Sarah Hanson-Young (SA, Australian Greens) Share this | Hansard source

I move Australian Greens amendment (1) on sheet 8914:

(1) Schedule 7, page 48 (after line 9), at the end of the Schedule, add:

Part 3 — Conditions on assistance to aviation sector

Financial Framework (Supplementary Powers) Act 1997

3 At the end of section 2A

Add:

This Act also imposes conditions on the provision of financial assistance to Australian airlines to assist with the impact of the coronavirus known as COVID-19.

4 After Part 2

Insert:

Part 2A — Providing financial assistance to Australian airlines during the COVID-19 crisis

42 Application of this Part

This Part applies if:

(a) the Commonwealth proposes to make, vary or administer (whether under a power provided for by this Act or otherwise):

(i) an arrangement under which relevant money or other CRF money is, or may become, payable by the Commonwealth to an Australian airline; or

(ii) a grant of financial assistance to an Australian airline; and

(b) the arrangement or grant is for the purposes of assisting the Australian airline with the impact of the coronavirus known as COVID-19.

43 Terms and conditions for financial assistance to Australian airlines

(1) The terms and conditions on which an arrangement or grant of financial assistance referred to in section 42 is made or granted must:

(a) be set out in a written agreement between the Commonwealth and the recipient; and

(b) include the terms and conditions in subsections (2), (3), (4) and (5) of this section.

Equity stake

(2) The provision of the financial assistance by the Commonwealth is subject to the Australian airline giving to the Commonwealth an equity stake in the Australian airline.

(3) The following apply in relation to the equity stake referred to in subsection (2):

(a) the equity stake must be proportional to the amount of financial assistance provided by the Commonwealth;

(b) the equity stake must be given by the issue to the Commonwealth of shares in the Australian airline;

(c) the shares must be priced at no higher than the most recent share price transacted on the Australian Stock Exchange or another relevant market (however the shares may be priced lower than that price by agreement between the Minister and the Australian airline).

Board representation

(4) The provision of the financial assistance by the Commonwealth is subject to the Australian airline providing for the following representation on the Board of the Australian airline:

(a) one member of the Board representing the workers of the Australian airline;

(b) at least one member of the Board representing the Commonwealth, with additional members of the Board as appropriate to reflect the proportion of the Commonwealth's equity stake in the Australian airline.

Retention of existing workers

(5) The provision of the financial assistance by the Commonwealth is subject to the Australian airline retaining until at least 30 June 2021 all workers employed by the Australian airline at the start of 2020.

44 Definitions

In this Part:

Australian airline means:

(a) an Australian international airline; or

(b) Qantas; or

(c) an air transport enterprise offering or operating an air service solely within Australian territory.

Australian international airline means an international airline (other than Qantas) that may be permitted to carry passengers or freight, or both passengers and freight, under a bilateral arrangement as an airline designated by Australia to operate a scheduled international air service.

international airline means an air transport enterprise offering or operating an international air service.

Qantas means Qantas Airways Limited, as the company exists from time to time (even if its name is later changed).

These amendments relate to support for the aviation industry and Australian airlines during the coronavirus crisis. We know that the government's already been in significant conversations and discussions with airlines. These amendments ensure appropriate protections for workers and taxpayers in any airline bailout. We think it is absolutely essential that, if the Australian people and taxpayers are going to participate in these types of bailouts, they get something in return. We need to make sure, as these amendments insist, that they require any bailout to take place via an equity stake rather than just handing over the cash to these big corporations. It beggars belief that we'd just do this and not take the opportunity to ensure that the Australian people are indeed represented at the table. We need to make sure workers keep their jobs and that protections for their jobs are ongoing, at the very least in the medium term, when the whole point of this type of extraordinary support from government is to ensure that the people working for these corporations actually get looked after and get to keep their jobs.

We have heard referenced many times in this place and the other place today the extraordinary situation where, after being given significant support from the government, Qantas stood down 20,000 staff members in one day. We know that the industry has effectively been grounded. We get that. But we need to make sure that, if we're going to be putting up big loads of cash for these corporations, the workers themselves are the ones that these benefits flow to.

I was listening to a report in the evening following that decision by Qantas that numerous households around the country had just lost both incomes because there were couples—living together, sharing household costs and bills, and who have families—who were both employed by Qantas. Both, on the same day, lost their jobs. This is the type of protection, for people like those families and others, that we need to insist on if we're going to stump up this large amount of money. What this amendment does is gives protection for workers but also ensures that the Australian people are represented. We would like to see a requirement that board seats are put aside for the Australian taxpayer, represented by the government, and for workers. It is the very least that can happen at an extraordinary time like this, and I urge the opposition to support this amendment.