House debates

Wednesday, 12 September 2018

Bills

Modern Slavery Bill 2018; Second Reading

11:36 am

Photo of Chris CrewtherChris Crewther (Dunkley, Liberal Party) Share this | Hansard source

I'm very proud to be here today to speak to the Modern Slavery Bill 2018. It is a lengthy path we have travelled to get to this incredible point where we are debating legislation to work towards eradicating modern slavery in Australia, in our region and around the world. I'm proud that, ever since I presented the House in December with the Foreign Affairs and Aid Sub-Committee's report called Hidden in plain sight:an inquiry into establishing a modern slavery act inAustralia, we've continued to action the recommendations of that inquiry to bring about this bill. I'm proud of the coalition government for initiating not only the inquiry but this bill before the House today and of the cross-party support for this bill as well. I'm also proud that the Morrison government has seen this through to fruition, with a debate coming up today.

This issue, in which we are now actively taking part to eradicate it, has been a significant focus of much of my time in Canberra since I was elected in 2016. I think it is now starting to truly resonate with the community. While we might see the odd report on the news about backpackers in the horticultural industry, for example, being taken advantage of or about foreign nationals being found to be in domestic servitude, until more recently these have been disconnected stories. Now these incidents are no longer isolated but are part of a bigger, grimmer narrative.

The term 'modern slavery' is slowly working its way into the public's mind and consciousness. Even the local media outlets in Dunkley have picked up on some of these activities with interest. Even though the subcommittee's report was submitted some time ago, the responses from the government and the introduction of the Modern Slavery Bill 2018 have truly woken up some who undertook business with a very complacent approach. The stories that we heard during the inquiry and beyond have captured the public's imagination.

I am horrified by some of these stories as well, and I'm sure members across this chamber and the community have been truly touched by some of the incidents that have occurred, but I am honoured to have been the member of this parliament who proposed that we seek a referral for this inquiry. That was as Chair of the Foreign Affairs and Aid Sub-Committee in October 2016, with the strong support of the then foreign minister. The inquiry was then referred to the committee by the Attorney-General in February 2017. We then put out an initial report, which led to a consultation phase and an initial commitment to modern slavery legislation. This was followed by the final report and then a commitment to introduce the bill by the middle of this year and to pass this bill through parliament by the end of this year.

I said when I first started as the chair of the subcommittee that I didn't want to do a report which sat on the shelves gathering dust; I wanted to do a report that actually led to results. This bill is the result of much hard work, not only by me but by members of that committee across the chamber and across parties, who put so much effort into bringing this bill about so we can actually tackle this important issue. Our inquiry examined best practice in fighting modern slavery both in Australia and globally. In doing so, we examined the UK's Modern Slavery Act 2015 to assess its effectiveness, as well as measures adopted in various other countries around the world—such as the US, France and the Netherlands—and how these approaches could be improved.

I must also note the work of so many advocates, without whom many of these issues perhaps wouldn't have been brought to the attention of parliamentarians and the wider community. I note Fuzz and Carolyn Kitto, who are with us in the gallery here today. There are many other people too—Heather Moore, Andrew Forrest and so many others—who have been strong advocates around this issue.

Slavery and exploitation continue to be scourges around the world. Modern slavery is an umbrella concept covering a number of different forms of exploitation such as forced labour, debt bondage, sexual slavery, child labour, orphanage trafficking, human trafficking more generally and forced marriage, to name but a few. It is estimated that there are currently more than 40 million victims of modern slavery globally, including more than 31 million in our region and an estimated 15,000 in Australia on latest statistics.

These crimes are already illegal under Australian law. They're covered by sections 270 and 271 of the Criminal Code. Furthermore, the Australian government maintains an ongoing commitment to stopping slavery in Australia, and globally, through both the National Action Plan to Combat Human Trafficking and Slavery and the Bali Process. Nevertheless, modern slavery remains notoriously difficult to stop, and we must do more to actually enforce the legislation that is already in place.

In many cases, it is a hidden crime which can be inadvertently supported by the community. Some industries, such as the fashion trade, have already been exposed to problems deep in their supply chains. H&M and Zara, for instance, came under a great deal of public scrutiny over their operations and measures to prevent exploitation in their supply chains. The public reactions and the community pressure applied to these cases not long ago has given me a lot of hope that this legislation will have the full support of the Australian community, as we, as consumers, have high expectations of Australian companies, organisations and, indeed, governments to act ethically and to do the right thing.

This legislation addresses only one aspect of the subcommittee's report, such was its extent. It listed a number of recommendations not only relating to supply chain mechanisms but also relating to visas and a whole range of different issues. Transparency for businesses and entities in their supply chains, though, is one key aspect that our inquiry examined very closely.

Globalisation has created a serious risk of entities inadvertently accessing goods partially supplied through modern slavery, not only just within tier 1 but also within the other tiers throughout the supply chain. The depth of a business's supply chains can make it very difficult for an Australian importer to understand exactly where items come from. While a shirt may have, for example, 'Made in Bangladesh' on its tag, the cotton could come from Uzbekistan, the dye from India and the buttons from North Korea. This creates a number of problems. Firstly, our foremost concern is that Australian shoppers could inadvertently support modern slavery. One part of a shirt may have been manufactured using forced labour; however, because it is only an element of the end product, it may not be found out.

Secondly, competitive disadvantage is often created for businesses doing the right thing. For example, Haigh's Chocolates have made efforts to eliminate the risk of modern slavery in their supply chains; however, Haigh's can lose out in the market to those who do not have the same attentiveness to the risk of modern slavery and who can, therefore, outprice them. This also can occur in the horticultural industry, where you have people doing the right thing who are being underpriced by those who aren't doing the right thing, whether that's through imported goods or goods produced in Australia. Therefore, those who are doing the right thing can't compete either locally or internationally when there is exploitation or modern slavery happening.

