House debates

Monday, 25 June 2012

Bills

Fair Work (Registered Organisations) Amendment Bill 2012; Consideration in Detail

5:53 pm

Photo of Sussan LeySussan Ley (Farrer, Liberal Party, Shadow Minister for Childcare and Early Childhood Learning) Share this | Hansard source

) ( ): by leave—I move opposition amendments (1) to (3):

That all words after "That" be omitted with a view to substituting the following words:

"the House notes with approval that, in response to public pressure, the government has introduced this limited bill, but deplores the government's failure to:

(1) establish an independent Registered Organisations Commission to:

(a) enforce, and police the reporting and compliance obligations;

(b) provide information to members of registered organisations about their rights and act as the body to receive complaints from their members;

(c) educate registered organisations about the new obligations that apply to them; and

(d) absorb the role of registered organisations enforcer and investigator, currently held by the General Manager of Fair Work Australia;

(2) ensure registered organisations face the same accountability and transparency measures as required of companies and their directors under the Corporations Act; and

(3) ensure registered organisations face the same penalties as companies and their directors under the Corporations Act."

I make the point that the minister at the table talks about registered organisations being fair and accountable, but we in the coalition do not believe that this legislation makes them sufficiently accountable. I flagged in my speech in the second reading that the coalition would move at the consideration in detail stage commonsense amendments to make some improvements to this bill, separate from our amendments which were moved at the second reading stage.

With respect to this group of amendments, the bill as drafted allows for Fair Work Australia to outsource fully an investigation to an outside body. The coalition believes that, while outside experts may be required on individual parts of an investigation, the independent statutory body should be the one to conduct and oversee the entire investigation. We have concerns that investigations being conducted by an outside entity the general manager sees fit would not allow for the proper accountability and oversight of investigations. So the coalition will move an amendment to ensure that investigations are actually conducted by Fair Work Australia, while leaving in the power for outside help to be brought in on individual parts of an investigation. In this way a full investigation of itself cannot be outsourced.

We will seek to bring across into the Registered Organisations Act section 184 of the Corporations Act, which would make it a criminal offence for bosses of registered organisations to not act in good faith, to use their position dishonestly or to behave in a reckless manner. Further, with the government's increases to the civil penalties the coalition will seek to increase penalties in line with the Corporations Act.

The coalition does not believe that the amendment that the government moves about disclosure of information to police is necessary because Fair Work Australia should at all times have the ability to cooperate fully with police as per advice published earlier this year by Stuart Wood SC. However, our amendment will make it abundantly clear that the general manager and staff of Fair Work Australia can cooperate fully with police at all stages of an investigation, including proactively providing information to police. As I said, we do not really believe we should need to make this amendment but we do so for the avoidance of doubt. The government's amendment in this area just does not go far enough to ensure that this cooperation will take place.

While Fair Work Australia presently can provide information to the Commonwealth Director of Public Prosecutions, the government will allow a further disclosure to all directors of public prosecutions in Australia. However, we witnessed in Fair Work Australia's last referral an inability of the Commonwealth Director of Public Prosecutions to pursue the matters raised as they were not prepared in a brief of evidence. Fair Work Australia said that it could not prepare a brief of evidence because the legislation did not allow for it. This amendment will give Fair Work Australia the express power to prepare a brief of evidence should it need to.

The government will require the publishing of information to members, including the pay, interests and expenses of senior officers. The coalition seeks to amend this provision so that the report to members, however it is provided, is also provided to Fair Work Australia within their existing reporting requirements. The coalition believes it is important that the information is provided to Fair Work Australia to ensure that regulatory oversight on how union members' money is spent is absolutely spot-on and accountable.

The coalition feels that these amendments will only improve the bill. The only way to get the best possible outcome is for the next coalition government to implement our better plan for accountability and transparency of registered organisations, because only a coalition government can restore the hope, reward and opportunity that is so horribly missing under Labor's framework.

I have spoken to a group of eight amendments. For the convenience of the House I have included my comments on all of those amendments but I am actually asking that amendments (1) to (3), as circulated in my name, be considered at this point of time.

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