Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

My question without notice is to the Minister for Employment, Senator Abetz. According to a recent newspaper report, Wangaratta textile manufacturer Bruck Textile Technologies was recently bought for a token $1. The report suggested the purchasing company did so to avoid paying entitlements to 60 sacked workers who have been told that they would not be receiving annual leave, long service leave, notice pay or redundancy pay entitlements. What action has the minister taken in response to these alarming developments?

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

On this rare occasion, I actually agree with Senator Carr. This is a most alarming revelation and assertion that has been made. The former member for Indi rang me about this matter expressing her very real disappointment as to what has happened with this particular enterprise. I have received information about this—and we have to be careful that we do not prejudge; but, on the face of it, things do look ugly, if I can use that term, and that is why—

Senator Lines interjecting—

If Senator Lines can just allow a non-political answer, it would be very helpful—

Government senators interjecting—

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

Order on my right!

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

because what I want to indicate to Senator Carr and to those opposition members who want to listen is that I have instructed my department to make representations to ASIC about this, and I understand that a complaint has been officially registered with ASIC, courtesy of my department making those representations on my behalf. If this has occurred then it is a matter that I would invite ASIC to have a look at. We do have to establish the facts, and we have had circumstances in this place—for example, with a question from Senator Hanson-Young last week—where certain things have been asserted which have been shown not to be the case after being fully investigated. Having said that, the initial reports are concerning to me and concerning to the former member for Indi, who rang me.

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

And the current member.

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

Senator Collins!

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

Yes, and, indeed, concerning to the current member who met with my office about these matters yesterday or will be meeting with my staff today. That is why we have also indicated that the FEG entitlements, if needed, will be made available. (Time expired)

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. On that last point, minister, if Brucks's new owners succeed in avoiding their own liabilities, will workers' entitlements be paid out of the Fair Entitlements Guarantee? Does the minister agree that his referral to ASIC should not delay workers' entitlement claims being processed as a matter of urgency under the Fair Entitlements Guarantee?

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

The referral of this matter to ASIC should in no way interfere with the work of any liquidator who might be called in, and according to the FEG legislation—which was Labor legislation—under which we are operating we will do all that we can to ensure that prompt payments are made. There are procedures to be gone through, such as that the company is liquidated as opposed to just being put into administration. So there are those technical issues that have to be worked through. But you can be assured that we, as a government, will seek to do everything we can through the department to ensure that workers' entitlements, as they fall due under FEG, will be made available promptly in the event that what we suspect—namely, the company has not made provision. Of course, in those circumstances the taxpayer will come to their aid.

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

I have a final supplementary question. Given that you put out a press release yesterday and expressed disappointment at the events and you called on the directors of the company not to rip off workers, what practical steps can you take to ensure that workers are in fact not ripped off?

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

I thought I had already dealt with that. A minister of the Crown—much as we think we are important—has to abide by the law. And the law in this country is that if there are problems from a company administration point of view, the relevant authority is not the minister but ASIC.

In the event that the workers' entitlements have not been looked after by former directors or a former company then it is not for me to reach into a bucket. The proper process is to go through under Labor's Fair Entitlements Guarantee legislation, and I will seek to do everything I can to expedite that. So what can I do practically? I can report the company to ASIC—done that. I can say to the department, 'Please administer FEG as quickly as you possibly can, under the legislation'—I have done that as well.