Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

During question time on 22 June, the Leader of the Opposition in the Senate asked a question on the China-Australia free trade agreement, parts of which I took on notice. I seek leave to make a short statement to provide further information to the Senate.

Leave granted.

A project company requesting a project agreement under an Investment Facilitation Arrangement will need to identify the current and projected skills shortage in the business, and why these vacancies cannot be filled by Australian workers. The company will need to demonstrate that skilled workers are needed for a project, including how many, at what stage, and for which occupations. In order to sponsor workers, approved sponsors requesting an labour agreement under an IFA will need to provide information as required by the Department of Immigration and Border Protection, which may include requirements for labour market testing or evidence of their domestic recruitment efforts. ChAFTA will not remove the need for employer sponsorship or for compliance with all other 457 visa requirements.

In all of our existing FTAs, now including ChAFTA, Australia has exempted the following individuals applying for temporary entry work visas from labour market testing: business executives as intercorporate transferees, senior managers as intercorporate transferees; independent executives; and certain skilled workers who are defined as either specialists or contractual service suppliers. Applications for temporary entry by these categories are managed under the sponsor-driven 457 visa arrangements. Under ChAFTA, Australia has also excluded the category 'installers and servicers' from labour-market testing. These workers already have access under Australia's 400 visa subclass, and ChAFTA makes no practical difference to this arrangement. It is also important to note that our ChAFTA commitments are reciprocal; China has also given access for Australian workers in these five categories.

Opposition senators interjecting—

Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

Order!

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

In relation to the senator's question concerning some statements that the Prime Minister made in October last year and the question of a potential inconsistency, I can advise there is no inconsistency relating to the Prime Minister's statements when he said, in relation to the government's industry, innovation and competitiveness agenda that, 'labour market testing will remain'. The Prime Minister also said at the same press conference that the government wanted the 457 scheme to be easier to engage in, to attract more skills to Australia's economy while not undermining anyone's pay and conditions. While ChAFTA, like our other existing FTAs, achieves this goal by making it easier for companies to move their staff—in a limited number of exempted categories—between China and Australia, it has not otherwise removed the need for labour testing. Rather than reducing opportunities for Australian workers, ChAFTA enhances their prospects for new jobs in Australia. Together with the high-quality FTAs with Japan and South Korea negotiated by the government, ChAFTA will create jobs for Australians, not constrain them. As I stated earlier this week, and again on 22 June, independent modelling commissioned by the government forecasts the three North Asia FTAs to create almost 8,000 jobs in 2016, peaking at almost 15,000 jobs in 2020, as increased exports and cheaper imports allow Australian businesses to hire more workers.