As such, the outcome of the government's response to our report has resulted in this Modern Slavery Bill today, with mandatory supply chain reporting for entities with revenue above $100 million as well as a mandated central repository of statements. Furthermore, by creating an optional reporting opt-in for entities below the $100 million threshold, we can incentivise smaller businesses who want to help combat these crimes, and we have found that many do. The strong social conscience of Australian society firmly suggests that opt-in measures will be well received by a large sector of the business community. This is an incentive based approach. I note that this does not include penalties at this stage—that's not to say that there won't be in the future, given a three-year review clause—but the measures are still very strong. In particular, the introduction of a world-first measure to include government in the reporting requirements shows that we are not simply creating additional red tape for businesses but that we think this issue is so important that we are putting our own procurement and supply chain processes under the microscope along with theirs. This will really make a difference in the supply chains of Australian businesses and organisations.

This is an incredibly complex and extensive issue—I think far more extensive than anyone realised before we began the inquiry. Most people I speak to are astounded by how widespread modern slavery is, especially in Australia, and we by no means will address the whole subject with one piece of legislation. I especially want to congratulate the minister on introducing the legislation and all those ministers involved on their steadfast support throughout this entire process. I am enthusiastically looking towards the ways we can address other aspects of modern slavery, as this is only the beginning. We made a number of different recommendations in our final report which go beyond just this bill before us today.

I note that the stories received by the subcommittee during the inquiry have stunned many people. We heard from Sinet Chan, a young Cambodian woman who was sent to an orphanage at the age of nine but was exploited by its directors. We heard about Mohammed Rowi, a Malaysian man, who was given no payment for work in northern Victoria. I was also shocked by the story of a woman who was forced to live in the wall cavity of a brothel in Seaford, in my own electorate of Dunkley. These stories are a microcosm of the experiences suffered by victims globally and unfortunately reflect the abuse and suffering wrought by the worst of humanity.

Despite these horrors, the subcommittee also received information about the work of people who are trying to stamp out modern slavery and assist victims. I'm sure many of those people are here watching in the chamber today and also over the streaming via video. We heard from groups committed to stopping human trafficking in orphanages, for example, in South-East Asia and in Africa. We listened to some of the biggest companies in Australia and globally who are determined to stop forced labour being in any part of their supply chains. We spoke to faith representatives, unions and many others who continue to show compassion and understanding for those most vulnerable of people, seeking to help them in their plight.

This is indeed an issue that has brought together both the left and the right not only in politics but also in the broader community, and that was represented by the many submissions received and the interviews we had as part of the inquiry process. Together, these accounts and efforts play a very important role in bringing modern slavery out of the shadows. It continues to be a hidden crime, but victims are in our backyards, whether they be in Seaford, Parramatta, Cairns or elsewhere. We need to take action. I note that this is not the fault of any community. The perpetrators of modern slavery try to keep their victims hidden, scared to report their abuse to authorities. But, by telling these stories and understanding victims, we can grasp how to tackle the problem of modern slavery. That is why we are taking steps to eradicate it.

There is undoubtedly a clear need to tackle this issue. This bill goes a long way to doing so, but, as I said, we are only at the beginning. I believe the first three years before the review period will be instructive not only in receiving practical feedback but also in learning how we can better work with the business community and the wider community to improve reporting methodology and tackle modern slavery. As many people have said, though, we can't let the perfect get in the way of the good—and this is a very important step in the right direction.

Significantly, I must note that the bill does improve on the UK's Modern Slavery Act in a number of different ways. As I mentioned before, there is a requirement for a legislated central repository of modern slavery statements. This improves upon the UK act, which doesn't have that requirement, and where it has been introduced by not-for-profit organisations. We've included the Commonwealth government and government business enterprises in reporting on modern slavery—a world first. We've included a legislated opt-in for entities below the threshold. We've also included legislative prescriptions for what reporting should include, which also goes beyond that of the UK act.

More recently, I have been following the Senate's inquiry into the bill and I am aware of a number of suggestions that they have raised: for example, the need for a commissioner or, indeed, as noted in the Senate inquiry's recent report, an independent statutory officer—which is one of the recommendations that we put in our final report and one that I think is important going forward. There is also, I believe, a chance for further compliance measures—for example, government putting forward a list of those organisations that need to report and also those that have reported and haven't reported. Hopefully that can be included in an amendment process subject to it coming before the Senate. But, if not, that can also be implemented outside of the legislation.

I'm hopeful that, in addition to the review, we will have a rolling review. That also doesn't need to be in the legislation, but it can be a decision made by government to have a review of the legislation, not only after three years but on a rolling basis. I am also hopeful that, through the Senate inquiry report, which reflected a number of our recommendations, we can look into the future, through our review mechanism or through future amendments, to introduce an independent statutory officer who will not only sit separately but also, as we have seen in the UK, be a strong person for advocating for tackling modern slavery and connecting businesses, organisations and governments.

I'd like to thank all the ministers involved from the beginning—not only the former foreign minister and the former Attorney-General in particular but also those more recently, including the current Special Minister of State, who was particularly instrumental previously as the then Assistant Minister for Home Affairs. I worked very closely with him on this bill and I hope to continue working closely with him as this goes through the parliament. It is for these many reasons that I've mentioned above that I urge my colleagues and I urge the wider community to take a bipartisan approach towards this issue that should not exist in the 21st century. I commend this bill to the House and I commend the work that has gone into this across the chamber and across the wider community.

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