My question is to the Prime Minister. Does he stand by his view that the member for Moore brings some common sense to this parliament? In relation to the Prime Minister’s recent comment on Iraq, on reflection, does he now share the member for Moore’s common-sense view that ‘spreading it to the Democrats wasn’t probably such a good idea’?
I think all of my colleagues bring common sense into the parliament. That is my view about the member for Moore. This morning I have been caught rather more by some remarks made by somebody else—namely, the Leader of the Opposition. It is very important that everybody listens to this. The Leader of the Opposition was twice asked this morning on News Radio by Marius Benson what he thought would be the consequences of an American withdrawal from Iraq. It was hardly an irrelevant question. The debate of the last 72 hours has been all about the future of Iraq and the consequences of an American withdrawal. He was asked by Marius Benson the very direct question:
If the United States did withdraw all its troops from Iraq—
Mr Speaker, I rise on a point of order. The direct question was actually asked of the Prime Minister—
Order! The member will come to his point of order.
Under standing order 104, could you ask him to answer the question.
The member will resume his seat. The Prime Minister was asked about some comments that were made. He is entirely in order.
The question was very direct and very simple:
If the United States did withdraw all its troops from Iraq as Barack Obama advocates, what do you think would happen in Iraq?
That is a very simple question. It is a very direct question. It goes very directly to what we are debating. What was the reply of the Leader of the Opposition? Typically, he cut and ran. Listen to his answer. He was asked what he thought would happen and this is what he had to say:
On the question of the future direction of US military strategy in Iraq, like Mr Downer my role is not to provide a rolling commentary on the merits or otherwise of twists and turns in the US military debate.
Mr Speaker, I rise on a point of order. The Prime Minister was asked whether he shares the member for Moore’s—
The member for Wills will come to his point of order.
I ask you to draw him back to the question he was asked, which was about the statements made by the member for Moore.
The member for Wills will resume his seat. The Prime Minister was asked a question and he is very much in order. His answer is relevant to the subject of the question.
The Leader of the Opposition was asked yet again what he advocates in relation to withdrawing troops from Iraq and what he thought the consequences of that would be. The Leader of the Opposition replied:
No, what I’m an advocate of is to withdraw the Australian combat component ...
We know that. We have known that for several years, but what we do not know is what the Leader of the Opposition believes would be the consequence of a coalition withdrawal by March 2008. Over the last day and a half I have been attacked and lacerated by the opposition for expressing my view, but the Leader of the Opposition does not have the guts to express his. I want to know what the opposition believes. I would like to know—
Mr Speaker, I rise on a point of order. When the Prime Minister’s Minister for Defence was asked the same question last night he said it was too hypothetical—
Order! The member for Hunter will resume his seat.
Mr Speaker, on the point of order: this is clearly orchestrated disruption and an abuse of standing orders. It is orchestrated by the Leader of the Opposition and it must be dealt with.
The point of order was a question of relevance, if I heard the member for Hunter correctly. The Prime Minister is clearly in order. He is responding in part to comments made by the Leader of the Opposition.
The debate here in Australia over the last two days has centrally been about what would happen in Iraq if coalition forces were withdrawn, what would happen to the cause of terrorism in the Middle East and what the security consequences for Australia would be.
We have the extraordinary situation where I am attacked because I have had the courage to express my views on the consequences of that. The Leader of the Opposition, in typical fashion, is trying to maintain an attack on us without having the courage to express his views as to what would happen if coalition forces were to withdraw in March next year. That is the central security issue. The reason the Leader of the Opposition is remaining silent is, I suspect, that he knows in his heart that the real answer to that question is the same as the one that I have given, and that is that Iraq would descend into chaos and terrorists around the world would be emboldened. The Leader of the Opposition was twice asked this morning, ‘What do you think will happen if coalition forces are withdrawn from Iraq in March 2008?’ and on both occasions the Leader of the Opposition did not have the courage to tell the Australian people what I have told the Australian people to be my belief. That is the central issue in this debate. It has got nothing to do with individuals in another election campaign; it has everything to do with the future of Iraq—
Ms King interjecting
The member for Ballarat is warned!
and the central security issue facing this country. I have told the Australian people where I stand. Why won’t the Leader of the Opposition do the same?
My question is addressed to the Prime Minister. Does the government remain opposed to the ratification of the Kyoto protocol? Has the Prime Minister’s attention been drawn to recent expert views on the implications of ratifying the protocol?
Can I say in answer to the member who represents not only the largest electorate in Western Australia and in Australia but also the largest electorate in the world—and it is an electorate that, as we all know, is home to the great resource industries of that state and, according to the people who sit opposite, it is therefore the home to the principal explanation for our economic prosperity—that many things have contributed to our economic prosperity, and part of that contribution has come from the resources boom, which has been underpinned in no small measure by the industrial relations policy pursued in this country over the last 10 years. But, in going directly to his question, the answer is that the government is still opposed to the ratification of the Kyoto protocol because it is not in Australia’s interests that we do so. We are going to reach the target or go very close to reaching the target, but we have declined to ratify the protocol for the very good reason that that would do great damage to Australia’s industries. I have been saying all along that, because of the way the protocol operates, if we had ratified we would be assuming obligations that our competitors would not be assuming and that would put us at a disadvantage.
My colleague the member for Kalgoorlie asks me whether that view has been supported by any expert opinion in recent times. I have to tell the honourable gentleman that it has, in today’s West Australian newspaper, by no less an authority and expert in economic matters than Mr Marney, the Western Australian Under Treasurer—that is, the head of the Western Australian Treasury. Mr Marney was appointed by the Western Australian Labor government. He is a career public servant and somebody who, I have no doubt, has given good service to both sides of politics in Western Australia. When he was appointed, the Western Australian Treasurer, Eric Ripper, waxed lyrical about his ability, about his 14 years experience in economics, about how he had worked in the Reserve Bank and about how he had clearly demonstrated that he has the capacity and vision required to hold the position of Under Treasurer—in other words, somebody who would know the real economic interests of the great state of Western Australia and would know what was good for Western Australia and what was bad.
What did we find the Under Treasurer saying this morning, apparently quoted at a gathering of CEDA? ‘Prime Minister John Howard was right not to ratify the Kyoto protocol on greenhouse gases because it could have a devastating effect on the competitiveness of Australian industry.’ This is not a political figure; this is an apolitical Public Service expert who knows something about the Western Australian economy. He goes on to say, ‘As long as, for example, the Kyoto protocol has a bunch of our competitors sitting outside of the constraints that come with that protocol then for us to sign up to that would be disastrous.’ There was no equivocation, and that is exactly the argument that I have been advancing. It is exactly the argument in support of the position that we have taken.
The truth is that, in responding to climate change, no rational government caring for the long-term interests of Australia is going to enter into an arrangement that would reduce the competitiveness of Australian industry. That is precisely why we remain opposed to the ratification of Kyoto. It does not include all of the major polluters. It does not include, for example, China, a country that the Leader of the Opposition on the weekend said was absolutely indispensable to a solution to our environmental problems. I think the words spoken by the Western Australian Under Treasurer, who is in an unqualifiedly advantaged position to know what would happen in his state and therefore to the resource industry of Australia, are right on the money and go directly to the relevance of the government’s position.
Mr Speaker, I seek leave to table a media release of 22 June 1998 from the Minister for Foreign Affairs, which states:
The Kyoto protocol is a landmark agreement in the fight against climate change precisely because it contains targets which, despite being challenging, are also realistic and fair.
Leave granted.
My question is to the Prime Minister. I refer the Prime Minister to calls by Vice Admiral Ian McDougall, former Chief of Navy, and General Peter Gration, former Chief of the Defence Force, to withdraw Australian troops from Iraq. Are these former Australian military commanders the people his Minister for Defence was referring to last night when he said anyone arguing that we withdraw from Iraq is supporting the interests of al-Qaeda and other terrorist networks?
Can I answer that question by saying that I personally have a very warm regard for both of those gentleman. They have on occasions, certainly in the case of General Gration, disagreed with the government stance on foreign policy, but I am sure they have done so out of deep conviction and I in no way impugn their patriotism, their dedication and their commitment to Australia.
In relation to the Minister for Defence, the Leader of the Opposition went right over the top this morning when he made the outrageous claim that the defence minister was imputing proterrorist sentiments to anybody who was arguing for a withdrawal of American forces. What the Leader of the Opposition is trying to do is to conflate a description of the consequences of something with an allegation that the person advocating a course of action shares the sentiments of terrorists. The Minister for Defence did nothing of the kind. It is quite outrageous of the Leader of the Opposition to suggest otherwise. My charge is not that the Labor Party is sympathetic to terrorists—I would never allege that for a moment; my charge is that the consequences of the policies you are advocating would be to destabilise Iraq and threaten the security interests of this country through a defeat of the United States in Iraq. That is my charge and you know it. Why won’t the Leader of the Opposition state his position?
My question is addressed to the Treasurer. Would the Treasurer inform the House of recent lending finance data? What does this indicate for the Australian economic situation?
I thank the honourable member for Deakin for his question. I can tell him that the Australian Bureau of Statistics has today released lending finance data for December. It shows that housing finance rose 1.1 per cent in December and is up eight per cent through the year; that personal finance fell in December and is up 4.4 per cent through the year; and that commercial finance, which also fell in December, is more or less steady for the course of the year. All of that points to the fact that the growth in credit is slowing. I think that is probably consistent with the fact that inflationary pressures have dropped somewhat.
As I said to the House yesterday, in the first half of last year the underlying rate of inflation was about 0.8 per cent for the quarter and it has now gone down a notch to 0.5 per cent. That is good news for stable inflation expectations. That is the kind of outcome which the government has been looking for. Notwithstanding that, all of the business surveys show that business conditions have strengthened in the early part of this year and businesses are looking forward to a stronger year in 2007 than they had in 2006.
What picture does this give of the Australian economic situation? It gives this picture: that notwithstanding a very severe drought—a drought which has caused production to fall by about 20 per cent in the rural sector—the Australian economy continues to grow. It continues to grow in a low inflationary environment, and it produces jobs. The unemployment rate is at the lowest level we have seen in 31 years.
There have been many challenges to this economy over the last 10 years. We had the Asian financial crisis, a US recession, September 11, war in Iraq and Afghanistan, terrorist attacks in Bali, and we have had a one-in-a-hundred-year drought. But the Australian economy has grown continuously right throughout that period. One of the reasons it has grown continuously throughout that period is that the government attended to the key fundamentals of economic management in this country: balancing our budget; repaying $96 billion of Labor debt; funding our superannuation liabilities; broadening the indirect tax base; cutting the company tax rate; halving the capital gains tax rate; cutting income taxes in 2000, 2003, 2004, 2005 and 2006; and making sure that we had an independent central bank with an inflation target. All of that work is producing these results.
The Labor Party would have you believe that it is in favour of the results; it just opposed all the work that was required to get there. Australians know this: you do not get the results without putting in the effort. The Australian Labor Party cannot come along after 10 years of opposing the effort and try to claim ownership of the results.
On the weekend the Leader of the Opposition made out that he supports all of the economic policy of this government. We take that as a compliment. But I say to the people of Australia: come to the originators, not the imitators. Come to the originators who actually had the foresight to put all of these policies in place. It was the foresight and the work that got us to where we are and it is the work of today which will get us to where we want to be tomorrow.
My question is to the Prime Minister. Does the Prime Minister recall saying last Friday:
There’s a $10 billion investment of new money by the Commonwealth to fix the basic problems of the Murray-Darling Basin …
Did the Prime Minister last Thursday tell the premiers that this $10 billion would not exclusively be for the Murray-Darling Basin but would also be available for irrigation projects outside the basin? Prime Minister, which of these two statements is correct?
I made it clear on 25 January when I announced the policy that states outside the Murray-Darling Basin would be entitled to participate. There is no conflict. The Leader of the Opposition has not done his homework.
My question is addressed to the Deputy Prime Minister and the Minister for Transport and Regional Services. Would the Deputy Prime Minister inform the House of the importance of coalmining and coal-fired power generation to regional areas, including those in my electorate of Hinkler? How would the proposal being considered in the climate change debate affect working families in regional areas—for example, Gladstone?
I thank the member for Hinkler for his question. Obviously the member for Hinkler is taking a very keen interest in this debate as it is focused around the coal industry, given that he represents the port city of Gladstone, arguably one of the most efficient coal-exporting ports on the eastern seaboard, and other areas that have coalmines within them, and many of his constituents are employed in that industry.
It has been clearly established—and the figures were used yesterday—how important coalmining exports are to the Australian economy. Can I also point out how important, particularly in an industrial city like Gladstone, the competitive advantage that Australia has in this cheap energy source is. Coal provides 85 per cent of the nation’s electricity needs—cheap, efficient power supplies, not just for private consumers in their homes but also for businesses and for industry. And there is some very important industry in Gladstone, which employs a lot of the constituents of the member for Hinkler and relies on that internationally competitive energy source that comes from our coal supplies.
Many other nations across the world have a competitive advantage in other areas—for example, China and the cheaper cost of labour.
Mr Fitzgibbon interjecting
Order!
Our competitive advantage is the cheaper cost of energy.
Comparative advantage.
The member for Hunter is warned!
The cheaper cost of energy in Australia is threatened by reckless environmental policies in this current debate. You may want to see what happens when you factor into the equation some of the costs that are being proposed. We read in today’s paper about the proposed coalmine in New South Wales. The New South Wales state government has indicated that that mine should factor in a cost of $109 for each tonne of carbon dioxide created when its coal is burnt. That cost is going to go somewhere. That cost is going to go to consumers.
I think that organisations like the New South Wales government proposing this should be honest with consumers and tell them what their electricity charges are going to go up by. If it happened in Queensland, the industry in the city of Gladstone would be paying more for its electricity. If you want to see an example of that, just have a look at what has happened overseas. Have a look at what has happened in Europe. The NUS Consulting Group has done an analysis of the cost per kilowatt hour across a number of different economies. In Australia in 2006 the cost in US cents per kilowatt hour was US5.29c per kilowatt hour. In Germany it was US10.33c per kilowatt hour. In France it was US10.53c. In the United Kingdom it was US11.03c. That is what the cost of environmental taxes does to the competitiveness of the cost of energy, which we rely so heavily on in Australia.
We know that members of the Labor Party do not pay much attention to this issue. When the member for Kingsford Smith was asked, ‘Will consumers have to pay more?’ his reply was, ‘I don’t know what “pay more” means.’ The consumers in Europe and other countries across the world that are bearing this cost know what ‘pay more’ means. It means paying more than US5c a kilowatt hour.
That report on European costs said that this cost increase was due partly to rising oil prices. It also said that it was due to the application of new environmental or green taxes on electricity purchases. That is what happens. These costs are passed on to consumers. We know that will happen. We know that the member for Kingsford Smith has already got that in his mind. In a former life he told Lateline, on 6 May 1999, when he was the President of the Australian Conservation Foundation:
I mean, most countries when they come to a GST and tax reform—and certainly the OECD experience is that—they use that opportunity to get into some environmental taxes.
We know that is what the Labor Party is about. We know that is what the green movement is about. The people of Australia need to understand that what the government is about is making these industries cleaner and investing in clean coal technology so that we can continue to take advantage of our most important competitive advantage, and that is clean and cheap energy in Australia.
My question is also to the Deputy Prime Minister and Leader of the National Party. Can the Deputy Prime Minister confirm that not only did the Prime Minister’s $10 billion water plan not go to cabinet; the Deputy Prime Minister and his office were not briefed on the detail of the package until just before the Prime Minister’s public announcement? Deputy Prime Minister, doesn’t the Prime Minister tell you anything?
I can confirm that that assertion is totally incorrect.
My question is addressed to the Treasurer. Would the Treasurer outline to the House expectations in relation to inflation, both here and overseas. Are there any international models with lessons for Australia?
I thank the honourable member for Tangney for his question. The expectations in relation to inflation here in Australia are that inflation has moderated somewhat and should be within our band of two to three per cent over the course of the forthcoming year. In most of the developed economies of the world, inflation expectations are low. For example, in the United States the latest CPI is 2½ per cent, in Britain it is three per cent and so on. There are some countries around the world that have very high inflation rates. The Economist’s table of inflation has one country in particular that stands out as a very high inflationary society, and that is Venezuela, where inflation is currently running at 18.4 per cent.
Members will know that the President of Venezuela, Hugo Chavez, has threatened to nationalise the oil industry and the phone industry. President Hugo Chavez has described the President of the United States as a killer, a genocidal murderer and a madman. So it may come as a surprise to the House that President Hugo Chavez has his admirers in Australia, and these admirers have invited him to come to Australia. They have written an open letter to him which says:
We have watched developments in Venezuela with great interest. We have been impressed by the great effort that your government has taken to improve the living standards of the majority of Venezuelans ...
Although we are on the opposite side of the globe we feel that our shared ideals of social justice and democracy bring us close together.
Aside from half of the trade union movement of Western Australia which has signed this open letter to President Hugo Chavez to come from Venezuela over here to ‘Brutopia’ to tell us how to run an economy, signatories to this invitation include Warren Mundine, National President of the ALP, and Senator Gavin Marshall, ALP senator for Victoria.
I would have thought that the Leader of the Opposition, who is so concerned about the US alliance, would not have his own senators inviting to this country a man who calls the US President a genocidal killer and who went to the UN General Assembly and, from the podium at the General Assembly, called the President of the United States the devil. So now that we are all into the business of protecting the alliance and making sure that nobody says anything that could possibly prejudice the alliance, we will be looking forward to the Leader of the Opposition disciplining Warren Mundine, disciplining his own Senator Gavin Marshall and explaining to us just what the President of Venezuela could advise us on how to improve ‘Brutopia’ here in Australia.
My question is to the Prime Minister. While gifts of royal carriages to the Queen have occurred in the past under governments of both persuasions, why did the funding of a private gift to the Queen of a gold encrusted, horsedrawn carriage with ducted heating and diamond-set door handles require cabinet approval, but your $10 billion proposal to take over the Murray-Darling Basin from the states did not?
It is an interesting change in questions, Mr Speaker. I can say that appropriate processes were followed in both cases.
My question is addressed to the Minister for Trade representing the Minister for Industry, Tourism and Resources. Would the minister update the House on government measures to secure a strong future for Australia’s coal industry, particularly as to the importance of jobs in the electorate of Gippsland of Minister McGauran and in my electorate of McMillan? Is the minister aware of any threats to the industry’s future international competitiveness?
I thank the honourable member for McMillan for the question. He represents one of the major coal-producing areas of Australia and he, like many others, must be concerned about the threats to the coal industry that we have seen coming from the opposite side over recent days. The Australian government stands firmly behind the Australian coal industry and the 130,000 Australian families that are dependent upon that industry for their incomes. The $24 billion worth of export income is also absolutely critical to Australia’s growth and prosperity, so we have been supporting practical measures to help the Australian coal industry to achieve its potential and, in particular, to meet the challenges of climate change.
The $500 million Low Emission Technology Demonstration Fund last year provided $100 million to projects in Victoria and Queensland to develop clean coal technology. The industry’s own Coal 21 initiative has committed $300 million to support low-emission technology projects. We are working with the Asia-Pacific Partnership on Clean Development and Climate to help ensure that there are real environmental outcomes to help improve the environmental performance of this industry. And with China we are working on a joint coordination group for clean coal technology, which was recently announced by our Prime Minister and the Premier of China.
So Australia has been very active in seeking to expand the opportunities of our world-leading coal industry. Of course, not all people are so enthusiastic about the Australian coal industry. Yesterday we learnt that Senator Bob Brown wants to end all coalmining in Australia and close down all coal-fired power stations within three years. We also learnt that Labor is wooing a Greens preference deal. We know from past experience that Labor has been prepared to trade off any policy and any number of jobs in its determination to get green preferences. We learnt that the member for Kingsford Smith has already written off the coal industry and its jobs as just hypothetical and made it clear that any expansion of the coal industry was a thing of the past. This anti coal industry talk is not just talk; there has also been a fair degree of action. We have noticed, for instance, that Labor and Green councillors in Newcastle combined recently to force a cap on coal exports and a moratorium on new coalmine approvals. So Labor is already acting against the coal industry.
Western Australia has proposed a $25 a tonne carbon tax and now we know that the New South Wales Labor government is proposing a $109 tax on a proposed new coalmine at Anvil Hill in the Hunter Valley. These are the kinds of actions that you would expect from a party that wants to close down this industry and that has no sympathy whatever for the importance of coalmining in Australia—no respect for and no interest in the thousands of jobs created in the electorate of the honourable member for McMillan, in the Hunter and in Central Queensland by this great Australian industry. The reality is that Labor is anti the coal industry. The coalminers of Australia and all those people who are dependent on the industry have grave reason to be concerned about Labor’s lack of commitment to the coalmining industry and their determination to wind it down. The best solution for Australia is to make sure that Labor never sees government nationally so there will be somebody left to stand up for this great Australian industry and its wonderful contribution to our economy.
My question without notice is to the Minister for the Environment and Water Resources. Is the minister aware that with only a tiny 22 million megalitres the Murray-Darling and its south-east environs produce two-thirds of Australia’s agriculture? Is the minister further aware that the northern quarter of Australia has 300 million megalitres of Australia’s water—three-quarters of the water—but only one 20th of Australia’s agriculture?
Gigalitres, you mean?
No, megalitres. In light of this could the minister assure the North Queensland shires with water projects that he will meet with them ASAP and help facilitate such sustainable development? Finally, could the minister verify whether it is in fact true that seven per cent of the gulf’s 134 million megalitres of run-off would irrigate five per cent of the gulf and this under sugarcane would meet all of Australia’s annual petrol requirements, cutting Australia’s CO emissions by a towering 81 million tonnes per year?
I thank the member for Kennedy. I will answer his five questions in order. In answer to the first question, two-thirds of Australia’s agriculture is somewhat more than most people regard the Murray-Darling Basin as producing. The figure is generally stated as being between 40 and 50 per cent. Nonetheless, it is true that our largest and most productive agricultural area does its work for Australia with only six per cent of our run-off, emphasising yet again the importance of the Prime Minister’s $10 billion plan for reviving and making efficient Australia’s irrigated agriculture, 80-odd per cent of which is in the Murray-Darling Basin. But, as the Leader of the Opposition would know if he had bothered to read the Prime Minister’s speech, which he plainly has not, the $10 billion plan, as the Prime Minister emphasised repeatedly, is available across Australia. Not only did he say that but he cited a number of irrigation areas in Queensland and in Western Australia that could be eligible.
The second question was about the superabundance of water in northern Australia. We understand that about two-thirds of our run-off is in the tropical north. Regarding the third question, meeting with North Queensland shires, I can assure the member for Kennedy that I meet with parties seeking grants under the Australian government water fund all the time. The management of that program is done by the Water Commission, but I am very happy to meet with his constituents.
As to his fourth and final questions about the irrigation potential of the north and the ethanol production potential from sugarcane in the north, these are the sorts of issues that the government is addressing through the task force being set up under the chairmanship of Senator Bill Heffernan. Australia’s north is where the bulk of our water is. It is something that we have to manage sustainably. We have invested tens of millions of dollars in science into northern water so that we do not make the same mistakes in the north as we have in the south. It is a region of great opportunity and we are focused on that opportunity and will continue to be, in the national interest.
Mr Albanese interjecting
Finally, the Australian government water fund has already invested substantial amounts in Northern Queensland, in the electorates of Herbert, Dawson and Capricornia—a fact the honourable member opposite is probably not prepared to concede to the government.
My question is also addressed to the Minister for the Environment and Water Resources. Can the minister inform the House what would be the impact if Australia decides to cut its greenhouse gas emissions by 50 per cent by the year 2050?
The Labor Party’s key climate change policy is a 60 per cent cut in greenhouse gas emissions from 2000 levels by 2050. The Labor Party will not say, does not know or does not care to know what the economic and social impact of that cut will be. The member for Kingsford Smith becomes irritated when he is asked about what the cost will be and says that he does not know what ‘paying more’ means.
Mr Speaker, I raise a point of order. The question asked about a 50 per cent reduction by 2050—
Order! The Manager of Opposition Business will resume his seat! The minister is entirely in order. I call the minister.
The Leader of the Opposition, when asked whether jobs would be lost as a result of his climate change policy, said, ‘Not necessarily.’ That is hardly a ringing reassurance for Australian workers. In 2006 the Australian Bureau of Agricultural and Resource Economics modelled a 50 per cent cut in 1990 level emissions by 2050, which is a much less drastic reduction than that proposed by the Australian Labor Party. ABARE forecast that this cut would result in a 10.7 per cent fall in GDP, a 20.8 per cent fall in real wages, a 75 per cent fall in aluminium production and—this will be of particular concern to the member for Cowper—a 44 per cent reduction in agricultural production. ABARE concluded that the key elements in greenhouse response are global—
Opposition members interjecting—
Order! The level of interjections is far too high. The minister has the call.
ABARE concluded that the key elements in greenhouse response are global action and having available the full range of technologies, including clean coal, renewables and nuclear power. ABARE said that unilateral action offered no perceptible benefits for the rest of the world either economically or environmentally because it would make no difference, as we all know, to the overall level of global greenhouse gas emissions.
What if everyone says that?
Order! The member for Grayndler is warned!
Labor’s unilateral climate change policy is bad for jobs. It is bad for business. It is bad for the economy—
Mr Kerr interjecting
Order! The member for Denison is warned too!
and it will not even help the environment. The government’s climate change policy is committed and is delivering real reductions in the growth of greenhouse gas emissions—
Mr Kelvin Thomson interjecting
Order! The member for Wills is warned!
investing in the technologies that will make it possible for the world, particularly developing countries, to reduce their greenhouse gas emissions while maintaining economic growth, and above all having an open mind with every technology and every practical measure on the table as we manage Australia’s climate change response in the national interest.
My question is directed to the Prime Minister. Prime Minister, why has average annual multifactor productivity growth fallen from 1.6 per cent last decade to just 0.7 per cent this decade?
There are a number of reasons why productivity will vary from time to time. One of those reasons is that you can have—and it is happening in the case of the resource industry—an extraordinary increase in employment in advance of an increase in the product brought forth by the investment, which accounts ultimately for both the product and also for the gains in employment. It is true that changes to the Australian economy over the last 20 years have produced increases in productivity and it is also true that changes recently made are going to lead in time to further increases in productivity, and I refer in particular to the workplace relations changes. If they flow through, Mr Speaker, I believe—
Mr Swan interjecting
Order! The member for Lilley has asked his question.
They will make a contribution to productivity growth. There is one obstacle of course and that is the election of a Labor government, which will stop that happening because Labor has pledged to tear up Work Choices.
My question is to the Minister for Employment and Workplace Relations. Would the minister inform the Ryan electorate and the parliament how a flexible workplace relations system contributes to jobs growth and economic prosperity? Is the minister aware of any proposals which could destroy our economic prosperity?
I thank the member for Ryan, whose electorate in the heart of Brisbane in that great state of Queensland now has an unemployment rate of 1.9 per cent. Overwhelmingly, that has to be linked to the small businesses that are in the electorate of Ryan. It is undoubtedly part of the equation about doing the hard yards and making the tough decisions that help to build a strong economy. The Australian, in their editorial today, pointed to the benefits of workplace change. They said:
The benefits of labour market reform are plain to see in the snapshot of the Australian economy provided yesterday by the Reserve Bank ...
At the heart of those workplace reforms is the abolition of the Labor Party’s job-destroying unfair dismissal laws. Small business today have confirmed that they now have an incentive to create jobs. The New South Wales Business Council said:
We always said that the removal of unfair dismissal would free up small businesses to employ more people.
The President of the Real Estate Institute said:
I think with the previous legislation that was thrust upon us it made it very, very difficult for small businesses to survive under that regime.
The Chief Executive of Family Business Australia said:
The old legislation—
the Labor Party’s legislation—
was onerous. Family businesses were inclined to have to pay what they called ‘go away money’ to get rid of the disruptive or inappropriate employees.
The Labor Party voted against the interests of small business on 44 occasions. They voted against the removal of the Labor Party job-destroying unfair dismissal laws.
They were Peter Reith’s.
Order! The member for Brisbane!
At that time the Deputy Leader of the Opposition stood on principle opposing those laws. She said our removal of the unfair dismissal laws was:
… a further assault on the working conditions of the industrially weak.
She went on to say:
It is fundamentally bad public policy, short-sighted and ridiculous …
There she was, taking a principled stand opposing the laws, and so it was a bit surprising for all of us on Sunday when she said that she was going to speak to small business about possible exceptions. The trade union movement, as they do, came out today pointing out that it is a matter of principle for them. The ACTU’s Greg Combet—always good for a quote—declared that the issue remained ‘a statement of principle and belief’. He said, ‘We believe there shouldn’t be any exceptions.’ The AWU’s Bill Ludwig—not a bad guy sometimes and a good judge of character at times—said that you either have those unfair dismissal laws or you do not. And we cannot forget Unions New South Wales’s John Robertson who said that there should not be exceptions.
The Labor Party is trying to walk on both sides of the street. On the one hand the trade union movement is saying that there are no exceptions, that it is a matter of principle and that unfair dismissal laws should apply to every businessman no matter what. That is the policy of the Labor Party, because that is how they have voted on 44 occasions in this place. On the other side of the road we have the Deputy Leader of the Opposition trying to whisper sweet nothings into the ears of small business. Small business is onto you. Small business is smarter than that. Small business knows that getting rid of the unfair dismissal laws has helped to create jobs. The coalition believes in creating jobs and the Labor Party believes in destroying jobs.
My question is to the Prime Minister. I refer the Prime Minister to the OECD report Education at a glance 2006, which concluded that a one-year increase in the average level of education of the workforce would boost economic growth by one per cent. Does the Prime Minister agree that there is a fundamental link between investment in education and productivity and growth in the economy?
I think there are clearly linkages between investment in education and productivity and growth in the economy. I think there are also linkages between the quality of the outputs of education and the economy. I think the Australian economy will benefit enormously from our re-embracing of technical and further education. I think the Australian economy will benefit enormously if we can have relatively uniform and much higher standards of English, arithmetic and literacy.
Ms Macklin interjecting
Order! The member for Jagajaga!
I think the Australian economy will benefit enormously if the 80,000 school students who travel from one part of the nation to another are not disadvantaged by a lack of synchronisation between the curricula of the various states. That is why my colleague the Minister for Education, Science and Training has been arguing so strenuously with her state colleagues to bring about a greater uniformity of curricula. Investment in education is important, but standards in education are even more important. And the real barrier to standards lies in the hands of those people who have sought over the years to impose their own ideology on education in this country. This country’s economy will be massively boosted if, in the years ahead, we can produce a larger number of young men and women out of the school system whose basic proficiency in English and in numeracy, and their literature understanding, is much higher than it is at the present time. That remains a major objective of this government.
My question is addressed to the Minister for Health and Ageing. Would the minister inform the House of the latest GP bulk-billing figures, particularly in Tasmania? How have government initiatives contributed to this improvement, and is the minister aware of any alternative policies?
I do thank the member for Braddon for his question, and I note that on the most recent figures the bulk-billing rate in his electorate has increased by 25.2 percentage points since December 2003. Now, let me be clear: bulk-billing—
Opposition members interjecting—
Order! The minister has the call.
is not the be-all and end-all of Medicare, but it is important. It should be widely available, particularly to children and pensioners, and that is just what has happened thanks to the policies of the Howard government. The latest Medicare statistics came out last Friday and they show that in the December quarter the national bulk-billing rate had gone up to 77.1 per cent. That is 10.6 percentage points more than in December 2003. It is the 12th consecutive quarterly increase in the GP bulk-billing rates.
What happened in the seven years before 2003?
At 84.3 per cent, the bulk-billing rate for children is at an all-time high.
Mr Bevis interjecting
At 71.9 per cent, the bulk-billing rate in country areas is at an all-time high. I am pleased to say to the interjecting member for Brisbane that the bulk-billing rate has increased in every state and territory over the last two years but most of all in Tasmania, where the bulk-billing rate is up 22.6 percentage points since December 2003. Results like these mean that Medicare is safe with the Howard government. They mean that the Howard government is the best friend that Medicare has ever had.
