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

I support this bill, the Fair Work (Registered Organisations) Amendment Bill 2014, subject to the amendments that I will be moving jointly with my colleague, Senator Hinch, supported by my colleagues, Senators Skye Kakoschke-Moore and Senator Stirling Griff.

I previously debated this bill on 2 March 2015, when I indicated that I would be voting for the measures in the bill. I want to make very clear the important role that trade unions play in our community: they play a vital role in protecting the rights of workers, as well as holding employers and politicians accountable. I have been fortunate to work with a number of union officials on a variety of issues, from anti-dumping measures to aviation safety improvements to support for local jobs to improved workplace compensation schemes—I could not have done that without the support of those union officials. Many of these officials have shared their concerns with me about cases of corruption and malfeasance that have been exposed. I think it is important to note that the opposition leader, Mr Shorten, has indicated that he has no tolerance for corruption within the trade union movement, and I know that his views on that are genuine and sincere.

This legislation is not friendless, in that union officials in the past have said that this legislation—to bring union officials and to bring unions more in line with Corporations Law measures, in terms of accountability—ought to be considered. The former Australian Workers' Union National Secretary, Paul Howes, as head of the AWU, essentially backed the coalition's plan for tougher penalties for union bosses who misused members' funds, and said—quite rightly—that he had no issue with moves to impose punishments that were in line with those faced by company directors. I think that is the nub of this. It is appropriate that there is a specialist organisation that deals with this, rather than ASIC. That is something that can be debated in the committee stages of this bill. In my view, union members should have even greater protections than shareholders, because the duty their union owes to them goes much further than a financial return. People join unions in the belief and with the understanding that the organisation will support them and look after their rights, and I think, overwhelmingly, that is the case. Unions do outstanding work in relation to this.

I also believe that this bill will be improved significantly by having enhanced whistleblower protections, and I will be moving those amendments, co-sponsored by Senator Hinch. It is important to put this in context: I am very grateful for the wise advice and counsel of Professor AJ Brown from the Centre for Public Governance. He is Professor of Public Policy and Law and the program leader for Public Integrity & Anti-Corruption at Griffith University. He is the pre-eminent expert on whistleblower laws in this country. He has published many papers, made many submissions, and undertaken extensive research on the whole issue of whistleblowers, and I think knows more about this issue than anyone else in the country. He has made submissions to the Moss review of the Public Interest Disclosure Act, and he has made submissions to the economics committee, which is looking at the issue of whistleblower protection—and I pay tribute to Senator Sam Dastyari, who was a key driver of the economics committee looking at this particular issue. I will discuss the amendments in due course, in the committee stages of this bill. These are amendments to the bill that I would be very happy to take questions on from my colleagues.

I also want to read into the Hansard an undertaking from the government which I expect the minister, Minister Cash, will confirm word for word. I will read the undertaking word for word. It is as follows:

Following the agreement to strengthen and enhance whistleblower protections in the Registered Organisation Commission (ROC) legislation, the Government has agreed to the following:

1) To support a Parliamentary inquiry to examine the ROC whistleblower amendments with the objective of implementing the substance and detail of those amendments to achieve an equal or better whistleblower protection and compensation regime in the corporate and public sectors.

2) To support the Parliamentary inquiry considering, on the basis of mutually agreed terms of reference, matters including but not limited to:

a. Compensation arrangements in whistleblower legislation across different jurisdictions, for example the bounty scheme used in the United States.

b. The definition of detrimental action and reprisal and the interaction between criminal and civil liability.

c. Issues associated with internal disclosures.

3) That the motion to refer this issue to the Parliamentary Committee will be voted on in the Senate (or if a reference to a Joint Committee by both House of Parliament) by Wednesday 30 November 2016 with a reporting date of 30 June 2017.

4) That following the tabling of the Parliamentary Committee report, if the report recommends adopting stronger whistleblower protections in the corporate and public sectors, the Government will establish an expert advisory panel to expedite the development and drafting of legislation to implement whistleblower reforms in the corporate and public sectors.

5) That legislation will be introduced into the Parliament by December 2017 (subject to any extensions on the Parliamentary inquiry reporting date that may be determined by the Senate) to introduce greater protections for whistleblowers in the corporate and public sectors consistent with the recommendations of the Parliamentary Committee and the expert advisory panel with the proviso that the Government commits to, as a minimum, supporting the substance and detail of the whistleblower protection and compensation regime contained in the ROC legislation.

6) The Government will commit to support enhancements to whistleblower protections and commit to a parliamentary vote on the legislation no later than 30 June 2018.

It is a commitment that has been made to me and to Senator Hinch, and that is why I have read the entire commitment into the Hansard; a commitment which I expect that the minister will confirm.

These are momentous changes to whistleblower protection laws, which the government has committed to extending to the corporate and public sectors. The changes will include, for the first time, a broadening of the definition of what a reprisal action is, and mechanisms to make clear the level of harm to individuals—much broader than the current public interest disclosure legislation across Australia, which has proven to be woefully inadequate in respect of this. It will also include, for the first time, a mechanism for civil compensation based on common law principles, which is broader than anything that has ever been done before in this country. Senator Hinch is right: these amendments, if passed, will see Australia go from some of the worst whistleblower protection laws in the world to arguably the best. It will be a momentous leap forward for whistleblower protection laws. There is a process in place to enhance and strengthen them but, most importantly, to extend them to the corporate sector and the public sector so that those who work in banks, for instance, will be able to avail themselves of the extensive protections that have been drafted. Again I am grateful for the wise counsel and advice of Australia's preeminent expert on whistleblower protection laws, Professor AJ Brown, from the Centre for Governance and Public Policy at Griffith University.

These are the matters that ought to be done in order to protect whistleblowers. It will enhance this legislation but, importantly, it will mean that, for corporations and the public sector, we will have, sooner rather than later, extensive whistleblower protections in this country that will ensure that whistleblowers get the protection they deserve. That is why, subject to these amendments, I support this legislation, along with my colleagues.