and their staff are going on radio and TV, where the Maritime Union of Australia is going door to door telling people that hordes of Chinese workers are about to arrive and take their jobs, they do not appear to be bound by conventions or indeed the truth. That is certainly evident by their behaviour on this campaign.

We are used to seeing certain degrees of conflict in political dealings. Those on that side of the chamber will often have a different opinion to us on this side; it is called an adversarial process. Through debate and the exchanging of ideas we arrive at an outcome that should be in the best interests for all Australians. But never before in the two terms that I have served in this place, or during my time in local government, have I ever seen one side resort to such hysteria as that seen from the Labor Party and the union campaign about the China-Australia Free Trade Agreement. Make no mistake: this is not about unions helping workers; this is about the union movement as the puppet master, with the shadow frontbench and their members as the puppets.

Similar agreements are already in place with Korea, Japan, Malaysia, New Zealand, the United States, Chile and Indonesia. I do not ever remember the Maritime Union going door to door in Darwin warning about boat loads of Chilean electricians stealing Australian jobs. I do not recall the CFMEU letterboxing in Palmerston about the dangers of the Australia-United States Free Trade Agreement. Did Labor even vote against any of these? No, they did not. There was bipartisan support and Labor voted for these agreements. Labor has supported all the free trade agreements which have gone through in recent times. Why are they opposing this one? God only knows.

Some of the Labor luminaries have said some interesting things about this agreement. We have Bob Hawke, who said:

I am all in favour of it …The party must not go backwards on this issue … Talk of opposing it is just absolutely against Australia’s best interests.

Victorian Labor Premier said:

The Chinese free trade agreement is good news for Victorian jobs and I support it …

The Labor Premier of South Australia endorses it, former Labor minister Simon Crean endorses it and Martin Ferguson endorses it. Even Bob Carr has publicly said, 'The Labor Party is overblowing this campaign.' Could it be that, once again, unions are not acting to protect workers but protecting their allies in the Labor Party? Could it be a coincidence that anyone whose preselection or election funding does not depend on one or more of the militant trade unions is endorsing this legislation? I will leave that to the public to decide. But I have got to tell you: even a Northern Territory Labor opposition member has said that he supports this agreement. It is good for Territorians and Senator Peris should come out and say that she supports it and so should her staff.

Michelle Landry (Capricornia, National Party) Share this | Link to this | Hansard source

I would like a seconder for the motion.

A government member: I second the motion.

Lisa Chesters (Bendigo, Australian Labor Party) Share this | Link to this | Hansard source

I completely disagree with so much of what is in this motion. In fact, I rise to condemn the government for negotiating a China-Australia Free Trade Agreement that removes safeguards that would protect Australian jobs. There is a reason why Labor has supported most other free trade agreements but not this agreement. Other agreements that came before this parliament and the Australian people contained safeguards that protected Australian jobs. This agreement fails, and this government and government backbenchers have their heads in the sand when it comes to this agreement.

Let us look at the letter that was sent by Andrew Robb, the minister, on 17 June 2015. It states clearly in the letter that he sent to his counterpart: 'Australia will remove the requirement for mandatory skill assessments for the following 10 occupations on the date of entry into force of the agreement.' It lists these 10 occupations: automotive electrician, cabinet-maker, carpenter, carpenter and joiner, diesel motor mechanic, electrician, electrician special class, joiner, motor mechanic and motorcycle mechanic. The minister's own letter states very clearly that, on ratification of this agreement, the mandatory skill assessment for these occupations will cease to be required. The letter goes on to state that the remaining occupations will be reviewed within two years of the agreement, aiming to further reduce the number of occupations requiring this mandatory skill assessment.

This is a dodgy agreement and it is bad for Australian workers. It does what no other agreement has done in the past and removes safeguards ensuring, firstly, locals get job opportunities first and, secondly, that people coming to work here meet the mandatory skill assessments. I am sure China is very proud of what it has been able to negotiate. It is a country that relies on migration of workers who send pay and remittance back to the country. It is something that China has done for centuries and centuries, yet we are the first country to agree to forgo our own labour market testing and our own labour market safeguards that ensure that Australians get offered job opportunities first.