I was asked about alternative policies. On the weekend, we had the Leader of the Opposition boasting about the big job he once had as director-general of the cabinet office in Queensland. He said:
At that level, you provide a lot of advice on key questions which go to the very core of what governments do—with schools policy, with hospitals policy and the rest.
I was very interested in that, because in 1995—after the Leader of the Opposition had been running Queensland for six years, he thinks—a survey showed that 61 per cent of Queenslanders said their hospital system was in crisis. Six years of Kevin Rudd and 61 per cent of Queenslanders think their public hospital system is in crisis. Well, there is a clear message in all of this: don’t let Kevin Rudd do to Medicare what he did to Queensland’s public hospitals.
I refer to the Prime Minister’s answer to the last question on his government’s performance on education. Does the Prime Minister believe it is good enough for our economic future when we are ranked 29th in the world on the teaching of maths and science; our national investment in vocational education and training has been virtually flat; our national investment in higher education has been reduced by seven per cent, when the rest of the OECD’s has increased by 48 per cent; and, when it comes to national outlays on early childhood education, they are one-fifth of the average of the OECD? Prime Minister, don’t you think we can do better than that for our kids’ future?
In calling the Prime Minister, I again remind the Leader of the Opposition to direct his questions through the chair.
We could do much better for our kids’ future if we had a restoration of standards of literacy and numeracy, and in the teaching of English.
Ms Gillard interjecting
Ms Macklin interjecting
We could do a lot better for our children’s future—
Ms Macklin interjecting
Order! The member for Jagajaga is warned!
if we had some state governments in this country that did not allow the education curriculum to be dictated by the teachers unions.
Opposition members interjecting—
We could do a lot better for our children if we did not equate analysing an SMS text message with Shakespeare. We could do a lot better for our children if we restored—
Opposition members interjecting—
The Prime Minister will resume his seat. The member for Melbourne will remove himself from the chamber under standing order 94(a).
Where was the warning? You haven’t given me a warning.
The member for Melbourne will remove himself under standing order 94(a).
The member for Melbourne then left the chamber.
I call the Prime Minister.
Mr Speaker, we would do a lot better for our kids, to adopt the phraseology—
Ms Owens interjecting
The member for Parramatta is warned!
of the Leader of the Opposition, if we had, as I said, a proper narrative teaching of Australian history instead of it occasionally being slipped in under some amorphous title such as ‘Time, experience and mood’ or something like that. Having set the framework, let me just remind the House of a couple of facts and a couple of statistics about my government’s investment in education. I do so against the background, when it comes to university education, of a statement made in the education supplement of the Australian in January by Professor Gerard Sutton, who is the Vice-Chancellor of the University of Wollongong and the President of the Vice-Chancellors Committee. He said, in substance, that the number of HECS places now available in Australia was adequate to the demand. That is not me and it is not the Minister for Education, Science and Training. It happens to be the President of the Vice-Chancellors Committee who is saying that.
Let me remind those who sit opposite that, under our Backing Australia’s Future policy, we will create an additional 50,000 places in universities by 2011. In 2006, 90 per cent of year 12 applicants who applied for a university place in their own state received an offer. That happens to be the best result for 20 years—90 per cent who applied received an offer and that is the best for the last 20 years.
Between 1996 and 2006, the period of office of the Howard government, funding for both government and non-government schools has increased by 158 per cent to $9.3 billion in the current school year. It includes—listen to this, Mr Speaker, and I hope the teacher unions of Australia will listen to this—a funding increase for government schools, public schools as we call them in New South Wales, of 118 per cent while enrolments in government schools over the same period have gone up by only 1.1 per cent. Yet people like Pat Byrne of the Education Union still write articles dishonestly asserting that this government has cut funding to government schools. It is a slur on the commitment that my government has made to the future of young men and women who go to government schools in this country. We are proudly supportive of both the government and the private sectors in education. We are the true believers in choice in education. We are the true believers in excellence and we are the true supporters of returning to a period in Australia when a high-grade technical qualification is as prized an asset as a university degree.
My question is addressed to the Minister for Defence. Would the minister inform the House of measures to improve recruitment into and retention of personnel in the Australian Defence Force?
I thank the member for Gilmore for her question and her very strong determination to represent the very best interests of the defence community in Nowra in particular.
What about the Seasprites?
The member for Hunter will remove himself under standing order 94(a).
The member for Hunter then left the chamber
Mr Adams interjecting
The member for Lyons is warned!
The first priority and responsibility of any government is the defence and protection of the country, its people, its interests and values. In order to do that it requires two things. Firstly, it requires political will, a government that believes in defence and is prepared to invest in defence and believe in its people; and, secondly, it requires strong economic management—a government that can create an environment in which wealth is created and strong surpluses are gathered so that money can be invested in the defence of Australia.
This government has announced that over the next 10 years an additional $50 billion will be spent on acquiring equipment and maintaining that equipment. But the most important asset that we have in Australia in defence is our people. The men and women who wear and who have worn the uniform of the Australian Navy, Army and Air Force, more than any other group of Australians, have defined and shaped our values, our beliefs and our national identity.
Mr Brendan O’Connor interjecting
Order! The member for Gorton. The minister has the call.
I think the behaviour of the opposition is reinforcing the point that I have just made, Mr Speaker. Just before Christmas, the Prime Minister announced a $1 billion initiative, which is the first phase in a 10-year program to invest further in Australia’s Defence Force people. That includes a major reform to the way in which we recruit people. We will reduce over the next year, from an average of 31 weeks to six weeks, the time it takes to recruit people into the Australian Defence Force. We will also be providing bonuses and allowances of up to $40,000, particularly for our lower ranks, other ranks and lower officer ranks.
There will be further investment and reforms to Australian Defence Force cadets and there will also be changes to the way in which defence careers are managed throughout our Army, Navy and Air Force. Next year for the first time 1,000 young Australians, when they leave school, will have the choice of spending a gap year in one of our three services and wearing the uniform of the Australian Army, Air Force or Navy. The government is quite confident that not only will young Australians find increased resilience in themselves from that experience but many will subsequently go on to spend their careers and their lives serving Australia wearing the uniform. This government has committed itself to the task of building the Australian Defence Force by 6,000, from 51,000 to 57,000, over the next 10 years.
In contrast, the Australian Labor Party in government set itself the task in 1989 of stripping 6,000 men and women out of the Australian Defence Force and the hardest task it had in doing so was that, because more than a million Australians were unemployed, no-one wanted to leave the Australian Defence Force. In terms of actions, as distinct from empty rhetoric from the opposition frontbench, it ought to be remembered that, when the Australian National University published its survey of candidates standing for election in the federal parliament in 2004, more people sitting behind the Leader of the Opposition wanted to cut defence expenditure than increase it. This government believes in defence, in security, in standing up for Australia, in a strong economy and in investing in our people and our equipment.
My question is to the Prime Minister, and it is also on the question of national security. I refer to the Prime Minister’s various answers both yesterday and today on the consequences of our different policies on Iraq. As this is a matter of national importance which goes to our country’s future, will the Prime Minister now accept an invitation from me to a nationally televised debate?
Government members interjecting—
Order! The Leader of the Opposition deserves to be heard when he is asking his question. He will be heard or I will take action.
As this is a matter of national interest which goes to our country’s long-term future, will the Prime Minister now accept an invitation from me to a nationally televised debate within the next month, at a time and place of the Prime Minister’s choosing, on the future direction of Australia’s policy in Iraq?
If the Leader of the Opposition wants to go and address a meeting, he can do so.
Opposition members interjecting—
The Leader of the Opposition has asked a serious question. The Prime Minister is answering it. He will be heard.
If the Leader of the Opposition wants to address anybody anywhere in Australia, he is free to do so. He can ask me any question he likes any time this parliament sits. But I think he would bring a little more credit to this debate—
Mr Ripoll interjecting
Order! The member for Oxley is warned!
and a little more credit to his own position if he would have the courage to answer the question that was put to him by Marius Benson on Radio National this morning.
Mrs Irwin interjecting
Order! The member for Fowler is warned!
All of this debate about the respective positions of the government and the opposition on Iraq arises from the fact that I made some very critical comments of a position taken.
Mr Speaker, I rise on a point of order. The Prime Minister was asked whether he was going to debate—
The member for Wills will come to his point of order.
or whether he was going to cut and run. I ask you to draw him back—
The member for Wills will resume his seat. That is not a point of order. If the member for Wills continues to take those points of order, I will deal with him. The Prime Minister is in order.
It all started when the Leader of the Opposition took exception to the answer to a question that I gave on the Sunday program. Ever since then, I have been attacked by the Leader of the Opposition for the views I expressed on the consequences of a coalition withdrawal from Iraq by March 2008.
Opposition members interjecting—
Order! The Prime Minister has the call.
That is meant to be—
Ms Gillard interjecting
Order! The Deputy Leader of the Opposition is warned!
the central issue of this debate. That is meant to be what this difference is all about. The Australian public knows my position; the Australian public does not know the position of the Leader of the Opposition.
Mr Snowdon interjecting
Order! The member for Lingiari will remove himself under standing order 94(a). The Prime Minister has the call and the Prime Minister will be heard.
The member for Lingiari then left the chamber.
Let me tell the House again:
BENSON: If the United States did withdraw all its troops from Iraq—
Ms Kate Ellis interjecting
Order! The member for Adelaide will remove herself under standing order 94(a).
The member forAdelaide then left the chamber.
Marius Benson asked:
If the United States did withdraw all its troops from Iraq as Barack Obama advocates, what do you think would happen in Iraq?
I have told the Australian people what I think would happen. The Leader of the Opposition does not have the courage to do the same thing. The Leader of the Opposition attacked me for the position that I have taken—
Mr Wilkie interjecting
Order! The member for Swan is warned!
on US troop withdrawal, yet he does not have the courage to tell the Australian people—
Mr Crean interjecting
Order! The member for Hotham is warned!
what he believes would be the consequence of an American withdrawal. I speculate that the reason that he does not have the courage to answer that question is that he knows in his heart that the answer I have given is correct. He knows in his heart that I am right on the consequences of a coalition troop withdrawal. He knows that the national intelligence assessment is correct. He knows that Iraq would descend into full-scale civil war.
Mr Speaker, I rise on a point of order. I draw your attention to standing order 104 on relevance. It is a very specific question. Can we take it the answer is no?
The member will resume his seat. The Prime Minister is entirely in order.
He knows in his heart that all of the consequences that I have spelt out would be fulfilled. That is why he does not have the courage to answer that simple question. He was asked twice by Marius Benson, and he completely ducked the question on both occasions. We have had an extraordinary spectacle for the last two days. The main subject of—
Ms Bird interjecting
Order! The member for Cunningham is warned!
political debate in this country has been the criticism of my assessment of what would happen if American troops were withdrawn. I have to cop that criticism because I have had the courage to state my view.
Ms Bird interjecting
Order! The member for Cunningham will remove herself under standing order 94(a). The Prime Minister has been asked a serious question. He will be heard.
The member for Cunningham then left the chamber.
For the last two days the major topic of political debate in this country has been the stance that I have taken on the consequences of an American withdrawal from Iraq. I have been prepared to answer that question, I have been willing to cop the criticism of the position that I have taken, but my opposite number in this place does not have the courage to answer that simple question. The reason that he does not have the courage—
Mr Speaker, on a point of order: it is quite obvious that the Prime Minister does not have the courage to debate the Leader of the Opposition—
The member for Fowler will resume her seat.
On two occasions this morning on national radio the Leader of the Opposition was asked to state his assessment of what would happen if US troops were withdrawn from Iraq in March next year, and on both occasions he ducked the question. I do not know the inner man but I speculate—
Mr Speaker, on a point of order: this is a very simple question. Will the Prime Minister debate the Leader of the Opposition or not?
The Manager of Opposition Business will resume his seat. The Prime Minister is entirely relevant to the question and he is in order.
On two occasions the Leader of the Opposition was asked a simple question. He was asked a question on the subject matter which has been central to all the criticism that he and others have made of me over the last two days. I have endured that criticism. I have been attacked in this country in the media and by the opposition. Why? Because I have stated an honest position and a strongly held belief about the consequences of what would happen.
Ms Vamvakinou interjecting
Order! The member for Calwell is warned!
Yet my opposite number, who has orchestrated and led that criticism, when asked the same question does not have the guts to give an answer.
Ms Hall interjecting
The member for Shortland is warned!
My question is addressed to the Minister for Education, Science and Training. Would the minister inform the House what the government is doing to ensure that state government schools are equipped with the best possible infrastructure? Are state governments taking their responsibilities in this area seriously, especially in my state of New South Wales?
I thank the member for Macquarie for his question. The funding of schools in this country is a shared responsibility. In the case of state government schools, state governments own, operate and manage those schools and have primary responsibility for the majority of the funding of those schools, and the federal government supplements that funding. In fact, we on this side of the House are proud of the fact—as the Prime Minister has just answered—that, since 1996, funding from the federal government for state government schools has increased by 118 per cent. Each and every year that we have been in government, funding for state government schools from the federal government has increased by 118 per cent. That funding comes in the form of capital and operating costs and special programs as needed.
In fact, members of this House will be well aware of the Investing in Our Schools program whereby additional Commonwealth funding of $700 million will be invested in state government schools for educational items and infrastructure such as computers, libraries, playground equipment and maintenance and repairs. Members will also be pleased to know that, to date, there have been three rounds in the Investing in Our Schools program and 6,200 state government schools have been assisted with Commonwealth funds from the Investing in Our Schools program. That is almost 90 per cent of state government schools in this country.
The member for Macquarie asked about New South Wales. In the three rounds, almost 2,000 state government schools in New South Wales have benefited from the Australian government’s Investing in Our Schools program, including some 46 schools in his electorate—and I know they would be grateful for the member’s support of this program.
The program did, however, highlight the chronic need in many state government schools for basic educational items. The federal government has been pleased to step in and assist with our $700 million program. But, despite that commitment, the Australian Education Union, in an attack on funding for state government schools, has once more directed its entire attack at the federal government. In an article published today in the Daily Telegraph, Pat Byrne, the federal president of the Australian Education Union, penned some 65 lines on the state of funding for state government schools—and not once did she mention the state governments’ primary responsibility for funding state government schools. Perhaps they were embarrassed to mention state government funding—and that may well be understandable. Let us take a look at what happened in the 2006 budgets.
In its 2006 budget the New South Wales government increased its funding to its schools by 3.9 per cent. In its 2006 budget the Australian government increased its funding to New South Wales government schools by 10.7 per cent. If the New South Wales government had increased its funding at the same rate as the Australian government increased its funding for New South Wales government schools, there would be an extra $492 million in the New South Wales government school sector.
This is the picture across the country. State governments across the country in their 2006 budgets increased funding for their schools by 4.9 per cent. The Australian government increased our funding for state government schools by over 11 per cent. If the state governments had matched the federal government rate of increase, there would be an extra $1.4 billion in state government schools across Australia.
It is not as if they do not have the money. The GST is providing them some $40 billion this year, and yet there is $1.4 billion that should be in state government schools if they matched the rate of increase of the Australian government. The priorities of state governments therefore do not include state government schools, and the Australian Education Union and federal Labor have no credibility in the education debate until they call upon state Labor governments to match the federal funding for state government schools.
Mr Speaker, I ask that further questions be placed on the Notice Paper.
Mr Speaker, I seek the indulgence of the chair to add to an answer.
The Prime Minister may proceed.
I was asked by the Leader of the Opposition a question regarding the investment in the Murray-Darling Basin. I was asked about whether it would extend to areas outside the immediate basin.
Mr Albanese interjecting
The member for Grayndler has already been warned!
I indicated that I had made that quite clear when I announced the plan for national water security on 25 January. I quote from page 5 of the speech, where I said:
Districts such as the Burdekin in Queensland and Harvey Irrigation Area in Western Australia will also be able to significantly improve the efficiency of water use.
That makes it perfectly clear, if the Leader of the Opposition had bothered to do his homework on this issue, that it did extend beyond the immediate Murray-Darling Basin area.
Mr Speaker, I rise on a point of order. Is it in order for the Prime Minister to add to an answer and in doing it answer a question which he was not asked?
The member for Grayndler will resume his seat! The Prime Minister is entirely in order and is able to add to an answer.
Yesterday the member for Brisbane asked me about the availability of government regulations in hard copy, both for members and senators and for the public.
In relation to the provision of delegated legislation to members and their staff, generally the Table Office can provide members with hard copies of regulations—now more formally known as select legislative instruments. A wide variety of other delegated legislation is not received in multiple copies because of the very low demand, and Table Office staff can print a copy from the Attorney-General’s Department website or direct the member to the website to view the instrument or print it. I have asked the Table Office to contact the member to resolve any further queries.
In relation to the public, I am advised that hard copies of delegated legislation registered on the Federal Register of Legislative Instruments can be purchased from CanPrint Communications in Canberra. However, as such legislation is constantly being revised and updated there is always the possibility that the latest printed version is not the most up-to-date, and the public need to take care to ensure that they are obtaining the current version. For this reason the usual means of accessing delegated legislation is through the Federal Register of Legislative Instruments website maintained by the Attorney-General’s Department.
Any further questions on this matter should be directed to the Attorney-General, within whose responsibility the maintenance of the website and the publication of legislation lies.
Mr Speaker, I wish to make a personal explanation.
Does the minister claim to have been misrepresented?
I do.
Please proceed.
This morning, in a radio interview with the ABC, the Leader of the Opposition made a number of remarks in response to questions. In response to one question, he said:
Mr Nelson, on behalf of Mr Howard, told the Australian people last night that anybody who wants to see our troops brought home has the same interests as al-Qaeda.
He said:
Mr Nelson’s response to that legitimate desire to see Australian troops brought home is to accuse any Australian who holds those views as having the same views as terrorists, the same views of al-Qaeda.
Mr Speaker, I would like to read onto the record and then table precisely what I said, and Australians will then reflect on what the opposition leader has said. I said:
Those people, whether they be in the United States, the United Kingdom, Australia or in any other part of the world—people who are arguing that we withdraw from Iraq, to abandon the Iraqi people, to ignore the requests of the democratically elected Iraqi government, those who argue that we should do that before the Iraqi security forces are in a position to essentially look after their own security—we will by definition hand victory to those al-Qaeda and other terrorist networks, who see it as important.
I said:
Whatever the motives of those who are demanding that the coalition withdraw from Iraq, that is precisely what al-Qaeda and the terrorists want us to do as well—withdraw.
I table both of the transcripts. The Leader of the Opposition has diminished only one person, and that is himself.
Order! The minister will not debate the point.
Mr Speaker, I wish to make a personal explanation.
Does the minister claim to have been misrepresented?
Yes.
Please proceed.
In a speech in this place last evening about the magnificent and nationally significant Australian Ex-Prisoner of War Memorial in Ballarat and my recent second visit to the memorial for its third anniversary commemoration, the member for Ballarat misrepresented me on a number of occasions. In the interests of brevity, I will just refer to three, if I may. Firstly, the member for Ballarat claimed that I had made a decision:
... not to grant national status to the Australian Ex-POW Memorial.
This is untrue. I and the government have long recognised the national significance of the memorial, and had she attended the third anniversary commemorative service she would have heard this first-hand herself.
Order! The minister will keep to where he has been misrepresented.
Mr Speaker, I rise on a point of order. The minister must show where he has been misrepresented. He cannot debate the point, as did the Minister for Defence.
The minister will continue but he will show where he has been misrepresented and not debate the point.
Secondly, the member for Ballarat claimed that I had been inaccurate in explaining the current law as it relates to the formal declaration of national memorials on national land controlled by the Commonwealth in the ACT. This is also false, and she should check the factual nature of my statements. Finally, the member for Ballarat said that I accused the POWs of simply being after the money to maintain the memorial. Again, this is completely untrue and offensive. I have never attributed such a motive to the remarkable and highly respected ex-POWs and she should show more care in her self-serving remarks.
Documents are presented as listed in the schedule circulated to honourable members. Details of the documents will be recorded in the
That the House take note of the following document:Customs Act—Customs (Prohibited Exports) Regulations—Report to Parliament on the export of human embryos for the period 1 July to 31 December 2006.
Debate (on motion by Mr Albanese) adjourned.
I ask leave of the House to move government business notices Nos. 1 and 2 together.
Leave not granted.
I move:
That so much of the standing and sessional orders be suspended as would prevent the Leader of the House moving government business notices 1 and 2 together.
Question agreed to.
I move:
2 Definitions
Assistant Minister see Minister .
Minister includes Parliamentary Secretary*, except in standing order 98 (questions seeking information), and standing order 193 (Members’ three minute statements in the Main Committee).
*Including Assistant Ministers who are Parliamentary Secretaries
43 Members’ statements on Mondays
At 1.45 pm on Mondays the Speaker shall interrupt business and call on statements by Members. The Speaker may call a Member, but not a Minister (or Parliamentary Secretary*), to make a statement for no longer than 90 seconds. The period allowed for these statements shall extend until 2 pm.
*Including Assistant Ministers who are Parliamentary Secretaries
98 Questions to Ministers
*Including Assistant Ministers who are Parliamentary Secretaries
99 Questions to other Members
During Question Time, a Member may ask a question orally of another Member who is not a Minister (or Parliamentary Secretary*). Questions must relate to a bill, motion, or other business of the House or of a committee, for which the Member asked is responsible.
*Including Assistant Ministers who are Parliamentary Secretaries
193 Members’ three minute statements
If the Main Committee meets before 10 am the first item of business shall be statements by Members. The Deputy Speaker may call a Member, including a Parliamentary Secretary* but not another Minister, to make a statement for no longer than three minutes. The period for Members’ statements may continue for 30 minutes, irrespective of suspensions for divisions in the House.
*Including Assistant Ministers who are Parliamentary Secretaries.
time (max) | |
Matter of public importance | |
Whole discussion | 1 hour |
Proposer | 15 mins |
Member next speaking | 15 mins |
Next 2 Members speaking | 10 mins each |
Any other Member | 5 mins |
If the Manager of Opposition Business had read the blue he would have seen that, after the presentation of documents, this matter was to be dealt with. There is one controversial matter and one, I think, relatively non-controversial matter being dealt with. The more controversial matter is the proposal of the government to allocate one hour for the matter of public importance on those days when there is such a debate.
I have listened to various criticisms that have been made of this proposal by the Manager of Opposition Business and by some of my Independent colleagues. The government is adding to the quantum of matter of public importance debate that has been allowed by the longstanding conventions of this House. Traditionally, the matter of public importance debate went for 50 minutes. The government is proposing to extend that to a full hour. Traditionally, the matter of public importance debate had two speakers: two on each side. The government is proposing to make that six speakers: three on each side. We are proposing to add to the traditional practice of this House in respect of matters of public importance debates.
I know that over the last 12 months or so it has become common for the traditional 50-minute debate to go on for well over an hour as, on a number of occasions, extra members have sought the call, particularly Independent members of this place. For 17 of the 52 most recent MPIs, debate has gone on for more than an hour. As I said, this is quite contrary to the longstanding conventions of this House and that is why the government is seeking to regularise the situation in the way that I have outlined.
Because members opposite will suggest that this is the death of democracy as we know it, let me put on the record that this government has been the best friend of debate in this parliament of any government of recent years. Not only does every minister of this government front question time every day, unlike the roster that operated under the former government, not only do we have 20 questions on most days as opposed to the average of 12 questions in the time of the Keating government, not only do we have a much better question time, but further initiatives of this government are member statements, adjournment debates and interventions in the Main Committee—a practice which will shortly be extended to this chamber itself. What we are proposing extends the traditional practice of this House. It mirrors the standard practice of the Senate. It is a worthy change and I commend it to all members.
I rise particularly to oppose the changes to the matter of public importance debate. As the name suggests, the MPI is the key debate of the day in this parliament. Indeed, the House of Representatives Practice says:
The MPI is one of the principal avenues available to private Members to initiate immediate debate on a matter which is of current concern.
On page 576 it goes on to say:
The matter of public importance procedure developed from a provision in the standing orders adopted in 1901 which permitted a Member to move formally the adjournment of the House for the purpose of discussing a definite matter of urgent public importance.
This provision has served this parliament for 106 years. What we have is an arrogant government that wants to stifle debate in an election year, a government determined to avoid scrutiny and accountability, a government prepared to take this extraordinary step in order to particularly stifle the three Independents in this House. But it is not just them the government seeks to stifle but also the members of the opposition and the members of their increasingly nervous backbench who they do not want participating in the key debate of the day. Why is this occurring? Last year there were 50 debates on matters of public importance in this House. Of those, only 13 went for more than an hour, but, of those 13, six went more than an hour by 90 seconds or less.
We have here the jackboots of the Leader of the House, coming in here and changing standing orders. This was due to be debated last night, but it was deferred until today. Why? So the government could gag this very debate about the gagging of matters of public importance in this parliament. The only debates to have gone for more than an hour have been over critical issues such as the war in Iraq. We saw today the refusal of the government leader, the Prime Minister, to have a debate on the war in Iraq. They do not want scrutiny outside the parliament—they will not turn up for debate—and inside parliament they want to stifle the debate. They want to cut off the oxygen from the right of members to put forward their views. We have had the war in Iraq.
What were the other issues on which the debate went for more than an hour last year?
Drought.
Climate change and the drought. We might see a few more Independents from regional Australia, given the National Party’s abrogation of its responsibility and its sell-out of its own constituency. It is very possible that that will occur. What certainly should occur is that this parliament, in one debate every day, should have the right to have a proper exchange with proper time limits. This is an attack on democracy which is consistent with the Howard government’s approach to these issues.
It is quite clear why the Prime Minister wants to stop MPIs—because they hold him to account and he wants to avoid that accountability. During question time today, in the last question asked by the Leader of the Opposition, I lost count of how many members from this side of the House were thrown out and excluded from the parliamentary process. Over on that side there were constant interjections but not a single warning, let alone anyone being thrown out of the parliament. We come into this parliament day after day and expect the odds to be tilted in the government’s favour. Every match is played on their home ground and in every match they appoint the referee. We understand that that is the case. But on the critical matter of public importance of the day we should not have a silencing of dissent—and that is exactly what we are seeing here.
In the Senate, since the government took control, we have seen a whole series of procedures put in place to remove accountability and to remove transparency. We have borne witness to gags and guillotines on fundamental pieces of legislation such as the debate on the most significant changes to workplace laws in over 100 years. We have seen one-day inquiries on significant legislation such as the full privatisation of Telstra. We have seen nation-changing bills rammed through the parliament: the draconian changes to the welfare system, the antiterrorism legislation and the abolition of voluntary student unionism, just to name a few. Now we are seeing a similar attack in this House.
Labor and the Independents—and, if the truth be allowed, many members of the government backbench as well who have complained to the opposition about these provisions—are united in our view that this motion is a gross abuse of parliamentary process and a gross abuse of democracy. The Howard government’s arrogant abuse of members’ rights to engage in parliamentary debate is treating not the members of parliament but the electorate with contempt. We are elected to represent the views of those who have sent us to this House, and we are privileged to be representatives in this House, but voters will remember how they and democracy are being treated.
The arrogance of this government, which this particular provision highlights, does not stop there. One of the other measures that the Leader of the House has moved seeks to clarify the role of the newly created Howard government rank of assistant minister. The Leader of the House has proposed changes to standing orders that seek to define the role of this new so-called assistant minister. When the list came out, when the Prime Minister appointed his new frontbench, many people would have wondered what this assistant minister status was. We know from today’s changes to standing orders, which rule out any scrutiny by the parliament of assistant ministers, that assistant ministers are essentially parliamentary secretaries with a different name. Take, for example, the new Assistant Minister for the Environment and Water Resources, the member for Parkes. Anyone who has seen the member for Parkes perform in this parliament will know why it is imperative for the government to shield him from parliamentary scrutiny, because he is incapable of answering a question on the floor of this parliament. Yet, if you go to his office, RG 85, the nameplate says ‘Assistant Minister for the Environment and Water Resources’. If you visit his website it will say the same: ‘Assistant Minister’. He is no parliamentary secretary; he has been given this high status.
But you do not have to do that. You can just ask him. The member for Parkes was quoted as saying that he has a ‘dream portfolio’ because water will be his main responsibility. On ABC radio on 24 January he said:
The problem has been getting them [the states] to actually do anything about it, so I’m very excited about water being my area of responsibility in the future.
Mr Deputy Speaker, I raise a point of order. I fail to see where the member for Grayndler is drawing the connection to extensions of time.
There is no point of order. The member for Grayndler is completely in order.
The member for Parkes’s dream is Australia’s nightmare. Having this man in charge of water is something that no Australian would want, particularly not those Australians in rural and regional communities. But as the shadow minister for water, I cannot ask him questions, even though he himself says that he is responsible for the nation’s water crisis. We all know that his appointment is all about Nationals favours, not national interest. It is all about trying to hide the fact that he was demoted and that the member for Sturt was not promoted, because the member for Sturt is the other person who has been given this title of parliamentary secretary—in his case Parliamentary Secretary and Assistant Minister for Health and Ageing.
You have to feel sorry for the member for Sturt. We on this side are the great party of compassion in this nation. The member for Sturt was actually a shadow minister. It is hard to believe, but when the current foreign minister was the Leader of the Opposition—and, yes, that really did happen—he appointed the member for Sturt as a shadow minister. It was from 1994 to 1996. But since they came to government in 1996, the member for Sturt has sat up the back, day after day, week after week, month after month, year after year. Imagine how you would feel after being let down again, if you are sitting there and you look at the minister for local government, the former Minister for Community Services, the minister for tourism—all these people who jumped the queue ahead of him, as he would see it, and he gets overlooked again. So you can imagine the discussion: ‘This is unfair. I have been loyal, Prime Minister. I have been loyal to you.’ We know that that is not true, but that is beside the point. He would have said that. Then: ‘Please give me something.’ So what do they do? They invent this title. This title has been invented—
Mr Deputy Speaker, I rise on a point of order. It goes to relevance.
There is no point of order.
We can see the talent that they have on their front bench—the parliamentary secretaries who cannot read the Notice Paper! If you had read it you would know that the creation of the assistant minister position is all about the demotion of one person, the member for Parkes, and another person’s—the member for Sturt’s—failure to be promoted. These changes are symptomatic of a government that is out of control in its arrogance, a government that is under pressure, a government that is failing in its obligations to the Australian people on issues, and a government that is determined to hide from proper debate. We saw it again today: the Leader of the Opposition standing up saying: ‘You want to debate Iraq; let’s bring it on. Bring on a televised public debate.’
This is a government that wants to avoid scrutiny—from its own backbench, from the Independents and from the opposition. Labor will oppose these changes and we commit ourselves to overturning them in government, because we think that a good opposition and good parliamentary processes are a foundation stone of parliamentary democracy. You cannot have a one-way system. We accept that it is stacked against us day after day, that the rules are set by those opposite, that we play on their home ground, and that they set the rules and appoint the referee, but this is one debate in the parliament every day which is scrutinised by the Australian people. There are many people out there who are listening to this very debate, who listen to this part of parliament because they know it has been in existence for 106 years. This is not a conservative party; this is not a party that has respect for tradition; this is a neoconservative party that trashes tradition, trashes democracy and trashes open parliamentary processes and debate. If you do not agree with it, it will stomp on you. That is what is happening to the Independents and to the opposition with these provisions being put forward today.
Labor will oppose this proposition. We will stand with the Independents. I call upon those members of the government backbench who are concerned about these issues to join with us to uphold parliamentary standards, because this is an unnecessary attack. No case has been put forward by the Leader of the House to justify these changes. The fact that we will probably see, I predict, a gagging of this debate just underlines how undemocratic this government is—how it has changed since it got control of the numbers in the Senate. (Time expired)
This is a sad day for this parliament. For 106 years the standing orders have allowed members of parliament to represent their constituents on a range of issues and to debate an issue that may be important in the public arena. I think it is a very sad day. For the Leader of the House to go through his reasons there a moment ago I think is quite disgraceful. This is targeted very much at the Independents. When one looks at the times people have spoken, I am proud to say that in 2006 I spoke on 12 MPIs, Mr Beazley spoke on 10, Mr Rudd on nine, Mr Katter on six, Mr Abbott on six and Mr McGauran and Mr Andrews on eight. If Mr Abbott feels as though he has been left out, there has been an extra hour on most occasions that he—or other members of the government or the opposition—could have made a contribution to the debate. The Leader of the House has also misled the parliament in some of his press utterances. This morning he made the comment that on occasion the three Independents take up half an hour. The Leader of the House may like to prove that, because in the last 12 months the three Independents have never all spoken on the one MPI.
