Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Hansard source

I thank the member for Chifley—the shadow minister—for his questions. They are pertinent ones. I understand and acknowledge that. I am not going to endeavour to answer the hypothetical questions towards the end of his consideration in detail, but some of those earlier in his remarks I will answer.

The internship is an opportunity for individuals on income support to gain valuable work experience in a real workplace on a voluntary basis. There is nothing wrong with that. This should not be confused with paid work, as individuals will continue to remain on income support whilst undertaking the internship. The youth employment package will equip young jobseekers by getting them ready, giving them a go and getting them a job. I would have thought, given those wonderful ideals, that Labor would have gotten on board with the bill as proposed by the government in its original form.

I am asked how this form of work is legal and how it complies with the Fair Work Act. It is not work; it is work experience, and like other work experience programs such as the National Work Experience Program, internship participants will not be employees for the purposes of the Fair Work Act. In particular, this is because the Social Security Act provides that people will not be employees for the purpose of the act merely because they are undertaking an activity under their employment pathway plan. No legislative change is needed to exempt the internships from the coverage of the Fair Work Act because of the following: the Social Security Legislation Amendment (Employment Services Reform) Bill 2008 amended 631C of the Social Security Act to provide that from July 2009 approved programs of work and any other activities, including the employment pathway plan, did not give rise to an employer-employee relationship. That is important.

What protections will be in place to prevent employers from abusing the program, including displacement? I was asked that by the member for Chifley. Employers who participate in the internship program must be able to show real prospects of ongoing work. There will be safeguards to ensure that existing workers are not displaced. The program sets a maximum duration of 12 weeks and the number of weekly hours worked in a placement comes in at 25 hours. So internships will be voluntary for both businesses and jobseekers and will be co-designed by them to ensure that placements meet both of their needs. Importantly, the government will closely monitor the way employers use the program to ensure they are not exploiting or churning—a word the member for Chifley used—and burning jobseekers. Employers who are exploiting jobseekers will be blocked from using the program, as they should be.

Employment services providers will also be responsible for brokering internship placements and ensuring places are consistent with program guidelines. This includes the safety of jobseekers. Everybody in this parliament is adamant that the safety of jobseekers and workers is always paramount. Although internships are not an employer-employee relationship, businesses have a duty of care to provide a safe work environment—as the small business minister I know how important that is—and appropriate supervision for jobseekers undertaking internships. This includes ensuring compliance with applicable state and territory occupational health and safety legislation.

I also have to say that the Youth Jobs PaTH initiative is going to be good for Aboriginal jobseekers. I know the member for Chifley did not raise this, but he would probably like to know that of the 115,000 Indigenous jobseekers in employment services, around 76,000—roughly two-thirds—are being supported by jobactive, a further 29,000 are participating in the remote Community Development Program and 9,000 in disability employment services.

This is a good program. As the small business minister I commend it. I commend businesses to get on board with the program. Moreover, I commend jobseekers to absolutely take part and participate in this program because it will give them real meaning, real work and a real pathway for the future.

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