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

My question is to the Prime Minister. Last week, when interviewed on radio about cutting penalty rates, the Prime Minister said that workers would have to be persuaded that:

… in net terms they'd be better off.

Can the Prime Minister please explain how cutting the penalty rates of 4½ million working Australians would leave them net better off?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The Leader of the Opposition seems determined to pursue his less and less convincing scare campaign, even in question time today. As he knows, penalty rates are a matter for the Fair Work Commission to determine. As he knows, the Productivity Commission is currently examining this issue as part of its inquiry into the workplace relations framework. He knows all that. Now, as the Prime Minister and as the leader of the government, we encourage employers and employees to negotiate agreements that best fit their particular needs. Businesses like MacDonald's and Coles have reduced or removed penalty rates at certain times in exchange for other conditions, like higher base rates of pay. We will all enjoy and benefit from solutions that create a more flexible and dynamic 21st century economy. But, as I said in the radio interview which the honourable member referred to, workers and their representatives, unions, will always demand and insist legitimately that any changes to penalty rates leave them better off. That is perfectly reasonable. One business after another has made changes in negotiations with their workers, with their unions, to enable them to achieve a more flexible outcome that best suites the type of business, the hours of work, the convenience of workers and the convenience of customers and does so in a way that leaves workers better off.

Any proposals or recommendations from the final report of the Productivity Commission review will be considered, and if we adopt them we will take them as part of our policy platform to the next election. But the honourable member should remember that his scare campaign is simply not working; it is phoney.

Mr Perrett interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Moreton is warned.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

We understand, every Australian business understands and every Australian worker understands that changes to penalty rates must be made in a way which leaves workers better off. That is obvious; otherwise, they will not agree to it. The honourable member, as a union official, has no doubt participated in agreements of that kind. So, really, it is time for the Leader of the Opposition to stop trying to frighten Australians into poverty.