The MPI is the one occasion in this parliament—and I know we have grievance and adjournment debates—where there is a debate about a substantive issue that the general public may see as being important. The rest of the debate in this place is on legislative arrangements and changes or in question time itself. But the MPI is absolutely critical because it does allow debate on substantive matters such as drought, climate change, water, renewable energy, aged care and education. Those issues cross all electoral boundaries and do need to be embraced and discussed in this parliament.
The reason the Leader of the House has taken it upon himself to try and downgrade the contribution that Independents can make goes back a long way. In fact, it goes back to the first few weeks that I was in this parliament, when I was approached by the Leader of the House and was asked: ‘Can you keep your contribution down to five minutes?’ Why should an Independent member of the parliament be given five minutes when government and opposition members are allowed 10? Why should representatives of particular electorates be downgraded in terms of the length of the contribution that they can make? What sort of democracy does the Leader of the House believe in if there is this degree of inequity being built into the procedures of the parliament? Why is the Leader of the House leading this debate? What is the Prime Minister doing about this?
The Prime Minister spent some time only 10 days ago saying he was listening to the people of Australia and hearing them. The matter of public importance, for 106 years, has been the process in this place that allows members of parliament from all sides to address an issue that is of public importance so that the Prime Minister and the parliament can hear about that issue. Halving the time that an MPI discussion can be held for is in fact halving the contribution that members of parliament are able to make.
It is quite right, as the Leader of the House has said, that the average length of MPI discussions is 58 minutes. But on those occasions when there have been critical debates on issues such as drought, climate change, renewable energy or aged care, when there needs to be a greater contribution from the members of the House—those crucial debates, on non-political issues, where people can have their say—we do need that extra time. So I say to the Leader of the House and the Prime Minister: if you really believe in democratic processes, do not start trying to devalue the contributions that certain members make, and revisit this process at a future time.
I have been cut off and gagged on numerous occasions in this place, including in the MPI debate. The honourable minister says that we get a fair go. On at least one occasion I have been cut off completely in the MPI debate. So we have not been getting a fair go in the MPIs to date. When I was a ranking minister in the Queensland government, there was never ever an occasion when the opposition spoke and I regretted them speaking. Sometimes their stupid remarks were enormously self-destructive and reflected upon themselves and on other occasions they were spot-on and they pressured the government to go in the direction that we should have been going in. I heard my own arguments from inside the cabinet room and the party room voiced by the opposition. And that is the idea of having open debate in this place.
The member for Grayndler was perfectly right in his remarks, as was the member for New England. Yes, we get the opportunity to speak on legislation, but the MPI is the only time we get to speak on timely issues. I believe, however stupidly or naively, after 32 or 33 years in parliament, that what members say in this place does have an effect. People do listen and sometimes take notes. If you are closing down debate then you are seriously damaging the political process.
And what an act of political stupidity this is if the honourable minister has political ambitions to go higher than he has. There are three Independents in this place. I may be reading the opinion polls wrong, but the government are not looking particularly good. In fact, they are looking worse at the polls than they have looked in all my time here since they got elected to government. To blatantly antagonise the three Independents is an act of monumental stupidity, which has been taken advantage of by the opposition. Of course, they have ingratiated themselves to us today by giving us a fair go. And the government have antagonised us by doing anything but giving us a fair go in relation to our ability to get up and say a few words on the timely issues of the day. It is only four or five times in the last 18 months that I have had an opportunity to speak for 10 minutes on the MPI. That is hardly earth-shattering. On issues such as climate change and water—the debate of last week—of course a person like me should be speaking. I am representing a third of Australia’s water resources. It would be a rather peculiar debate if I were not involved in it.
John Cobb hasn’t spoken once.
I can understand the legislation on that! You will notice none of us have spoken about that. I have to say that is not politically stupid. That is very politically wise—hiding your assistant ministers! But I want to continue talking about the political stupidity of the issue here. It may be a close election and there may be a balance of power. I think there is a very good chance of that happening. The three Independents, whether the government or the opposition like it or not, are all sitting on about 20 per cent and it is going to be pretty hard to knock us off—but it happens in politics; there is no doubt about that. But why would you antagonise these people needlessly and stupidly?
All I can say is: I give thanks for the contribution made last week. I do not think anyone listening to the honourable member for New England would not have said that it was not a very worthy contribution to the debate, and this House would have been poorer if he had been gagged on the issue. The deputised leader of the house in the state parliament said he would not gag debate. He told the then Premier, Bjelke-Petersen—and he was selected by Bjelke-Petersen to take his place—he would not gag. But unfortunately this minister has done it again and again.
I am opposing both of these motions because they are all about the nonaccountability of the government. They continue the trend that has been quite apparent over the last 12 months of truncation of debate on key legislation, including industrial relations, Telstra, security bills and some others I cannot think of just now, particularly when the House has not had the advantage of any proper briefings or proper inquiry results into those most crucial pieces of legislation. And what we have here is again a process where the government is truncating debate and denying opportunities to Independent members. The Leader of the House said on ABC radio this morning that this was targeted at the Independents because in the last 12 months or so the Independents had used much more of their time. In saying this he is creating two classes of representatives in this chamber: one class representing the parties and another, which has a truncated amount of time, representing Independent electorates—which, I agree with the opposition speaker in this debate, will be increasing in spades in the next couple of years.
The Leader of the House says there is one controversial and one non-controversial motion here. I would suggest, firstly, that the one for assistant minister protection from questioning by members of the House is as controversial as the other one because, with all the lurks and perks of public office of all the parliamentary secretaries and now the assistant ministers sitting behind the bench and protected from any scrutiny, we have a continuation of a process that is all about nonaccountability, particularly of people who have carriage of legislation. They can make public statements on behalf of the government and they can enjoy all of the extra privileges of office, yet they cannot be questioned by other members of this House. What could be a more transparent attempt to deny proper scrutiny by members of this place?
They also, I must say, have privileges and entitlements of office which no doubt they will carry over into the election campaign. Their entitlements will become part of the war chest that is being built up through printing and other privileges. No doubt there will be the sending of staff from parliamentary secretaries’ and assistant ministers’ offices and ministers’ offices, as I have experienced during election campaigns, to run the campaigns of candidates for the National Party and others against candidates who may be running for the first time as mere Independents with very limited resources and who will be confronted with this rorting of the entitlements of office. That parliamentary secretaries process is not about just having people who are the gofers and the juniors; it is all about building up the resources of incumbency to favour the incumbent parties and, in some cases, the opposition, but particularly those in government. It is about building up the resources to make it so much more difficult for any Independent candidate to have an honest crack at running for parliament.
Most of the other issues have been covered by the other speakers, but I must say that the controversy is not that Independent MPs are taking too much time; it is that party MPs are not making the most of the opportunities. Why? Because the MPI is mostly about controversial issues, often of some embarrassment to the government. We have seen situations where there is but one speaker on the government side and half-a-dozen speakers on the non-government side because the issue—whether it be climate change or the war on Iraq—is of absolutely vital importance but it is not of importance to the government because they do not want those views aired.
Perhaps this has been shown up by too-active Independents. Perhaps the too-active Independents have been too active around rural issues which have been embarrassing to the government. They want to shut down this debate, to shut down the opportunities in an election year, because it is all getting a little bit hot, particularly in rural and regional areas where the Independents represent such a threat in this election year. The constituents should be asking why their government members are not speaking up on these MPIs and defending positions the government have taken, whether those positions are around climate change, water, the war on Iraq, our energy options or all of the matters of public importance that are going to be so crucial in this election year.
As Chairman of the Procedure Committee I have listened very carefully to the comments from the opposition and in particular to the comments from the Independents here this afternoon. I have to say to this chamber that the gross hypocrisy of the Independents is quite unbelievable. Where were you last night when you had an opportunity to speak in the adjournment debate? Where are you on three-minute statements? Where are you on 90-second statements?
Mr Deputy Speaker, I rise on a point of order. I have been misrepresented—
The member for Kennedy has an opportunity to rectify that after the member for McPherson has spoken.
As Chairman of the Procedure Committee I can say we move heaven and earth to ensure that we have an interactive chamber and that every member in this House has every opportunity to speak. In fact, that is why we try and facilitate it. The MPI is not a debate; it is a discussion of a matter of public importance. I think what we need to do is look at the statistics for 2006. The member for New England referred to his own statistic of speaking 12 times in an MPI in 2006. Mr Deputy Speaker, 54 MPIs were submitted to this chamber last year; 50 of those were discussed; 35 of those had four or fewer speakers—that is 70 per cent of those MPIs. Fifteen of the MPIs, or 30 per cent, had more than four speakers. We have already heard that the average time for an MPI in this chamber is 58 minutes.
What the Leader of the House is proposing through his motion is to put in place a procedure that would give the Independents or the opposition two extra speakers. It would be part of the standing orders so that we would have two speakers at five minutes. It would actually encourage you to come into this chamber and make a contribution to an MPI. This is not about devaluing your contribution to any discussion or debate in this chamber. This is about encouraging you into the chamber. How often are you Independents in this chamber to make a contribution to the debate that occurs on the floor of this House? Not very often.
Mr Katter interjecting
We as the Procedure Committee want to see interactive debate. We want to see contributions from the Independents but we do not see it very often. The Leader of the House is proposing to allow two extra speakers to the current norm. The practice in this House over many years has seen two speakers for 15 minutes, two speakers for 10 minutes and two for five minutes. Let us ensure that the hour on the MPI on Tuesdays and Wednesdays is used. Let us see the Independents come in here and make the most of the time that is going to be available to them.
It is true that the Procedure Committee did look at the MPIs and whether the current arrangements were adequate. Yes, the standing orders do allow for two hours on an MPI under standing order 1. The statistics show that that time has not been used. The Leader of the House is proposing a formal time to allow for two extra speakers at five minutes. I would encourage you to use that time and also the other times you have available to you in this chamber to put some comments on the table.
The member for McPherson will address her remarks through the chair.
If we looked at the times the Independents participated in debate in this House, they would be seen to be wanting. There are many opportunities and last night was a great example of no Independent in this House using the adjournment debate to put on the record comments about anything in their electorates or any other issue that may be of importance to this country. The Procedure Committee will certainly monitor how this process will work and whether the time is now taken up with those extra speakers, and we will bring it back to the Procedure Committee if we feel that we should have a look at what is being proposed by the Leader of the House today.
Mr Deputy Speaker, I claim to have been misrepresented.
The member for Kennedy wants to clarify the record; he claims to have been misrepresented.
The last speaker—it is probably a bit of an exaggeration to call her that—said that we were hypocrites because we were not here for the adjournment debate last night. For her information as Chairman of the Procedure Committee, we were not here last night because we did not have a speaking slot, which we have been chasing for six months.
Order! That is not a personal explanation; the member for Kennedy is debating the point. He will resume his seat.
I move:
That the question be now put.
Question put.
Original question put:
That the motion (Mr Abbott’s) be agreed to.
The Speaker has received a letter from the honourable member for Lilley proposing that a definite matter of public importance be submitted to the House for discussion, namely:
The failure of the Government to recognise declining productivity growth in the Australian economy and the central role of education and skills in re-invigorating productivity growth to secure future prosperity.
I call upon those members who approve of the proposed discussion to rise in their places.
More than the number of members required by the standing orders having risen in their places—
Sixteen years of growth should have allowed us to make Australia the most highly educated and skilled nation on earth. Sixteen years of growth—what a fantastic opportunity we have had to invest in future prosperity by investing in our people, but it has been squandered by the Howard government. Instead of guaranteeing that prosperity for future generations, they have simply endangered it by their complacency and by their lack of understanding of what is required in a globalised world to produce future prosperity. This is a Prime Minister that is at war with the future, out of touch and stuck in the past. This government has no long-term strategy for tomorrow’s prosperity.
What they do have is only a short-term strategy for John Howard’s re-election. After 16 years, what do we see? We see faltering productivity because they wasted the opportunity to invest in our people to generate future prosperity. Instead of investing in the future, they have been playing a cruel trick on us, scooping up record taxes, handing some back—mostly just before election time—and selling our prosperity short. There is much that our economy needs, there is much that needs to be done, but this government only has one direction—that is, to slash the rights, the wages and the living standards of Australian workers.
Every family understands that in the highest earning years of your life you invest in the future. You invest in your home; you invest in your kids’ education. But Mr Howard and Mr Costello have spent like drunken sailors—
The member for Lilley will refer to members by their title or by their seat.
and they have not invested in the future. And, by not investing in the future, they have endangered our prosperity.
Let us just look at some of the figures—and they are damning; some were mentioned in the House today during question time. Australia’s overall investment in education is 5.8 per cent of GDP. That is behind 17 other OECD countries. Let us look at expenditure. While other nations have on average increased their public investment in education by 48 per cent, in Australia it has been reduced by seven per cent. In the global competitiveness reports on Australia’s science and maths education levels we are ranked 29th. The point is this: Australia cannot continue to aspire to be first in prosperity if we are coming 15th and 29th in terms of education and in terms of training. But that is where this government has left us. It has left us there, and the consequence is declining productivity.
This government does not understand the future. Talent is the modern currency, and if you are not investing in your talent then you are not going to be able to cope with the competitive nature of a globalised world. Look around the world: all of our competitors are investing massively in education, in skills and in innovation, but, as we have just heard, this country is disinvesting, cutting expenditure, in those critical areas.
Let us look at the productivity outcomes—and this is very serious in terms of future living standards, very serious indeed—that we have been recording. The September quarter national accounts show labour productivity growth declined by 1.6 per cent in the previous six months—down 1.6 per cent in a critical six months, because what have the government been saying about those six months? They have been claiming that their Work Choices legislation has produced 240,000 jobs at a time when productivity was going backwards. That just shows the nonsense of that great con job that they are trying to pull in the public debate now. The claim that job creation in recent times is the product of Work Choices is one of the greatest con jobs of the Howard government’s 11 years in office, because that figure gives lie to that claim.
Let us look at some of the other figures. The September quarter national accounts show that productivity has failed to grow since the June quarter 2004. That is more than two years with zero net productivity growth—more than two years. But this slowing is not recent. Average annual labour productivity growth has slumped to 1.6 per cent this decade, compared to 2.7 per cent last decade. That was the question that was asked of the Prime Minister in the House today for which he had no answers whatsoever, because if we are not going to lift our productivity we cannot in the long run lift our living standards. That is why this is so critical. If we cannot lift our living standards, we cannot deliver jobs growth and income growth in a sustainable way, particularly if the music stops—if the commodity boom turns down. The evidence at the moment is that the boom will go on for some time to come, but during this time of plenty, when there is plenty of money rolling into the country, why haven’t we taken this once in a generation opportunity to invest in the future of our workforce and in our future prosperity?
Other international comparisons are also damning. We have performed very poorly. The United States is the benchmark economy when it comes to comparing levels of productivity. So far this decade Australia’s productivity has fallen from 85 per cent to 79 per cent of US levels and, in the process, we have lost all of the comparative gains we made against the US during the nineties—gains, I might add, that came off the back of the reforms of the last Labor government in this country. This government has simply been complacent about the type of economic reform and investment that is required if we are going to continue to increase living standards.
Just consider this: encouraging productivity should be the central part of our economic debate in this country. But go back to last year, to the Treasurer’s budget speech. The word ‘productivity’ was not mentioned once in that speech, indeed nor was there any real mention of improving the skills and education of our workforce. We know encouraging productivity must be at the top of our agenda. It is stunning to think that, out of all the policy choices this government could take, the one it does not take is the one that all of the experts around the world recommend for countries to increase their living standard—to invest in their people, to go up the value added chain, to lift their productivity. Of course, as we know, the competitive challenge from India and China is so great because they are doing precisely that. It is time to wake up; it is time to turn this around. It is time for Kevin Rudd’s education revolution because that is what will produce the future prosperity that this country requires and that we can pass on to our children and grandchildren.
But we are not getting it because you can see, in the House today and all this week, that we have a Prime Minister who is at war with the future. Last week the Prime Minister was at war with the science of global warming. He still has not come to grips with it and he went backwards again today. This week he is at war with a man who is 22 years younger. This Prime Minister is at war with the future. The thing that he is really at war with is the future of our economy because his disinvestment in education has endangered our prosperity. He cannot hear what the leading thinkers of the world from the OECD to Harvard University through to our own business groups, bankers and the Treasury Department officials are telling him. They are all telling this government that Australia’s future prosperity can only be secured by prudently investing the gains of today to increase the knowledge and the skills of our people.
That is why we say that the government have squandered a once in a generation opportunity of 16 years of economic growth which could make Australia the most highly educated and skilled nation on earth thereby guaranteeing our prosperity for a generation to come. This will be a damning indictment on this Prime Minister’s record in future years. This will stand out as the great missed opportunity of the late 20th century and the early 21st century. They have sold this country short. The tragedy is that they have come into this House day after day, for the last two years, claiming that they have somehow a magic recipe for wealth creation. They have been the beneficiaries of a massive commodity boom; it has been raining gold bars. It has happened on their watch and somehow they are responsible. You might give some credence to what they say if they had been attending to the basic foundations of the economy that will deliver the productivity that we all require for increased living standards. That is why we need Kevin Rudd’s education revolution and it is urgent.
The Prime Minister comes into this House and he says, ‘Don’t look at Labor and Kevin Rudd; there’s no experience over there.’ They talk about experience as if they have some magic hold on it. Let us have a look at their experience. Experience works both ways. There is an old saying, experience can either make you bitter or make you better. In their case, it has made them bitter and resistant to the changes required to meet the challenges of the future. Their experience is a backward-looking experience. They have not learnt from their experience.
As this region grows, as we increasingly enter a globalised economy, experience tells us that we have to challenge the region by investing in our people, but they do not learn from that experience. Their eyes are closed to that experience and they are therefore unqualified to take on the challenges of the future. If we are going to sustain and increase our prosperity in the future, things have to change. We do not want a government that is pigheaded and will stick its head in the sand when it comes to critical issues such as climate change or a government that is into short-term politics.
This Prime Minister, for example, on climate change is simply all over the place. You can see the fear in the eyes of the Prime Minister and his backbench whenever the term ‘climate change’ is mentioned. They will do anything or say anything to convey the impression that they get the message. The next thing the Prime Minister is likely to do is to come in here with his head shaved and start singing Midnight Oil songs. What will it be: Power and the Passion or Beds are Burning? He once nominated that, Peter tells me, as his favourite song. They have been burning because this Prime Minister has refused to face the future, so all of this cosmetic stuff, all of the wrapping paper that he puts around his climate change policies, his education policies and all the rest of it, is just that because it does not really attend to the demands of the future.
This brings me to the other great con job from the government. We do not hear the government talk about interest rates anymore because we have had four interest rate rises since the Prime Minister promised to keep them at record lows and eight in the cycle, which is putting tremendous financial pressure on Australian families. So now the test of this government’s economic management is not interest rates, although it was for years and years; it is job creation. They come into this House and claim that all of the job creation that we have seen—240,000 jobs in the last six months or so—is all to do with Work Choices. What rubbish. We have already established that productivity has dropped during that period; it has nothing to do with Work Choices—it is the commodity boom. The great bulk of jobs have come out of the mining sector, from the great mining economies. If you take a broader look at the economy, that is simply not the case. But, of course, once again we get the politics of deception from the Prime Minister because he is trying to conceal an underlying truth, which is that he has no plan to lift productivity, he only has a plan to cut wages and working conditions. He wants to take us down the value added chain. He is not up to the challenge of going up the value added chain to compete with China and India by investing in the skills, education and human capital of our workforce and creating an economy which is powered and generated by innovation.
So we get the great con: Work Choices has created all these jobs. What a complete nonsense. The truth is that economic growth in this country has been sluggish, with average growth this decade the lowest for many years. It does not quite feel that way because we have had the commodity boom. Income growth has been very strong. Job growth has been very strong. We welcome all of that, but it is not necessarily going to stay that way unless we attend to the productivity needs of this economy.
Of course, as the OECD has demonstrated, we can lift productivity in this country without going out and attacking wages and working conditions. The OECD has demonstrated that enterprise bargaining, a fair minimum wage, appropriate employment protection, skills and education and a competitive tax system are all part of a balanced and broadly based policy which will lift productivity and wealth well into the future.
We have an alternative. We have an education revolution. We have a $450 million early childhood education policy. We have initiatives to deal with maths and science education. All of these are part of Kevin Rudd’s and Labor’s education revolution. That is the path to prosperity, not John Howard’s path, which is to slash wages and working conditions and take us down the value added chain. (Time expired)
The premise upon which Labor bases this matter of public importance is fundamentally flawed. It assumes that any movement in productivity growth in Australia threatens our future prosperity. That simplistic proposition cannot be substantiated. The member for Lilley’s performance failed dismally to make the case for Labor.
Productivity growth is the key source of growth in the living standards of Australians over time. Higher productivity means that we can produce more and so earn more income from the resources that we have available. All the international evidence suggests that the key factors underlying good economic performance are a stable and balanced macroeconomic environment, openness to international competition, well-functioning labour, capital and product markets, and sound investment decision making, particularly in relation to human capital and infrastructure. The Howard government has a strong track record of implementing policies in all of these areas.
A key platform to facilitate strong productivity growth is a sound macroeconomic environment. Let us have a look at what the OECD has said about what is going on in Australia. In its latest Economic survey of Australia: 2006, the OECD said this:
Recent macroeconomic performance continues to be impressive: gross domestic product (GDP) growth since the turn of the millennium has averaged above 3% per annum and, including the terms-of-trade gains, growth in real gross domestic income has averaged over 4%, among the handful of OECD countries achieving such rapid growth ...
It goes on to say:
Australia is now one of the few OECD countries where general government net debt has been eliminated.
I point out that we are referring, of course, to the $96 billion in debt that Labor racked up when they were in office. So the OECD says that we are one of the few OECD countries where general government net debt has been eliminated. It continues:
Living standards have steadily improved since the beginning of the 1990s and now surpass all G7 countries except the United States.
This is for Australia. It goes on:
Wide-ranging reforms, particularly to promote competition, were instrumental in this respect. They promoted productivity growth, most notably in the second half of the 1990s. The greater flexibility engendered by these reforms, together with the introduction of robust monetary and fiscal policy frameworks, has also bolstered the economy’s resilience to a series of major shocks over the last decade ...
Yes, between 1993-94 and 1998-99 Australia experienced productivity growth of about 3.3 per cent per annum, compared to a long-term average productivity growth of 2.3 per cent—in other words, it was exceptionally high. Since 2000 productivity growth in Australia has been 2.1 per cent per annum. That is around the long-term average. That is healthy. The return to long-run average productivity growth since the late nineties reflects the rapid changes in production and employment in specific industries. This is what Labor wants to ignore.
We had a sharp decline in construction activity in 2000-01 following the Olympic Games and the introduction of the GST. You will recall that, at that time, a large volume of construction activity was brought forward prior to the introduction of the GST. The 2003-04 drought saw a drop in agricultural output of 24 per cent. There has been a very rapid increase in employment in the mining industry well in advance of increases in mining production. The point is that mining employment since 2000-01 has increased by 65 per cent. Total mining output fell slightly over that period, as declines in crude oil production more than offset increases in other mineral production.
All in all, the result was a fall in productivity in mining of 40 per cent over the last five years, but this is just a reflection of the very strong employment growth in the mining industry. It does not reflect underlying productivity growth in mining that is going to rebound when increased production capacity comes online. Productivity growth in the nineties was high, but do not forget that for 13 years when Labor was in government—including those six years in the 1990s—real wages in this country fell by 1.7 per cent. What concern have we heard for the workers of this country from the member for Lilley? He has not said a word about the workers in this country.
Under the Howard government we have seen real wages increase by between 17 and 18 per cent. In any event, the outlook for a return to productivity growth is looking favourable. The underlying conditions for productivity growth remain in place. In fact the Productivity Commission reported in 2005 that there were also grounds to conclude that productivity growth over the 1998-99 to 2003-04 period would still have been ‘above the long-term historical average had it not been for some atypical, short-term shocks’—and I have referred to a number of them.
The Australian national accounts, importantly, show that the contribution to productivity growth from increases in the education and experience of Australia’s workforce has been stable. The underlying drivers of productivity in the economy are strong competitive pressures and the flexibility to respond to economic shocks. Given the government’s track record and its reform program over the last 10 years, we have provided strong support to both competition and flexibility. Our labour market reform was resisted every step of the way by the Labor Party. Our waterfront reform was resisted every step of the way by the Labor Party. Our tax reform was resisted every step of the way by the Labor Party. Our 2006 skills package was resisted every step of the way by the Labor Party.
The government is going to continue to implement reforms. National water reforms are going to address a century of inefficient water use in the Murray-Darling Basin. We are working in cooperation with the states and territories, through the COAG process, on a national reform agenda covering competition, regulatory reform and human capital investment. But I remind the House that, according to the Australian Bureau of Statistics, the accumulation of human capital—that is, the contribution of skills, education and experience to productivity growth—is the same in this decade as it was in the 1990s. So the premise upon which Labor has founded this MPI falls away immediately.
Our future productivity depends of course on strong economic management. The coalition has a strong record in this area over the past 10 or 11 years, and that has only been possible due to the economic skills, credentials and experience of the Howard government. The opposition are talking about an education revolution. Let us have a look at their ‘recession revolution’. Let us have a look at what they did when they were in office and left families and businesses hurting as a result of their management of the economy. Their economic vandalism threatened our future prosperity. When Labor were last in office, Australian government debt was over $96 billion, almost $100 billion, after five successive budget deficits. They can talk about embracing budget surpluses now, but when they were in office there were five successive budget deficits. They had privatised Qantas and the Commonwealth Bank, yet they still managed to plunge this country into debt.
Interest rates for homeowners peaked at 17 per cent; they averaged 12 per cent under Labor. Unemployment reached almost 11 per cent; there were almost one million Australians unemployed under the last federal Labor government. Inflation averaged more than five per cent and, as I said earlier, real wages for the workers of Australia fell 1.7 per cent over the 13 years of ‘hard Labor’. This shameful record hit the average Australian hard. It damaged small business and it destroyed the confidence of this nation.
What was happening to education at that time? In higher education under Labor, unmet demand—that is, the number of eligible students who applied for a place at university—reached an all-time high. Students could not get a place at university, but at the same time they could not get a job. There were one million Australians unemployed and, if they wanted to get a place at university, unmet demand was at its highest level in decades.
Through the hard work and leadership of our experienced Treasurer and our experienced Prime Minister, the coalition has repaired most of that damage. The Australian economy is in its 16th year of economic expansion. Inflation remains moderate and the unemployment rate is at a 30-year low. We have paid off the $100 billion debt. That is worth repeating: we have paid back Labor’s $100 billion of debt. From the interest that we have managed to save alone, we can invest more money in education—as we have done—training, hospitals and infrastructure.
Think of the average interest rate under the coalition. It is just seven per cent, saving homeowners thousands of dollars in repayments, money they can put towards their children’s education and training. Unemployment has dropped to a 30-year record low of 4.5 per cent. In a week when we are celebrating 4.5 per cent unemployment, the lowest in decades, Labor starts criticising the government for its management of the economy. This is just ridiculous. More Australians than ever before are finding work and becoming productive members of our society, and, as I said, real wages have increased by some 17 per cent.
The member for Lilley said our funding for education is only 5.8 per cent. Under the Howard government it has increased as a percentage of GDP from 5.5 to 5.8 per cent. It has increased at a time of a booming economy. Our GDP is growing rapidly, faster than any other OECD country, and we have still managed to increase our investment as a percentage of GDP. In other OECD countries the percentage has declined over that period. The OECD also refers to the fact that the take-up rate of education in this country is above the OECD average. For example, 35 per cent of 19-year-olds in this country are in some form of tertiary education. That is about seven per cent higher than the OECD average. Overall, 31 per cent of Australians aged between 25 and 64 have some form of tertiary qualification. Again, that is about seven percentage points higher than the OECD average.
Labor continues to quote OECD figures selectively. Funding for tertiary education did not decrease by seven per cent between 1995 and 2003, and Labor knows it. The figures that Labor quotes exclude three-quarters of our funding for vocational education and training. They ignore the taxpayer subsidies for our university students. If we use the OECD figures, Australia’s tertiary expenditure increased by 25 per cent in real terms between 1995 and 2003. But Labor continues to focus on figures that are out of date. These figures only come up to 2003. They exclude the Backing Australia’s Future reforms in 2004, which will see the sector $11 billion better off over the decade. They ignore the $560 million in last year’s budget for higher education and the $837 million in the Skills for the Future package.
This is borne out by the fact that our universities, for example, are in the best financial position they have been in for a very long time. Their total revenues have increased by over eight per cent, to almost $14 billion. Their operating result increased by 36 per cent between 2004 and 2005, to almost $838 million. Total federal government funding increased by over nine per cent in the 12-month period and net assets increased by over seven per cent. So our universities are benefiting from the increased government funding.
Labor have no credibility on the issue of university funding. State Labor governments are ripping off our universities to the tune of more than $150 million in payroll tax. Our state Labor governments are taking more out of our universities than they invest, so, until such time as federal Labor call on state Labor to stop ripping off our universities, they have no credibility whatsoever on the issue of university funding.
Let’s set the record straight on schools funding. As I said in question time today, state governments have the primary responsibility for funding state government schools. It is self-evident—they are state government schools. The Commonwealth supplements that funding, but, if we look at what happened in the state governments’ 2006 budgets for schools funding, New South Wales increased funding for state government schools by 3.9 per cent; the Commonwealth increased it by 10.7 per cent. If the state Labor government in New South Wales increased funding at the same rate we did, there would be almost $500 million more in state government schools in New South Wales. Across the country the state and territory governments increased funding for their schools by less than five per cent; the Australian government increased the rate by over 11 per cent. If the states had matched the Commonwealth funding increase, there would be an extra $1.4 billion in state government schools. (Time expired)
It is a significant matter of public importance that we are debating today. I want to address some of the questions and issues raised by the Minister for Education, Science and Training in this MPI. In particular, all of the inherent inconsistencies of the Howard government’s arguments on these issues have been displayed today by the minister.
For a start, she tells us that we have had 16 years of progressive growth and that the government are providing more university places than Labor did when in government. The contradiction that you hear in the argument is that the government are very happy to claim that we have had 16 years of economic growth and yet are incapable of recognising that they have not been in government for 16 years. The minister talked about the significant productivity growth in the late nineties, which is well documented and well acknowledged by many experts in the field—in particular, the former Governor of the Reserve Bank of Australia—as actually being driven by the reforms that Labor put in place during the years of the Hawke-Keating government. The minister, in expounding on those times, said that the competition reforms were a really important part of the boost to the next round of productivity and economic growth. She just failed to mention that those reforms were put in place by Labor governments.
So what we are facing here, and this is why we feel this is an important debate, is the fact that the minister has not comprehended that it is not good enough to say everything is rolling along okay. It is not good enough to say, ‘Oh, but we’re meeting the long-term average.’ It is not good enough to say that problems with places at universities and funding to schools are all the state governments’ fault. The reality is that there is a clear link between national economic wellbeing, which is a direct responsibility of the federal government, and what you do with your education, training, investment in innovation and commercialisation of innovation—all those things are critically important to the overall economic wellbeing of a nation. That is why federal governments get involved in those areas and, indeed, always have.
We on this side of the House often get a bit frustrated when government ministers want to take pot shots and claim that Labor was only ever interested in university education and never took a serious view of the role of trades training. As a former TAFE teacher, I find that an extraordinarily offensive misrepresentation, but that is part of the game in this House, I suppose. For the minister to say that we are obsessed with university education but they have better university place numbers is just an absolute example of point-scoring as opposed to dealing with the actual issue.
