Nick Xenophon (SA, Independent) Share this | Hansard source

The background to the Social Services Legislation Amendment (Youth Employment and Other Measures) Bill 2015 is the government's first budget in 2014. One of the most contentious social security measures in recent memory was announced by the Treasurer in May 2014—a six-month suspension of Newstart allowance for young adults. That, justifiably, created a lot of controversy. Senator Brown outlined some of the very broad community concerns in relation to that. The government could not get their social security changes through the Senate. I believe they would have led to spiralling poverty in many parts of Australia at a time of rising unemployment.

The key to this is to create an environment for jobs, encourage training and ensure that we do all those things to build the job market in this country. That is why we are facing a very real crisis with the demise of the automotive sector in this country. According to the Bracks review, a very sensible review of the automotive sector, we are looking at upwards of 200,000 jobs being lost in this country, in South Australia and Victoria in particular, with several thousand jobs also at stake in New South Wales and other parts of the country. It is a time when unemployment in this country could skyrocket if we do not get the policy framework right and encourage jobs and local manufacturing, particularly now that our dollar is hovering below US70c. The low dollar is very welcome. I hope that Senator Canavan and others welcome that low dollar, which is good for our farmers and our manufacturers.