David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

My question is to the Minister for Employment Senator Abetz. In its recent draft report, the Productivity Commission stated that Sunday penalty rates for restaurants, cafes, retail, hospitality and entertainment should be aligned with Saturday rates. By coincidence, I have introduced a bill that exempts small business employers in the restaurant, catering, retail and hospitality industries from paying penalty rates simply because work is done on the weekend.

Do you agree with the Productivity Commission's analysis that reducing penalty rates for weekend work in these industries would increase employment and hours worked? Can you estimate the extent of increased employment and hours worked, if small business employers in these industries were no longer required to pay weekend penalty rates?

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

I thank Senator Leyonhjelm for the question. The Productivity Commission review that has now delivered a draft report was part and parcel of our election promise to the Australian people that we would have a root-and-branch review of the fair work system. I am pleased to say that the Productivity Commission was of the view, as was the government, that it required repair but not replacement.

I can say to Senator Leyonhjelm in relation to this matter thus far: this is a draft report. The commission has suggested that we not rule in or rule out any of their draft observations and recommendations. At this stage, it is open to others to make submissions up until 18 September, if I recollect correctly, to disagree or support these draft observations and recommendations.

In relation to Senator Leyonhjelm's bill, I do not know if the Productivity Commission was aware of his draft bill and plagiarised it in their report or indeed whether they were aware of Mr Bill Shorten's evidence to the royal commission on trade union governance and corruption where he said he had traded away—and his union had traded away—penalty rates to protect jobs, to keep jobs and to create jobs. So it seems that the Productivity Commission's draft views have been fertilised by the opinions of the Leader of the Opposition, Mr Shorten, and potentially even Senator Leyonhjelm's private member's bill.

I am not going to comment on the draft recommendations as to whether we agree or disagree, because the commission has asked us to defer consideration until they come down to their final report. (Time expired)

David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

Mr President, I have a supplementary question. Do you agree with the Productivity Commission's analysis that reducing penalty rates for weekend work in the restaurant, retail and hospitality industries would improve convenience and reduce prices for consumers? Can you estimate the extent of the price reductions to consumers, if small business employers in these industries were no longer required to pay weekend penalty rates?

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

Once again I would say to the honourable senator that these are draft recommendations, and it is possible in its final report that the Productivity Commission will take a different view. Therefore I am not going to comment on the draft recommendations and their draft observations.

In relation to the specific question as to whether any estimate can be made of the price reductions et cetera, I would invite anybody with information in that regard to submit it to the Productivity Commission, and my department advises me it does not have any information that it could provide to the honourable senator.

David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I imagine I will get the same result, but I will try once more. Do you agree with the Productivity Commission's draft report when it states—and this is a general question and not specific, necessarily, to the Productivity Commission—'the overall social costs of daytime work on Saturdays and Sundays are similar and are lower than for evening work'?

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

Once again, Senator Leyonhjelm is right. He will get basically the same answer. This is a draft report and we are considering it, but we will defer consideration until a final report is handed down by the Productivity Commission. Of course, given the antics of the Leader of the Opposition whilst he was a union official, it stands to reason that there are other people of that view as well—that penalty rates et cetera are not needed to be paid on a weekend. But might I add the social reason on that occasion was if the business paid money to 'Mr Shorten's union'. I do not think that that actually counts as a social reason.