What we face at this point in time is a golden opportunity. We have tremendous revenue coming into the government as a result of the boom in the minerals sector. The question is: what do you do with that? What we are trying to say to government members is that you use it to invest for the next round of growth. You do not sit there and say, ‘It’s all okay; we’re meeting some long-term national average in productivity growth.’ You should be saying, ‘If they achieved 3.6 per cent in the late nineties, why can’t we achieve it? How could we achieve it? Let’s get on with doing that.’ If you do not do that, this sort of boom will be squandered.
When times are good, we spend. We all do it with our family budget; probably at this time of year we are all saying, ‘I’ve squandered the boom over Christmas and now I have to start rebuilding.’ But we know it is a simple principle that, when you are faced with an unprecedented opportunity of income generation, you do not simply sit on that, boast about your budget surplus for years, wait till the election comes and then throw all of that—like a drunken sailor, I think the term was—out into the election campaign to fundamentally curry favour with the electorate. That is the pattern we have seen this government take during recent years and that is why we think this is such a matter of public importance.
The shadow Treasurer outlined some of the statistics that have been alarm bells, that have said to us that this is something that we are going to have to seriously address. The minister failed to address at any point the issue that, even if we take Australia as an isolated example, there are problems with our investment in education.
The government touts things like the Australian technical colleges. If the $20 million in my electorate, which is currently funding 38 students, had been put into pre-apprenticeship courses at TAFE, had been put into supporting the joint schools-TAFE programs that allow kids to do TAFE courses, we probably could have put 1,000 or 2,000 kids through training. I am very surprised the new Minister for Vocational and Further Education, who I think has a few more brain cells than the previous one, did not jump in and redirect this program. It is not going to deliver outcomes in the time frame that we need and is an absolutely inefficient use of money for achieving those outcomes.
Those are the sorts of things the government puts up as its response. What we are saying is: get really serious about the fact that people need their skills upgraded. There is a classic example in my electorate. There is a tremendous Catholic school there. They have built a new school, built for the 21st century. No classrooms and boxes and whistles like the old schools built for the industrial age; this is a new generation high school. The kids are all supplied with laptops. They work in labs and work groups. The environment that they have created reflects the modern work experience. They have specifically got all the best literature and applied it in this model to give these kids a real-life experience in their learning that will reflect the work world they go out into.
The Prime Minister wants to recreate classrooms that he went to. He wants to take us back to a 1950s model of schooling. I was an English teacher; I value Shakespeare, but I tell you what: having two sons, I think it is far more important that they understand what advertising can do, that they do understand what the modern media does in purveying its message to the community. Those are important and valuable skills that are useful in a 21st century workplace. And if that escapes the Prime Minister, that is a real problem for our future. We cannot build a 21st century workforce education system for our kids on the 1950s model that the Prime Minister wants to hark back to all the time.
These are critically important issues for us. We see good examples out there, but it is a real struggle for the public schools in my electorate to achieve the sorts of things they are able to do at this local Catholic high school. That is not good enough. The Catholic high school has got a tremendous model. Greg Whitby is driving that, and I know he is doing the same in south-western Sydney. He is a truly innovative educator and thinker about what we need to do for the future. I just want our schools in the public system to match that. I want my kids to come out of that school system equipped for the world they will live in, not equipped to relive the Prime Minister’s life. That is the way we are going at the present time with the focus of our education program.
This MPI is really important because you cannot isolate Australia, you cannot isolate our experience. We well know that China and India, the big developing powerhouses, are doing exactly what we are not doing: they are investing massively in their education and training systems. You talk to your universities that have a large number of overseas students and they will tell you they are worried about their income, because they know that those countries those students are coming from are developing their own systems rapidly and they will not need to come to us in the future. They are out there, they are doing it and they are doing it seriously. They are not sitting on their behinds saying: ‘It’s not a big deal. It’s the long-term average; we’re not actually much below that.’ That is not good enough if we are going to compete against them in the future.
We have to get as serious as they are about putting in significant investment. We are so perfectly positioned at this point in time, with those gold bars raining on us as the shadow Treasurer said, to take that money and build a future for our kids—not build a future simply for the next election and continue on that wasteful cycle that we cannot afford as a nation. This MPI is simply saying enough is enough; get on with the job at hand. (Time expired)
I certainly welcome this matter of public importance debate and the Australian Labor Party’s new-found interest in productivity and productivity growth. It seems to me quite strange that we have got an opposition here that have opposed us every step of the way. They have opposed tax reform; they have opposed industrial relations reform. Whatever it is that we put up, nine times out of 10 there they are—the carping, whingeing, whining opposition—opposing it.
We introduced the workplace relations reform and the sky was going to fall in. All the Chicken Littles on that side of the parliament were scurrying around, ruffling their feathers. ‘The sky is falling, the sky is falling,’ they were saying. There would be mass sackings, there would be mass industrial disputes, wages would fall, there would be no more barbecues, unemployment would soar. You name it, it was going to happen under the workplace relations reforms of this government. What has happened? The result has been very different. Since Work Choices was introduced, we have seen the creation of some 240,000 jobs. And to that we hear the member for Swan—sorry, the member for Lilley. I should not be so—
You almost made a Swan out of a Lilley.
That is right, or a goose. The member for Lilley claimed that those jobs came as a result of the resources boom; they were not as a result of Work Choices at all. In fact, we have had the member for Lalor running that line in the media—it is purely the resources boom or good luck or a lucky star or whatever it might be—but when you look behind those figures, where did those jobs come from? We had 46,000 in wholesale trade, 43,000 in construction, 34½ thousand in finance and insurance and 14,000 in mining. Once again the member for Lilley has been caught out telling porkies.
What about declining wages, as was predicted? We have seen real wages grow by 17.9 per cent since this government came to power. What about industrial disputation? It is at record lows, the lowest figures ever recorded: 3.2 days lost per 1,000. Unemployment is at a 32-year low, and that is in a low interest rate environment. We paid back Labor’s $96 billion debt, which has freed up $8 billion to $9 billion a year to spend on services, to spend on the people of Australia.
I think it is pure hypocrisy for the Australian Labor Party to take on the government on the issue of productivity. They presided over double-digit unemployment; I would wager that the million people thrown on the unemployment scrap heap were not particularly productive. The Labor Party presided over a regime of restrictive work practices, and restrictive work practices are not particularly productive. They presided over economic and labour market settings that were dictated by the Australian labour union movement.
As I said, every time the government attempted to implement reform, the Australian Labor Party opposed it. They opposed unfair dismissals legislation not once, not twice but 44 times. We all know the major impediment to job creation there is in the spectre of unfair dismissals, and Labor’s plan for the future, the great brutopian future, is to bring back unfair dismissals. They want to protect those employees who are least productive. They want to protect those employees who do not have the firm’s interests at heart. How productive is that? How productive is it for an employer to spend time and money trotting down to a tribunal that has protected the lazy, the incompetent and, in many cases, the downright dishonest? I was interested to read in today’s Australian a headline that said ‘Unions, ALP clash on sack laws’. The article said:
Kevin Rudd looks headed for a union brawl over Labor’s policy on unfair dismissal laws, with ACTU secretary Greg Combet and other senior officials bluntly rejecting any exceptions to help small-business employers.
It appears, therefore, that the member for Lalor has been overruled by her union masters. The Leader of the Opposition and the member for Lalor make out that it is the Kev and Julia show. But in fact what the voters will get is not Kev and Julia; they are going to get Greg and Sharon. That is the real team they are actually voting for: Greg and Sharon.
When we operate in an increasingly competitive global environment, firms have to innovate just to keep up, and they have to innovate a great deal if they are going to prosper and grow. A major part of firms being able to innovate is Australian workplace agreements. Why is it, then, that the Australian Labor Party oppose one of the key drivers in one of the sectors that is a clear driver in our economy—that is, the mining sector? We have had the member for Lilley and the member for Lalor attributing our economic prosperity to that one sector, yet a major element of that sector is Australian workplace agreements, the sorts of agreements that they want to wind back. They want to wind back the sorts of productivity gains that Australian workplace agreements have been able to yield for the mining industry.
I want to return to unfair dismissals for a moment. A lot of figures have been quoted by various entities and authorities, and it is interesting to note what the World Bank has said about unfair dismissal regimes. It said:
Heavy regulation of unfair dismissal is associated with more unemployment. Flexible labour markets by contrast provide job opportunities for more people, ensuring the best worker is found for each job; productivity rises—
and I repeat that: productivity rises—
as do wages and output.
So we see the World Bank saying that a more flexible unfair dismissal regime results in improved productivity and improved wages and outcomes. So, if the Labor Party are serious about improving productivity, they will get behind the government. They will say to their union masters, ‘Look, it’s not on. We want to support the government’s position of maintaining a flexible workplace relations regime,’ and they will promise not to reintroduce those destructive unfair dismissal laws.
There is another major factor in the issue of productivity—that is, this government has brought into the workforce a huge number of long-term unemployed. The number of long-term unemployed has declined by 54 per cent, to around 90,000. Some 107,000 long-term unemployed are now in the workforce. They are now contributing and have been given a chance to excel. They have now been given a chance to be the masters of their own destinies and to better themselves. Quite clearly, as you bring new workers into the workforce, there are issues relating to upskilling and learning new tasks. So I think the issue is that we are mobilising a huge cohort of the labour market which was previously not included in the labour market, which was not available or not actually participating in the workplace. It is good economic management and it is sound social policy. The quality of life that comes from having a job cannot be underestimated, and the positive impacts on our society cannot be underestimated.
Turning now to the issue of education, the Leader of the Opposition and the Australian Labor Party have been saying a lot about education, but there are a number of factors that I find interesting. I think a very important point is that there can be no greater way of improving the quality of education than by improving the quality of our teachers. The stronger the quality of our teaching staff, the better the quality of the education outcomes that we can achieve.
It was interesting to read in the Australian of 5 February an article entitled ‘School heads unable to pick the best teachers’. The article by Lisa Macnamara refers to a paper called, ‘Teachers and the waiting game’, by Jenny Buckingham. She states:
Incompetent teachers are being shuffled between schools rather than being sacked, while many new graduates are being put in charge of the most difficult students.
And principals have little say in fixing the problem because they have little control over who they can hire and fire ...
So we have the Education Union driving this regime in which you have the most incompetent teachers being able to stay in the system, and it is difficult to get rid of them. It is a regime supported by the trade union movement and by the Australian Labor Party. They should stand up to the education unions and say, ‘If you’re serious about education quality and education outcomes, you will allow principals to get rid of that dead wood, get rid of those teachers who are disinterested in their classes and get rid of those teachers who are holding back the performance of schools who have many dedicated teachers in them,’ and we would achieve a much higher standard. So it is very simple to criticise but you are not willing to take those steps that could make some real and practical improvement.
I would like to comment also on the Australian technical college initiative—$456 million has been invested in Australian technical colleges. This is a tremendous initiative. There is also the Skills for the Future package—a range of measures that includes allowing older Australians to take up an apprenticeship, mobilising people who have work experience and upskilling them through apprenticeships. We have business skills vouchers, work skills vouchers, extra engineering places at universities and incentives for higher technical skills. There are a range of measures for skilling Australia’s future that will be great for the country into the future and that are going to produce quality productivity outcomes. (Time expired)
I am delighted to be able to speak on this MPI, parts of which go to economic performance and productivity. I would like to speak, if I could, on the economic messages that are being given regarding three separate issues. I also want to implore the government to look at sending out consistent messages regarding a few areas. Renewable fuels is the first area from which I believe a mixed message is being sent. In the last six months, we have seen a conversion, in a sense, to the belief that the world does have some emissions problems and some global warming problems and that we have to look at what we are doing about fine particle emissions in our cities in terms of our fuel system.
However, we have a rather ridiculous system of taxing oil based products, currently at the rate of 39c a litre, on top of which there is the application of the GST. If we believe the rhetoric, we now have a government supposedly—I do not think it is doing it terribly much in a practical sense because I think it is very much governed by the fuel companies—encouraging industry to attempt to address some of these particular issues. But we still have a taxation structure that in 2011 will actually tax renewable fuels.
Argument has been had in this parliament that we should not subsidise renewable fuels—and I just cannot believe that, particularly given what is happening in other parts of the world—but to go one step worse than that is to leave in place a taxation regime while in the same breath saying to industry, ‘We are trying to encourage you to go to renewable energy for a whole range of good reasons.’ That is the first message. Obviously, ethanol and biofuels industries can promote enormous productivity in regional communities through investment, job creation, grain prices, various health aspects et cetera. So there are real economic benefits as well as other benefits to be gained by sending the correct messages in relation to renewable fuels.
Small business is the second area from which I believe mixed messages are being sent. We have just had a speaker talking about unfair dismissal, but we have an extraordinary set of the circumstances out there where the definition of ‘small business’ depends on which policy area we are talking about. I was a great supporter of unfair dismissal when the government talked about ‘small business’ being defined by ‘up to 20’ employees. I think on 40 occasions or whatever it was over the years it remained at 20 but, with the new legislation, it shifted and the government extended it to 100. That is fair enough. The government had the numbers to do that. But when exceptional circumstance arrangements were put in place, all of a sudden the definition of ‘small business’ was reduced to 20 employees. I think we have to have some consistency in messages that are given. Is a small business 100 or 20 employees, or does it vary from day-to-day depending on whether the budgetary outlays are suitable or the agenda that the government is trying to embrace is the correct one?
The third area from where some dreadful mixed messages are coming particularly concerns the Prime Minister’s 10-point plan in which he is trying to remove the problems of state boundaries from the water reform process. As part of that process, $3 billion is being allocated to the overallocation issue. Apparently, there has been an overallocation of 3,000 gigalitres—no-one has actually explained how that spend goes—in the system, and the government is going to use some of that money to reacquire overallocation. We have an extraordinary example of inconsistency at the New South Wales level in the groundwater area, where the government has gone through that process, embracing the states and embracing the irrigators while still operating a system where it will tax the compensation paid to those people who voluntarily relinquish part of their allocation; it will tax it as income in the year of receipt rather than treat it as the loss of a capital asset.
I make those three points. There has to be some consistency in those areas. If we are serious about economic performance and sending the right messages about productivity, real things need to happen on the ground. Those real things must be based around the consistency of the message; otherwise, we just get a politicised economic policy that comes and goes and has no consistency for those who are trying to operate their businesses under those platforms. (Time expired)
I am certainly pleased to rise in rebuttal to the very weak attempt that Labor made in this afternoon’s matter of public importance. The central assertion made by the Labor Party this afternoon was that in some way this government has failed the people of Australia in recognising, apparently, according to the Australian Labor Party, the declining productivity growth in the economy and that education and skills training play a key role in reinvigorating productivity growth and securing future prosperity. Of all the political parties to lecture this chamber about the importance of investing in education and of securing future prosperity, you would have to say that the Labor Party would take the cake in terms of being the very last people who should come in and speak to this issue.
Let us look at the future prosperity that 13 years of Labor delivered to the Australian people. The central element of its argument is that we need to secure future prosperity. If the Labor Party is so good at it, let us look at what it left. We know that the Australian Labor Party secured Australia’s future prosperity between 1983 and 1996 by leaving a $95 billion black hole in the Australian budget. That was the debt that was left by the Australian Labor Party. We know that the Australian Labor Party believed so much in skilling and training young Australians that it consigned about 25 per cent of those under the age of 25 to the unemployment scrap heap. That is the legacy of the Australian Labor Party. That is the way it secured future prosperity. Do you know what, Mr Deputy Speaker? Obviously, the Labor Party believes so much in training that it prefers you to be in training than in a job. The sad reality is that that is the legacy that the Australian Labor Party left to the people of Australia.
Under this government we saw just a couple of days ago the unemployment rate in this country reach the lowest level for 32 years. If we want to talk in a very serious sense about securing Australia’s future prosperity, we know there is no better anchor for someone’s future prosperity than knowing they will have a job or the opportunity to secure a job when they finish their training course, school education, TAFE course or university education. That is the kind of anchor that young Australians want to have going into the future. That is the kind of anchor that they want a government at a Commonwealth level to deliver for them, not the kinds of words and empty rhetoric that we heard spewing forth from opposition members this afternoon. That is not future prosperity; that is empty rhetoric. We hear it time and time again from the Australian Labor Party.
When you look at actually delivering, when you are talking about investment in skills education and when you talk about investment in schools, what is the track record of this government? Again, the contrast could not be more clear. What we know is that, in 1996, after this government was elected and the Labor Party left their 13-year legacy, we saw interest on government debt reach $8.4 billion. Investment in hospitals and schools was at $9.1 billion and assistance to families with children was at $14.4 billion.
Order! The time allotted for the debate on the matter of public importance has expired. The debate is concluded.
I present the report of the Selection Committee relating to the consideration of committee and delegation reports and private members business on Monday, 26 February 2007. The report will be printed in today’s Hansard and the items accorded priority for debate will be published in the Notice Paper for the next sitting.
The report reads as follows—
Report relating to the consideration of committee and delegation reports and private Members’ business on Monday, 26 February 2007
Pursuant to standing order 222, the Selection Committee has determined the order of precedence and times to be allotted for consideration of committee and delegation reports and private Members’ business on Monday, 26 February 2007. The order of precedence and the allotments of time determined by the Committee are as follows:
COMMITTEE AND DELEGATION REPORTS
Presentation and statements
1 STANDING COMMITTEE ON EDUCATION AND VOCATIONAL TRAINING
Teacher education
The Committee determined that statements on the report may be made—all statements to conclude by 12:40pm
Speech time limits—
Each Member—5 minutes.
[Minimum number of proposed Members speaking = 2 x 5 mins]
2 STANDING COMMITTEE ON AGRICULTURE, FISHERIES AND FORESTRY
Report of an inquiry into rural skills training and research
The Committee determined that statements on the report may be made—all statements to conclude by 12:50pm
Speech time limits—
Each Member—5 minutes.
[Minimum number of proposed Members speaking = 2 x 5 mins]
PRIVATE MEMBERS’ BUSINESS
Order of precedence
Notices
1 Mr Bartlett to move:
That the House:
Time allotted—20 minutes.
Speech time limits—
Mover of motion—5 minutes.
First Opposition Member speaking—5 minutes.
Other Members—5 minutes each.
[Minimum number of proposed Members speaking = 4 x 5 mins]
The Committee determined that consideration of this matter should continue on a future day.
2 Mrs Elliot to move:
That the House:
Time allotted—remaining private Members’ business time prior to 1.45 pm
Speech time limits—
Mover of motion—5 minutes.
First Government Member speaking—5 minutes.
Other Members—5 minutes each.
[Minimum number of proposed Members speaking = 6 x 5 mins]
The Committee determined that consideration
of this matter should continue on a future day.
3 Mr Cadman to move:
That the House condemns the New South Wales Government for presiding over the highest amount of State and local government taxes and charges levied on the cost of a new home and for having the largest shortfall of broad hectare land provision of any State or Territory—putting the dream of home ownership out of the reach of New South Wales families.
Time allotted—30 minutes.
Speech time limits—
Mover of motion—5 minutes.
First Opposition Member speaking—5 minutes.
Other Members—5 minutes each.
[Minimum number of proposed Members speaking = 6 x 5 mins]
The Committee determined that consideration of this matter should continue on a future day.
4 Ms K. M. Ellis to move:
That the House:
Time allotted—remaining private Members’ business time.
Speech time limits—
Mover of motion—5 minutes.
First Government Member speaking—5 minutes.
Other Members—5 minutes each.
[Minimum number of proposed Members speaking = 6 x 5 mins]
The Committee determined that consideration of this matter should continue on a future day.
Debate resumed from 7 December 2006, on motion by Mr Costello:
That this bill be now read a second time.
The House is considering a package of bills to implement changes to Australia’s superannuation system. Labor supports the Tax Laws Amendment (Simplified Superannuation) Bill 2006 and cognate bills, but I do wish to move a second reading amendment. I move:
That all words after “That” be omitted with a view to substituting the following words: “whilst not declining to give the bill a second reading, the House notes that Labor governments laid the foundation for Australia’s modern superannuation system by introducing compulsory superannuation contributions; and further, the House—
Labor support these bills. We support them for a number of reasons. First, Labor strongly support superannuation. We have championed superannuation for two decades. The reforms of the Labor government in the eighties and nineties were some of the most profound economic reforms in Australian history. Compulsory superannuation is still contributing to the economic health of our nation. That impact is compounding, just like the retirement balances of almost all employees.
In addition—and this has not been remarked upon enough in the public debate about superannuation—Labor’s superannuation guarantee has been the greatest equaliser of the distribution of wealth that this country has seen since the introduction of decent industrial relations 100 years ago. Quite literally, if we had not made superannuation comprehensive, more than half of the workforce would have no superannuation today. It would have remained the preserve of executives and the public sector rather than being the great national system we now enjoy.
Second, we support this package because it introduces measures which will help to simplify a complex system. This government cannot resist unwieldy, complex regulation. We have seen it in taxation, we have seen it in financial services reform and we have seen it in superannuation. Red tape and enormous compliance costs are the hallmarks of the Howard government. Anything that reduces the load is welcome.
Third, in this area of economic policy, we must plan for the very long term. With bipartisan support these reforms will maintain a stable and certain environment for savings and investment and retirement income planning. Fourth, Australia now boasts one of the strongest funds management industries in the world. We now have the fourth largest volume of savings under management and we are growing very strongly. We are a world leader in many aspects of financial services because of our long-term strategy in superannuation. These are high value added industries paying high salaries that are enmeshing Australia with the world’s leading economies. This will further underpin our prosperity this century.
Finally, of course, these changes will improve the retirement incomes of many Australians. However, despite the changes in this package, Labor believes that fundamental superannuation reform challenges remain. The purpose of the Australian superannuation system is to allow Australians to provide a comfortable standard of living for themselves in retirement. A strong superannuation savings system has several economic consequences. First, by encouraging people to save for their own retirement, an effective superannuation system will increase retirement incomes, thereby improving living standards in retirement. Second, these reforms will take some of the pressure of the ageing of our population off future budgets. As the Australian population ages, a super system that provides adequate incomes in retirement will ease financial pressure and ensure that we can continue to deliver budget surpluses and lock in our economic prosperity. This is consistent with Labor’s budget rules, the first of which is that Labor will keep the budget in surplus on average over the course of the economic cycle.
A large and growing pool of superannuation savings has supported the growth of Australian equity markets, boosting returns for investors through both superannuation and other investment vehicles. This in turn has increased the attractiveness of superannuation as an investment. The total pool of superannuation funds under management is large and it is growing. APRA reported in September last year that total funds under management reached $945.6 billion. On one projection, which assumes average annual earnings of eight per cent, that tally will reach $1.8 trillion by 2011 and then $3.3 trillion by 2017.
There are important economic consequences which flow from this enormous accumulation of savings. In the long run, as Australian superannuation assets continue to grow, we will increasingly export our capital, with Australian superannuation funds investing directly in overseas assets and through foreign debt and equity markets. In some ways it is disappointing that the funds of Australian workers are going offshore for want of Australian projects to invest in. However, it also demonstrates Australia’s financial maturity and economic power as we invest globally to secure future prosperity.
The fact that superannuation funds today hold assets equivalent to 95 per cent of GDP proves that Labor is the real party of wealth creation. Only Labor had the foresight to introduce a superannuation system that would underpin the retirement incomes of Australian families and provide a valued source of capital for Australian businesses. Along with the microeconomic reforms of the eighties and nineties, superannuation was one of the reforms that turbocharged the Australian economy and led to the prosperity we enjoy today. More than anything else, we must recapture that reforming zeal and embrace a new productivity agenda.
Labor introduced compulsory superannuation in exchange for wage restraint as part of its historic accord with the Australian workers. In the process, Labor built superannuation into the remuneration package of every Australian employee. That is a wealth-creating legacy that Labor is very proud of. At a time when households face the burden of the highest ratio of interest payments to household income in Australia’s history, the contribution of superannuation savings to Australian households’ balance sheets is very welcome. As I said previously, it is a great vehicle for fairness, for spreading the prosperity of economic reform through the whole community rather than to just a select few.
Australia’s retirement income system is based on three pillars—the government age pension, indexed to male total average weekly earnings and means tested, the compulsory nine per cent superannuation guarantee and additional voluntary superannuation contributions underwritten by a range of incentives. These pillars were in the main introduced by Labor governments. These are widely recognised internationally as best practice retirement incomes policy—a fair, affordable system for ensuring dignity in retirement and buttressing our economic performance as well.
I watch with amusement as the Treasurer, desperate to find an economic reform legacy that is not merely a new tax, claims authorship of the superannuation system. The inescapable fact is that he opposed this system. He has called these changes ‘the biggest reform to superannuation that Australia has ever seen’. That comment has no credibility with the industry or with commentators. It is just as he claims credit for the independence of the Reserve Bank. In fact, both Australia’s system of compulsory superannuation and the independence of the Reserve Bank were initiatives of Labor governments, as any economist will attest.
The coalition’s record on superannuation is poor. Those opposite maintained that pension means testing, the initial three per cent compulsory superannuation of 1987 and the nine per cent superannuation guarantee bills of 1992 would be disastrous for both individuals and the economy. That is their record. To their eternal shame they did everything they could to defeat the nine per cent superannuation guarantee, including voting against it in both houses of parliament. So let us get the record on that straight. Indeed, both the Treasurer and the Prime Minister were among the chief critics of Labor’s reforms.
The Treasurer has displayed a very erratic approach to superannuation policy. He broke the then Liberal opposition’s 1995 pledge to maintain Labor’s three per cent matching government co-contribution to take contributions to 15 per cent, introducing the failed savings rebate, which had only operated for six weeks when he announced its abolition. The Treasurer also introduced a so-called superannuation contributions surcharge, which was a tax on certain superannuation contributions, usually employer and personal deductible contributions, of up to 15 per cent—another broken election promise. Then the Treasurer deemed superannuation holdings as an asset for social security purposes prior to the age of 65. These are just a few examples of the Treasurer’s and his government’s lack of long-term vision for such a fundamental part of our economic infrastructure. Despite all of that, Labor has had to put up with the Assistant Treasurer’s bizarre fortnightly taunts designed to goad Labor into a rushed response to these complex changes.
I am keen to draw to the House’s attention the fact that debate on these bills is hindered by a lack of information. As is increasingly common now, the Treasurer failed to provide detailed costings of these policies or estimates of the numbers of people affected by them, despite our repeated requests. Indeed, the scant costing was upgraded by almost half a billion dollars when some finetuning was announced after the original announcement. I am informed that the government is resisting a freedom of information application for the long-term forecasts of superannuation tax revenue. If the Treasurer is so keen to prove his economic management credentials, there is no reason for him to refuse access to that information.
I want to turn to some of the measures in the bill. The primary change in this package is that from 1 July 2007 superannuation benefits paid from a tax fund either as a lump sum or as an income stream such as a pension will be tax free for people aged 60 and over. Benefits paid from an untaxed scheme, mainly affecting public servants, will still be taxed, although at a lower rate than they are now for people aged 60 and over. Reasonable benefit limits, known as RBLs, will be abolished. Individuals will have greater flexibility as to how and when to draw down their superannuation in retirement. Under the current rules, funds are forced to pay out the benefits of members who have reached age 65 and who do not meet a work test. Under these changes, superannuation funds are no longer forced to pay benefits.
The concessional tax treatment of superannuation contributions and earnings will remain. Age based restrictions limiting tax deductible—that is, concessional—superannuation contributions will be replaced with a new set of rules. The self-employed will be able to claim a full deduction for their superannuation contributions as well as being eligible for the government co-contribution for their after-tax contributions. The tax exemption for invalidity payments will also be extended to the self-employed. The ability to make deductible superannuation contributions will be extended to age 75. It will be easier for people to find and transfer their superannuation between funds.
To further increase the incentives to save for retirement, from 20 September 2007 the pension assets test taper rate will be halved to $1.50 per fortnight for every $1,000 of assets above the assets test free area—a welcome initiative. The superannuation preservation age will not change. The preservation age is already legislated to increase from 55 to 60 between the years 2015 and 2025. People will still be able to access superannuation benefits before the age of 60, although they will not be taxed on their benefits under new simplified rules.
I turn now to some of the impacts of this package. The total cost of the package is $7.2 billion over the next four financial years. The beneficiaries of the tax-free treatment will be those Australians who have, or will have, $136,000 indexed, or more, in super. For Australians with substantial retirement savings, this package will provide welcome additional retirement income. At present, neither exit tax nor, in most cases, income tax apply to individuals below the level of super savings. But research from the National Centre for Social and Economic Modelling showed that, in 2004, for baby boomers aged 45 to 60, the average man had $87,000 and the average woman had just $35,000 in super savings, with median retirement savings of just $30,700 and $8,000 respectively.
This means that some baby boomer battlers retiring now will receive little or no tax relief. They will need more than $136,000 in retirement savings to benefit from the tax-free treatment this package provides. The government’s discussion paper released with the budget last year confirms this point, showing that there is no tax benefit for those retiring now aged 65 with $100,000 in super, and a tax saving of just $2,272 for those with $150,000. Of course, those retiring in the future will receive a substantial benefit from these measures.
The measures in this package, which both expand and rationalise incentives for small business by applying the same rules and including them in the voluntary co-contribution scheme, are welcome. These changes will assist people in this vital and growing sector of our economy. It should be noted that the loss to revenue from the new tax treatment and co-contribution will amount to $4.2 billion of the estimated $7.2 billion cost of the package over four years. That means the government is putting just over $1 billion extra each year into superannuation. Combined with a further $1 billion each year from existing voluntary co-contributions, a total injection of some $2 billion a year extra into super has been provided by the government.
This incentive approach is likely to see ongoing additional voluntary contributions of $2 billion to $3 billion a year. This is important for setting up Australians with decent retirement incomes. But the new flows to super are put starkly in the shade when they are compared to Labor’s compulsory nine per cent superannuation guarantee, which delivers some $65 billion every year. Credit for that achievement should be given to the far-sighted Hawke and Keating Labor governments, which introduced our modern Australian superannuation system. It is because of the strong foundation they established that our retirement income system is recognised by the World Bank as global best practice.
My colleague in the other chamber Senator Nick Sherry has noted one area of particular concern in these changes: namely, the new higher tax—at a rate of 46.5 per cent rather than 15 per cent—which will apply to contributions where an employer has failed to provide their employee’s tax file number. The Senate Economics Committee looked carefully at this issue in their hearings on these bills. The exemption rate below which this new tax will not apply is $1,000 a year, representing an annual income of just $10,000. It should be set higher; otherwise, hundreds of thousands of battlers will face a higher tax rate. That was the unanimous recommendation of the committee. The committee also made further unanimous recommendations in areas such as defence force disability pensions and income tax treatment of non-super income for public servants over the age of 60. I note the committee’s recommendations.
I referred earlier to fundamental challenges that still face our superannuation system. Labor has announced a range of policies to improve the super system. They include a combined pension superannuation forecast in a simple standard format. Under this system, 10 million Australians will, for the first time, receive critical information that will enable them to plan their savings well ahead. For example, a 25-year-old will get an estimate of likely retirement income at age 60 and 65. It is based on the example of similar systems in Sweden and the United Kingdom which show a higher level of contributions, particularly among young people.
Labor also proposes a clearing house that employers may use to solve the new compliance burden which arose with the government’s choice-of-fund regime. A clearing house will allow the employer to pay all contributions to a central distribution point, with employees registering their choice of super fund with that central point only once. This removes the up to 36 decision-making steps and much of the bother of repeated form-filling and processing imposed by the government’s ‘choice’ regime.
Labor will allow employer processing of additional contributions where such contributions are authorised by an employee. Labor will ensure the nine per cent superannuation guarantee contribution is based on pre-salary-sacrifice salary and wages.
Labor will implement automatic consolidation of inactive lost accounts, which now number 5.7 million and hold almost $10 billion. Lost super has skyrocketed over the last 10 years, and these bills contain the government’s fourth attempt to address this major structural failure—a ‘send-out-a-form’ approach. This measure will help, but it is not the fundamental solution that Labor policy would provide. Many people lose contact with their account and never collect their savings. Fees and charges can erode final retirement income. The administration of lost accounts imposes an additional cost. Under Labor’s plan, the tax file number will be used annually to automatically transfer lost accounts into the current or last active account. Under the plan, individuals will have the opportunity to opt out, and automatic consolidation will not apply to defined benefit schemes.
