Chris Ketter (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Employment, Senator Abetz. I refer to the assessment of the Commission of Audit that Australia's minimum wage is too high and its recommendation that the minimum wage should be cut. I refer to the statements made by the Treasurer and the Minister for Finance on budget night that, 'issues around the minimum wage will be considered following the 2014-15 budget'. How is the government considering the Commission of Audit recommendation to cut the minimum wage?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

I congratulate Senator Ketter on what I believe is his first question. I wish him a long and distinguished career but on that side of the chamber. I welcome his contribution to this place and acknowledge his longstanding interest in matters of workplace relations.

The Commission of Audit made certain recommendations about the minimum wage. As soon as those came out, I indicated, as Minister for Employment, that we had no intention whatsoever to change the manner in which the minimum wage was set in this country, namely via the Fair Work Commission. I understand my colleague Senator Cormann, in the finance aspects of Senate estimates, reconfirmed the government's position. We have indicated that the longstanding history in our nation of minimum wages being set by the independent umpire, formerly the Australian Industrials Relations Commission, now the Fair Work Commission, should continue. While the Commission of Audit report was to government, it was not a report of or from government and the government moved exceptionally quickly to close down that suggestion.

Opposition Senator:

An opposition senator interjecting—

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

I hear an interjection that supposedly it found its way into a media release after my statement on behalf of the government. If that occurred, that is regrettable. The government's position remains as I stated it very shortly after the release of the Commission of Audit report.

Chris Ketter (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I refer to the current minimum wage of $16.87 per hour, which supports many women workers, young workers and lower socioeconomic families. Does the minister guarantee it will not be cut?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

As far as I am concerned, the minimum wage will not be cut. I cannot see the minimum wage being cut in this nation. The only manner in which it might occur— and I confess this is an extreme hypothetical— would be if the Fair Work Commission were to so rule in its wage determinations. I would doubt that, but squaring off all bases, given that the Fair Work Commission makes these decisions, it is out of the hands of government and I do not expect or suspect that the Fair Work Commission will seek to decrease the minimum wage in this country.

Chris Ketter (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I refer to Senator Day's proposal that the minimum wage not apply to young job seekers and the minister's appraisal of the idea as 'an interesting one'. Has the government commenced negotiations with Senator Day to remove the minimum wage safety net for young job seekers?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

The proposal of Senator Day's was in fact put to me in an interview, and I responded by saying it was interesting.

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

Keep those kids at home longer!

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

Sometimes I suggest that Senator Conroy's behaviour in this place is 'interesting'—it does not mean that I condone his behaviour or support his behaviour.

Senator Day has not put a formal submission to us. But, as we are duty-bound as a government to do, we will consider any submission, give it due consideration, and respond at an appropriate time. But, as I have indicated to the honourable senator, the government is committed to ensuring that the wages are determined in this country not by the government but by the Fair Work Commission, and that was one of the principled positions we took in relation to the cleaning standards that I removed just before the end of the financial year.

Stephen Parry (President) Share this | Link to this | Hansard source

Thank you, Minister. Time for answering questions has expired.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.