Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That this House:

notes that:

on 28 March 2021 the Government intends to cease the JobKeeper scheme, despite widespread calls from economists and businesses alike to extend the scheme as the economy continues to suffer;

travel agents have been pleading for more targeted support given the disproportionate impact that COVID-19 has had on their businesses, and the brutal reality that there is no snap-back for their industry;

the Australian Federation of Travel Agents, the peak body representing the nation's travel industry, has highlighted multiple flaws in the Government's $128 million support package for embattled travel agents, which has provoked confusion and uncertainty; and

travel agents say they'll be forced to close because the Government's support package is so poorly designed it won't help them;

acknowledges that Jobkeeper has been a lifeline for travel agents, and has allowed them to keep their doors open to continue to assist their clients with refund recoveries and those seeking to return home; and

urges the government to:

     (a) listen to the travel sector and respond to their calls for more targeted support to help them survive the detrimental impacts of COVID-19; and

     (b) extend ongoing support to those sectors of the Australian economy who are most impacted by COVID-19 and who will be amongst the last to recover.

Kevin Andrews (Menzies, Liberal Party) Share this | Link to this | Hansard source

Is there a seconder for the motion?

Kate Thwaites (Jagajaga, Australian Labor Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Today I put forward this motion on behalf of travel agents across the country, but most particularly in my electorate of Newcastle, because this industry has indeed been decimated by COVID-19. I have heard from dozens of local travel agents who have been pleading for targeted support, given the very disproportionate impact that COVID-19 has had on their businesses. There simply is no economic snapback for this sector. There are now more than 600,000 Australian jobs tied up in the travel and tourism industry, and they need continued support. The package of subsidised flights announced last week is way too narrow, and only the aviation sector will benefit. There needs to be carefully targeted support to help travel agents who are struggling. It's not just Labor saying this. I note that the Australian Federation of Travel Agents, the peak body representing the nation's travel industry, has highlighted the multiple flaws in the government's $128 million support package for embattled travel agents. That package has provoked a lot of confusion and uncertainty. The more recent announcement on cheap airfares—make no mistake—whilst attractive to small numbers of consumers, is not the panacea that travel agents have been asking for.

On Friday of last week, one of my constituents, Janelle, an independent travel agent, contacted me, extremely concerned about the impact that the end of JobKeeper payments is going to have on her business and, indeed, her family. Janelle said, 'I have a consistent and loyal customer base and spent 2020 cancelling bookings, cashing refunds, applying for credits, basically advocating for my clients and offering my clients the support and service they expected from me.' Fast forward to 2021, Janelle says: 'I'm again chasing refunds and credits and seeking extensions due to continued border closures. Receiving JobKeeper meant there was some income for the hours of work involved with each and every booking. JobKeeper has kept my family going through a very difficult year. The mortgage and bills could be paid.' Janelle is seriously worried right now. She's thinking, 'What happens on 28 March when the government's intention to cease the JobKeeper scheme kicks in despite all the widespread calls from economists and businesses alike to extend the scheme?' The economy—and this sector, in particular—is still suffering. She doesn't have any of that comfort right now.

Another local independent travel agent in my electorate reached out to me just a few weeks ago about her own dire circumstances. She noted that, while the JobKeeper payment hasn't covered her wage or costs over the last nine months, it has enabled her business to survive. But, as we know, the government is intending to stop the JobKeeper scheme in just a few weeks, and this will leave Janelle and my other independent travel agent with no alternative but to close their businesses. That's the worry that both those women have. The poorly planned and poorly delivered COVID-19 Consumer Travel Support Program has gone no way to assist either of my constituents. Janelle's business didn't qualify at all, and my other constituent's business only qualified for $1,500 and that nowhere near covers the hundreds of unpaid hours she's spent assisting her clients with refund recoveries and helping those seeking to return home. It also does nothing to ensure her business is positioned to still have its doors open when travel recommences.

The health department secretary, Professor Brendan Murphy, warned that international travel may not be an option for more than a year. The government needs to extend targeted support now. (Time expired)

A division having been called in the House of Representatives—

Sitting suspended from 18:19 to 18 : 30

Julian Simmonds (Ryan, Liberal National Party) Share this | Link to this | Hansard source

I rise today as a member of the great state of Queensland because this issue is particularly important to my home state as we are, after all, a tourism state. We rely on both international and domestic tourism in key economies, particularly in Brisbane but also the Far North, in Cairns and Townsville and, of course, Mr Deputy Speaker, as you know well, on the Sunshine Coast and the Gold Coast. I am proud that, as a member of the Morrison government, I can speak, as part of this motion, about the significant support we have given to Queenslanders during the COVID-19 pandemic and recession to save lives and to save livelihoods.