Exit fees are another barrier to consolidation. Labor will prospectively prohibit excessive exit fees, while permitting an administrative transfer fee.
As well as those measures, Labor will ensure that financial disclosure documents are simplified and standardised. The implementation of financial services reform—with two so-called ‘refinements’ to date—has resulted in complex super fund offer documents that often run to 50 or 100 pages. Such documents are often unreadable and they have imposed a significant cost and compliance burden on industry and consumers. Disclosure documents that are unreadable may do more harm than good. This is another example of the Liberal government’s red tape and policy failure. Labor will be announcing further measures to reduce regulatory red tape and improve consumer awareness and incentives to save.
One of the most enduring benefits of compulsory superannuation has been its impact on financial literacy within the community. Many more people are now interested in finance and savings than two decades ago. More Australians are investors—both retirees and those still in the workforce—and our nation’s wealth is higher as a result. This has also led to a revolution and great expansion in the financial advice industry. Labor recognises the value of advice; it can quite often make the world of difference to someone’s standard of living in retirement. As someone famous once remarked, we do not plan to fail, we simply fail to plan. I think this is true in investment matters as well as many other areas of life. I am very conscious of the value that good advice can offer, and that the regulation of advice needs to be effective and appropriate—rather than counterproductive, as has been some of the experience of the industry in recent years. I am committed to ensuring that the excessive red-tape burden on the industry is removed and I call on the government to finalise the FSR streamlining process which has now dragged on for years.
As I indicated at the start of my speech, Labor supports these bills. They provide an improved retirement income for many in the Australian system and they are a welcome boost to simplicity. But by implementing the additional policies I have referred to, a Rudd Labor government will build on the foundations of two of Labor’s great policy achievements—the age pension and compulsory superannuation—to further improve the retirement income security of all Australians.
Is the amendment seconded?
I second the motion and reserve my right to speak.
I am pleased to speak on this very important Tax Laws Amendment (Simplified Superannuation) Bill 2006, which I know the constituents of the Ryan electorate, which I very proudly represent in this parliament, will have a deep and abiding interest in. I am pleased to hear from the shadow Treasurer that his party also supports this government bill. I certainly look forward to hearing more detail from him and his colleagues on superannuation, which is of course part of the overall economic security of Australians. He talked about wealth creation and wealth security for Australians. That was somewhat hypocritical because Australians in this country today under the Howard government have far more economic security and are far more secure in their family lives and in their financial futures than they have ever been under any Labor government. I would certainly prefer to have the current administration running the policies of this country than the opposition.
The important thing that this bill raises is economic security for Australians. As I said, part of that economic security is people’s superannuation, because we are living in a time when people are living longer and they want their future financial security to be assured. This government is very keen to ensure that Australians have financial security into their old age. The changes that this bill brings to our superannuation architecture are very important.
Australia’s superannuation pool is set to hit the $1 trillion mark some time in the next few months. This is very welcome. I think it is important that credit is given where it is due. All members on this side of the chamber acknowledge that the superannuation initiative came from the Labor Party when it was in government. But the disappointing aspect of all this is that the Labor Party does not support the Howard government when it comes up with good policy and good initiatives. That is a reflection of the thinking of the current Labor Party.
We do not want to rest on our laurels about the superannuation pool and structure; we want to improve it and ensure that Australians embrace superannuation as the best way to protect their future. That is why the Howard government is very keen to continue reforms and continue to bring in policies that will really make a difference.
The shadow Treasurer was talking about how his side of politics should claim all the credit. None other than a former Labor minister has praised the Howard government and the Treasurer for the bold initiatives that it is bringing into policy and legislation. I think it is very important that we tell Australians when a former Labor minister responsible for the area of superannuation gives huge points to the Treasurer and the government for bringing in bold superannuation initiatives and not let that go unnoticed. I certainly do not want it to go unnoticed here in the parliament and leave my constituents in Ryan out of the loop on what the two sides of politics think about superannuation policy. In an article in the Australian in May 2006 former federal Labor minister Susan Ryan talks about the differences between the government’s superannuation ideas and policies and those of Labor. It is very instructive and telling. I would like to quote from this article because I think it is very relevant—certainly it is for Ryan taxpayers. I quote:
Where does the plan leave Labor? Not scrabbling around in the stale detail of yesterday’s policies, I hope.
Big challenges remain: helping the low-paid to save enough for the tax-free stage to matter, or finding ways to compensate women for super lost from years out of paid work caring for families. Maybe faced with the Treasurer’s bold gazumping of Labor’s cherished but slightly shabby super property, the Opposition will find the resolve to get another big picture worked out, and the wherewithal to let voters know about it.
They certainly have not done that. They do not have any ideas at all about superannuation in 2007 and about letting the voters know about it. It is important in this country that we encourage a culture of saving. It is important that we inform young Australians in particular that it is important to keep one eye on the future because there will come a time when they will need resources at a latter stage of their lives.
The reforms are the biggest changes to happen to superannuation for two decades. There is absolutely no doubt about that. As I said, the former Labor minister Susan Ryan endorses that view. I know that the opposition do not agree with that, but of course they would not in their current position. It is expected that these reforms will impact over 10 million Australians, 1.3 million employers and more than 310,000 superannuation funds.
The proposed changes were outlined in the working paper ‘A plan to simplify and streamline superannuation’ which was released as part of the budget. Following the release of that working paper, the government received over 1,500 written submissions and more than 3,500 phone calls from the community with comments and suggestions about the reforms and the transitional arrangements. Together, the reforms and the transitional arrangements represent a massive $7.2 billion investment by the federal government to simplify and streamline Australia’s superannuation system.
The complexities of the old superannuation system were staggering. I will give an example of the circumstances in which an Australian, maybe in the latter stages of their life, was meant to digest the complexity of the superannuation architecture as it existed. I will use the words of the Treasurer in his address to the National Press Club in May 2006 because they are helpful in explaining how difficult it is for an older Australian to comprehend the complexity of superannuation:
If you have a pre July ’83 contribution, 5 per cent is taxed at marginal tax rate. If you have a concessional contribution 5 per cent is taxed at marginal tax rate. If it’s an undeducted contribution that part is exempt. For invalidity post June of 1994 that part is exempt. If it’s a capital gains tax roll in that part is exempt. If it’s non-qualifying, that part is taxed at marginal rates. If it’s post June of 1983 you have a threshold and if it’s excessive it’s 38 per cent.
For everyday Australians, facing this sort of scenario in handling their superannuation portfolio really is too much. I am delighted that the government is taking this very bold initiative to redress the complexity in our superannuation architecture. It is that kind of complexity which diminishes Australians’ overall confidence in our superannuation system’s ability to provide for them adequately in their retirement.
Following these reforms, the sort of circumstance I just touched on will be abolished and replaced with one simple rule—that is, if you are over 60, whether you access your superannuation as a pension or as a lump sum, you will pay no tax. Not only will this reduce complexity but the government estimates it will boost an average weekly retirement income of $1,000 by $170. The changes will reduce complexity not only for retirees but also for superannuation funds and employers. I would trust that any drop in administrative costs experienced by the superannuation industry would be transferred to the consumer through a lessening of the administrative fees they charge, because we know that the superannuation industry is swimming in almost $1 trillion of funds.
Where previously a person’s superannuation benefits had to be paid out when that person reached 65 and was no longer gainfully employed, those sections of the legislation will be repealed under this bill and the person will now have the option to leave their benefits in their superannuation fund indefinitely, withdrawing as much or as little as they choose at any time after their preservation age. In order to minimise the risk of people abusing these very generous reforms, restrictions will still apply to the amount someone can place in their superannuation fund as a tax deductible contribution. However, the limits will be simpler and fairer with the old cumbersome age limits scrapped in favour of one single limit of $50,000 per annum in pre-tax contributions and $150,000 per annum in post-tax contributions. Not only will this negate the risk of people abusing the system as a tax haven, it will also enable younger Australians to save more and save earlier by removing the $15,000-plus contribution limit for under 35s.
It really is important that all of us encourage younger Australians in our electorates to consider their financial position and the amount of money they can put into their superannuation funds. Clearly young people have been amongst the biggest winners from these sweeping changes to superannuation unveiled in the budget, with the abolition of the age based limits on deductible super contributions from 1 July 2007. It certainly does make super far more attractive to generations X and Y and, in particular, to those in self-employment who have the capacity to invest in their superannuation schemes.
On this side of the House, the small business constituency is a very high priority. I only wish that those opposite would share our view and our philosophy of giving more attention to and showing more affection for the small businesses of our country.
Mr Hatton interjecting
I notice the honourable member for Blaxland is sitting opposite. He is probably one of the very few members on the Labor side who might pay attention to small businesses in his constituency, as perhaps would the shadow minister for immigration at the table, the member for Watson, but I am not sure that they really do have the affection for small business that we do. They probably tolerate small businesses but we are the ones who love small businesses. On this side of the House we have a very deep affection for small business. I doubt very much that anyone in the small business community across the length and breadth of this great country would change their view on that, especially when it comes to economic security and the good policy that keeps the businesses of this country profitable.
We all know that small businesses account for some 95 per cent of businesses in Australia. They employ some 3.3 million people and account for 30 per cent, or over $300 billion, of Australia’s GDP—no small amount. It needs to be said again to those who try to diminish the achievements of the Howard government that 1.9 million new jobs have been created since 1996, when the Howard government came to office, because of the policies we have introduced, which are all about enterprise and all about innovation.
A lot of these Australians are self-employed. Not only are a lot of people in small businesses working in their businesses and investing in them but a lot of them have their entire lives resting in their small businesses. The link to superannuation, therefore, is absolutely vital.
One of the very shameful legacies of the pre-1996 superannuation changes is that self-employed people have often been treated as second-class citizens when it comes to saving for their future. They are a critical section of our Australian community. They are the drivers in so many ways of our prosperity and economic growth. We need to ensure that superannuation is front and centre for them as well as it is for those who are employees in companies across the country.
Under the existing system, self-employed people face a number of additional restrictions: different tax deductibility rules, which means they have to contribute more money to achieve the same tax deduction as someone who is employed; no tax deductible super contributions can be made on their behalf once they reach the age of 69; and they are not eligible for the government’s co-contribution scheme.
Under the new simplified superannuation reforms, the special restrictions on the self-employed are removed, allowing them to get a 100 per cent tax deduction for super contributions up to the new limits. I welcome this very much and I know that the small businesses of the Ryan electorate will be thrilled at this new provision. Also removed is the age limit on tax deductible super contributions. Self-employed people will be treated the same as employees and will be allowed to claim a full tax deduction up to the new limit until the age of 75. Finally, the co-contribution scheme requirements have been streamlined so that as long as a person earns over 10 per cent of their income from carrying on a business or gainful employment, and they are under the age of 71, they will be able to utilise the scheme. This will enable self-employed people to access this already generous federal government initiative.
The reforms contained in these bills will also make changes to the way superannuation companies deal with lost superannuation. As Australia’s workforce becomes more mobile and more flexible under the workplace relations regime—which we will take to the Australian people later this year and which I am sure they will endorse very strongly—there will be more cases of superannuation funds being forgotten about and not rolled over when workers change their employment or their circumstances. We will ensure that this lost superannuation, which really is a staggering amount—some $9.2 billion I understand across more than 13 million accounts—will be addressed. Under current arrangements, when a fund cannot contact a person, once they turn 65, the balance of their account is transferred into the coffers of the state in which the fund is based. This presents a number of problems when people try to reclaim the money. We want as much as possible to make it easier for Australians in these particular circumstances to be able to reclaim the money that they are entitled to.
In conclusion, I support this bill very strongly. It is very welcome in the Ryan electorate and amongst small business owners. I am pleased that the Labor Party will support it. It is about time that they supported something that was in the national interest. I do commend them for supporting it. Of course, it is very disappointing that in June last year they were not able to support us, but they have decided that it is in the interests of the wider community that they do support us. I guess it is better late than never. A month after the budget was delivered last was the time when my firstborn—young Ryan Andrew Johnson—came into this world. It is now February 2007, some 7½ months later, and it is great that the Labor Party are supporting a government bill. It is quite a while, but better late than never. I thank them for supporting a very important government initiative. I know that the good people of Ryan will be very pleased these critical bills are being supported by the federal Labor Party.
I note, following the member for Ryan, that he is the single government speaker apart from the minister in relation to the Tax Laws Amendment (Simplified Superannuation) Bill 2006 and the 10 cognate bills that are supposed to be the biggest package the government has ever delivered on super and tax. The fact that only one government member can get up and defend what the government is doing is a complete disgrace. I will note this in passing as well: despite my affection for the member for Ryan, his wife, Huyen, and his son, Ryan, the gestation period for Ryan Johnson was nine months; the gestation period for this bill is equivalent to that.
The last point that the member for Ryan made was about how long it took Labor to say anything positive about this. The actuality is that the plan for a suite of legislation in the future was outlined by the Treasurer in the last budget. The last budget was how many months ago? It was May 2006, was it not? The Treasurer boldly announced what he regarded as the greatest change in superannuation in Australia. But it was a plan for superannuation changes and not the actuality. One can have an intent or a plan for a child, in the case of Ryan Johnson, but the actual realisation of that comes about nine months later, unless there are complications and the child comes early. Here we are in February 2007. Count the months. It is about nine, I think—the same gestation as a child. Luckily it is not an elephant of a bill or we would have had an 11-month gestation period! It took from May 2006 until the Treasurer finally indicated a little while ago that we would get legislation in this area. What was he doing in the meantime?
In the budget, he trumpeted a plan to change super. He said: ‘We’ve got this plan. We want all the people affected, all the vested interests in the country, all the superannuation groups, all the companies involved in this vast industry, to comment on this plan and then we will eventually come up with’—although he never actually said it this way—‘a realised plan and then an action plan and then we might move and put a bill for an act together so that we can actually get some legislation with regard to this.’
This is extraordinary stuff. Do you know what the fundamental basis of these 11 bills is, Mr Deputy Speaker? Instead of people being taxed on the way out, they will be taxed elsewhere. They have not made a great deal about this. We have 11 bills here in a cognate debate. We have tax bills and super bills. As the member for Fraser well knows, not only because of his experience in the Senate but because of his experience as Assistant Treasurer, a job he did well and cleverly—and this is something he knew when he opened the Bankstown branch of the Taxation Office, as he knows it now—if you introduce these kinds of super changes with an impact on the tax act, you have to have two separate bills. That is the nature of our constitutional arrangements.
The person we have acting as Treasurer now, who could not come up with legislation to be announced at the last budget, came up with a plan to be determined. What have we got? Guess what: when you put money into super it is still taxed going in. When you accumulate money, it is still taxed on the way through. The only fundamental thing that they have really done here is to cut the tax on the way out. Well, whoop-de-doo. This is supposed to be the greatest change in super that we have ever seen, introduced at that dispatch box in May 2006 after 7.30 pm—I think it was about 21 minutes to eight on budget night. The Treasurer said, ‘This is the greatest and most profound thing ever done in superannuation in Australia,’ and that was entirely false. All he has done is say, ‘We won’t tax this bit,’ and make a few other changes. And he has the gall, the temerity, to say that he is really simplifying superannuation. Give me a break!
Since 1996, when the government came into power, they have complexified super. They have made it more difficult and they have come up with the dumbest series of arrangements you could imagine. They gull the public and say to people, in particular those people on lower incomes and those who came late to super: ‘Don’t worry about it. We’re going to give you choice. You can choose between these five or six or 12 different variants in relation to your super, and we think you will just love these little superannuation accounts here.’ It is like having an old passbook. This is a 19th or 20th century approach to a 21st century problem. You have your passbook account and you get the passbook stamped as you go in and you say: ‘Gee, when you have a look at it, inflation is running at 2.9 per cent per annum. What are they going to pay me? They’re going to pay me 0.8 of one per cent. That’s a bit rough. If I do my arithmetic, I think I will be 3.1 per cent behind,’ or whatever.
The Treasurer is saying to people, ‘Don’t worry about the complexity of all these other super things; you can have a retirement savings account.’ If you were really dumb, you would take what the Treasurer says and act on it. If you were uninformed, you would do that. If you were in a position where you did not know you were being taken down by a Flash Harry of a Treasurer, then you might get done.
This is a complex area. It does demand simplification, but my simplification, the Labor Party’s past simplification, actually has real dollars attached. I will tell you how many real dollars are attached to it, Mr Deputy Speaker: 65,000 million real dollars, $65 billion of superannuation investment that has come out of the pockets of ordinary working people in Australia and gone into super. This trumpeter of nothingness, this Treasurer who claims that he has remade the world, is simply riding on the back of what the Hawke and Keating governments did, riding on the back of the former member for Blaxland, who did the hard yards on this.
I am sorry, but it was almost too much for me today in question time, as it was yesterday, to have this fraud of a Treasurer saying that the fundamental changes in this area have been made by this government. That is completely and utterly ludicrous and everybody in Australia knows it. It was not easy—as the member for Fraser full knows, because he was a participant in the processes that put these changes together—to get fundamental superannuation changes made. Why? Because Australian people, love them as we do, did not want to put money into a savings account or a super account. They wanted the money in their kick.
And because John Howard opposed it.
John Howard opposed it, as the member for Fraser rightly interjects, every step of the way. The people wanted the money in their kick, in their pocket. They could not see the reason why they should go without.
I happen to know about this because, from 2 January 1985, for 11¼ years, I ran Mr Keating’s electorate office. I was intimately involved in government matters, not just at electorate office level but at a policy level as well, across a whole range of things. I know the person who constructed Labor’s superannuation program, in consultation with the Treasurer and others. He happens to be called Ken Henry, and he is the current Secretary to the Treasury, one of the greatest servants this Commonwealth parliament and the people of Australia have ever had, an extremely smart person. I discussed the innards of what we were doing with super with Ken Henry in the Treasurer’s Parliament House office as it was being constructed.
I know how difficult, indeed impossible, it was to get Australian punters to front up and say, ‘I won’t put it in my kick; I’ll actually invest this for the future.’ If it was putting it on a nag at the Sandown races or doing a bit on the Melbourne Cup, people might understand it. But when it came to saying to people, ‘We want you to voluntarily provide for your future,’ well, the reality was we tried that for three years, and guess what happened? Nothing, virtually. As much as we tried to convince, argue, debate with and cajole the Australian public to come at this, they really did not want to pick it up. So the government was forced to legislate the superannuation guarantee. And it is the nine per cent superannuation guarantee that provides $65 billion of ballast not just to the Australian superannuation industry but to the Australian economy.
I know the effect of this and I know the fundamental design. Paul Keating’s view was that there was only one way we could escape one of the great tyrannies of Australian economic history, that of being almost entirely dependent on money coming in from overseas, whether it was a case of simply attracting it through higher interest rates than were available elsewhere—and it is still a commonality for Australia that to get the investment in we have to have higher rates than the United States and Europe—or whether it was to attract investment across the board if it was not just in physical assets. The whole history of Australia is that Australians have never been able to buy the farm because we have not had the savings base to do it. That is why various Europeans, Americans and people from the Middle East have all had their go in the long line of peoples who bought into Australia and made profits. But it has not adequately returned to the Australian people.
Paul understood very clearly exactly what needed to be done. We not only needed to get Australians to help to provide for themselves for the future because the age pension simply was not going to be enough, but we had to go further. Our stock market is structured in such a way that we did not have the depth that was needed. Once you go beyond the blue chips, which were well supported, there was not the depth that was needed at the second and third tiers so that the billions of dollars, running into the trillions, that would be poured into the market through Australian superannuation would percolate to every level—so that once the blue chips were filled to capacity it would overflow in a cascade into the other areas in investment activity. Look at the drivers now. For instance, there is a Western Australian superannuation company, a government employee company, that is a part owner of Bankstown airport in my electorate. Look at the fundamental underpinning of so much of our corporate activity: it is Australian industry superannuation funds. This is ballast for the broader economy that Labor created, and that is the foundation of our current prosperity.
This Treasurer has fraudulently argued that this government has done all the hard stuff. I will just remind the House of what this Treasurer has done. Faced with the budget situation we had, Mr Keating, when he was Prime Minister, changed what was going to be a tax cut into super. We did two things with the l-a-w tax cuts which this Treasurer from this dispatch box has, time and time again, fraudulently argued that we just frittered away and did nothing with it. I will also mention in passing something else he has made claims about. The first four surpluses ever for any Commonwealth government of Australia were in the Hawke-Keating years. The member for Bennelong when he was Treasurer did not put a surplus budget in, or go anywhere near it. He left us with a $9.6 billion deficit as he exited office but he did not even have the courage to own up to that. He said it was about $4 billion and when pressed a week before the election he said it might be about $6 billion. The member for Bennelong knew full well, because he had been briefed on it, that it was in the order of $9 billion to $10 billion. This Treasurer talks about the $96 billion worth of debt that he says was Labor debt. But, Mr Deputy Speaker, if you take $9.6 billion in March 1983 and extrapolate the value from then until now, the member for Fraser, who was an assistant Treasurer and has great arithmetic abilities, would be able to tell you that that would now be in the order of $40 billion to $42 billion that would be directly attributable to John Howard, the member for Bennelong, when he was Treasurer. That broke the back of the Australian economy and it took our government to lead us out of that.
The changes made in super and the superannuation guarantee, which the member for Bennelong and others on the government side voted against time and time again, are the foundation stones of modern superannuation. And guess what? It is nine per cent because this government came to office—this coalition government that does not believe in giving a fair go to the baby boomers who started late and who will still be relatively impoverished as a result of the measures that are coming through here. They are fine for the young people, but adequate provision has not been made for the baby boomers. And guess what? The baby boomers will not be 12.6 per cent of the total cohort in Australia in terms of age versus everyone else. Guess what? It is 25 per cent. You then have a look at how you adequately provide for them. In terms of aged care, under the Hawke-Keating government there was 15 per cent growth year on year in hostel places, a dramatic change in the way in which nursing homes were dealt with and the way in which they were built and funded. There was also a dramatic change in assisting people to be in their own homes. Why? Guess what? Something that this Treasurer invented or discovered, he thought—he said he really invented it, I think, just a couple of years ago—and that is intergenerational change. The baby-boomer phenomenon means we will have a doubling of that age cohort, and they have not saved as they should have because the circumstances have changed. What did this government do on coming to office? What did this Treasurer do? He said, ‘Oh, this is l-a-w tax cuts so they’re not going to be delivered.’
Under the impressive circumstances at the time, Prime Minister Keating said this: ‘Where we were going to give these as tax cuts, we are going to do two things. One, we are going to give some tax cuts one year early—that is, half of it, the first tranche, will be delivered a year early. Second, the other half will be changed into superannuation contributions—a full three per cent extra to take it from six to nine per cent of super.’ If we had been re-elected we would not now be at nine per cent superannuation guarantee but at 15 per cent superannuation guarantee. The current federal Treasurer is just like Bob Menzies, who, in the early 1950s, ripped away £100 million of pension funds that had been put away since 1947 and put it into consolidated revenue. This Treasurer took funds that would have gone into taking us to 12 per cent and then 15 per cent superannuation guarantee—not $65 billion a year but building into the trillions of dollars of ballast for the Australian economy. That is what a farsighted, instrumental, activist government led by a clever Treasurer and then Prime Minister does.
What this bunch has done is simply take that and ride on the back of it to provide certain benefits to people who are better off. The vast majority of people in the baby-boomer class that Howard has treated as battlers will continue to battle throughout their whole time. There are other provisions here in relation to people who are 60-plus and in relation to people who are 70-plus. The current Treasurer and Prime Minister will allow these people to work longer and allow them to build up a bit more because they have not saved before, but over more than 10 years they have deprived them of the capacity to build what is really the minimum—15 per cent superannuation guarantee. Instead of this we have an expensive set of bills which do more for those people who already have rather than for those who were not compelled to save beyond the nine per cent.
We will support this going through, and I will support our amendments in relation to it. But it is a travesty of the first order that a Treasurer of the Commonwealth of Australia can so lazily claim that this is such a magnificent achievement when it is in fact a total repudiation of the needs of the Australian people. (Time expired)
I will start by saying what an excruciating speech that was from the member for Blaxland. Anybody who looks at that contribution should check the facts of history to realise just what a misrepresentation and fraud it was to present history in relation to superannuation in this country in such a way. In the true tradition of, certainly, his immediate predecessor he is operating in some sort of fantasy world where they misrepresent their own gains. Really, if we are talking about a debate on economic matters, they brought this country to its knees—particularly those in small business and those who had mortgages. For his contribution today he brings shame on himself, and it is a recognition that the Labor Party are completely unable to continue as an alternative government of this country. They are economically irresponsible and they would inflict on small business in this country the same pain that they did through the 1990s.
To those other members who have contributed constructively to the debate on the Tax Laws Amendment (Simplified Superannuation) Bill 2006 and related bills, I thank them for their contributions. These bills are important bills for the House to consider at this time. Simplified superannuation is a broad ranging suite of reforms to superannuation taxation, the age pension assets test, superannuation contribution rules and superannuation payment rules. The centrepiece of the reforms is making superannuation benefits tax free if paid from a taxed fund to Australians aged 60 or over.
Other key aspects of the reforms are: to significantly lower the tax paid on superannuation from an untaxed fund for people aged 60 and over; to replace age based limits with streamlined contribution rules; to improve contribution incentives for the self-employed, including extending the highly successful government co-contribution scheme to the self-employed; to halve the assets test taper rate; and to rewrite the superannuation taxation law to present a clearer picture of superannuation taxation and reduce compliance costs and the regulatory burden faced by business and other taxpayers.
I welcome the belated support of the ALP for these bills, as indicated by the member for Lilley. The member for Lilley raised the issue of tax file number quotation and liability for excess tax where someone fails to quote their tax file number. The requirement for members to quote tax file numbers to their superannuation fund is critical to the integrity of the new superannuation system and to the enforcement of the contribution caps. This has been acknowledged by the superannuation industry and is one of the key trade-offs associated with the removal of end benefits tax and reasonable benefit limits. Without tax file numbers there would be scope for significant abuse of the superannuation caps and for people to access unlimited superannuation concessions. The liability for additional tax as a result of the failure to quote a tax file number is entirely avoidable and the government strongly encourages all individuals to provide their tax file number to their superannuation fund. Increased provision of tax file numbers will also greatly reduce the number of lost superannuation accounts.
These bills implement the most significant reforms to the taxation of superannuation in our country’s history. They will sweep away the current raft of complex tax arrangements that apply to superannuation, improve incentives to save, increase retirement incomes and strengthen incentives for older Australians to stay in the workforce. This is the latest demonstration by this government to show that we are more capable than ever of continuing wise economic management of this economy to make sure that in the time of an ageing population we continue to put the interests of the economy first to make sure that we have retirements enjoyed by more people than ever before, and certainly more than ever would have been the case under the Labor Party.
We have been able to implement this policy because of sound economic management over the last 10 years. We have been able to afford this policy because we have repaid Labor’s $96 billion debt. Never forget the $10 billion a year in interest that went towards servicing that debt, and whilst ever we continued to service that Labor debt we would never have been able to afford these sorts of policies. This policy is evidence again that the coalition is much stronger in terms of its capacity to deliver economic management to this country and at this time, with the threats both internationally and domestically that lie ahead for the Australian economy, this shows that the Australian people have again made the wise choice. As a package, the simplified superannuation bills represent a substantial investment by the government in the standard of living of Australians in retirement and the country’s future economic prosperity. For those reasons I commend these bills to the House.
The original question was that this bill be now read a second time. To this the honourable member for Lilley has moved as an amendment that all words after ‘That’ be omitted with a view to substituting other words. The question now is that the words proposed to be omitted stand part of the question.
Question agreed to.
Original question agreed to.
Bill read a second time.
Message from the Governor-General recommending appropriation announced.
by leave—I move:
That this bill be now read a third time.
Question agreed to.
Bill read a third time.
Debate resumed from 7 December 2006, on motion by Mr Costello:
That this bill be now read a second time.
Question agreed to.
Bill read a second time.
by leave—I move:
That this bill be now read a third time.
Question agreed to.
Bill read a third time.
Debate resumed from 7 December 2006, on motion by Mr Costello:
That this bill be now read a second time.
Question agreed to.
Bill read a second time.
by leave—I move:
That this bill be now read a third time.
Question agreed to.
Bill read a third time.
Debate resumed from 7 December 2006, on motion by Mr Costello:
That this bill be now read a second time.
Question agreed to.
Bill read a second time.
by leave—I move:
That this bill be now read a third time.
Question agreed to.
Bill read a third time.
Debate resumed from 7 December 2006, on motion by Mr Costello:
That this bill be now read a second time.
Question agreed to.
Bill read a second time.
by leave—I move:
That this bill be now read a third time.
Question agreed to.
Bill read a third time.
Debate resumed from 7 December 2006, on motion by Mr Costello:
That this bill be now read a second time.
Question agreed to.
Bill read a second time.
by leave—I move:
That this bill be now read a third time.
Question agreed to.
Bill read a third time.
Debate resumed from 7 December 2006, on motion by Mr Costello:
That this bill be now read a second time.
Question agreed to.
Bill read a second time.
by leave—I move:
That this bill be now read a third time.
Question agreed to.
Bill read a third time.
Debate resumed from 7 December 2006, on motion by Mr Costello:
That this bill be now read a second time.
Question agreed to.
Bill read a second time.
by leave—I move:
That this bill be now read a third time.
Question agreed to.
Bill read a third time.
Debate resumed from 7 December 2006, on motion by Mr Costello:
That this bill be now read a second time.
Question agreed to.
Bill read a second time.
by leave—I move:
That this bill be now read a third time.
Question agreed to.
Bill read a third time.
Debate resumed from 7 December 2006, on motion by Mr Costello:
That this bill be now read a second time.
Question agreed to.
Bill read a second time.
by leave—I move:
That this bill be now read a third time.
Question agreed to.
Bill read a third time.
Debate resumed from 7 December 2006, on motion by Mr Costello:
That this bill be now read a second time.
Question agreed to.
Bill read a second time.
by leave—I move:
That this bill be now read a third time.
Question agreed to.
Bill read a third time.
Debate resumed from 7 December 2006, on motion by Mr Ruddock:
That this bill be now read a second time.
Labor wants to see native title claims resolved quickly, effectively and fairly. This is manifestly in the interests of all parties. Unfortunately, it has not been happening. The current situation is far from adequate. While 91 claims have been resolved, more than 600 remain unresolved, and claims are taking on average six years to be resolved. I think we on all sides can agree that this is an unsatisfactory situation and in need of improvement. The question is whether the legislation before the House, the Native Title Amendment Bill 2006, will make any contribution towards that. It is my concern that this bill will in fact generate uncertainty for native title claimants and for development, and will undermine the capacity of native title representative bodies to represent Indigenous interests. Those concerns form the basis of the second reading amendment which I now wish to move. I propose that detailed amendments be put forward and considered when the Senate Standing Committee on Legal and Constitutional Affairs inquiry report has been tabled; I understand it is due to be tabled by 23 February. I move:
That all words after “That” be omitted with a view to substituting the following words: “whilst not declining to give the bill a second reading, the House acknowledges;
In speaking to the amendment, I note that back in September 2005 the government announced a package of six changes to the native title system. The primary purpose of this bill is to amend the Native Title Act of 1993 to implement aspects of four of the six elements of that package. The bill is expressed in terms of four schedules, and I would like to make some observations about each of those schedules.
At the heart of the first schedule is the introduction of periodic terms applying to the recognised status of native title representative bodies, with those periods to range between one and six years. I note that it is already the case that the minister is able to withdraw status recognition if a body is underperforming. It strikes me that periodic terms as to recognition will destabilise negotiations with third parties and create uncertainty surrounding development proposals, discourage already fragile staff tenure and the build-up of corporate knowledge, inhibit strategic business planning and the liquidity of these organisations, and increase infrastructure costs. It is my view that one-year periodic terms are inconsistent with the spirit of reducing red tape in this area. I also note that these organisations are representative institutions; they ought to be improved in quality and capacity rather than disbanded.
It is further part of schedule 1 that it broadens those native title service providers which can be recognised. I note that could lead to the government doing an open tender and bringing in non-Indigenous law firms. It was indicated to me in the briefing, which the Attorney-General kindly provided, that that is not the government’s intention, nevertheless, that is the way that the legislation is drafted. It is also part of schedule 1 that, with the passage of this bill, the minister would be able to reduce the amount of notice which he is required to give to a native title representative body, should he wish to close one down, from 90 to 60 days.
