Senate debates

Wednesday, 9 September 2015

Questions without Notice

Trade with China

2:40 pm

Photo of James McGrathJames McGrath (Queensland, Liberal National Party) Share this | | Hansard source

Mr President, my question is to the Assistant Minister for Immigration and Border Protection, Senator Cash. In light of ongoing misinformation about labour market access under the China-Australia Free Trade Agreement, can the minister inform the Senate of any data that might shed light on the impacts that free trade agreements actually have on the number of overseas workers who gain temporary entry to Australia?

Photo of Michaelia CashMichaelia Cash (WA, Liberal Party, Assistant Minister for Immigration and Border Protection) Share this | | Hansard source

I thank Senator McGrath for his question. Yes, I can shed light on this important question. Those opposite say that there will be a flood of foreign workers if the free trade agreement with China is passed. It is a fact that other free trade agreements have been in place for a number of years now. So let's look at how these have impacted on the number of foreign workers who have come to Australia.

The union campaigns that are currently running would have you believe that free trade agreements directly lead to an influx of foreign labour. This is simply not borne out by the facts. The current CFMEU campaign targets diesel mechanics. In 2008-09, the year when the Chilean free trade agreement came into effect, the total number of diesel mechanics in Australia from Chile on a 457 visa was zero. In 2012-13, this skyrocketed to one! Last year, it was back to zero.

The same CFMEU ad campaign also mentions that we will be flooded with electricians. Again, let's look at the facts. In 2011-12, when the Malaysian free trade agreement was signed, the number of Malaysian electricians in Australia on a 457 visa was two. In 2014, after the agreement was well in effect, have a guess how many there were. There were zero.

I am sure by now Senator McGrath is wondering why the Labor Party is so concerned with the China free trade agreement when it was not concerned previously when agreements were signed with Thailand, Chile, Korea and Japan. Where were the union campaigns when these free trade agreements were signed? They were nowhere to be seen. Bill Shorten should stop running the CFMEU's xenophobic campaign of lies and misinformation and pass the free trade agreement, because it will not lead to a flood of foreign workers but will lead to a flood of jobs for Australians.

2:42 pm

Photo of James McGrathJames McGrath (Queensland, Liberal National Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Will the minister inform the Senate of the steps involved in bringing a 457 worker into Australia and confirm that 457 visas are not a cheap option used to undercut Australian workers?

2:43 pm

Photo of Michaelia CashMichaelia Cash (WA, Liberal Party, Assistant Minister for Immigration and Border Protection) Share this | | Hansard source

As Master Builders Australia said in a recent Senate committee hearing, their members look to fill vacant positions with Australians first because the cost of compliance in going down the 457 labour market checklist is expensive. That is what companies will need to do if they bring a Chinese worker in. There is a requirement to meet market salary levels. There is no cheap labour; they have to meet market salary levels. The 457 workers have to demonstrate skills and qualifications to the Australian standard and meet English language requirements. The employer must be able to show that the position is genuine. The employer must fund the return travel costs and visa fees. Also, a requirement for the employer to make a financial contribution to training Australians continues to apply. The claims by the union in relation to cheap foreign labour, backed up by those opposite, are disproven by the facts.

2:44 pm

Photo of James McGrathJames McGrath (Queensland, Liberal National Party) Share this | | Hansard source

Mr President, I ask a further supplementary question. Can the minister inform the Senate of any research which indicates how much better off the labour market will be under the China-Australia Free Trade Agreement?

Opposition Senators:

Opposition senators interjecting

Photo of Michaelia CashMichaelia Cash (WA, Liberal Party, Assistant Minister for Immigration and Border Protection) Share this | | Hansard source

I am going to quote a former foreign minister, Bob Carr, so those opposite should listen carefully and enjoy the ride. The Australia-China Relations Institute has concluded there will be more jobs at higher wages under the China-Australia Free Trade Agreement. It also found that the China-Australia Free Trade Agreement simply brings China in line with the way we treat other countries with which Australia enjoys FTAs.

You could be forgiven if I said that the Australia-China Relations Institute is somehow associated with the Liberal and National parties, but, as we know that is just not true because the director is none other than a person who used to sit here under the former government—former foreign minister Bob Carr. That is the same Bob Carr who wrote that the chapter has all the mechanisms necessary to protect Australian workers. He is just one of the many local luminaries to back the China-Australia Free Trade Agreement. (Time expired)