House debates

Monday, 18 February 2019

Bills

Treasury Laws Amendment (Enhancing Whistleblower Protections) Bill 2018; Second Reading

6:14 pm

Photo of Tony PasinTony Pasin (Barker, Liberal Party) Share this | Hansard source

I couldn't begin without reflecting briefly on the contribution from the member for Moreton. Although he's leaving the chamber, I wish he wouldn't. He stands there and accuses this government of having done nothing in relation to the behaviour and the cultural attitudes of the big banks in Australia over the last 600 days. I reject that assertion and I remind him there were six long years during the Rudd-Gillard-Rudd years where zero was done, absolutely zilch—niente, if I was speaking in my mother and father's native tongue. Those who come into this place and seek to play the spin, quite frankly, need to remember there was a period that proceeded the good work this government is doing. It's too cute by half to come in here and suggest that everything was coming up roses until we were elected in 2013 and of course the assertion from them that nothing occurred over that period is wrong in its origination but also wrong when you consider the six years that preceded it—enough of that.

I'm here to talk about whistleblowers and enhancing protections for them. Ultimately, this comes down to integrity. We need to ensure the strongest possible protections for individuals who are across information because of the nature of their work, the nature of their participation in an industry, and in some cases the nature of their profession. The ability to provide that information in the context and in a safe environment is critical. Without that information, authorities, law enforcement organisations, individuals with regulatory responsibility are often blind to behaviour which in very many cases is either corrupt, criminal or unconscionable. So I'm here this evening supporting this bill, to speak to strengthening whistleblower protections. In particular, Mr Deputy Speaker Vasta, you know that this bill speaks directly to specific protections for tax whistleblowers and obviously it's a key plank in ensuring we strengthen the integrity of our Australian taxation system.

We've been working hard as a government to ensure that tax, where appropriate, is paid. That is not always an easy task. There are platoons of lawyers engaged often to facilitate arrangements that are lawful and that is one thing. But when individuals, companies, partnerships operate in a way that's unlawful then we need to act on the behaviour. I have to say, our government has a great track record when it comes to international corporates in particular, with some $6 billion of additional revenue arriving on an annual basis at Treasury because of changes in the law we have made. This is another tranche of the changes, one that says to whistleblowers: if you are aware of information that will assist us in ensuring that the law of the land as it relates to taxation is applied then you will be appropriately protected and that should be the case. This is not to look at these provisions in detail but to say that, as a government ,we understand the importance of how serious this behaviour can be. We understand the depth and the desire for protection and we are committed to it.

But this bill goes further. It's not just in relation to behaviour around individuals, companies, partnerships, et cetera and their tax liabilities. It also relates to protections for whistleblowers within the public sector. Wrongdoing in a public sector context could involve can a contravention of law—corruption, maladministration, abuse of public trust, deception in respect of scientific work, a flat-out waste of public money, unreasonable danger to health or safety, danger in the environment, abuse of one's position or grounds for disciplinary action.

We're committed to ensuring that public officials who make public interest disclosures are supported and protected from adverse consequences, and ensuring that public interest disclosures by public officials are properly investigated and dealt with—and that they are reported in the first place. This is about ensuring that whistleblowers are provided with the requisite level of protection, not just in a private context in relation to tax receipts and other things but also in the public context as it relates to the very important work of government from within government.

But perhaps the part of this bill that has interested me the most is the need to ensure whistleblowers are protected in the context of registered organisations. In November 2016, parliament passed amendments to the Fair Work (Registered Organisations) Act which significantly strengthened whistleblower protections for people who report corruption or misconduct in unions and employer organisations. The amendments provide a protection to persons who disclose information about certain contraventions of the law, including current and former officers, employees, members, contractors, et cetera. Importantly, anonymous disclosures are allowed. To qualify for protections, the disclosure has to be made to the Registered Organisations Commission, the Fair Work Ombudsman or the Fair Work Commission if the discloser suspects, on reasonable grounds, that it differs to disclosable conduct, defined broadly as an act or omission that contravenes or may contravene a provision of the Registered Organisations Act, the Fair Work Act or the Competition and Consumer Act, or constitutes or may constitute an offence under Commonwealth law.

The disclosure can be made via solicitors. Disclosure to other external parties do not qualify for these protections. The court can award compensation and impose injunctions. The courts can also make compensation orders, when detriment ensues from the failure by a manager to prevent a reprisal. This is because employers are objectively liable for reprisals and actual or constructive knowledge of an actual or potential disclosure is sufficient to create the liability.

The amendments also guarantee that if a whistleblower seeks compensation they will not be subject to adverse legal cost orders if their compensation claim does not succeed, unless their claims are vexatious or deemed to be an abuse of process. This amendment also provides more specific guidance on the use of protected disclosures and investigations conducted by the Registered Organisations Commission, the Fair Work Ombudsman or the Fair Work Commission.

In essence, people who are brave enough to call out any behaviour which is unconscionable, criminal, corrupt or falls shy of the requisite standard require the protection of this place and of all arms of government, because if that protection isn't offered or if it's not deemed satisfactory or it doesn't operate satisfactorily, these people will be disincentivised from coming forward. Of course, in dark places bad behaviour can not only continue but propagate. What this law does is say to individuals working in the public and private sectors and working for employer or employee organisations: if you are across any of this information, if it sits uncomfortably with you, not only should you take action; we will protect you when you do. It's only when you shine that bright light on this behaviour that we see it end.

I'll come back to the contribution from the member for Moreton. It was right for him to raise the behaviour we saw so well illustrated through the banking royal commission as an example of behaviour that occurs within corporate organisations that falls well shy of the requisite standard. I've said this publicly, and I'm happy to say it in this place: I'm someone who has apologised to my electorate for the delay in coming to the call for that royal commission.

There are brave individuals in the other place; Senator Williams, in particular, is the first person I saw call on this. At the time I thought we had a well-regulated banking sector, which had coasted us through the global financial crisis, and I was using that as evidence of how resilient the Australian banking system was and how well regulated it was. But it turns out I was wrong. I'm very pleased that we now have the very swift recommendations of Commissioner Hayne to work through. I'm very hopeful that, irrespective of those recommendations and the actions that will come from them from this place, the senior management teams within the banking sector in Australia understand the need to change the culture within those organisations; to refocus their attention on serving their customers, ensuring their customers are treated appropriately and fairly, and ensuring that their behaviour meets the requisite standard. I commend the bill to the House.

Comments

No comments