It is also part of schedule 1 that there is the removal of the requirement that native title representative bodies present their annual reports to parliament. It is the case that these bodies have to do an annual report in any case and I wish to query what harm there is in submitting these annual reports to parliament to provide that additional oversight. It is also part of schedule 1 that it enables the minister to change the territorial boundaries for the native title representative bodies without native title representative body consent. So there are a series of issues raised by schedule 1.
The heart of schedule 2 is the expansion of the power and role of the National Native Title Tribunal. There has been concern expressed by stakeholders regarding the role of that tribunal as being bureaucratic and slowing down the system. I will come back to some of these issues in more detail shortly. Schedule 3 deals with prescribed body corporate amendments and it is my view that the proposals in this schedule are not controversial and ought to be supported. Schedule 4 is essentially about assistance for nonclaimants and contains changes aimed at encouraging negotiation over litigation from non-claimant parties. Again it is my view that these matters are largely uncontroversial and can be supported.
There has been a very limited time for consultation in relation to the legislation. It has occurred over the summer. But it is clear that there is substantial opposition to the legislation. I understand the native title representative bodies unanimously oppose the bill. The Federal Court has expressed some concerns with substantial elements affecting it. The Aboriginal and Torres Strait Islander Social Justice Commissioner rejects most of it. The Western Australian state government and the Minerals Council have also expressed concerns, which I will come to in a little more detail shortly.
The consultation process has been such that, after the bill was introduced on 7 December, the Senate referred the provisions of the bill to the Senate Standing Committee on Legal and Constitutional Affairs for inquiry and report by 23 February. Submissions were required by 19 January. I think it is regrettable that the government has brought this bill on for debate in this House before we get the benefit of the Senate committee report. I think that a lot of the discussion around the detail will have to await that Senate committee report and the recommendations of detail and substance which arise from it. There has been an extensive brief prepared by the Department of Parliamentary Services in relation to this bill and I am indebted to the Parliamentary Library for the work that they have done in putting it together. I intend to draw on it in some of the remarks I want to make about the content of the bill.
As I said, there are a series of organisations expressing concern about the consultation arrangements. For example, in its submission to the Senate committee, the Minerals Council of Australia has identified a lack of consultation with respect to this bill’s particular set of changes. They have contrasted that with other elements of the Attorney-General’s proposed changes and the consultation involved. They have expressed the view that the time frame for the inquiry into the final form of this legislation and its precise approach to implementing policies is arguably too short, in contrast with the more consultative nature of some of the government’s other preparatory work. One of the bodies that is a primary body dealt with in this legislation concerns the native title representative bodies which represent the native title interests of Indigenous Australians in a particular region. The bill also deals with prescribed bodies corporate. Where courts make a determination that native title exists, native titleholders are required to establish such a body corporate to represent them as a group and to manage their native title rights and interests.
The issue is frequently raised about the level of funding to each of these two primary bodies, the native title representative bodies and the prescribed body corporates. That has been an issue for quite some time. For example, the Native Title Tribunal’s most recent annual report observed that, for some years, there have been concerns about the perceived inadequacy of the human and financial resources available to representative bodies to perform their functions. In March last year, the parliamentary Joint Committee on Native Title and the Aboriginal and Torres Strait Islander Land Fund reported on the operation of these representative bodies. Both the majority report and the minority report expressed concerns about the issue of adequacy of resourcing.
The majority report recommended that the Commonwealth immediately review the adequacy of the level of funding provided by the Office of Indigenous Policy Coordination to native title representative bodies for capacity-building activities, including management and staff development and information technology. The minority report was even more strongly worded, saying that the evidence submitted to the committee on the impact of chronic underfunding was prolific, forceful and emanated from a variety of stakeholders, including the minerals sector.
The Minerals Council of Australia noted that, while reporting requirements had increased significantly in the past few years, there had been no real increase in operational funds since 1995. This meant that the native title representative bodies had less money to carry out their functions on the ground. It also commented that the workload of these bodies had risen steadily as the number of native title claims and mining applications proliferated. Of course, we can see a link between that and the issues of delays and failure to resolve claims. The Minerals Council again raised its concerns over funding in the course of the inquiry into this legislation. There have also been concerns expressed by the Human Rights and Equal Opportunity Commission’s Aboriginal and Torres Strait Islander Social Justice Commissioner along the following lines:
Inadequate funding of representative bodies has had the cumulative effect of undermining—
the native title representative bodies’—
... capacity to protect Indigenous interests in the native title process ... it has diminished the extent to which Indigenous people can enjoy their land, their culture, and the social, economic and political structures built upon them. In effect, it has diminished Indigenous peoples’ enjoyment of their human rights.
The need to increase ... funding has been recommended in the reports and reviews of government agencies, parliamentary committees, state governments and industry.
Despite recommendations to this effect in reports in 1995, 1999 and 2002, native title representative bodies have not received funding increases. The commissioner notes that, if these reforms are implemented, native title representative bodies will require further funds:
... as it is likely that their obligations and functions will change.
The Native Title Act does not envisage that the government fund native title claims directly but, instead, that it funds the representative bodies. The government does, however, fund respondent bodies. This bill, indeed, broadens that process.
The guidelines approved by the Attorney-General are in relation to applications for financial assistance for native title matters. One of the key features of the guidelines was that assistance was available to a person or organisation for mediation of native title matters and for negotiation of Indigenous land use agreements. Other key features were that assisted parties were not required to make their own contributions and that the hardship test was removed from the act. The Attorney-General’s Department has issued new draft funding guidelines which will modify these rules again and introduce more strenuous consideration of whether respondent parties are in a position to self-fund.
The sorts of concerns expressed about these proposals include that there may be insufficient mechanisms for review of ministerial or bureaucratic decisions being made in this area. Accountability for native title representative bodies is important, but they are presently subjected to a substantial amount of scrutiny. The derecognition process needs to be done according to clearly defined and transparently adjudicated criteria. There are currently minimal rights of review over ministerial discretion. While some of these decisions must be taken according to set criteria, the proposed amendments would remove some of the considerations to be included in those criteria.
The Office of Native Title of Western Australia suggested that the government provide further information about why the statutory criteria which previously underpinned the minister’s decisions regarding recognition of native title representative bodies—that is, satisfactory representation and consultation—have been removed by the bill. These amendments regarding the recognition and the withdrawal of recognition of representative bodies are declared by the bill as legislative instruments.
These legislative instruments are subject to disallowance. The amendments specify that three types of decisions by the minister are legislative instruments: the proposed section under which a minister can recognise a representative body; the proposed section under which the minister withdraws recognition from a defunct body or body which has asked to have recognition withdrawn; and the proposed section under which a minister withdraws recognition due to unsatisfactory performance or financial irregularities.
As the decisions made by the minister are made by legislative instrument, they are no longer subject to review under the Administrative Decisions (Judicial Review) Act. The Human Rights and Equal Opportunity Commission has raised concerns regarding those arrangements. It has argued that, by removing such decisions from the operations of the Administrative Decisions (Judicial Review) Act, the bill does severe damage to representative bodies. It argues that the only avenue for judicial review when a legislative instrument has been utilised is by prerogative writ, which is cumbersome and expensive. Furthermore, by subjecting them to disallowance proceedings:
... the proposed amendment would politicise recognition decisions, making them vulnerable to inappropriate public comment and potential political disruption in what should be a principled and predictable administrative process.
Another area of concern has been the length of time for which a representative body is recognised. The Minerals Council of Australia has proposed, for example, that periods of recognition for a representative body be three to six years rather than the proposed one to six years. For reasons of capacity building, certainty and stability, they suggest that recognition for less than three years would be inadequate.
The barrister John Basten has commented:
Representative bodies require a range of skills and expertise to perform their functions properly. Internally, managerial, accounting and administrative skills are at a premium. In addition, they require specialist professional services from anthropologists, land managers and lawyers. It is likely that such organisations will take years to develop critical levels of administrative competence, not merely to perform their functions adequately but to provide a work environment in which trained professionals will feel comfortable and will remain without unduly high levels of turnover.
These are serious concerns that have been expressed about the proposed changes in relation to periods of recognition.
There has also been discussion about the role of the National Native Title Tribunal. The Federal Court has argued—and this has appeared in other submissions as well—that the amendment giving the National Native Title Tribunal greater directive powers is an inappropriate legal and constitutional arrangement because it is likely to increase administrative costs—because ultimately the court will need to enforce the National Native Title Tribunal’s new powers if they are to be effective—and could violate the Constitution by giving judicial powers to a body which is primarily administrative in nature. It also argues that coercive powers are inappropriate in a mediation setting and that the court’s power to mediate should not be restricted while the tribunal is mediating a matter—as the amendments propose to do. There are a wide range of other concerns which will presumably be examined in the Senate report. As I indicated when I commenced my remarks, the debate in the House on this bill is scheduled for a time when that report is still in its preparatory stages.
I would now like to examine in a little more detail some of the changes proposed in the bill. The minister will have discretion to stipulate a period of recognition of between one and six years. There is a requirement that the representative body will satisfactorily represent persons who hold native title and will able to consult effectively with Aboriginal and Torres Strait Islanders living in the area being removed. The provisions which remain define who the Commonwealth minister may recognise as a representative body by providing that the body must be satisfactorily performing its functions as a representative body or would be able to do so. The functions of a representative body are itemised in section 203B and include facilitation and assistance functions, certification functions, notification functions, dispute resolution functions and internal review functions.
As I mentioned earlier, the minister is also able, after due consultation and consideration, to unilaterally extend or vary the area of a represented body. While the minister is required to consult before making these changes, there is no requirement that the views of the relevant representative bodies be a concluding feature of the matter—and that is a matter of some controversy as well. The standard time frame in which representative bodies are required to respond under a variety of sections has been shortened from 90 days to 60 days and the references in the current act to the need for a representative body to satisfactorily represent the native title holders and consult effectively with Aboriginal and Torres Strait Islander people have generally been abandoned in favour of a shorter formulation focusing on whether the representative body is satisfactorily performing its functions.
There is also some change made in the area of claims resolution review. Section 84 has been amended to reduce the number of grounds that entitle a person to become a party to native title proceedings. The previous procedure was that the registrar notified a range of potential parties to the proceedings. In order to join, what was required was that the party reply to the registrar within the required time frame. The amendments limit the range of people to whom the registrar will give notice of proceedings and stipulate a more restrictive range of those who are automatically a party to proceedings. The amendment requires an ‘interest in relation to land or waters’ whereas previously it was simply ‘an interest’.
As I indicated before, the Native Title Tribunal is to be given significant new powers. Parties are required to act in good faith in mediations, and the tribunal may include details of any failure to so act in its annual report. If it is proposed to include such details in the annual report, the presiding member must inform the government party before doing so. Apart from documenting the issue in the annual report, the presiding member may report the matter to the relevant Commonwealth, state or territory minister; the relevant secretary of a department; the relevant legal professional body; and the Federal Court.
As I have indicated, we have concerns about whether these changes are going to help matters and result in the swifter and more efficient resolution of claims—which I think everyone would like to see—or result in more uncertainty and more delays and not help in the objective of reducing the time taken to resolve native title claims. Based on his previous public comments, I suspect that the Attorney-General will be claiming support for this legislation from the states. He referred in a press release to the native title ministers meeting in December 2006. I had a look at the communique from the meeting. It is quite clear to me that the Attorney-General is drawing a long bow in claiming support from the states on the basis of a communique in which the states have agreed that ministers should continue working together to secure better outcomes from the system.
Furthermore, I draw the attention of the House to the submission made by the Western Australian government’s Office of Native Title to the inquiry into this legislation and, in particular, to the comments and concerns expressed about schedule 2, which goes to this issue of claims resolution review. The Office of Native Title indicates that it supports the inclusion of a good-faith requirement in the Native Title Act in respect of native title mediation, but it goes on to say:
However, to preserve the impartiality of the presiding National Native Title Tribunal (NNTT) member, parties to the mediation rather than the NNTT member should raise any alleged breaches in the first instance.
Further, and more significantly, the proposed sanctions would see the NNTT empowered to make reports about potential breaches of the good faith requirement to certain entities ... including the Court, and to include details of alleged breaches by government parties in its annual report. It is a matter of concern that the proposed amendments would not accord natural justice to parties allegedly contravening the good faith requirement, in so far as there is no requirement for the NNTT to advise and/or seek the views of parties considered to be in breach before it reports or publishes details of an alleged breach. It is recommended the proposed provisions be amended to require the presiding NNTT member to advise a party if he or she considers they are not acting in good faith and give that party an opportunity to respond.
Further in relation to schedule 2 is the question of the connection review function. The Office of Native Title in Western Australia says:
The proposed amendments to enable the NNTT to undertake a review of connection material have the potential to undermine State and Territory government connection assessment processes, cause further delays in the resolution of native title claims and place increased pressure on an already limited pool of experts in the system.
It is understood the main intent of the provisions is to facilitate the agreement of non-government third parties to proposed consent determinations, where they are reluctant to accept the relevant State or Territory government’s assessment that connection is met. Consistent with the Commonwealth’s push for States and Territories to adopt transparent practices, the Western Australian Government has released connection guidelines and, in the case of positive assessments, provides respondent parties with a ‘position paper’ outlining the basis upon which the Government considers connection is met. Despite participation in the proposed NNTT connection reviews being voluntary, native title parties could nevertheless use the provisions as a means of “forum shopping” if the State Government considers that connection is not met, potentially undermining the transparent processes the Western Australian Government has put in place.
In addition, if claimants seek an NNTT review following a decision of the relevant government that connection is not satisfied, the resolution of the claim, whether by an agreed or litigated outcome that native title does not exist, will also be further delayed. The amendments also anticipate the NNTT relying on consultants to conduct a review, which could further increase demand on an already limited pool of qualified experts, such as anthropologists. The Commonwealth Attorney-General’s recent comments acknowledge that the current shortage of anthropologists in the native title system is contributing to the delay in resolving native title claims. If the NNTT also seeks to rely on anthropologists in undertaking reviews of connection, the demands on anthropologists and the associated delay in resolving claims would increase.
Given that background, I have moved the second reading amendment in my name. I look forward to the Senate committee’s report and to further debate in this House and in the Senate on the detail of this bill.
Is the amendment seconded?
I second the amendment and reserve my right to speak.
The original question was that the bill be now read a second time. To this the honourable member for Wills has moved as an amendment that all words after ‘That’ be omitted with a view to substituting other words. The question now is that the words proposed to be omitted stand part of the question.
I rise in the House tonight to express my support for the Native Title Amendment Bill 2006. While I understand the argument advanced by many people that it would have been more cost-effective and beneficial to Indigenous Australians for native title to have been extinguished and full compensation paid, the government must deal with the situation as it currently exists. The support the government has, and hopefully the opposition will also provide, for these amendments to the Native Title Act is very important insofar as there have not been changes made to the Native Title Act by way of substantial amendment for a period of some eight years.
As the Attorney-General indicated in introducing the bill late last year, the key catalyst for the present reforms is the absolute commitment by the government to improving the performance of the native title system. I think every member of parliament, regardless of the party they represent, has been the recipient of complaints about the native title system—about the delays and about the lost business and employment opportunities resulting from the system. Of course, the sad thing is that Indigenous Australians have not themselves benefited in the way that they would have had there been a more efficient system. That is why these measures are important to reform a system which has been in need of reform for some time.
It is important to always recognise that this government does consult, and these reforms were not developed in a vacuum. The process of going out into the community and finding what the community wants is something that this Attorney and this government have been particularly diligently in following through during the period since 1996, when we were entrusted with government. The honourable member for Wills seemed to criticise a lack of consultation by the government with respect to this legislation. The government rejects that; the government has consulted key stakeholders across the native title system.
The Attorney-General originally announced the framework for reforms in September 2005. These comprise a series of six complementary elements aimed at addressing all aspects of the system. Back then, the Attorney-General emphasised the desire to achieve a better result for all parties involved in native title and undertook to ensure that stakeholder concerns were taken into account. On my submission, this bill does in fact take into account the concerns expressed by stakeholders. There has been substantial consultation in relation to all elements of the legislation currently before the chamber, and the results of that consultation, in the view of the government, are accurately represented in the clauses the House is currently debating.
The four schedules in the bill before the House will respectively implement aspects of four of the six elements of the government’s reform package. These aspects include measures to clarify the key institutional arrangements for the resolution of native title claims through the implementation of a series of key recommendations made by the Native Title Claims Resolution Review on how the National Native Title Tribunal and the Federal Court might work more effectively on native title matters.
The bill, as the Attorney has indicated, also includes particular measures to improve the effectiveness of representative bodies in the area of native title which generally represent claimants in the native title system and to encourage the effective functioning of prescribed bodies corporate—the bodies established to manage native title once it has been recognised. In addition, the bill will broaden the existing provision for assistance to non-claimant parties so that government assistance can be provided in a wider range of circumstances to respondents participating in the right to negotiate process. I think that this additional assistance will mean that the system will be streamlined and hopefully more satisfactory outcomes will be achieved more expeditiously.
Collectively, the measures will reflect a balanced and considered approach to improving native title processes without disrupting the overall system or undermining the current balance of rights under the Native Title Act. It is important to appreciate that these reforms are part of a broader package intended to address all key elements of the system in an appropriate way. I am advised that there will be further legislation before the House to implement outstanding measures and that it should be introduced to the parliament later in the 2007 calendar year and will include a number of amendments, some minor and technical, which have also been the subject of detailed discussion.
The honourable member for Wills mentioned that the Attorney-General claimed the support of the states. The simple fact of the matter is that the government has sought to work with the states and territories to secure and ensure agreement on improvements to the native title system. As recently as December 2006 the Attorney-General convened a meeting of native title ministers and they noted the proposed package of reforms and, significantly, agreed that all parties, including governments, should continue to build on this package. That is an indication that the ministers are broadly happy with what the government is doing. It is important that we in the House recognise that, while it is inherently complex, native title can and has assisted in securing meaningful outcomes for Indigenous Australians. That is a view which might be disputed by some, and I suspect that the benefits of native title have not been received by some Indigenous Australians, but native title has probably assisted in securing meaningful outcomes for Indigenous Australians.
I am advised that, up until the present day, there have been over 90 determinations of native title. In many of these cases, the determinations have been by agreement. About nine per cent of Australia’s land mass has been the subject of native title determinations, an area comprising over three times the state of Victoria. If you went out in the community, many people would see this as a matter of some concern. Many people in the community also would have been incredibly surprised when the High Court found that native title had survived. As I said at the outset in this speech, the government has to deal with the situation that we have, and this bill seeks to improve the administration of native title. Engagement between parties on native title processes can assist in building meaningful and productive relationships which may endure beyond the resolution of specific claims. This bill offers a way forward. It seeks to improve the administration of native title and, in doing so, achieve a more efficient and effective outcome, which is in the interests of not only Indigenous Australians but also the broader Australian community. I am pleased to be able to commend the Native Title Amendment Bill 2006 to the House for its consideration.
I think it is important for us to remember that it was a momentous time in Australian history when the fiction of terra nullius came crumbling down and the then Labor government, with Indigenous leadership, negotiated to pass the Native Title Act. This is an opportunity to remember that very significant time in our history. Of course, the legislation was not perfect, but it was unprecedented. Some things had to be tried out with the understanding that there might need to be finetuning in the future. Years later, one of the good things is that native title has become part of the everyday business of mining companies and pastoralists. I would like to pay a particular tribute to the late Rick Farley and his extraordinary work, especially during his time with the National Farmers Federation, to make native title a reality for so many people.
There are many issues to be addressed to improve the workings of the Native Title Act but, unfortunately, the Native Title Amendment Bill 2006 is not the answer to many of the problems facing the native title system. Recently, we have seen reported research from Griffith University which provided a very timely insight into the effectiveness of Indigenous land use agreements. The study of 45 Indigenous land use agreements over the past 10 years found that half of them ‘were either basket cases that should never have been entered into’ or delivered few benefits for Indigenous Australians. The study also found that Indigenous groups:
… are seriously deficient in the financial, organisational and technical resources required to deal with modern, complex development projects and the companies and state agencies that promote them.
I think this really is the critical point facing the native title system and unfortunately this legislation does not address this significant concern at all.
The challenge for representative bodies is complex indeed. They must not only act in drawn out legal and project approval processes while monitoring the activities of third parties but also consult with traditional owners who are spread out over large and sometimes remote areas. Representative bodies need to be proficient in the law, in policy, in politics, in culture and in strategic planning. Yet the study I referred to earlier concluded:
Federal policy and legislative and budgetary initiatives during the last decade have substantially weakened the negotiating position of Aboriginal people.
Noel Pearson from the Cape York Institute could not agree more. In the Weekend Australian he wrote:
The federal Government has continued to legislate to weaken the indigenous position, both in terms of the procedural rights of landowners and the institutional support they receive from land councils. They are now proposing another round of amendments that further threaten the capacity of indigenous people to deal with developers.
Pearson described the challenges for land councils in dealing with fragmentation and overlapping claims as ‘an enormous native cat-herding challenge’. He also argued that their limited commercial and financial capacity was no match for mining companies that have ‘Adam Gilchrist flashing the blade for them’. So, once again, the missed opportunity that this bill represents is very disappointing and I think Noel Pearson captures that very succinctly.
Despite the recommendation of the red tape evaluation report of the Office of Indigenous Policy Coordination that the government move away from rigid compliance frameworks to a focus on capacity building and community outcomes, we see another piece of legislation here tonight that is premised on more top-down accountability and box ticking. Under the Native Title Act, native title representative bodies represent traditional owners to advance their native title interests and broader community agendas. They have to build relationships with non-English speakers and with people who have totally different concepts of information sharing, knowledge and lifestyle. They have to cross very significant cultural divides and build trust. They have to become custodians of delicate intellectual property. They certainly have to be more than a government agency. But the bill, instead of moving towards capacity building, treats native title representative bodies like, for example, Job Network providers that can easily be replaced or franchised.
Labor is all for making native title representative bodies perform better and be more accountable to the people they represent. That will be achieved, however, by building the capacity and governance of representative bodies, encouraging quality and long-term staff and empowering traditional owners to hold their representative body to account through community education. It certainly will not be achieved by putting more bureaucratic hoops in the way. We need to foster more upward accountability from the people on the ground so that they can really see if the body representing them is doing a good job. Native title representative bodies already endure too much red tape and bureaucratic micromanagement. You have only to look at the government’s own report to confirm that.
We support the move to make funding agreements longer than one year, as provided in this bill. But we do not support putting those bodies through periodic ‘rerecognition’, primarily because it is unnecessary given the Attorney-General already has the power to withdraw recognition for a poorly performing native title representative body. It is cumbersome and contrary to the principles of capacity building. Instead of doing this, the government should implement the recommendations of the inquiry into native title representative bodies. The inquiry recommended that the government immediately review the adequacy of funding for these bodies and target their chronic staffing issues but that proposal has not been picked up by the government. The Attorney-General’s Department claims that some representative bodies have underspent their budgets because they cannot attract or retain staff. You would have to ask, ‘Why would you want to take a three- to six-month contract with unattractive pay?’ The bodies need to be better resourced to attract experienced people so that they can do the job that needs to be done.
The inquiry also recommended that the government second expert government staff to representative bodies and provide ongoing professional development and scholarships to staff. Once again, these proposals have not been picked up. It is recommended that the government develop comparative data, based on a range of indicators, to assess the relative effectiveness of representative bodies and publish this data annually. These indicators could include their levels of client satisfaction and their success in forging regional outcomes with industry, like jobs, investment in Indigenous enterprise and social programs. Sadly it seems that the measures affecting representative bodies in this bill were written with no regard for this bigger picture.
The bill introduces periodic terms for recognition of representative bodies. Under the existing act, these bodies enjoy indefinite recognition, which is tempered, however, by the minister’s power to withdraw recognition if a body is poorly performing. Not only does the bill introduce periodic recognition, it makes it easier for the minister to withdraw recognition. The test for withdrawal has been broadened and the minister is required only to give 60, not 90, days notice. In our view, this expansion of ministerial power is unnecessary and frankly over the top. It leaves representative bodies even more vulnerable to political interference and undermines their independence.
Periodic terms will inhibit strategic business planning. It will require more resources to go into the reapplication process; it will increase infrastructure costs as leases or hire will be more expensive; and it will destabilise negotiations with third parties, as there will be less certainty. I am sure the government is aware that an average native title claim can take six years. What is more, if we go to short-term periodic terms, it will make it much harder to attract and retain quality staff.
It is also a possibility under these changes for the minister to open native title representative body services up for tender. We certainly hope that this is not the intention of the government, as clearly private law firms would not have the expertise or capacity to carry out representative functions. The minister’s new power to change the territorial boundaries of a representative body without its consent is also unwarranted. Their areas are usually dictated by regional clusters of clan and language groups. It is reflected in the body’s constitution and membership. The representative body should have a final say as to who it represents.
The amendments in this legislation will not improve the performance or capacity of representative bodies to advance Indigenous interests. This really goes to the core of the issue. The annual Native title report of successive Aboriginal and Torres Strait Islander social justice commissioners has called for proper funding for representative bodies so that they can research and pursue the regional tasks that are their responsibility.
Indigenous land use agreements could become common tools of economic development but, as the report I quoted from Griffith University indicates, that is not occurring at the moment. Stronger deals could be struck as the technical and procedural aspects of negotiation become less onerous and time consuming. It would be much better to see our representative bodies becoming forces to be reckoned with like their counterparts in New Zealand and Canada.
Instead of investing in the capacity of representative bodies, the government has invested its faith in the National Native Title Tribunal, which is far from a proven performer in this field. The government believes that the expanded powers to assist the Federal Court with inquiries, including the power to compel parties to attend mediation and produce documents, and to report parties who negotiate in bad faith, will give the tribunal the teeth it needs to become effective. We would like to hope that that is the case, but the submissions to the inquiry did not express the same optimism. The National Native Title Council argued that mediation was a lot more effective and expeditious in the Federal Court than it was in the National Native Title Tribunal. This argument is grounded in the Griffith University research, which found that the best land use agreements were negotiated outside the tribunal.
The independent Claims resolution review report noted that, as of January 2006, 76 per cent of mediation in the tribunal had been going on for more than three years and that just under 48 per cent of mediation had been going on for more than five years. The Minerals Council of Australia has offered its cautious support, but only on the condition that the tribunal dramatically improve its performance and capacity with existing resources.
The objectivity and impartiality of the tribunal has also come into question. Although it will be exercising quasijudicial powers, it will continue to be part of the executive or administrative arm of government. Of course, Labor do support non-adversarial processes. We understand the merits of tribunals. We support them in various parts of government—in industrial relations and administrative appeals, for example—but we need to have a serious rethink about how well it is working in resolving native title claims.
It is clear that the tribunal’s processes and difficult interactions with the Federal Court are one of the ills of the native title system. We are not to this point convinced that giving the tribunal more power in more parts of the process will help. We would like to know how the government will assess whether it is working or not. How does it intend to monitor the performance of the tribunal, given the figures that I read out before? The fact that 76 per cent of mediation in the tribunal had been going on for more than three years does not look like a recipe for success.
The changes before us in this legislation give prescribed bodies corporate more freedom in their decision making and the ability to benefit from economies of scale by sharing their infrastructure with other bodies. These are positive changes, but once again I do want to reiterate that they do not address the most pressing concern: how these bodies can generate an income or plan strategically without any resources. That issue is not addressed in this legislation.
The Minerals Council was particularly disappointed with the government’s failure to show more innovation in this area. We share in that disappointment on this side of the House. The government needs to go back to the drafting board—this time with the informed advice of stakeholders at the forefront of its mind. As the shadow Attorney-General has indicated, Labor will be drafting substantive amendments to address our concerns with this bill, which we will move in the Senate. I do hope that the government will look at these amendments, which will be put in good faith to improve the workings of the native title system. At this stage, without these amendments, Labor cannot support the bill. I support the second reading amendment that has been moved by my colleague.
I rise to speak on the Native Title Amendment Bill 2006 as someone who was in this place in 1993, when the first native title legislation created a record in this place, particularly in the Senate, for the length of the debate. I seem to recall it was Saturday morning before we were finally able to go to our respective homes across Australia after this matter had been resolved as far as it could be at the time.
My electorate saw one of the first experiments in a form of native title, in the Pitjantjatjara lands, where really the first land rights legislation was put into place for inalienable freehold title. That legislation, which has recently been the subject of some change in South Australia, was put through the state parliament almost 30 years ago. In the subsequent period, I seem to remember Senator Harradine of Tasmania being involved in native title, and we ended up leaving a number of matters to the states and territories. From those early years, the various players, the complexity and the dealings with the High Court, we can understand what has led us to further change in the chamber tonight.
I, of course, support the bill. It includes a series of significant and balanced reforms to the Native Title Act 1993, which has not been the subject of substantial amendment for more than eight years. As the Attorney-General noted in introducing the bill late last year, the key catalyst for the present reforms is the government’s commitment to improve the performance of the native title system. It is important to acknowledge these reforms were not developed in a vacuum but have instead been informed by an extensive consultation process involving key stakeholders across the native title system.
The Attorney-General originally announced the broad framework for reforms to the native title system in September 2005. This framework comprised a series of six complementary elements aimed at addressing all aspects of the system. At that time, the Attorney-General emphasised the need to achieve better outcomes for all parties—I repeat ‘for all parties’—involved in native title and undertook to ensure stakeholder concerns were taken into account. Since then the government has undertaken consultation on all elements of the reform package, and the outcome of such consultation is reflected in the legislation currently before the House.
The four schedules in the current bill will, respectively, implement aspects of four of the six elements of the government’s reform package. Those aspects include measures to clarify the key institutional arrangements for the resolution of native title claims through implementation of a series of key recommendations made by the Native Title Claims Resolution Review in relation to how the National Native Title Tribunal and the Federal Court might work more effectively on native title matters. If you look at the bill, you will see it does make very genuine efforts to bring about a greater meeting of minds to avoid duplication, which has apparently been a serious issue up till now.
The bill also includes specific measures to improve the effectiveness of native title representative bodies, which generally represent claimants in the native title system, and to encourage the effective functioning of prescribed bodies corporate, the bodies established to manage native title once it has been recognised.
Finally, the bill will broaden the existing provision for assistance to non-claimant parties so that government assistance can be provided in a wider range of circumstances to respondents participating in the right to negotiate process. I hear the concerns from the previous speakers from the opposition, most recently the member for Jagajaga, and I believe that that measure does address some—not all, I am sure—of those resource issues.
Collectively these measures reflect a balanced and considered approach to improving native title processes without disrupting the overall system and without undermining the existing balance of rights under the Native Title Act. People will well recall 1993 and the period eight years ago—which I have just been reminded of—when there was very extensive debate and the effort to try and get a balance tested the whole structure of this parliament.
It is critical that we recognise these reforms as part of a broader package which is intended to address all key elements of the system in a rational and coherent way. I understand a second bill to implement outstanding measures will be introduced into parliament later this sitting and will include minor and technical amendments which have also been the subject of detailed consultation.
The government has also sought to work with the states and territories to secure agreement on improvements to the native title system. This can quite often be overlooked, but the states and territories, at the end of the day, have responsibility for our land title system. Whilst we endeavour to put a national template there, a national framework, there is a very significant responsibility with our states and territories.
In December last year the Attorney-General convened a meeting of native title ministers from the states and territories. Ministers noted the proposed package of reforms and, significantly, agreed that all parties, including governments, should continue to build on this package. It is important that we in this House acknowledge that, while native title is inherently complex, it can and has assisted in securing meaningful outcomes for Indigenous Australians.
To date, there have been over 90 determinations of native title, the majority of which have been reached with the consent of all parties. Nearly nine per cent of Australia’s landmass has been the subject of native title determinations. I also note that engagement between parties on native title processes can assist in building meaningful and productive relationships which may endure beyond resolution of specific claims. I know that from my own electorate. The current bill offers a means to build on this with a view to achieving more efficient and effective outcomes, which is in the interests of all Australians. I commend the bill to the House.