A division having been called in the House of Representatives—

Proceedings suspended from 18:31 to 18 : 42

I was regaling the chamber with the significant support that the Morrison government has given to Queenslanders to save jobs and to save livelihoods, particularly in the tourism sector. Over the last 12 months, the Morrison government has provided more than $28.5 billion in economic support to Queensland businesses and households, including through programs like JobKeeper, which has helped significantly in the tourism industry, and other programs like HomeBuilder.

As the member for Newcastle, who moved this motion, rightly pointed out, JobKeeper has been a lifeline for many businesses, including travel agents, but not just travel agents, across a range of industries. In my own electorate of Ryan, more than 5,000 businesses used JobKeeper to keep their head above water. I spoke to one of the many business owners who used JobKeeper—their business is in Chapel Hill—and they said to me, 'It saved my bacon.'

I'm constantly speaking with local businesses that have now transitioned off JobKeeper and are thriving once again because of the economic recovery that is being led by the Morrison government. Across Queensland we've seen more than 560,000 workers come off JobKeeper since September. We're continuing to inject the support that is needed to continue our economic growth. Recently I met with Lloyd from Fresh Homes who, thanks to the HomeBuilder program, is having to put on more staff, both in my electorate but also in Townsville, where the demand for new builds is experiencing a significant uptick, mainly through first home buyers.

We know it's a tough time for tourism businesses and we are continually adapting our support as a government in order to provide the spending where it is needed. Last week we announced 800,000 half-price plane tickets to 13 key tourist locations that have been affected by the border closures, because we know that for every $4 spent on an airline ticket it means $10 spent at the destination. But this shouldn't be a solo effort—and this is the main point that I wanted to make in speaking to this motion—because it is up to all levels of government to aid the recovery, particularly in the regions where tourism is particularly vital.

Unfortunately, in my home state of Queensland, and in your home state, Deputy Speaker Wallace, that isn't what is happening. Not all levels of government are pitching in and putting their shoulder to the wheel to ensure the economic recovery happens. We've seen that our premier, Premier Palaszczuk, is happy, at a moment's notice, to shut down the borders for weeks, sometimes months, on end—sometimes for quite a while—when there have been only one or two COVID cases. She was happy to take the lead in the run-up to her election, using border controls as a political tool yet now, when those ramifications are starting to be really felt by the tourism industry, she is nowhere to be seen. She is not willing to stump up the support, not only to the federal government has that been surprising but to the other states—

Opposition members interjecting—

I hear the Labor members interjecting. Let's look at the facts. The Morrison government has delivered three times the amount of economic support of the state Labor government in Queensland. Okay, it is a different level of government, so I understand the Labor members want a different comparison. How about this: despite being in charge of Australia's tourism state, Premier Palaszczuk has delivered the lowest level of economic support of any other state or territory government—the lowest. So despite being willing to jump on border closures at a moment's notice, particularly for political purposes, she has watched all of those bookings, all that confidence seep away from the tourism industry because of the policies that she has put in place. She is delivering the lowest assistance as a percentage of state gross product of any state or territory in the whole of Australia. It is absolutely disgraceful. It's disgraceful behaviour and, now the impacts of her policies are being felt, she ducks for cover behind the federal government and tries to blame us. It is an absolute disgrace. If Labor really wants to help tourism operators, they will get on the phone to Premier Palaszczuk and get her to stump up as much cash as the other states.

Matt Keogh (Burt, Australian Labor Party, Shadow Minister for Defence Industry) Share this | Link to this | Hansard source

I proudly stand in support of this motion which urges the government not just to listen to the travel sector and support the travel agents but to also ask for extending ongoing support to all those areas of the Australian economy that continue to be impacted the most by COVID-19 and are, unfortunately, now the last to recover. It is only now13 days until JobKeeper is withdrawn by this government on 28 March yet there are 1.1 million workers employed by businesses that are relying on receiving that JobKeeper payment. Indeed, the government's Treasury predicts that 100,000 people will lose their jobs when JobKeeper is withdrawn at the end of the month. Some other experts believe this number may be as high as 250,000 people. JobKeeper has been vital in keeping people not just in work but connected to their employer. That's why Labor suggested this policy in the first place. But alas, whilst the government did implement it, it left crucial gaps in many areas of the economy and now, in a time when we're still experiencing the downturn of the COVID pandemic, while international borders are not just closed but clearly will be closed for a long time to come, this government sees fit to see those JobKeeper supports withdrawn from the businesses relying on them, their employees who are relying on them and their families who are relying on them.

