Chris Ketter (Queensland, Australian Labor Party) Share this | Hansard source

Rather than a race to the bottom on wages, Labor believes the government should focus on jobs and economic growth through investing in skills and training, infrastructure, innovation and entrepreneurship, and we would carefully consider the report through that prism.

The draft report resembles something out of Work Choices. Instead of ruling out this fundamentally unfair proposal immediately, Mr Abbott has used the recommendation to hit the airwaves, seeking to influence the Fair Work Commission to cut penalty rates in accordance with the recommendation. In reference to looking at penalty rates, Mr Abbott said, 'I think there is a case for looking at this issue.' The Prime Minister then went on, seeking to unduly pressure the independent umpire, the Fair Work Commission, by saying:

… let's hope the Fair Work Commission is alert to the need to maximise employment and maximise economic activity.

The McKell Institute report found that reducing the take-home pay of low-paid workers and their families is going to have a negative impact on economic activity. People around the world are coming to that conclusion. Working people with less to spend—this makes no sense. It means there is no demand in the economy.

I made the point at the commencement of my contribution that we need to look at our economic policies in light of inequality and where we stand on that particular issue. Australia has avoided the radical unfairness that has come out of the American system, but unfortunately the Abbott Tea Party Liberals are attempting to take us down this American road at precisely the same time as we have American economists and politicians looking at Australia as a road map for achieving more inclusive growth. If Tony Abbott has his way and penalty rates are cut, some workers will be forced to get a second or third job. Changes to penalty rates are not just negative for workers but detrimental to companies that rely on the wages of local employees to survive. It does not make any sense.