Firstly, let me acknowledge the contribution to this debate on the Native Title Amendment Bill 2006 of the previous speaker, my friend the member for Grey, whom I must say I disagree with partly because we are clearly not satisfied with these amendments. We think they should go a lot further, and we do not think they meet the need to amend this legislation properly and to meet the objectives the government says it is trying to set out for itself. I want to make a passing comment on the dog whistling of the member for Fisher. I do not think it was appropriate in the context of this discussion. The Mabo debate happened in 1993. He lost that debate, despite his position, and today he tried to reinvent it. I say that as a person who participated in that debate in 1993 and was part of the processes of government in 1993 which eventually got us to the native title legislation.
I note the member for Jagajaga commented on the role of Rick Farley and others. I too want to commend the role that was played not only by Rick Farley but by the then chairperson of ATSIC, Lois O’Donoghue, and a range of other people such as Pat Dodson and Noel Pearson—and too many others to mention—who were involved in discussions with government about the appropriateness of the legislation and what might go into it. Of course it was imperfect because it was subject to substantial debate in the Senate, and the length of that debate has been commented on. But it is worth reminding ourselves of some of the central objectives of the act. According to the preamble these included, firstly, to provide for ‘the recognition and protection of native title’ and, secondly, the establishment of ways in which future dealings and development affecting native title may occur so as to ‘ensure that native title holders are able to enjoy fully their rights and interests ... under the common law of Australia’.
Since 1993 there has been mixed success. There were substantial amendments made in 1998. The bill has been imperfect. It was imperfect then; it remains imperfect. And the current situation is still far from adequate. On recent figures, while 91 claims have been resolved—and this is a point which has been made and boasted about by the members of the government—there remain 600 unresolved. On average, claims are taking six years to be resolved. That, I think, highlights a real problem. We in Labor want to see claims resolved quickly, effectively and fairly. This is in the interests of all parties. Unfortunately, this has not been happening, and this government has taken far too long to do something about it. I think it is truly indicative of a government which has failed Indigenous Australians generally.
If the government was serious about improving the situation for Indigenous people it would do something to improve their position in relation to developers, to allow them to share equitably in mining developments and so on. Development which is handled responsibly and ethically has the potential to provide significant assistance to Indigenous Australians as well as to the wider Australian community. The key is involving them fairly in the process. To date this has often not happened, although I must say there are now some shining examples of cooperation between the mining industry in particular, and elements of the pastoral industry, with native title claimants and native title holders—and I commend those people for that. Generally speaking, of course, this has been done outside of any relationship with the Native Title Tribunal.
It is worth pointing out the observations of Ciaran O’Faircheallaigh, from Griffith University, who has done some considerable work on the issue of native title. In his article ‘Aborigines, Mining Companies and the State in Contemporary Australia: A New Political Economy or Business as Usual?’ in the Australian Journal of Political Science in March 2006, he wrote:
... while the Native Title Act has created opportunities for many Aboriginal people to engage with resource developers for the first time, federal policy and legislative and budgetary initiatives during the last decade have substantially weakened the negotiating position of Aboriginal peoples in dealing with [mining] developers.
He then says:
... in general, the legal, policy and institutional environment remains largely hostile to Aboriginal interests. In particular, legal and administrative aspects of the environment that are notionally politically neutral and objective are in fact highly politicised in that they systematically favour the interest of developers over those of Aboriginal landowners.
Just two weeks ago, on 30 January, early findings from O’Faircheallaigh’s latest research into land use agreements between Indigenous groups, mining companies and governments were released in the Australian. He comments that these agreements have failed to deliver significant outcomes for the majority of Indigenous people who signed them. Specifically, he believes that more than half of the agreements were either ‘basket cases that should never have been entered into’—and I note this was commented upon by the member for Jagajaga—or had delivered a few cultural and monetary benefits to Aboriginal people. This is the situation that has come to pass under the Howard government’s administration of Indigenous affairs. Indigenous Australians are continually being marginalised and not engaged in development opportunities when they otherwise might be, apart from where I say the initiative has been taken by the parties to come together outside of the formal arrangements that might otherwise be.
I think we need to look very seriously at the changes in this legislation. There is much in this bill which gives cause for concern. Specifically, the changes to the native title representative bodies and the claims resolution review are two facets which are highly flawed. Schedule 1 deals with the native title representative bodies. We need to understand—and those of us who have been engaged in this process for any length of time do understand—that native title rep bodies are essential to the effectiveness of the system and are key actors. They perform a range of statutory functions under the act, most notably lodging and progressing native title claims and dealing with future act notices. There are real issues about their resourcing which I know others have commented upon but which this government has failed to address. The changes proposed by this legislation are purportedly aimed at improving the effectiveness and accountability of native title rep bodies, but there is a great deal of concern about the effect that these changes will have.
It is worth noting that these concerns are being voiced by a variety of actors involved in the native title process, in particular the National Native Title Council, which is made up of the recognised representatives bodies around Australia, but also, I would add, by the Minerals Council, the peak mining group body. Under this bill there is no longer to be permanent recognition of native title rep bodies. This is to be changed to a system of periodic recognition of between one and six years, to be determined at the discretion of the minister. There are a number of problems to this. Firstly, there is the real potential for instability for the key groups involved in the native title matters—industry, government and native title claimants. The Minerals Council of Australia, significantly, was concerned at the prospect of one-year periods of recognition. The fact of the matter is that recognition on a temporary basis, such as that proposed, will cause uncertainty for all relevant groups as to who they may be dealing with at any given time. Further, there will be instability and uncertainty for the bodies themselves and, most importantly, for those whom they employ and those they work for and represent.
There is the possibility that short terms of recognition will impair the proper operation of these organisations. The shadow Attorney made the observation about staffing and talked about anthropologists. Let me make it very clear: if you are offering the prospect of temporary employment for short periods, it is unlikely that you are going to attract specialists who are in high demand into these organisations on a yearly basis. And it will affect the organisation’s ability to set long-term agendas in the employment of their staff, the leasing and renting of premises and infrastructure and the entering into of contractual arrangements with third parties.
The current arrangement, where bodies are funded on a yearly basis, is already uncertain enough as it is. The function performed by rep bodies is complicated and requires experience. I think there is real potential for this to be undermined by these changes. If the government wants these bodies to work more effectively and efficiently, they need to fund them better and properly. There is no additional funding going to native title rep bodies under this legislation, just as there is no additional money going to prescribed bodies corporate under this legislation. These changes will squeeze them harder. They are already overworked and underfunded. This has been recognised in a range of reports and academic articles.
In 1998 independent consultants commissioned by the federal government concluded that rep bodies would need to be allocated approximately double their existing levels of funding in order to perform their core statutory obligations. That was in the Love-Rashid report. This was also evident in the report Operation of native title representative bodies, which was handed down by the Joint Committee on Native Title and the Aboriginal and Torres Strait Islander Land Account, which is now defunct, in March of 2006. The committee recommended that the Commonwealth immediately review the level of operational funding provided to rep bodies to:
... ensure that they are adequately resourced and reasonably able to meet their performance standards and fulfil their statutory functions.
The government expects much of native title rep bodies but delivers little to them at the same time.
The changes in the bill also expand the range of bodies that can become native title rep bodies. This is a concern because it shifts away from Indigenous involvement, and major warning bells arise out of this proposal. Item 5 of the amendments inserts a new section 201B(1)(ba) to the effect that a ‘company incorporated under the Corporations Act’ will qualify for native title representative body status. Under the current act, the minister is required to be satisfied that the native title rep body (a) satisfactorily represents native title claimants and (b) consults effectively with Indigenous people in its area. Under the amendments, these requirements are removed. The minister just needs to be satisfied that the native title rep body can perform its functions. This change shows a callous disregard for prospective Aboriginal involvement in the native title claims process and in rep bodies. It also demonstrates a failure to understand the wider role that rep bodies play. By virtue of their community representative nature and their ability to work successfully with Indigenous people, rep bodies are placed in a prime position to integrate native title activities, consultation processes, representative forums and agreement outcomes with other land related aspirations and activities.
Then there is the derecognition process. Under these changes, rep bodies can be stripped of their status in a way which is a major cause for concern. Currently, the minister cannot remove rep body status unless satisfied that the rep body is unlikely to remedy the relevant deficiencies that might have been identified by the minister or his department. Under the changes being proposed by government, the criteria for derecognition will be dramatically lessened. The minister will only need to be satisfied that the rep body is not ‘satisfactorily performing its functions’ or that there are serious or repeated financial irregularities. This is a dramatic reduction in what needs to be shown. Effectively, these changes bring in summary derecognition at the minister’s request. This change, and there are others in this bill like it, reflects a movement towards greater ministerial control and discretion.
This is a wider trend in Indigenous affairs in this country under this government. You only need to look at the recent amendments to the Aboriginal Land Rights (Northern Territory) Act and other activities the government is undertaking for proof of this. This government has no qualms in cutting out the need for informed advice, particularly from the Indigenous people most affected. It is a disturbing trend, and further alienates Aboriginal people from contributing to decisions made which affect them. The changes also reduce the period of notice required for the minister to remove the status of a rep body from 90 days to 60 days. Given the gravity of the matter, this change is difficult to accept.
There are also amendments which allow the minister to make changes to the geographical boundaries of rep bodies. Under the changes, a rep body can be required to administer a larger area, even against its wishes, where the minister decides that it can perform the functions of an adjoining area that does not have a rep body or where the adjoining area has a rep body but the minister thinks there needs to be a boundary adjustment. The government fails to realise that these boundaries were determined to reflect different cultural groups. They are reflected in rep body membership and other constitutional aspects. We should not proceed on this course. What is so odious about this particular change is that the minister has the power to order this without consent. This is an unnecessary and quite draconian measure. A preferable alternative would be to invite bodies to take up the area. Again, the time for boundary changes to take effect is reduced from 90 days to 60 days. The effect of this change means there is not enough time for proper consultation.
I am also concerned about the removal of the reporting requirement. Currently rep bodies need to prepare strategic plans and provide an annual report to parliament. Under the guise of reducing red tape the government is proposing to scrap this requirement. However, the bodies would still be required to give these to the minister through the Department of Families, Community Services and Indigenous Affairs. That is proper and as it should be. But what is being reduced is the possibility of parliamentary oversight of these bodies and the native title system. When these documents are not tabled in parliament, it removes the opportunity for them to be properly inquired into in the way they were previously when reports were tabled.
Then there is the issue of the claims resolution review and the shift to mediation by the tribunal under schedule 2. The main concern is the shift in emphasis from the Federal Court to the National Native Title Tribunal, and I note that the member for Jagajaga went extensively into this issue. The court has a proven track record in this regard. In contrast, the tribunal’s mediation performance has been a lot less effective.
The views of native title practitioners give some insight into the tribunal. Paul Hayes is a solicitor with experience working with native title in the Northern Territory, Queensland and New South Wales. In an article which he published titled the ‘National Native Title Tribunal: effective mediator or bureaucratic albatross? A user’s perspective’ published in the Indigenous Law Bulletin in 2002, volume 40, he observed that the track record of the NNTT in mediating claims is in serious question and he argues that there are many deficiencies in the way that they carry out that function.
The alleged inefficiencies of the tribunal are also borne out by the statistics provided in the Native Title Claims Review, the independent review carried out by Mr Graham Hiley QC and Dr Ken Levy. On 17 January 2006, of the 356 claims currently with the tribunal for mediation, 272—approximately 76 per cent—had been with the tribunal for more than three years, and 170—just under 48 per cent—for more than five years. The court has a much better track record in delivering results from mediation.
One perspective on the tribunal—and possible reform to it—is that offered by Hayes. He noted that the tribunal has not turned out as it was originally intended. This is because of the High Court’s decision in Brandy in 1995, which meant that most of its judicial function had to be shifted to the court. He wrote:
As a result of this reduction in the NNTT’s role, we are left with an unnecessarily bureaucratic and often gratuitous mediation body, whose mediation services could be performed by other more appropriate bodies.
Appropriate legislative reform would see the removal of the mediation functions of the NNTT and appropriate resourcing of NTRBs and the Federal Court to provide mediation as and when it is needed.
This is a view that I know is supported by many involved with the rep bodies. Then there are also the questions raised about the constitutionality of this proposal.
In coming to the conclusion of my contribution, there are various compulsive powers proposed for the tribunal in the bill to accompany its role in mediation. These include the power to compel parties to attend mediation and produce documents, and to report a party for not acting in good faith—and the relevant Commonwealth or state minister and, depending on the party, perhaps a legal professional body or court will decide the consequences for this breach. These ‘teeth’ given to the tribunal are harsh, oppressive and contrary to the idea of mediation. This is not the way to improve the native title system.
There are proposed changes to the prescribed body corporates under schedule 3. This relates to issues including consultations requiring PBCs. Consultation will only be compulsory where it involves surrendering native title rights and interests in land or waters. We support these changes; they stand to make life easier for PBCs in their role in carrying out native title. But at the same time, there is nothing in this legislation which provides for additional resources to allow PBCs to carry out their functions more appropriately.
This bill will serve to complicate native title and will not do the job it purports to do. I say to the government that they should heed the proposals which we will be putting in detail in the Senate and support those proposals so that we can get an improved native title outcome for all people involved in the native title system. Most particularly, we will be able to defend the rights of Indigenous Australians, the people we should be most concerned about in this process. I commend the opposition’s amendment to the House and suggest that the government take it on board.
I too rise to support the amendment that has been moved by the member for Wills to the Native Title Amendment Bill 2006. This legislation does little to improve the functioning of this vexed area of native title. It is a pity, because this is something that we have had to work at consistently as a parliament since the Mabo decision in 1993. Our concern is that when this government came to power, rather than dealing with trying to assist the evolution of this process and give effect to what in essence was the Mabo decision—the recognition of the concept of native title but the argument that there could be many aspects by which it could be addressed through coexistence—this government has done little to facilitate that way forward. In fact it has allowed the native title system to become very bureaucratic. At the same time as making the system more complicated, our concern as well is that it has failed to adequately resource the representative bodies that are charged with the task of trying to deal with this problem on the ground to achieve negotiated outcomes.
The legislation is also being debated in the House despite the fact that the Senate committee considering the detail of it is not scheduled to report until 23 February. This is a continuing unfortunate practice of this government. It is not allowing proper scrutiny of these complex areas by the parliamentary processes before attempting to rush legislation through this chamber. We register again our concern at the lack of scrutiny but will be using the opportunity in the consideration in detail stage, as well as within the Senate, to make further amendments. We also note that this is not just a view on our part that there has been inadequate consultation in the consideration of this legislation; it is also a claim made by the Minerals Council. This refutes the government’s assertion that there has been adequate time for consultation.
We do know the difficulty of getting the balance right in this area; achieving it requires understanding and commitment. This bill fails that test. It is a disappointing response, but it is hardly surprising given the government’s track record. The amendment that the member for Wills has moved essentially recognises the flaws in the legislation: the fact that it is a missed opportunity to get it right; that it overlooks recommendations from the Minerals Council; that it overlooks calls from the ATSI social justice commissioners for the proper resourcing of the native title representative bodies and the prescribed bodies corporate; that it will adversely affect the capacity of those bodies to represent and pursue Indigenous interests; and that the process that is being implemented as a result of this suite of measures will make the process much slower and much more bureaucratic.
I come to this debate after many years of involvement on my part, both through the parliament and through the trade union movement, in a range of Indigenous issues. That involvement has given me insight into the rights and cultural connections that Indigenous people have to their land, and that understanding is fundamental to getting this legislation right. I also remain, of course, committed to the quest for reconciliation, but that is something that we will not be able to achieve until there is a change of government.
I am proud to have been part of a government that was confronted with the High Court decision in Mabo and that set about securing the legal framework for native title whilst balancing it with the various interests of other stakeholders. I was the Minister for Primary Industries and Energy who had to deal with guaranteeing farmers certainty over leasehold land. So I have had a lot of experience in grasping the complexity of this area and the need for consultation, the need for rigour and the need to understand not just what the High Court decided but also the cultural affinity of Indigenous people with their land. The High Court decision in Mabo was a watershed in relation to land title. It essentially embraced native title as part of our common law. There was a difficult balancing of interests within the context of the hitherto considered legal framework, and that, as I said, was the challenge that we were presented with.
I might say that the Native Title Bill that we introduced and enacted in 1993 secured both the commitment and, in my judgement, a real recognition of the need to get the balance right. We also recognised, through the land acquisition fund, that native title claims should not be focused solely on the purchase of land but also on the economic development of that land in accordance with the wishes of the Indigenous communities. It was, as I said, difficult and complex, and it required leadership to balance the competing interests. As a government committed to staying the course, I think we demonstrated the ability to strike that balance between what could have been considered the irreconcilable interests of the competing parties. It involved, as I said before, a lot of consultation, something that this government refuses to properly embrace—exhaustive consultation, because it is only through that process that we can get it right.
This bill fails to create the necessary certainty and efficiency in the native title resolutions system, and it is for that reason that we moved our amendment. We are disappointed that the government have not seen fit to implement recommendations that many of the participants in this debate have urged. We hope that they are prepared to consider our amendment and embrace what we are putting forward. The legislation that we are considering will not deliver a fair resolution process to all of the parties involved. Combined with last year’s Northern Territory land rights legislation it demonstrates this government’s lack of commitment to proper consideration, proper debate and proper scrutiny. We were not even afforded the opportunity to debate that legislation in this chamber last year, despite the fact that none of its provisions—to introduce 99-year leases on Aboriginal land and to change arrangements for ministerial powers over land councils—were recommended by any of the reviews of the relevant act. There are no quick fixes to this issue, but, if you are going to ignore recommendations, if you are going to try to truncate or avoid consultation and if you are going to try to avoid scrutiny, then mistakes will be made. You will not get the system right—and this government has not got it right.
Let us go to some of the details of this bill. Schedule 1 and schedule 2 are the two fundamental areas of concern that we have. Schedule 1 covers native title representative bodies. The aim of schedule 1 is to improve the role, functions and opportunities of the representative bodies. That is the aim of it, but it does not achieve it. Instead, the provisions of the amendment bill that we are debating here tonight are likely to have a detrimental effect. The bill fails to secure greater efficiency and fairness for the parties in the native title resolutions system. Now, there is no doubt on our part that the system needs an overhaul. The average claim is taking six years and, despite the fact that there have been over 1,000 settlements, 600-odd cases remain unresolved. But the difficulty is that the amendments in this bill diminish the role of the native title representative bodies rather than enable them to overcome the backlog and keep up with any future claims.
Native title representative bodies play a key role in representing Indigenous interests. This bill undermines their role by including a provision to introduce fixed terms of between one and six years. Considering that the average claim takes six years, why would you give legislative backing to the ability to reduce the time that a member of such a body has to carry out their functions to as little as one year? In submissions on this legislation, the Minerals Council has argued very strongly that such short terms of recognition will not provide for greater stability, yet the government is proceeding with this proposal. It is not only the Minerals Council that argues that there is a problem in the reduction in time; it is also HREOC. The provision, in our view, is unnecessary and it will inhibit the ability of native title representative bodies to set long-term agendas. Imposing set terms of recognition is made even more unnecessary as the schedule then goes on to give the minister broader abilities to withdraw recognition to underperforming bodies. The bill also seeks to reduce the notice period the minister may give a native title representative body he wishes to close down from 90 to 60 days. All of this creates greater uncertainty to the representative bodies. The provision also hinders the organisations, preventing them from improving certainty in their operations through their inability to secure staff, tenure and buildings and to build up corporate knowledge.
If the minister were serious about ensuring better performance and a reduction in red tape, instead of playing around with those provisions, he should consider Labor’s suggestions to give the bodies access to multiyear funding. Again, it is not just Labor that makes this call. The Minerals Council has urged increases in the operational funding of the bodies, noting that the workload of the representative bodies has increased significantly. If the resources were made available, they would provide those bodies with a greater capacity to plan over the longer term and give greater certainty to their operations.
Furthermore, this bill also seeks to remove the requirement that the national native title representative bodies submit annual reports to the parliament. This will have the effect of limiting the parliament’s powers to oversee the operation of the boards and raise relevant issues where appropriate. Another very worrying facet of this bill is that it allows the minister to change the territorial boundaries of the native title representative body without their consent. The geographical boundaries of native title representative bodies are determined by the local Indigenous cultural groups and are reflected in the bodies’ membership and their constitutions.
The bill also opens up the possibility that non-Indigenous law firms could be recognised as native title service providers. This is a serious proposition. It could lead to native title claimants’ interests being represented from a distance both geographically and also, obviously, culturally. This will be detrimental to ensuring the representation of Indigenous Australians in their native title claims. We also believe that the bill fails to meet regional needs. It is the government’s continuing tendency to treat the regions with complacency. In ensuring the sustainable development of our regions, including the resolution of native title, we must commit to an agenda which puts local communities first. Communities know what is best for their regions. Local Indigenous communities must not be represented at arm’s length but must be guaranteed a seat at the table in determining their regions’ future. This bill does not guarantee that right. I have talked in this place in other circumstances about Labor’s regional development framework. We want to develop those sorts of models in relation to the resolution of native title.
Schedule 2 is another very problematic area. It expands the role and the power of the Native Title Tribunal and shifts the emphasis away from the Federal Court. This is one of those areas where I fear we are going to run into problems because of the lack of time we have had to go to the detail and the scrutiny of that detail. The Federal Court, echoing the concerns of a number of other submissions, has argued that the amendments that give the tribunal greater directive powers are inappropriate in a legal sense and even possibly in a constitutional sense. It is likely to increase administrative costs because ultimately the court will need to enforce the tribunal’s new powers if they are to be effective. The court has also argued that these provisions may violate the Constitution by giving judicial powers to a body which is primarily administrative in nature.
These are serious issues and it is a pity that the parliament has not had more time to be satisfied on the fronts that are being put forward. Others who have spoken before me have talked about the problems associated through not only the lack of resources but the fact that there has not been an established mediation role through the tribunal. If we are trying to get to a process whereby negotiation assisted by mediation is the direction in which we go, expertise and resources need to be committed to ensure it.
Essentially, we do support the other schedules in the bill, but the truth is that they do not go far enough in providing greater certainty and efficiency to the native title process. That is why we have moved the amendments that we have. The bill gives some changes to the prescribed bodies corporate that manage native title, once it is recognised, but it fails to address their ongoing funding needs. The provision of ongoing funds would create greater certainty for the resolution system from start to completion and for regional communities in the management of native title.
We believe ensuring efficiency and certainty in native title resolution is of absolute necessity for regional communities that have to deal with this issue on a regular basis. It is essential for these communities that the native title system is workable and provides certainty. This involves restoring a balance between recognising the legitimacy of native title claims and the competing interests in the land. That is why I have been a long-time supporter of regional agreements to recognise Indigenous rights and needs and the long-term sustainability of regional communities.
Labor is committed to ensuring a fair go and fair treatment for all Australians. We are committed to the native title process, but what we want is dedication and rigour in terms of a process that is going to work. We have put constructive solutions as to how this legislation can be improved. We urge the government to pick those amendments up, but we fear that we will have to wait until there is a change of government to make sure that the process that we began can be completed properly. (Time expired)
I follow on from my colleagues the member for Hotham, the member for Lingiari and the member for Wills, who has moved a number of second reading amendments which I support. I note that he has also foreshadowed the drafting of substantial amendments in the Senate when this matter is considered there. Native title is important for Australians. It is certainly something the Labor Party has a proud history of championing and supporting. I do not think there is any doubt at all that getting native title right remains one of the great challenges for both this government and governments to come. It requires a very careful deliberation by us in the House.
The notion that Aboriginal communities in any part of Australia should be able to constitute themselves into representative bodies to make determinations and decisions about the use of and access to their land comes as a consequence of a long and hard-fought struggle for the rights of Indigenous people to assert some control over the way in which their land is used. But, now, more importantly, given the debates of the past two or three years and the considerable levels of social disadvantage that Indigenous communities still face, in order for Indigenous people to fulfil the potential their land offers to them, the native title system, as evidenced in the legislation and amendments we are considering—particularly in respect of native title representative bodies and the way in which they function, their capacities and their success in fulfilling the duties that they have—is absolutely critical to the ongoing wellbeing of Indigenous communities Australia wide.
I note that native title rep bodies oppose aspects of this bill. I do hope that the government will take the views of the native title representative bodies on board as we debate the legislation in the House and as we bring forward amendments for the government to consider. Primary amongst the issues raised, both in this legislation and more generally in relation to the ongoing capacity of native title representative bodies to fulfil their purposes and functions, is the question of their resources and support.
For people listening to this debate or perhaps reading it in Hansard, the considerably difficult environment that native title rep bodies quite often operate under is something which tends to be underestimated and undervalued. As we talk through this legislation and discuss the merits of the amendments we would like the government to take into account—and as the bill goes to the Senate for a more thorough and deliberative consideration—it remains extremely important for us to consider the conditions under which Indigenous people find themselves. We need to consider the nature of their communities. In some instances there are high degrees of illness amongst older populations, particularly men but also, regrettably, women. There are burgeoning populations, particularly in Northern Australia, where many younger people live in communities, where cultural history and political expertise is quite often at a premium. It is in native title representative bodies that much of this expertise resides. I think it is incumbent on the government to take very fully into account the views put by the native title rep bodies.
It is also true that, up to this point, the record on determinations in relation to native title representative bodies has not been particularly good. It is true that, particularly in recent years, we have seen an additional amount of attention drawn to the nature of agreements that have been undertaken and the fact that they have not as a matter of course ended up delivering those kinds of benefits nor fulfilled their terms such as was intended. Of particular note is the Griffith University study conducted by Ciaran O’Faircheallaigh, which was noted in an article in the Australian on 30 January entitled ‘Land use contracts fail to deliver’. It found that almost all agreements that promised Indigenous people some ability to control environmental damage to their traditional lands which were done in the process had rarely happened. It found that, in a number of cases, the agreements were either ‘basket cases that should never have been entered into’ or had delivered few cultural and monetary benefits to Aborigines and that ‘in many cases, Aboriginal groups do not have the resources or sophistication to deal seriously with the complexities of land-use agreements’.
It is the case that there are some agreements that have worked well. The Argyle Diamond Mine agreement and others are held up as examples of agreements that have worked well. They have some more prescriptive terms and conditions applying to them but they also have the benefit, particularly in the case of the Argyle Diamond Mine agreement, of having people with the goodwill, expertise and resources to enter into an agreement which has the capacity to deliver what both parties intended.
It is not a one-sided issue in relation to these agreements. In many instances, particularly as Australia is in the fortunate situation of experiencing something of a minerals boom in Western Australia, we may have, on one side, native title owners and native title representative bodies and, on the other side, mineral companies of one kind or another seeking to reach an agreement, yet both of these entities which are parties to these agreements have expressed dissatisfaction and concern with the Native Title Amendment Bill 2006. Again, reference has been made to the Minerals Council’s views on some aspects of the bill that is before us, and I ask that the government take into account the views that the Minerals Council of Australia has put.
Of all the issues that relate to the capacity of native title rep bodies to successfully and competently go about their tasks, clearly it is the issue of resourcing that is critical. I note in particular a submission by the Western Australian Office of Native Title to the inquiry into native title rep bodies in 2004. I will come to the Senate committee’s views and recommendations in that particular instance in a moment. But, again, Mr Gary Hamley, the executive director of the Office of Native Title in a state where there are a number of native title claims, makes it very clear that native title rep body funding is the most critical issue of all and that, in any instance, in relation to the capacity of these bodies—and I will read the conclusion—‘the Western Australian government believe that native title representative bodies do not have sufficient resources to meet their statutory responsibilities in future act management and the resolution of native title application in Western Australia’. Of course, as a consequence of this, backlogs exist and there are significant delays, and, as the submission points out, this is an obstacle to ongoing regional development.
But more important I think is the fact that, in being unable to meet their capacity to deliver in terms of agreements and to have the resources to enter into the agreements and to be able to maintain through the course of the negotiations a capacity to ensure a proper and good outcome on both sides, there is a sense of dispiritedness and, consequently, a sense of going outside the entire native title system emerges. Indeed, we have seen over the last couple of years the increasing incidence of agreements that are effectively struck outside the native title framework. That is clearly not in the long-term best interests of either the native title holders or the mining companies and others who are seeking to reach agreement with people, particularly in regional Australia, where development issues are so important.
I remind the House—and I am referring to a specific statement from a native title representative body—that land and sea are the cornerstones of Aboriginal spirituality and law, yet it is through these particular legal constructs, for which the parliament is responsible, that these very important goals and elements of Indigenous people’s being, and certainly their economic and social existence, are made manifest.
A number of Labor members have drawn attention to our concerns in relation to the bill that has become before us, and a number of amendments have been brought forward as a consequence of that. It is certainly our contention that the native title representative bodies’ view about issues such as the fixed shorter term periods that are proposed are of real concern. Of particular concern as well is the power to change geographical areas of responsibility without native title representative bodies’ consent, and the discretion that is afforded under this act clearly causes those native title rep bodies and Indigenous people in general a great degree of concern.
Additional to that, there are issues with schedule 2, which relates to the National Native Title Tribunal. I note the comments by my colleagues. We certainly do accept and understand the difficulties the tribunal has faced and we recognise the important role that it plays, but it is clear that, as identified and proposed in this legislation, the expanded powers of the tribunal raise a number of serious questions, both as to jurisdiction and also ultimately to effectiveness.
I note the Social Justice Commissioner has suggested to the government a number of amendments. The Minerals Council makes quite clear that some of these proposed amendments in the bill will be particularly destabilising ‘if they are not equipped with appropriate funding and capacity-building initiatives’. Chronic underfunding certainly holds back progress in mediation, and that is to everybody’s long-term detriment.
When the Parliamentary Joint Committee on Native Title and the Aboriginal and Torres Strait Islander Land Account reported on the operation of native title rep bodies in 2006, it too, specifically in recommendations 5 and 6, raised the issue of the adequacy of the level of funding provided by the OIPC and in particular the need for additional funding to meet the situations and conditions that native title rep bodies find themselves in, particularly in the case of emergencies or otherwise.
That native title rep bodies will no longer have to submit their annual reports to the parliament has been raised as a matter of concern, but I think as significant is the question of introducing fixed term periods of recognition of some one to six years and the potential impact that that might have on native title rep bodies. A number of speakers have made the point that short terms could affect the operation of these organisations and would affect their ability to set long-term agendas.
I think this needs to be seen in the context of the number of years it takes for these native title claims to actually reach resolution. It can take as long as six or seven years or even longer, and that is an average figure that has been cited in the House tonight. So it is a matter of some concern that there would be a turnover of people serving on these bodies whilst at the same time a claim itself would be ongoing, with the question of loss of cultural and legal knowledge that that raises. Relationships with staff, with the legal community and, frankly, with those you are negotiating with have to be built up over a period of time, where trust as well as legal interaction are extremely important.
I support the second reading amendment moved by the member for Wills and hope that the amendments are positively considered by the House. I will confine my comments at this point.
The Native Title Amendment Bill 2006 is part of a complex suite of policies that affect Indigenous Australians, native title rights and Indigenous interests more generally. In my view, it is part of a fairly sustained assault on Aboriginal interests which started with the official government abandonment of reconciliation and continued with vigorous attacks on the so-called ‘black armband’ view of history and the abolition of ATSIC.
Among the more recent and distasteful manifestations of this vendetta was former Minister Vanstone’s assertion that remote communities were ‘cultural museums’ whose inhabitants should be moved, she thought, to places where there were better economic opportunities. Some of those places are frankly places where Indigenous people are much worse off. Of course, we have heard Mr Abbott’s call for a ‘new paternalism’ and demands for the removal of traditional law from considerations in sentencing in the justice system, stemming, I think, from the same wilful disregard of Indigenous perspectives. I often find it ironic that the same people are happy to use images of Indigenous people—they probably have their paintings on their walls—and use their culture to promote international events and entice overseas visitors.
Much of this behaviour has taken place in the context of a persistent refusal to acknowledge the position of Indigenous Australians as the first peoples of this land and to recognise native title. This stems, at least in part, as Larissa Behrendt has noted, in the government’s favoured orthodoxy:
... that Australia was peacefully settled, with Aboriginal people simply giving way naturally to a far superior (as the story would be told) technology of British civilisation.
