Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Hansard source

He interjects and tells us he has got more. I have no doubt that that senator across there would have more of that sort of language. That he is proud of it is just, quite frankly, astounding. But let us not be too distracted from that which is before us, and that is the huge layer of red tape that will be imposed over the sector for no discernible road safety benefit or dividend.

The bills would also erode the concept of an independent contractor, something that the trade union bosses are so very desperate to do. They see every independent contractor as somebody who is aspirational, somebody who wants to be their own boss, somebody who wants to move ahead in the world, and they would like to see them as an employee subject to the dictates of a trade union boss. These bills would also cover, regrettably, independent contractors, who are currently outside the jurisdiction of the Fair Work Act. In doing so, the bills will create a new class of employment relationship that is neither employer-employee nor a hirer-independent contractor. This will remove the independence of owner-drivers and will significantly reduce their autonomy.

The Independent Contractors Association argues that the actions of a small number of dangerous drivers who are already breaking existing laws is being used as a justification for making owner-drivers subject to provisions similar to those in the Fair Work Act. The Civil Contractors Federation argues that a consequence of issuing road safety remuneration orders to owner-drivers would be the setting of a floor price or benchmark which may not take into account the individual specifications of a particular job. An operator who has 10 years experience in a particular type of cartage would be rewarded the same as an operator who has little or no experience. This point is picked up the Independent Contractors Association, which argues that the price fixing element will reduce competition, increase prices and lead to a less efficient and less effective transport sector within our nation.

By reducing the autonomy independence of owner-operators, the bills will have a significant impact on the state of employment relations in our nation. We will for the first time have a new type of employment relationship whereby independent contractors in the heavy vehicle sector are treated differently to independent contractors in any other industry. Indeed, if we go through the coverage of the bills we note that they will only cover approximately 80 per cent of employees and 60 per cent of owner-drivers because of the constitutional limitations on the bills. It is the same as Labor's so-called claim in relation to small business tax deductions and the lower rate of tax, which only applies to companies and not to the 70 per cent of small businesses that are partnerships or sole traders.

In dealing with the definition of the road transport industry, it is interesting that even a body such as the Post Office Agents Association in their submission to the House inquiry—