Jacqui Lambie (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Defence.

Hon. Senators:

Honourable senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Senator Lambie, could you resume your seat? Order across the chamber! I expect Senator Lambie to be able to ask her question in silence. Senator Lambie, we'll reset the clock. Please start again.

Jacqui Lambie (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Defence. Last month, I asked a question on the ADF pay increase being at a rate that is actually a pay cut. In response to my question on Australian Defence Force pay, Minister Wong said:

… the pay increase that is recommended, on the advice I have, is above the RBA's estimates for inflation over the next three years.

Minister, since that time, we have all heard from the new Reserve Bank governor, Michele Bullock, from the International Monetary Fund and from lots of economists that the economy is not cooling as quickly as the RBA initially forecast. Minister, why is your government sticking to its guns on a pay cut for our diggers?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Thank you, Senator Lambie. I don't think anyone in this chamber disputes your commitment to our troops, and, obviously, you're former service personnel yourself, and I know that you've got a very deep commitment here.

Of course, the government, in managing its budget, have to make responsible offers when we're undertaking enterprise bargaining or any other form of negotiation with people who are paid by the Commonwealth government. There's a wide range of sectors within the Public Service that are currently in enterprise bargaining negotiations. We always try to put forward what we consider to be a fair offer as a government that does believe in wages being lifted, but we obviously also have to operate within a budget and try to make sure that those are responsible offers that we put forward.

I know, Senator Lambie, that, in addition to the basic pay rates that you're talking about, you've got an interest in issues around recruitment and retention of Defence personnel. You'd be aware that our government have announced a retention bonus for ADF personnel, which would see them receive a $50,000 retention bonus toward the end of their initial period of service if they commit to remain in the ADF for a further three years. That's going to be an initial two-year pilot before being extended based on its results. I recognise that that's not exactly what you're talking about in terms of the basic pay rates to our troops, but we are trying to find ways of delivering fair remuneration for troops in recognition of the service that they provide and the danger that they put themselves in each and every day. So this is something that we'll keep working on, but, as I say, we do need to undertake all of these pay rises within an overall responsible budget strategy.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Lambie, first supplementary?

Jacqui Lambie (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

Defence public servants have been offered the same pay increase as uniformed ADF: 11.2 per cent over three years. The Public Service, which has a very active union, see this for what it is—a pay cut—and are taking industrial action to address it. Our diggers, on the other hand, have to smile and take what the CDF gives them, while their unique service to our country goes unrecognised. Minister, why is it that the Public Service union has a seat at the negotiating table while diggers have to take what the CDF gives them?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Thank you, Senator Lambie. I think, in one respect, you've put forward exactly why unions play such an important role in the workplace by being able to bring employees together to negotiate on behalf of everyone to seek a better deal.

Of course, as a former service woman you would be aware that there aren't unions covering service people. I guess that means that they don't benefit from the union arrangements that are in place for other members who work for the Department of Defence. But one thing I would like to mention is that beyond the basic pay rates and pay rises that are awarded or provided to ADF personnel, of course ADF members' remuneration has also increased through additional factors such as allowances. Salary and allowance increases have been delivered through a combination of an increase through a new salary related allowance framework and a new workplace remuneration arrangement. I am happy to provide you with details of that if that would be of interest.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Lambie, second supplementary?

Jacqui Lambie (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

Just a few moments ago the Reserve Bank of Australia lifted interest rates again, this time by 25 points. They did this because they got their early inflation forecast wrong again. Minister, do you finally accept that your government sold diggers a dud and that you are the Christmas Grinch handing out pay cuts for Christmas?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Senator Lambie, no, I wouldn't accept that position. In fact, this government has done more than most when it comes to providing cost-of-living relief for all Australians, whether they be service personnel or any other working person in the community. You're aware of some of the things we have done that benefit service personnel just as much as they do any other worker, whether it be cheaper medicines or cheaper child care, and in some cases people would be eligible for energy rebates and a range of other measures as well.

I am aware the independent Reserve Bank board has today raised interest rates by 25 basis points, and we know that that decision will hit Australians hard. What we are doing about it is providing as much cost-of-living relief as we possibly can while recording a budget surplus—something that the coalition government were unable to do for the entire 10 years that they were in government—to take pressure off inflation and pressure off interest rates. We understand that this will be hitting a lot of Australians hard, and we will keep working hard to provide as much cost-of- living relief as we can. For a change, it would be nice to have the opposition's support.