I've been making a bit of a campaign out of this and have been making numerous posts, speeches and videos on my Facebook page. I have been saying that I will be raising this issue in parliament. Many businesses and individuals have come back to me with how JobKeeper being withdrawn is going to affect them. I was asked to put a word in for a business that didn't qualify for the second round of JobKeeper just because of one random good month despite all the other months being down. I was asked to stick up for sole traders who had invested years into their trade and were likely to die off because tourism was their livelihood. I was asked to stick up for mum-and-dad businesses that need support right now, more than ever, after a year now of dealing with COVID. I was asked to acknowledge that, for so many businesses across the country, it's been super tough staying strong and listening to the government rhetoric that apparently 'everything is back to pre-COVID' when in reality so many people and businesses are still struggling. Airlines, airports, unions and aviation businesses have spent the last 12 months calling on the Morrison government to provide more support for Australian aviation. Instead, the Morrison government denied support to airports, denied JobKeeper to dnata workers, allowed Virgin Australia to fall into administration and stood by as Qantas sacked 8½ thousand workers.

The tourism sector, which will supposedly benefit from the announcements made last week, say the package isn't good enough. While the extra help is of course welcome, loans are no substitute for responsible, targeted and temporary extension of JobKeeper for the sectors and communities that are still hurting due to international border closures. Mr Rees, the director of the Cairns Adventure Group, said, and this is a message:

JobKeeper ending is a tragedy for employee confidence in this region.

The Tourism Transport Forum's chief executive, Margy Osmond, said:

... we don't think it's going to go far enough to save the jobs we had hoped to see secured at the end of March.

The CEO of the Council of Small Business Australia, Peter Strong, said:

[The package] won’t save all the jobs at risk ...

Graham Turner, the managing director of Flight Centre, said:

Superficially there is not a lot of benefit to us in the travel industry.

Australian businesses deserve better out of this government. The cinema industry is suffering because it has gone through a whole period of having to close and then having restricted customer numbers because of spacing requirements, but, also, all of the big movie houses and production companies have deferred their major releases, which is what they rely on to be able to make their money, especially over the crucial summer school holidays.

We are still experiencing outbreaks in Australia. The state governments have stood up, done the hard work, listened to the health advice and done the right thing by their people to keep them safe, yet the government thinks now is the appropriate time to withdraw support, when we are not just still experiencing the economic effects but also still experiencing the health effects of the COVID pandemic as it spreads across the country. With 13 days to go, businesses now don't have time to take proper action when the government was promising them support but is now giving them nothing.

Russell Broadbent (Monash, Liberal Party) Share this | Link to this | Hansard source

I have a lot of sympathy for this motion from the member for Newcastle because I understand her concern for travel agents in particular and the fact that the government is withdrawing JobKeeper at the end of this month. I don't know how many people are going to lose their jobs once JobKeeper is withdrawn. One job is one job too many. Hundreds is far too many. Thousands is horrific. If you are in one of those families, you will be facing difficulties, and I admit we are still in most difficult times and it will affect every electorate in the nation. My heart goes out to the people who have survived on JobKeeper to this point and the businesses that have relied on JobKeeper to keep their staff going and achieve the things they needed to achieve to keep well engaged with their employees.

Travel agents are in a unique position. For instance, in my electorate they are still managing $13.4 million worth of customers' investments in their overseas travel, and they have to be managed or they could be lost. On top of that, it affects 3,172 people in my electorate who have paid for overseas travel. Travel agents get their income from international travel. They get a tiny bit of income from interstate travel. The package that the government has produced, while its generous and, as the Deputy Prime Minister, said scalable, flexible and gives opportunity for change, I would encourage the government to consider further what they might do in that scalability and in that flexibility and in that generosity, as to how they may view travel agents. I will give as an example an events operator in my electorate. He supplies all the equipment for events to happen: the stages, the props, the chairs, the tents, and whatever. His business is down 90 per cent. He had a very difficult year last year and is facing an even more difficult year this year because the lack of confidence has stopped people actually investing money into a future event. They have pulled back, so he's just not doing any business, yet all his expenses—for his trucks, his insurance, the staff he still has left, his rent, his overheads—continue. That can amount to a lot of money each month. The government's package says, 'We'll give you a cheap loan to carry you through until the next point,' but, if you take that loan, you have to have the confidence that there's not going to be another lockdown and you will have to extend for another 12 months.

