Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Infrastructure and Regional Development, Senator Johnston. Given part 3 of the Qantas Sale Act requires maintenance, catering and head office jobs to be kept in Australia, can the minister advise how many jobs will be sent overseas as a result of the government's decision to repeal part 3 of the act?

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

That is a question you might best ask Qantas. The situation is that Qantas, of course, for the senator's understanding, is a commercially-listed entity in Australia. It is an international carrier in the airline industry and, accordingly, is hostage to the marketplace. It is currently going through a tough time. What the government has sought to do is level the playing field for Qantas. We are not going to give them a blank cheque. We are not going to underwrite debt. We are going to give them a level playing field where they can compete on the open market, as they should. The government has announced that it will move to a single regulatory framework for all Australian airlines. Legislation will be introduced to remove the foreign ownership and operational restrictions in part 3 of the Qantas Sale Act. That, Senator, through you, Mr President, is a very important act—

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order going to relevance. I asked the minister a very specific question about the repeal of part 3 and how many jobs were going to be exported by this government. The minister has 40 seconds left to remotely attempt to address the question, and I invite you to ask him to address the question.

John Hogg (President) Share this | Link to this | Hansard source

There is no point of order at this stage. The minister is to continue.

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

Thank you, Mr President. Qantas as a viable, commercial entity employs a very large number of people. In order for them to continue to be a viable, commercial entity, they must have a level playing field; currently, they do not. They are at the mercy of other airlines that have government capital funding. Senator, you should know that, if we are going to go forward with a reliable, secure working environment for the employees of Qantas, they must have the commercial capacity to borrow on the open market and function commercially. (Time expired)

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Why has the government ignored Qantas when it says that it needs immediate action and instead chosen to propose legislation which it knows has no chance to pass the parliament? Why is the government using Qantas as an ideological political football and sacrificing Australian jobs to try and score some cheap political points?

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

The government has announced that it will introduce legislation as soon as possible to remove part 3 of the Qantas Sale Act, which places restrictions on Qantas that advantage its competitors. Removing these conditions is the best way to ensure Qantas can secure Australian jobs now and into the future. Any changes to the Qantas Sale Act to assist Qantas require bipartisan support to be passed through this parliament. The best way to protect Australian jobs at Qantas is to put Qantas on an equal footing with its competitors. The government is not about writing blank cheques for commercial entities. It is clear that a publicly-listed, commercial entity must be able to compete in the marketplace. This is an opportunity for the opposition to understand an industry.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Does this government really believe that the best way to save high-skill, high-wage Australian jobs is to send them overseas?

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

The government has determined that the best response in the circumstances for Qantas is to repeal the Qantas Sale Act, as I have set out. The government does not intend to provide Qantas with a debt guarantee. We do not intend to pick winners or play favourites. We are going to give everyone the same fair chance. How Qantas responds to the removal of—

Senator Cormann interjecting—

Senator Wong interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order, on both sides! If you two wish to debate the issue, you can go outside.

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

How Qantas responds to these changes in its regulatory environment is a commercial matter for the board and management of Qantas. It is in the commercial interests of airlines seeking access to Australian international traffic rights to ensure that they are majority Australian owned, as I am sure the senator knows and understands. These matters are commercial matters for Qantas. (Time expired)