House debates

Monday, 29 October 2012

Private Members' Business

Penalty Rates

12:31 pm

Photo of Ken WyattKen Wyatt (Hasluck, Liberal Party) Share this | Hansard source

Let me say that I do not think there would be any member in this chamber or in this parliament who would not consider workers. They are absolutely critical to our economy and the way of life that we have come to experience. I rise today to speak on this important motion. It is important because once again it shows the hypocrisy and confusion that exist within this government. On 1 July 2009 Fair Work Australia commenced operations. It was set up by this government as an independent body with powers to carry out a range of functions relating to the safety net of minimum wages and employment conditions, enterprise bargaining, industrial action, dispute resolution, termination of employment and other workplace matters. Fair Work Australia was given a wide scope by this government to independently determine policies that are in the best interests of employees and employers. This motion seeks to undermine that independence by calling upon this house to reject any recommendations that Fair Work Australia may take regarding penalty rates. Either this government trusts Fair Work Australia to act in the best interests of both employees and employers or the question must be asked why did this government set up Fair Work Australia in the first place. If the government is not even prepared to listen to what Fair Work Australia may have to say on penalty rates, why do taxpayers' dollars continue to be spent reviewing the penalty rate system?

Further confusion on the government's position came about from Minister Ferguson's comments at the Australian hospitality conference where he said that he hopes a review of awards by Fair Work Australia will ease wage pressures on the hospitality sector. If the minister wants wage pressures reduced, does that mean he wants penalty rates cut or the award rates themselves? Either way this comments terms in opposition to the purpose of this motion moved by the member for La Trobe. Small businesses in Hasluck and right across the country are hurting because of this government's policies. Need I remind members of the effects of the carbon tax on small businesses. Electricity prices rising by 15.3 per cent for the September quarter alone has a significant impact. Consumers are being hit by the effects of the carbon tax as well, which reduces their ability to spend. To protect the Treasurer's promised surpluses we are seeing cash grabs left, right and centre. On the Today show last Tuesday the Treasurer refused to rule out further taxes. All this adds up to a government that is desperate and desperate to cling to power at any cost. This government will put forward any policy that they think sounds popular regardless of its merits. The reverse is that they will cling to any popular sounding policy and would dismiss out of hand what Fair Work Australia may have to say. Let them do their job and assess what is best for the economy.

Once we have the advice, we can then debate not just penalty rates but all the recommendations that Fair Work Australia provides in the review, based on facts rather than on populist positions.

A point that my colleague the shadow minister for employment and workforce relations, Senator Eric Abetz, has made in the past is that, if wage costs are too high, businesses may not be able to hire as many staff as they would like. We do not know yet what Fair Work Australia might recommend with regard to penalty rates. They may suggest increasing standard award rates while removing penalty rates, because to do so would see an extra 100,000 people employed. Do we really want to rule out any changes to penalty rates before seeing what benefits might flow from them? Would not a more prudent and wise choice be to see what recommendations Fair Work Australia puts on the table?

In case there is any doubt, our position is clear and has been stated on a number of occasions by the umpire: Fair Work Australia, after hearing all of the submissions, should make the decision after balancing all considerations. Certainly on matters arising from the review by Fair Work Australia, it would be my intention to consult within my electorate all the relevant parties in order to seek perspectives and viewpoints in respect of each of the recommendations and to reflect those positions within the parliament and within the processes that will occur. But the government has to be serious and, particularly given that it is the Prime Minister's handiwork in creating a structure that allows for Fair Work decisions and the Fair Work process to occur, we should take note of the review and recommendations that Fair Work brings forward in respect of penalty rates and other issues arising from the review.

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