So debt, whether it is owed to the federal government, the state government or your bank, is debt. At the end of this time are you going to take on a loan, line yourself up and, in three years, end up with a debt? I have been in business a long time myself. When you need to reinvest—your equipment may be out-of-date in three years time and you need everything that is new and efficient—the bank will say, 'We can't give you money because you already owe $200,000 to the federal government.' That's why Peter Strong said loans are not necessarily good for small business. I know government thinks they are, but I have lived that life. Debt is debt is debt. They know that. And people who run businesses are finally attuned to where they will be in three years; they have to be.

Travel agents are going to have a very different time. They are different. They are important. They are a bit of glue in our community. And they will not have any income until we get back to international travel. That's what we have to face up to. So the flexibility is going to be important. There may be some people who need continuing support. It's up to the government of the day to look at individual situations and individual organisations.

I thank you, Mr Deputy Speaker, for giving me the opportunity to speak on this very important bill.

Anika Wells (Lilley, Australian Labor Party) Share this | Link to this | Hansard source

There will be 1,792 businesses and 5,515 workers in Lilley affected when JobKeeper is axed in 13 days. Arguably, no-one will feel the impacts of this more than our aviation and tourism workers. The 6,600 aviation workers in my electorate feel like a dark cloud is coming in over the airport and the federal government is taking away their umbrella. They know that, while international borders remain close for the foreseeable future, their employment is precarious. They know they could be tapped on the shoulder at any time and told that they are being made redundant—just like thousands of their former colleagues.

What's the federal government solution to the impending storm? Half-price holidays to13 specific locations across Australia. Honestly, it is like taking the cast off a broken arm before it is healed and slapping a bandaid on it. Once again, this support is being given without any guarantee that employers will use the corporate wealth that they are receiving to retain their employees. According to the Tourism and Transport Forum, 300,000 tourism jobs or more could still be lost despite the package announced by the Prime Minister. The industry already lost 506,000 full-time jobs in 2020 due to COVID.

I said back in August last year that the most important test for the Morrison government's management of this recession, and its aftermath, will be what happens to local jobs and the businesses which create them. The Prime Minister's thumbs-up photo op from the cockpit of a Qantas jet will not save jobs. Failing to provide a tourism targeted wage subsidy after ripping away JobKeeper won't save jobs. Encouraging tourism operators to take on more debt won't save jobs.

Before coming to parliament this week I scheduled an urgent roundtable discussion with northside aviation and tourism stakeholders, seeking feedback from them on the government's package announced at the end of last week. The group unanimously agree that any support for tourism and aviation is welcome but feel that JobKeeper payments are better and should be maintained until we find out whether there is enough demand for domestic travel to keep our tourism and aviation industries afloat. Nobody is saying JobKeeper should go on forever, but surely we could have kept it open until at least the end of April to see if the half-price holidays package has the effect that the government seeks.

The northside stakeholders I spoke to were also mystified as to why Brisbane had been excluded from the list of tourism destinations and why intrastate travel within Queensland has been excluded. It is bizarre that they will not give Queenslanders the opportunity to support fellow Queenslanders; it is what we do best. Excluding intrastate travel in Queensland not only excludes Queenslanders from travelling around our beautiful state but also means interstate travellers can't stop off in Brisbane for a few days before continuing their travel up north. Tangalooma Island Resort, just off the coast of Lilley, has experienced an 80 per cent decrease in day-cruise bookings. With JobKeeper ending, they desperately need ongoing support.

The estimated COVID debt by 2030 is going to be, roughly, $2.7 trillion. But, apparently, including Brisbane as a tourism destination in the package would have been the straw that broke the camel's back. With 32 per cent of Queensland's tourism concentrated in Brisbane, adding Brisbane to the list would be a great investment to stimulate a massive boost to our hospitality, retail and tourism business owners who are still desperate for business. The International Olympic Committee has recognised Brisbane as a tourism hotspot, so why can't our federal government? I am ready to work with the Prime Minister and the Treasurer to make sure Queenslanders get their fair share. I requested a meeting with the Treasurer. I am yet to hear anything. It's not too late to strengthen this package. We have already seen it done, since it was announced, with the addition of Adelaide and Darwin to the tourism destination list.

We can still extend JobKeeper for another month or so, to make sure there is sufficient demand to bolster the tourism and aviation industry. We can add Brisbane to the tourism destination list and open up eligibility to include intrastate travel within Queensland. Let's do it this week. Let's do it before JobKeeper ends and before this package is rolled out.

Kristy McBain (Eden-Monaro, Australian Labor Party) Share this | Link to this | Hansard source

I thank the member for Newcastle for bringing this matter to the House and allowing me to share the stories I'm hearing as I speak with travel agents in the mighty Eden-Monaro. Jenny and Jim of Queanbeyan City Travel and Cruise were among the first to reach out. The Coopers have run their Monaro Street business for 32 years. This last year has been their hardest. They are determined to survive the challenges and continue to employ staff, serve their clients and contribute to the community. They are grateful for the government support they have received to date, including JobKeeper, but Jenny told me, 'We need it until the end of the year.' With just a couple of weeks left before JobKeeper runs out, Jenny and Jim have been waiting, hoping the government will hear the calls of their industry and do the right thing.

The Morrison government keeps making the right sounds but, sadly for Jenny and Jim and many of their friends in the industry, they have failed to deliver. Last week the government rolled out half-price airfares to a number of destinations. That's welcome news if you're Qantas or Virgin or one of the towns announced, which Merimbula was, and you would think it would be welcome news for travel agents too. But, at this stage, it's just not clear. Right now, Jenny and Jim are waiting and hoping that the cheaper tickets can be purchased through travel agents. Jenny's real fear is that tickets can only be booked online via an airline's website. Surely local travel agents won't be left out and left behind?

You can't be sure with this government, because they are all photo op and no follow-up. For the last 12 months, travel agents have been chasing refunds for their clients. Their businesses have been in complete reverse, chasing thousands of dollars in refunds and being charged an admin fee for the privilege. This government has left them scratching their heads, unsure of their future. The stress and pressure placed on local travel agents in this area is echoed right around the place.

Lisa at Summerland Travel Merimbula has had to close her shopfront. She said, 'Having to close our shopfront after 38 years and operate remotely was not an easy decision, but it's the reality of a situation facing travel agents.' Like Jenny and Jim, Lisa's business has been part of the fabric of her community and she's working hard to be part of Merimbula's future. There's Jill at Helloworld Merimbula who's had to diversify her travel business and start selling gifts and homewares. Sadly, Mary at Twofold Travel in Eden didn't make it and has had to close the doors of her travel agency. The fear is that many others will have to do the same thing.

I meet regularly with chambers of commerce, people who work across a range of businesses and industries. Whether it's the Tumut chamber, the Yass chamber or the Jindabyne chamber, the message is the same: they cannot afford to lose good businesses or good business people. That's what's at risk if the Morrison government doesn't extend JobKeeper beyond the end of this month. The fact that we're talking about it now, at this late stage, at a minute to midnight, is just cruel. It's cruel to the people who have been part of their local business communities for decades. These people deserve our support. Instead, they are feeling disrespected and ignored.

A survey by the Australian Federation of Travel Agents makes it clear. Close to one in three businesses will shut if the JobKeeper wage subsidy is not extended beyond 28 March. More than half of the 1,500 respondents were unsure about their business future. And on this day especially, when thousands of women gathered on the lawn in front of this place, I say in a loud and very clear voice that women make up 80 per cent of the travel agent workforce—80 per cent. The sector's decline is having a disproportionate impact on female employment. The Prime Minister missed an opportunity today to change his rhetoric on fairness and justice for women.

As 28 March looms, he faces another line in the sand. Strong communities and strong businesses need a plan. They need the confidence that flows from a government that is listening, seeking advice and making plans to help them survive and thrive. Jenny and Jim don't feel like this government is doing any of that. They are frightened about what will happen to the people in the industry they love and have helped shape. In the meantime, they will keep seeking the refunds their clients deserve, because that is the right thing to do. The big question is: will this government do the right thing and back these businesses and the 40,000 families they support? Extend JobKeeper, especially in our tourism industry and especially to our travel agents. Do it now. It's the right thing to do.

Llew O'Brien (Wide Bay, National Party) Share this | Link to this | Hansard source

There being no further speakers, the debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.