Of course, there have been numerous times in the last decade when this government has specifically sought to wind back native title rights conferred through the Mabo decision and subsequent legislation, beginning with the so-called ‘10-point plan’ and the ‘bucketloads of extinguishment’, which really did arrive. In the area of Indigenous affairs, the Howard government’s chosen terminology—its mantra, in fact—has been ‘practical reconciliation’. This is supposed to draw a clever distinction, as they see it, between ideals on the one hand and achievements on the other as if they were actually mutually exclusive. So it is only right that this government after 11 years be judged firmly on what it has achieved—on the practical outcomes. It is only right that it be judged on its approach to Indigenous policy.
Of course, I acknowledge that this area of government policy, perhaps more than any other, is not one where you simply score party political points. But, having said that, it should never be the case that this area of policy is anything less than rigorously and vigorously contested at every opportunity, because it is so important. That is the process by which a democracy works to ensure that the best policies are formulated and implemented, especially for the most disadvantaged in our community.
I think it is fair to say, as many have said, that the most positive outcome of the Mabo decision was a fundamental political shift in Australia which saw Indigenous people finally acknowledged through the law as the original owners of this country—although, of course, there are still some in government seeking to roll back the very modest gains of native title. Property rights were affirmed, even though the legal interpretation of these rights has rendered them, it has to be said, poor cousins to other, non-native title, property rights.
In some places the process of claiming native title rights has delivered social, economic and political outcomes to Indigenous people, and that is to be praised. Some economic benefits have accrued to those with the resources and good fortune to be able to negotiate an outcome through the Native Title Act. A few have received land back, but they are very few indeed. Many claims have not been resolved at all: at this stage, while 91 claims have been resolved, 600 remain unsettled.
In general, partly as a result of amendments to the act over the last decade, the results have been far more limited than might have been hoped for. Successive Federal Court and High Court decisions have confirmed that. This disappointing outcome has been commented upon by many, including Aboriginal and Torres Strait Islander Social Justice Commissioner Bill Jonas and one of his successors, Tom Calma, in their native title reports, which deserve reading. In expressing his concern at the failure of the Native Title Act to deliver tangible and lasting benefits for Indigenous people, Mr Jonas said, for example:
As an embodiment of social relations, the native title system places Indigenous interests at a lower level than non-Indigenous interests, every time. As an embodiment of economic relations, the native title system removes Indigenous people’s effective control over their only asset: exclusive rights to land and sea country. And as an embodiment of political relations, native title fails to recognise traditional decision-making structures.
In his submission to the recent parliamentary inquiry into the capacity of native title representative bodies, Mr Calma went even further and asserted that the Native Title Act had actually erected a barrier to the enjoyment and protection of these rights.
Despite attempts by the Howard government to do so, it is impossible to separate the benefits that may flow from native title recognition from the broader context of Indigenous rights, reconciliation, economic independence and governance. These are in fact the possibilities that were held out by native title. As Mr Calma indicated in his submission, realising these possibilities and meeting minimum human rights standards for Indigenous Australians will be based on the provisions—which I hope we will continue to support—of the Committee on the Elimination of Racial Discrimination and will centrally depend on the capacity and resources of the native title representative bodies affected by this bill.
For instance, Mr Calma points to the right to equality. I presume we all agree that Indigenous people should enjoy equal protection of their property interests before the law and that parties, Australia in this case, should recognise, to quote CERD, ‘the rights of Indigenous people to own, develop, control and use their communal lands and territories and resources’—although, as we know, the Native Title Act actually legislates for a lesser standard of protection to begin with. Nonetheless, it is vital that the representative bodies can at least protect those rights afforded under the act and as required in the act by facilitating meetings of claimant groups, researching and advising on relevant issues, and representing claimants in proceedings or negotiations.
The second right that Mr Calma points to is the right to effective participation, especially ensuring that no decision affecting the rights and interests of Indigenous people is taken without their informed consent. Again, representative bodies are vital to this process and are specifically empowered in the act to ensure that Indigenous people who may hold native title in a particular region can participate in decisions affecting their traditional land and receive consultation, assistance with claims, information dissemination and, of course, assistance in dispute resolution and agreement making.
The third right he points to is the right to enjoy and maintain culture, especially in the light of the unique and profound relationship of Indigenous people with the land, which extends beyond economic interests to cultural and spiritual identity. This is something that is often overlooked, even disparaged, by people on the other side. Representative bodies should be able to assist in ensuring recognition and protection of culture as part of their responsibilities.
Finally, there is the right to self-determination. I know that is not in favour with the current government, which prefers its new paternalism, but it is recognised in the International Covenant on Economic, Social and Cultural Rights that Indigenous people should freely determine their political status and pursue their economic, social and cultural development. Again, representative bodies are there to ensure that, to the greatest extent possible, even limited as it is by this government, Indigenous people can exercise some control over their lives.
As I have tried to outline, native title representative bodies are the principal means for: assisting in the pursuit of native title claims and agreements, facilitating communication between Indigenous and non-Indigenous parties, and providing that legislative and contractual responsibilities are met. They are the only bodies that can do this. The capacity of representative bodies to do this requires funding as well as expertise. The process of negotiating agreements assumes that the parties are well resourced, capable and experienced enough to undertake the complicated negotiation procedures. Sadly, as many have observed, this is often not the case. The organisations involved often do not have the resources, the capacity or the appropriate training within the community to successfully negotiate agreements. As a result, frankly, they are dudded.
These bodies need help both in training and in resources, as many have observed, including the representative bodies themselves. As we know, they already face substantial difficulties because of underfunding. Those who know anything about these bodies know that there is staff burnout and negotiations are delayed and/or truncated with unfortunate consequences for Indigenous people and the people with whom they are negotiating. Representative bodies have on occasion simply been unable to engage traditional owners on matters which affect their native title because of inadequate resources, and rights sometimes cannot be enjoyed at all because of a lack of implementation funding. They get a decision, and then nothing can be done about it.
In the now notorious Kennedy case in the Federal Court, Justice Sackville ordered that native title did not exist on land known as Castle Hill Holding. There was strong evidence then and there is now that the shortage of funds to the rep bodies played a part in this outcome. That is a tragedy. The chronic lack of capacity for the native title rep bodies to manage all their native title duties represents a major flaw in the system and renders it open to exploitation. A nonclaimant can effectively capitalise on the fact that overstretched native title bodies cannot take on additional work—and some have. They can do so using the financial assistance of the federal government, which provides them with non-means-tested funds. It is hardly an equal contest. Inequitable levels of funding to rep bodies have disadvantaged Indigenous people and limited their capacity to protect native title rights, and parliamentary committees have found accordingly. The native title rep bodies are in all senses the workhorses of native title, and we in Labor believe they should be adequately funded for this very important task.
So what is happening under this bill to the native title rep bodies? Other members have already noted changes, including the effective opening up of the representative services market in this area, possibly to allow other bodies to supplant the rep bodies—a move which has the potential to destroy the representative nature of the bodies, so central to the functioning of native title.
Others too have noted the introduction of periodic terms, from one to six years, which will almost certainly, in the case of the shorter term, undermine the stability of the rep bodies and their capacity to negotiate. It will make business and financial planning more problematic, if not impossible, increase infrastructure costs and destroy any security in staff tenure—already a problem—further thinning corporate knowledge in an area notorious for its complexity. Of course others have noted too that this legislation will confer powers to change borders without consultation with the Indigenous people, and that this could cause significant problems because the areas are defined typically by cultural groups, not by administrative convenience which might suit the minister.
The bill appears on the whole to ignore the recommendations of the report of the Parliamentary Joint Committee on Native Title and the Torres Strait Islander Land Account on the operation of native title representative bodies, 2006. The majority report recommended:
… that the Commonwealth immediately review the adequacy of the level of funding provided by the OIPC to NTRBs for capacity building activities including management and staff development, and information technology.
The minority report went further and canvassed a wide range of these concerns, noting the impact of underresourcing on the minerals sector, the native title system and community development in Indigenous communities. But this acknowledgement did not translate into a recommendation for an immediate increase in funding. The weight of the evidence presented to the inquiry, the minority report suggested, warranted a recommendation that the level of funding be increased immediately and then reviewed. The inadequacy of funding to the native title rep bodies was even raised by the Minerals Council in the course of the inquiry into the current bill, as it was by the Human Rights and Equal Opportunity Commission.
I turn now to another part of this bill, which proposes to expand the tribunal’s mediation function and to make it the primary mediation forum. As others have noted in this debate, both inside and outside the House, this expansion of the tribunal’s powers is to be made notwithstanding the fact that the tribunal is regarded by many as among the key problems in this area. I am aware that the President of the tribunal, Graeme Neate, when he spoke on the outcomes of the native title Claims Resolution Review, said:
The reforms give the Tribunal an opportunity to make the system work better and to help deliver just and enduring outcomes more effectively and efficiently. Of course, we cannot do that without the involvement and commitment of the parties, but we are to be given more tools to secure that involvement.
I have to say that the language here is a little strange. I presume it refers to the new powers of the tribunal to compel parties to participate in mediation, to compel the attendance of witnesses and to compel the production of legally privileged documents. All of these things need to be seen not just within a framework of ‘efficiency’ but within the somewhat artificial ‘agreement making’ that the tribunal exists to achieve. It should never be lost in all this that the agreement making we are concerned with here is not in any sense a free negotiation between equal parties. Along the same conceptual lines, we need to recognise that native title mediation in this country has become a process sui generis.
I am not confident, and I do not believe that the native title rep bodies are at all confident, in the mediation process being conducted under the tribunal. The native title mediation process has become quasi-judicial, with the provision of detailed evidence to prove various elements of a particular claim being followed by responses to that evidence and then by counter-responses. Justice North of the Federal Court recently made comments in an as yet unreported directions hearing to the effect that such mediation processes, which occur both through the court and the tribunal, amount, as he put it, to a kind of ‘out-of-court rehearsal’ of a trial. In such circumstances, he said:
If the parties are in effect conducting a trial process, then little is to be gained by calling it a mediation and having it behind closed doors. Rather, it might be better to simply get the case on for trial, and in other cases that is the course which I am adopting.
This is hardly a ringing endorsement. But it will not be a course open to the Federal Court or its applicants in circumstances where mediations are predominantly considered the jurisdiction of the tribunal—an outcome which this bill will effect.
Rather than addressing the real shortcomings of the process as it stands, this bill may have the effect of accentuating the process’s worst aspects. Firstly, it makes mediation of native title claims the primary preserve of the tribunal, when many stakeholders regard the tribunal as one of the more problematic parts of the system. Secondly, it weakens the rep bodies at a time when these bodies are already underresourced.
At last year’s AMPLA conference, David Ritter, who is a lecturer in the Faculty of Law at the University of Western Australia and an expert in this area, delivered a paper that responded to a paper by Graeme Neate from the tribunal. In Mr Neate’s paper, reference was made to a number of issues that hinder agreement making. David Ritter’s paper, in response, made the following observation:
Also surprising is Neate’s failure to mention the socio-economic deprivation of many Indigenous communities as an obstacle to reaching agreement. Surely it is the chronic state of Aboriginal well-being that is perhaps the single biggest impediment to negotiations moving quickly? How can the high incidence of people dying young, the prevalence of serious illness, problems with literacy and numeracy, the pervasiveness of violence in some communities and the frequency of mental health issues not have the impact of complicating even the most elaborately planned negotiations. The actuality of the social and economic demography of Aboriginal Australia logically must, and does, condition the negotiation of legal relations between Indigenous communities and other parties.
We see no recognition of that at all in this legislation. From this observation flow several points that need to be made. Some of them I will have a chance to make tonight and probably others tomorrow morning. Firstly, there is already a serious disparity in the resources available to the various stakeholders in this process. The resources inequality, if you like, is perhaps most stark in the difference between the resources available to the tribunal itself and the resources available to the rep bodies. As an example, I was told by a person who made a submission to the parliamentary joint committee that the tribunal sent its own note taker to a committee hearing, even though the hearing was being formally transcribed—this while the rep bodies struggle along with hardly enough funds to staff the essential positions. Perhaps the minister could have a look at that.
This disparity operates in addition to the socioeconomic disadvantages that I note already afflict Indigenous Australians, yet this bill seeks to make the process more ‘efficient’ by increasing the powers of the tribunal whilst making the position of the rep bodies much more difficult in ways that will have economic consequences. Finally, this bill is an instance of the government’s attempts to make reform in this area while ignoring the loud recommendations to improve funding, which I have already mentioned, coming from all bodies, including the rep bodies themselves.
Debate interrupted.
Order! It being 9.00 pm, I propose the question:
That the House do now adjourn.
I rise tonight to say some kind words about and pay tribute to Peter Dutton, Minister for Revenue and Assistant Treasurer, on his initiative with managed investment schemes. It has taken considerable courage and considerable intelligence to understand exactly the issues involved here. He has made a very intelligent commitment to doing what is the right thing. I pay the minister a tribute—it is something I very rarely do in this place—because I think he is well deserving of the highest of praise. If he has received criticism from some of his colleagues, then all the more power to him. If there is something worth doing, then I very much doubt it is really worth doing if there is not some opposition—and considerable opposition—to it.
The first time I ran across managed investment schemes was with olive trees. I was very supportive of the projects and I thought there was a good aspect to the whole initiative, as we did not have many olive trees in Australia at the time. However, my next experience was with mango plantations.
Mr Speaker, you must understand what happens here. John Gambino is a leading mango grower in North Queensland and it cost him $100 per tree by the time he had planted it and put irrigation and everything else in. So he had a capital outlay to service of $100 per tree. When these giant mango plantations went in, they probably did it for $120 per tree, but of course they went broke and the receiver sold them up for 50c in the dollar, so it was resold at $60 a tree. So the new owner only had to service a capital outlay of $60 per tree.
Corporate farming does not work and of course the corporate farm collapsed again. Now they were sold up for 50c in the dollar. The situation now is that all they have to do is service a capital outlay of $30 per tree whereas John Gambino, a hard-working pioneer of the mango industry in Northern Australia, has to service a capital outlay of $100 per tree still because he is an honest, decent, hard-working Australian farmer. The motivation of people investing in managed funds is not because they are farmers but because they want to avoid paying taxation. That is their incentive.
A person who I know very well told me that his accountant had told him that he had to borrow $300,000 to invest in a managed investment scheme. He rang me up and I said, ‘Don’t be ridiculous.’ One of the ex-heads of one of the major accounting firms in Brisbane is on record as saying that not a single one of these schemes to his knowledge has returned any capital outlay to the investor. I advised this person accordingly, and the person said: ‘Oh, yes, but some companies guarantee that after nine years they will return your capital. It is a guarantee in writing.’ I said: ‘Well, that is if the company is there. I do not know of any of these companies that have lasted nine years.’ He checked it out and he said, ‘Jeez, you were right,’ and he did not make the investment.
Unfortunately, an awful lot of people in Australia have and they have lost a great deal of money. That is their choice. That is the free market system. But what is not fair is Johnny Gambino having to compete against somebody that now has a tree capitalised at $30 when he has a tree that is capitalised at $100. What possible hope has he got of competing against that situation? He has no hope.
Fabio and Judy Petrusa founded the tea-tree industry. Willis and Kathy Fabris and many other families at Dimbulah followed in this pioneering industry. A company came in and projected that they were going to get the market price of $38 a kilo and of course the price they did get was $12 a kilo. They flooded the market and they ended up with only $12 a kilo, but all of these hardworking, decent farmers went down with them. I see Minister Truss at the table laughing. I think he finds it very humorous what happened to these farmers in Australia. I find it very curious that he is laughing at it, but I would not expect much more from the honourable member. We know his reputation. I do not think he is game to set foot in this area.
Steady on.
No, I will not steady on. I would not want to be provoked on the issue. I could give examples. (Time expired)
Recently bushfires have taken an enormous toll on many communities in the Pearce electorate, especially in this last couple of weeks, and none has been more devastating than the fire in Toodyay recently which sadly caused the loss of the life of a young schoolteacher, Michelle Mack. I did not know Michelle Mack personally but I know that she is greatly mourned by the Toodyay community and particularly by the Toodyay school community. I extend my deepest sympathy to Michelle Mack’s family and to the community of Toodyay and particularly to the Toodyay school. I spoke to the principal the other evening and I know that they are all in deep mourning and are shocked at Michelle’s death.
Just after the fires broke out I spoke to the President of Toodyay Shire and volunteer firefighter from Toodyay, Charlie Wroth, who had been fighting fires with other volunteers almost nonstop for over a week. I would like to pay tribute to all the volunteer firefighters, particularly in Pearce. Those who know the Pearce electorate know of its particular vulnerability to fire and the brave men and women who volunteer to go out at any time of the day and night to fight fires. They are truly the genuine heroes and heroines of our community. They put their own businesses and lives on hold for hours if not days at a time to attend to the call of volunteer duties, and they put their lives at risk to save the lives of others.
Fighting fires is a very dangerous and exhausting business and I cannot speak highly enough of those who undertake this very vital service to their community. We are all grateful for their commitment to community service in fighting fires to protect property and lives.
Volunteer firefighters do fantastic work in other areas as well. They provide firebreaks, they contain hazardous material spills, they do a lot of rescue work on road crashes in rural areas and they provide community fire safety education—all very vital services to rural and regional communities.
Over the past few days, I have been speaking on the phone to farmers in Pearce, some of whom have lost up to 95 per cent of their property infrastructure, including fences, silos, stock, remnant bush land and some 150-year-old trees. It has turned the properties into dust bowls, because there is no vegetation left on some of these properties—nothing; it is just a moonscape.
Despite the heartbreak, these farmers remain positive and every one of them has spoken very highly of the volunteer firefighters and the tremendous work they did—in particular, the Toodyay, York, Northam, Grass Valley and Bakers Hill volunteers, who on this occasion attended fires in Toodyay and in Grass Valley. Both were very serious fires. Unfortunately these fires were caused, they think, by old infrastructure, old power poles which have not been replaced by Western Power. That is a tragedy, because it is preventable and affordable. I will certainly be writing to Western Power to ask for a brief and to find out when these poles will be changed over. It was only in 2003 that we saw fires in Tenterden in Western Australia and the loss of the lives of two women. It is very sad that these were preventable.
In October last year the Pingelly Volunteer Fire and Rescue Service was presented with the RAC Fire Fighting Award for 2006. Pingelly was one of 31 nominations over five categories and won the Volunteer Fire and Rescue Award. Pingelly’s nomination read:
Your nomination reflects the high regard that both your community and your peers have for your efforts. It is a credit to you that your outstanding contribution is considered worthy of acknowledgment and recognition.
This could be applied to all the services in Pearce, whether they are in the hills, in the country towns or at the coast. All make an incredible commitment to looking after the communities they serve. I pay tribute to them and place on record my appreciation for the services they provide. Again, to Michelle Mack’s family, her friends and the Toodyay community, I extend my heartfelt sympathy.
The politics of climate change have taken some fascinating turns in recent months. There has been a mad scramble by climate sceptics to catch up and there is a $10 billion water plan, but the state premiers and the PM are still playing politics, all trying to claim the high ground and catch up with the public’s growing understanding of the crisis.
This understanding has come, of course, courtesy of the Stern report and Al Gore’s An Inconvenient Truth. It is particularly inconvenient for any government facing an election, as Morris Iemma and John Howard’s governments are, caught with their swimming trunks down and no water to swim in. Water, we are now told, is a public asset. A few months back, it was available to the highest bidder as the states and the Commonwealth colluded to flog off the Snowy scheme with its crucial role in town water supply, environmental flow, irrigation requirements and clean hydro-electricity.
The PM says our only clean, green energy options are nuclear and clean coal. Coal may be cleaner one day, we are told, if only we can find out how to dump its emissions underground and keep them there. And given that uranium mining and nuclear energy production generate highly dangerous, indeed deadly, waste, given no nation on earth has a permanent disposal facility for high-level nuclear waste, and further given that the IAEA safeguards system, particularly in relation to countries like China, is critically flawed, will the PM please explain to Australians which part of the nuclear energy cycle is clean, green and safe.
I will tell you about climate in this country—a climate of fear among scientists concerned about their careers if they are seen to be critical of the government’s energy priorities. And those priorities are all about fossil fuels and uranium. Whistleblower Guy Pearce has called for independent and credible economic research to inform the government’s policy on energy options and climate change. Professor Pearce points out how stacked in favour of fossil fuels is the government’s energy advice. There are conflicts of interest throughout the energy lobby and advisory process.
Until recent days, a report on solar thermal technology, available since late 2005, has been suppressed, despite its five CSIRO authors saying the technology is poised to play a significant role in baseload generation in Australia and could be cost competitive with coal in five to seven years.
Australian company Solar Heat and Power has been forced offshore to seek development funding. Sure, this University of Sydney-developed technology has received a research grant, as the PM told parliament in answer to my question last week, but he was very vague about the solar thermal report, despite being quizzed about the research by Alan Jones in November, all reported by the ABC and Alan Ramsey.
Yet, with a report available that clearly details the big advantages of concentrating on solar thermal—its energy storing capacity, its ability to reduce the overall cost of electricity, its capacity to meet peaking and baseload power, its ability to be used in hybrid configuration with fossil power stations and the absolute suitability of Australia as a solar location—and despite independent studies that the cost of solar thermal will be fully competitive with fossil based power once 5,000 megawatts of capacity is installed, the government did not want to know about it until it was leaked to the Canberra Times, where Rosslyn Beeby did such a great job in sticking with the story.
So what is going on? A cosy climate of mates, nudges and winks—the talking up of nuclear with the help of the fossil mafia and nuclear energy interests, the talking up of unproven clean coal, the stripping of solar research funding and the closing of the Energy Research and Development Corporation.
The Prime Minister suggests he wants an open debate on our energy options. He says he is happy to put solar thermal into the mix. Let us also put less vested corporate interest into the alternative energy advisory mix and the water resources mix. Let us put a mandated renewable energy target in place for industry and transport. Let us level the playing field to make uranium and all our fossil fuels fully accountable. Only then will the public accept the political climate change debate as fair dinkum and only then will our researchers be able to confidently do their vital work without fear.
Tonight I rise to bring to the attention of the House the very concerning escalation of antisocial behaviour in the northern suburbs of Launceston, particularly in the suburb of Rocherlea. As the local representative I—and my office—have been experiencing an increase in the number of local residents in those northern suburbs contacting me in frustration about the level of antisocial behaviour, especially hooning. These residents, many of whom have been living in the area for many years, are living in fear and are greatly annoyed because of the reckless behaviour by some drivers of motor vehicles. I understand that there are also apparent cases of repeat offending by some drivers.
I want to put on the record that I strongly believe the local police who patrol Rocherlea and other northern suburbs do an excellent job, and I know them personally. But, frankly, with limited resources it is very hard for them to provide a consistent presence that is strong enough to help stamp out this unacceptable practice in the community. In light of the number of complaints that I have received about the level of antisocial behaviour I believe there is a very strong and justifiable case for the Tasmanian government to increase police resources in this area, at least until the current spate of problems is brought under control.
In the past I have written to the state police minister about antisocial behaviour in the area—not just hooning but other behaviours as well. The time has now come for more police on the beat to deal with offenders by having a stronger local presence and to deter them from their illegal practices. Residents have the right to expect that their families can live safely and peacefully without being disturbed by hooligans.
The Tasmanian government is responsible for properly resourcing Tasmania’s police service so that police officers are able to deal appropriately with problems of crime and antisocial behaviour. It is abundantly clear, however, that the local police service does not have a sufficient number of officers at their disposal to adequately deal with the recent spate of problems in the Rocherlea area. It could be a question of reallocating some resources from elsewhere in the state at least on a temporary basis, but clearly that is not a sustainable response in the longer term. So I think it is now a question of having a modest increase in police numbers to specifically and deliberately cater for hot-spot areas such as the one I have spoken about tonight. Either way, the Tasmanian government has sufficient financial capacity to do this, through its record level of GST funding. It continues to deny this, but in fact it is in the order of more than $1.6 billion every year. So it does have the financial capacity to rectify this problem if it will only make it a priority.
While I accept that more police alone is not the single answer to all of the problems of antisocial behaviour in our community, I am convinced that a stronger and more visible presence of police cars and officers on the beat on a more regular basis would to a very significant extent deter potential offenders in the local area from perpetrating their antisocial activities. Families in the northern suburbs of Launceston and in particular of Rocherlea should not have to bear the brunt of this type of antisocial behaviour in their community simply because there is a deficiency not in police activity but in police numbers and the resources that they have at their disposal.
Apart from calling for more police resources, I would also encourage members of the local community to report to the police any instances of antisocial behaviour, such as hooning or misbehaviour on the streets at night, so that the police can get a better indication for their own purposes of how much of a problem there is in this area and then respond accordingly. One good thing that the Tasmanian government has done, and I hope it is at least a component of the solution, is bring in the anti-hooning legislation. It gives police a reasonable capacity to impound the cars of offending hoons if there is enough evidence of particular breaches of the law or breaches of the peace. I am also very interested to hear more from members of the local community as to whether they feel any particular programs or recreational or sporting facilities in the local area could target young people in order to provide a better channel for their youthful energy, direct it into some more positive outlets and, hopefully, help discourage the small number of offenders from pursuing their antisocial behaviour. I thank the House.
I want to comment on the changes to standing orders and express my disappointment that the Procedure Committee did not get an opportunity from the Leader of the House to look at them formally. The proposal to change the MPI was in a submission, I understand, from the Clerk when we were looking at the report encouraging an interactive chamber, but the Procedure Committee did not pick up the recommendations at that time.
What have we done? We are going to limit the debate to an hour and we are going to restrict the number of speakers. Are we doing it so that we can save the time of the House? No, we are not, because we are restricting it to an hour and, to quote the Leader of the House:
The government is proposing to make that six speakers: three on each side.
So we are proposing that there be six speakers, three on each side. As you would know, Mr Speaker, most MPIs do not have six speakers; they only have four. Why do they sometimes have more than four? It is because the Independents jump up and wish to express their views, representing their constituents. And why shouldn’t they? But that only occurred last year on 13 of 48 occasions, when the debate went longer than an hour. If we look at the debate that obviously has offended the government, we can see that the Independents did jump up: they jumped up and wanted to express views about petrol prices. Oh, how outrageous! They also expressed their views in the debate on aviation security. How outrageous that the Independents should wish to express views about that! Or—to go through the list—on climate change, rural policy, climate change again, the Australian economy, and the Australian environment and water supplies.
I have the view that Independents should have some rights here. As the Chief Opposition Whip, I have no knowledge about when they may wish to jump up or not jump up. But what does this measure do? It makes sure that if an Independent member wants to now participate in an MPI they will be treated like a second-class citizen. They will only get five minutes.
You could give them the whole MPI.
Indeed, the Independents have moved an MPI, Minister, if you had only observed. But you have not saved any time. Whereas many MPIs now finish in 50 minutes, you have guaranteed that they will now go the full hour. I promise you that. And at what benefit? Why would the government pick up a recommendation that had been considered and, because not adopted, one can presume rejected by the Procedure Committee? Why would they do that? They obviously do not like Independents standing up expressing their views on issues that concern ordinary Australians—a particular brand of ordinary Australians; ones that live in rural and regional Australia. This proposal has been passed on party lines with the government voting to ensure that Independents will not have the same opportunities that they have enjoyed ever since MPIs were invented. This is the first government that has moved so directly and so viciously at the rights of Independent members in this House to participate in matters of public importance. If you were going to save time and allow more government business to go through, perhaps there is an argument. But you will not. Under the proposal you have adopted you will be spending more time on MPIs.
The Chairman of the Procedure Committee, the member for McPherson, says, ‘We will look at it.’ I will bet you pounds to peanuts that there will be no change now. I say to the government: the Independents can be as critical of us in the opposition as they are of the government, but what is the harm in listening to the criticism? Don’t they have a duty to their constituents to make their voices heard? You have just made it that much more difficult. (Time expired)
I rise tonight to address the House about a very successful partnership in the electorate of Wakefield, and that partnership is between the people of Wakefield, the local governments in Wakefield and me as the federal member. Often there is a lot of cynicism and people say it is just a blame game in which state, local and federal governments like to blame each other and nothing gets done. But with respect to roads, there is a good-news story in Wakefield that I would like to relay to the House because I am keen to see some of the programs that run under the AusLink program continue.
AusLink is the national program that looks at transport strategies, and for the first time this government has provided a framework for state governments, local governments, the Australian government and other stakeholders such as transport groups, industry and local residents to work together on strategic planning and funding for our road and rail networks. As well as that, there are a number of specific programs such as black spot programs to fix up danger spots on the roads, Roads to Recovery, strategic regional programs and specific funding to the states for maintenance. Many people, for example, do not realise that over the five years to 2008-09 there is some $1.5 billion paid by the Australian government to the state governments purely to maintain AusLink roads. When people see a national road that needs work, for example the Gawler bypass and some of the deep cracking on that, they should be aware that we actually fund the state governments specifically for that.
The program I want to talk about specifically today is Roads to Recovery. When I meet with people at train stations and shopping centres at Munno Para, Elizabeth, Craigmore and country towns, and through surveys, I get much feedback about issues they have with roads. My encouragement to people is to continue to give me that feedback and also very specific examples of where the roads have problems. Over the last two and a bit years I have developed a good relationship with local government whereby I can communicate with them and get good feedback from them about spots on the roads—and even footpaths—that need fixing. As that information comes to me I pass it onto the councils so the councils can factor it into their priorities for fixing roads.
The part where the Australian government comes into play is through the funding that we give through Roads to Recovery. This is a very good partnership between the Australian government and local government where we give them funding directly so that they can make a real difference in local communities. For example, some $2.8 million is going to the Light Regional Council in Wakefield to fix roads like Roseworthy Road West, with $334,000 on that, and the bridge over the River Light on the Bethel Road at Kapunda, with some $250,000 for that. Annie Terrace in Wasleys and Cliff Road and Flett Road in Roseworthy are all done under Roads to Recovery. In Gawler, some $1.2 million has been given for work including on Holmes Street, at the intersection of Sheriff Street and Millers Road and on Water Lane and Light Square. All of these have been fixed locally by the local government with money from the Australian government. Many of the projects have been in response to things that have been highlighted by the residents of Wakefield.
In Playford, some $4.4 million has been allocated on roads such as Medlow Road, Clark Road from Penfield Road through to Virginia, and Craigmore Road. There has been quite a deal of activity just near my electorate office over the last month or so to increase the pavement depth—some $720,000 on that. These funds from the Australian government are allocated to help local government fix the problems that people in Playford have identified.
In Salisbury, over $2 million has been spent on roads like Helps Road from Diment Road to Edinburgh Road in Direk. Up in the Wakefield Regional Council there is the Nantawarra Road and Wharf Crescent in Port Wakefield. Some $1.2 million has been allocated all up to the Wakefield Regional Council. In Mallala, $1.1 million has been allocated to look at things like Ruskin Road and Gawler River Road at Lewiston. Some $156,000 has gone specifically on the Gawler River Road. That work is starting this month and is due to be finished by June this year.
In the Clare and Gilbert Valley Councils, $1.7 million has been allocated to fix things like the Auburn-Manoora Road and Bates Hill Road at Hilltown, and New Road from Hartley Road to the intersection of Farrell Flat Road—work to realign and reconstruct that. That work started in January this year and will finish in April. Some $122,000 has been allocated for that. What you see here is a good example of an effective partnership that is working in the seat of Wakefield. (Time expired)
Order! It being 9.30 pm, the debate is interrupted.
The following notices were given:
to present a Bill for an Act to amend the Tourism Australia Act 2004, and for related purposes. (Tourism Australia Amendment Bill 2007)
to present a Bill for an Act to amend the Aviation Transport Security Act 2004, and for related purposes. (Aviation Transport Security Amendment (Additional Screening Measures) Bill 2007)
to present a Bill for an Act to amend the Corporations Act 2001, and for related purposes. (Corporations Amendment (Takeovers) Bill 2007)
to present a Bill for an Act to amend the Offshore Petroleum Act 2006, and for other purposes. (Offshore Petroleum Amendment (Greater Sunrise) Bill 2007)
to move:
That the House: