Senate debates

Wednesday, 16 August 2006

Matters of Public Importance

Skilled Migration

4:42 pm

Photo of Ross LightfootRoss Lightfoot (WA, Liberal Party) Share this | Hansard source

Firstly, let me rebut what Senator Carr was saying, just a few moments ago, in assuming that people who come in on 457 visas are subject to bad wages and bad conditions. Also, when he began his contribution here this afternoon, he mentioned people of Chinese extraction who came into this country and had their expenses for travelling to this country taken out of their wages. It is illegal to do that. Let me also say that the average minimum gross annual salary for a number of IT and computer related occupations in Australia, based on a 38-hour week, is currently $57,300. That applies to 457 visa holders. The minimum gross annual salary, based on a 38-hour week, for other occupations is currently gazetted at $41,850. Senator Carr’s rather voluble tirade failed to mention that, with the advent of the increase in 457 visa holders coming to Australia, employment has actually risen. One expects that, but unemployment has also dropped dramatically.

In my state of Western Australia, in July 2005, unemployment was 4.8 per cent. It is now 3.1 per cent. On a pro rata basis I would propose that we have taken probably more 457 visa holders than any other state in Australia. The engine house of the nation is Western Australia. Queensland could lay some claim to that, but it is in fact Western Australia, based on per capita income. Someone said in Western Australia recently that WA contributes 110 per cent of gross domestic product. I do not think it is that much, but it is certainly around 30 per cent, with slightly less than 10 per cent of the population of the nation.

A significant part of this productivity is based on the skilled workers who come in to Australia, not the unskilled workers. Unskilled workers are not in this category. Of all the people who come to Australia holding these particular visas, 85 per cent are either professionals or semiprofessionals. Do they take away Australian jobs? Obviously not, if unemployment is falling in all of the states except South Australia, where it increased slightly over the year, and New South Wales, where it increased from 4.8 per cent to 5.1 per cent from July 2005. I imagine that that will be an election issue in New South Wales shortly.

That is not the fault of the guest workers—and I do not like using that term, because they are not guest workers, really—as they go to other parts of Australia. They do not go to New South Wales in excessive numbers. They do not go to areas of high unemployment. These people go only where they have jobs. These people do not form a queue for taking handouts on the dole. These people contribute to the Australian economy. These people add to the boom in Australia. These people want houses. These people want their children to go to school here. A great number of these people in fact apply for permanent residency here, and we welcome them. These people are skilled.

I will mention the reason that we need these people in Australia, with their particular skills. I will quote the Hon. Tony McRae, who is the Western Australia Minister for Citizenship and Multicultural Interests. When asked whether we need these people in Australia, on their 457 visas, he said that they are ‘absolutely essential for our economic sustainability’. This is a Labor minister rebutting and denying what we have heard from the other side. He is saying absolutely the reverse of what we have heard from the other side today about the skilled workers who are assisting in the maintenance of this boom—this golden decade of Australia’s unbelievable growth. The real reason behind the antipathy of the other side towards these workers is simply this: about 10 per cent of the private sector is unionised today. Ten per cent of the private sector workforce in Australia is unionised. A significant proportion of the other 90 per cent have AWAs, Australian workplace agreements, and others have no agreements whatsoever but are happy to work for excellent wages.

I said that Queensland and Western Australia were the engine houses of Australia—and I make some concession to Queensland there. Senator Ludwig submitted the topic in today’s matters of public importance debate. I do not have time to rebut all the things that he said, but I will try to deal with a couple of them. He said that there has been a dramatic rise in the number of guest workers under the program over the last one to two years. There has been an increase but it is due to the strength of the Australian economy, particularly driven by Western Australia and Queensland. That is why the workers are coming in. They are not coming in to join dole queues; they are coming in because there is a shortage of skills and they fill those skills shortages in many areas, not just in the mining industry. Senator Ludwig noted as his second point:

(b) The Minister’s statement that the increasing numbers of guest workers are required to keep wages low;

Wages have risen, in real purchasing power, with the arrival of these skilled workers. Skilled workers are not actually cheap wage-earners. As I have said, in the IT industry skilled workers are averaging $57,300 a year, based on a 38-hour week. In other areas they are earning $41,850, based on a 38-hour week. It is not a bad wage. How could it possibly be said that that has been driven down? Senator Ludwig noted as his third point:

(c) The Howard Government’s failure to provide Australians with the training needed to meet the current skills crisis;

The current skills shortage is a reflection of the strong economy. There is very low unemployment, particularly among skilled Australians. It is also a reflection of the slowing natural growth in Australia’s working age population. Investment in vocational education and training is actually at record levels. How can it be being neglected if it is currently at record levels? I do not have time to cover everything that Senator Ludwig raised, but here is one more point:

(d) The use of guest workers in unskilled jobs and in skilled occupations where there are qualified Australians available;

If they are being exploited, that should be reported to DIMA. DIMA is currently undertaking reports into this area. I would advise anyone who has discovered that skilled workers are being exploited to report it so that it can be investigated. But the instances are very few. (Time expired)

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