Simon Birmingham (SA, Liberal Party, Minister for Finance) Share this | Hansard source

I believe that Senator Kitching is quoting from documents published by NBN Co. As the senator would know, NBN Co is a government business enterprise that was established under a framework put through this parliament by the former government at the time in terms of its operation and its structure and the fact that it operates according to commercial practices and principles under those arrangements rather than standard public sector practices and principles.

I'm advised that a large proportion of the number quoted in the media today goes to a very large number of staff across NBN under the terms of their employment. Under those terms that those staff negotiated, there is a base rate of pay, and there is an at-risk element. That at-risk element requires certain benchmarks to be met in terms of receipt of that at-risk component.

In relation to government business enterprises, I have, as the Minister for Finance, written to all GBEs to inform them of government expectations around the new wages policy that was announced on 13 November 2020 and requiring them and asking them, to the extent practicable and commensurate with their commercial and competitive circumstances and the legal frameworks within which they operate under the laws of this country, to implement a six-month wage increase deferral decision, to ensure new agreements only allow annual wage increases up to the percentage change of the annual seasonally adjusted wage price index, and to consult shareholder ministers and the APS Commissioner before commencing any future wage negotiations. It's the expectation of the government that, where agencies have access to bonus arrangements, they should exercise restraint to the furthest extent possible, in keeping with community expectations.