There are other issues with this China free trade agreement that the government backbenchers are choosing to ignore. With this agreement, for the first time ever the government is seeking to enable semi-skilled professions and workers to come in under the 457 visa category. Semi-skilled—so we are not talking about a skilled migration temporary work visa program now; it is being extended in this agreement to semi-skilled workers. Within semi-skilled professions, we are talking about concreters, scaffolders, truck drivers and even office workers. This is one of the other problems with what this government has put forward in the China free trade agreement. This government is also removing labour market testing—that critical point at which, in offering jobs, a company must see if there is a local person able to do the job first. That is a critical difference in this agreement compared to other agreements. As I have mentioned, the mandatory skill assessment for safety has been removed. Another element of this agreement that does not exist in others is the generous holiday visa offering for 5,000 young Chinese workers to come into this country, yet there is no equivalent for Australian workers—none whatsoever.

This is a bad agreement. It fails to include the necessary safeguards to protect Australians and Australian jobs. Further still, when we have a problem with the 457 visa program in Australia, where daily we hear examples of exploitation within the 457 visa program—to the extent that the last workplace ombudsman review into the 457 visa program found that one in five people here on that visa were being exploited—it is the wrong time to expand it even further. That is what the government are trying to do. They are not putting Australians first; they are not putting Australian jobs first; they have signed up to a dodgy deal which only costs Australian jobs. The government are trying to blame the unions and blame Labor for a dodgy deal they have done that does not put Australians and Australian job seekers first.

Matt Williams (Hindmarsh, Liberal Party) Share this | Link to this | Hansard source

One of the biggest challenges facing our country right now is jobs and the economy, and we have just heard the member for Bendigo rant on about how the China FTA is bad for jobs. Well, nothing could be further from the truth, given the extraordinary growth that industry and businesses anticipate from the China FTA. The China FTA is a crucial part in delivering more jobs and economic prosperity for our nation. The Minister for Trade has done a great job in delivering three free trade agreements that will drive growth in our economy for the foreseeable future, for decades to come. The opportunities and potential that Asia offers are incredible, and Australia is well positioned to leverage off the Asian century opportunities in front of us, on our doorstep.

The federal government has moved swiftly and decisively to address the ongoing problems created by the failure to address productivity and maximise opportunities for our economy over the six years of the Rudd-Gillard-Rudd governments. That is why our budget has small business tax cuts to incentivise small businesses. Billions of dollars of red tape and green tape are being removed in the free trade agreements with our major trading partners South Korea, China and Japan. Not only is the sheer size of the population in Asia important but also the growth of the middle class. In the future Asia will be home to the majority of the world's middle class—one billion people. By 2025 the region will account for almost half of the world's output. We cannot ignore this area and we must do everything to maximise the economic opportunities and the job opportunities from China and Asia. It is not just across the traditional sectors of strength of Australia, agriculture and mining, but also the increasingly wealthy and mobile middle class of Asia and China demanding a range of services. We know that tourism from China is at record numbers; we know that there is interest in our education services as well. Health and high-quality foods and wines are part of that package. Thanks to this government, businesses and primary producers have been provided with a platform to tap into the market.

At an industry forum I hosted last week with the Parliamentary Secretary to the Minister for Agriculture at national law firm Piper Alderman, we heard from a number of agribusiness leaders on the opportunities the FTA will present for them. From seafood to horticulture, the potential benefits are enormous. This is what makes the effort by the Australian Labor Party so disappointing. We all know that the Labor Party is a party tied to unions and some of their policies are stuck in the past, not the future. Members opposite are not able to speak for their electorates if they differ from what is being discussed at the national convention, but very rarely have we seen a federal leader of the Labor Party fail to stand up for the interests of the entire nation, for the interests of the economy and for the jobs of Australians and simply comply with the wishes of the faceless men and women of the union movement. The advertising campaign the CFMEU has undertaken is xenophobic at best and racist at worst.

The first myth being purported by the other side and championed by the CFMEU is that Australian projects will have unrestricted access to Chinese workers. As Trade Minister Andrew Robb said today, labour market testing rules surrounding foreign workers are no different than in the FTAs already signed with Japan and Korea. Through investment facilitation arrangements made available under a separate MOU concluded alongside the China FTA, Chinese companies making significant investments in Australia will have access to skilled workers overseas when suitable local workers cannot be found. Such arrangements will not allow unskilled or underpaid workers to be brought in to staff major projects. Under these arrangements, Australian workers will continue to be given first opportunity. Consistent with existing practice, employers will not be permitted to bring in overseas skilled workers unless there is clear evidence of genuine labour market need as determined by the department. Nothing changes in relation to existing labour laws and employment relations. Australia's existing visa arrangements, including the 457, will continue, and only when they cannot find appropriately skilled Australian workers. We have had the Department of Foreign Affairs and Trade take the unusual step of directly addressing the claims made by the CFMEU. When Labor Premiers come out in support of the free trade agreements you would expect the Labor Party nationally to change—but no. We have Bob Carr, Simon Crean, Martin Ferguson and Bob Hawke all saying that this is good for Australia and good for Australian jobs, but we get no change from the Labor Party. These free trade agreements are going to add thousands of jobs and increase economic prosperity in the country and are good for Australia.

Jim Chalmers (Rankin, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

I am pleased to have this opportunity to speak about the China-Australia Free Trade Agreement. The Labor side of the parliament has a very proud record when it comes to trade liberalisation in this country. For 40 years we have been the party that has stood up for opening ourselves up to the region and beyond when it comes to free trade, particularly as it relates to engagement with China. In all of these ways we have a very proud record, and I have always associated myself in the broad spectrum of people's views when it comes to trade liberalisation. Personally, I have always considered myself to be someone who supports free trade. Our party is a party that supports free trade because we understand that it does create jobs and create opportunities in Australia, as other speakers have mentioned. I also support a free trade agreement with China, but I want it to be the best possible deal for Australia. This means maximising the job opportunities for Australians and minimising the risks of exploitation. I do acknowledge that there are upsides in this agreement for sectors of our economy, but I share my colleagues' concerns about two aspects in particular: labour market testing and skills assessments.

Last year the Prime Minister said he would keep labour market testing under Australia's temporary skilled migration program. As honourable members would be aware, labour market testing requires employers to advertise jobs to Australians first before turning to overseas workers. When you look at the text of the agreement, as I and many of my colleagues have, you see that this promise has been broken—a bit like all of the other promises that have been broken during the first two years of the Abbott government, which we mark today.

We asked the Prime Minister in the parliament about a direct quote from the agreement that said there will be no requirement for labour market testing to enter into an investment facilitation arrangement. The Prime Minister said, 'Oh, it goes on to say that there will be labour market testing in a memorandum of understanding'. It does not do that. The memorandum of understanding says that when employers on IFA projects enter labour agreements with the government, these agreements may include labour market testing. The China free trade agreement has turned labour market testing from a mandated requirement into something that is just an optional extra when it comes to our labour market. It also completely excludes labour market testing for several categories of workers on 457 visas, including service suppliers, installers and others. That is set out very clearly in chapter 10 of the FTA, which says that neither party shall:

… require labour market testing, economic needs testing or other procedures of similar effect …

That is a particularly troubling mislead from the Prime Minister when it comes to the detail of his party's own agreement, and it is even more concerning when you consider that even today the trade minister, the guy who was supposed to have negotiated this deal, the guy who was supposed to have crossed the t's and dotted the i's before he signed this deal, got it horribly wrong when he tried to claim that the FTA only removes labour market testing for Chinese executives. The Prime Minister must know that this is a woeful lie from the trade minister. He must know that that is not the case in his own agreement. You do get the impression that the government are just making it up as they go along when they go to the detail of this agreement.

You also have to wonder, given their reluctance to sit down in good faith and negotiate and talk about these issues that are concerning to people outside of the parliament, if they really want to pass this agreement given the way they have been behaving. It is not a big ask to sit down with the Labor Party and work through our concerns. As I said before, we want a high quality agreement with China. We want one that creates jobs, that maximises Australian jobs and minimises exploitation. They also must know that you do not need to change or renegotiate the FTA to protect Australian jobs; the parliament can provide the assurance we seek in the enabling legislation. If it does, it could ensure that the enabling legislation includes mandatory labour market testing for projects over $150 million and ensure that Australians always get the first opportunity before overseas workers are considered. It must also ensure that Australian workplace skills and safety standards are maintained and legislated to ensure our wages are not undercut. These are not unreasonable requests. As I said before, we do support freer trade. We are the party of freer trade and Asian engagement. We want this deal to be the very best it can be, and that means sitting down to maximise Australian jobs and minimise exploitation.

Debate adjourned.