House of Representatives

COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

Votes and Proceedings Hansard

WEDNESDAY, 14 MAY 2008

CORRECTIONS This is a PROOF ISSUE. Suggested corrections for the Official Hansard and Bound Volumes should be lodged in writing with the Director, Chambers, Department of Parliamentary Services as soon as possible but not later than:

Wednesday, 21 May 2008 Facsimile: Senate (02) 6277 2977 House of Representatives (02) 6277 2944 Main Committee (02) 6277 8368

BY AUTHORITY OF THE HOUSE OF REPRESENTATIVES

PROOF

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SITTING DAYS—2008 Month Date February 12, 13, 14, 18, 19, 20, 21, 22 March 11, 12, 13, 17, 18, 19, 20 May 13, 14, 15, 26, 27, 28, 29 June 2, 3, 4, 5, 16, 17, 18, 19, 23, 24, 25, 26 August 26, 27, 28 September 1, 2, 3, 4, 15, 16, 17, 18, 22, 23, 24, 25 October 13, 14, 15, 16, 20, 21, 22, 23 November 10, 11. 12, 13, 24, 25, 26, 27 December 1, 2, 3, 4

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FORTY-SECOND PARLIAMENT FIRST SESSION—SECOND PERIOD

Governor-General His Excellency Major General Michael Jeffery, Companion in the Order of Australia, Com- mander of the Royal Victorian Order, Military Cross

House of Representatives Officeholders Speaker—Mr Harry Alfred Jenkins MP Deputy Speaker—Ms Anna Elizabeth Burke MP Second Deputy Speaker—Hon. Bruce Craig Scott MP Members of the Speaker’s Panel—Hon. Dick Godfrey Harry Adams MP, Hon. Kevin James Andrews MP, Hon. Archibald Ronald Bevis MP, Ms Sharon Leah Bird MP, Mr Steven Geor- ganas MP, Hon. Judith Eleanor Moylan MP, Ms Janelle Anne Saffin MP, Mr Albert John Schultz MP, Mr Patrick Damien Secker MP, Hon. Peter Neil Slipper MP, Mr Peter Sid Side- bottom MP, Mr Kelvin John Thomson MP, Hon. Danna Sue Vale MP and Dr Malcolm James Washer MP

Leader of the House—Hon. Anthony Norman Albanese MP Deputy Leader of the House—Hon. Stephen Francis Smith MP Manager of Opposition Business—Hon. Joseph Benedict Hockey MP Deputy Manager of Opposition Business—Mr Luke Hartsuyker MP

Party Leaders and Whips Australian Labor Party Leader—Hon. Kevin Michael Rudd MP Deputy Leader—Hon. Julia Eileen Gillard MP Chief Government Whip—Hon. Leo Roger Spurway Price MP Government Whips—Ms Jill Griffiths Hall MP and Mr Christopher Patrick Hayes MP

Liberal Party of Australia Leader—Hon. Brendan John Nelson MP Deputy Leader—Hon. Julie Isabel Bishop MP Chief Opposition Whip—Hon. Alex Somlyay MP Opposition Whip—Mr Michael Andrew Johnson MP Deputy Opposition Whip—Ms Nola Bethwyn Marino MP

The Nationals Leader—Hon. Warren Errol Truss MP Chief Whip—Mrs Kay Elizabeth Hull MP Whip—Mr Paul Christopher Neville MP

Printed by authority of the House of Representatives i

Members of the House of Representatives Members Division Party Abbott, Hon. Anthony John Warringah, NSW LP Adams, Hon. Dick Godfrey Harry Lyons, Tas ALP Albanese, Hon. Anthony Norman Grayndler, NSW ALP Andrews, Hon. Kevin James Menzies, Vic LP Bailey, Hon. Frances Esther McEwen, Vic LP Baldwin, Hon. Robert Charles Paterson, NSW LP Bevis, Hon. Archibald Ronald Brisbane, Qld ALP Bidgood, James Mark Dawson, Qld ALP Billson, Hon. Bruce Fredrick Dunkley, Vic LP Bird, Sharon Leah Cunningham, NSW ALP Bishop, Hon. Bronwyn Kathleen Mackellar, NSW LP Bishop, Hon. Julie Isabel Curtin, WA LP Bowen, Hon. Christopher Eyles Prospect, NSW ALP Bradbury, David John Lindsay, NSW ALP Broadbent, Russell Evan McMillan, Vic LP Burke, Anna Elizabeth Chisholm, Vic ALP Burke, Hon. Anthony Stephen Watson, NSW ALP Butler, Mark Christopher Port Adelaide, SA ALP Byrne, Hon. Anthony Michael Holt, Vic ALP Campbell, Jodie Louise Bass, Tas ALP Champion, Nicholas David Wakefield, SA ALP Cheeseman, Darren Leicester Corangamite, Vic ALP Ciobo, Steven Michele Moncrieff, Qld LP Clare, Jason Dean Blaxland, NSW ALP Cobb, Hon. John Kenneth Calare, NSW Nats Collins, Julie Maree Franklin, Tas ALP Combet, Hon. Gregory Ivan, AM Charlton, NSW ALP Costello, Hon. Peter Howard Higgins, Vic LP Coulton, Mark Maclean Parkes, NSW Nats Crean, Hon. Simon Findlay Hotham, Vic ALP Danby, Michael David Melbourne Ports, Vic ALP D’Ath, Yvette Maree Petrie, Qld ALP Debus, Hon. Robert John Macquarie, NSW ALP Downer, Hon. Alexander John Gosse Mayo, SA LP Dreyfus, Mark Alfred, QC Isaacs, Vic ALP Dutton, Hon. Peter Craig Dickson, Qld LP Elliot, Hon. Maria Justine Richmond, NSW ALP Ellis, Annette Louise Canberra, ACT ALP Ellis, Hon. Katherine Margaret Adelaide, SA ALP Emerson, Hon. Craig Anthony Rankin, Qld ALP Farmer, Hon. Patrick Francis Macarthur, NSW LP Ferguson, Hon. Laurie Donald Thomas Reid, NSW ALP Ferguson, Hon. Martin John, AM Batman, Vic ALP Fitzgibbon, Hon. Joel Andrew Hunter, NSW ALP Forrest, John Alexander Mallee, Vic Nats Garrett, Hon. Peter Robert, AM Kingsford Smith, NSW ALP Gash, Joanna Gilmore, NSW LP Georganas, Steven Hindmarsh, SA ALP ii

Members of the House of Representatives Members Division Party George, Jennie Throsby, NSW ALP Georgiou, Petro Kooyong, Vic LP Gibbons, Stephen William Bendigo, Vic ALP Gillard, Hon. Julia Eileen Lalor, Vic ALP Gray, Hon. Gary, AO Brand, WA ALP Grierson, Sharon Joy Newcastle, NSW ALP Griffin, Hon. Alan Peter Bruce, Vic ALP Haase, Barry Wayne Kalgoorlie, WA LP Hale, Damian Francis Solomon, NT ALP Hall, Jill Griffiths Shortland, NSW ALP Hartsuyker, Luke Cowper, NSW Nats Hawke, Alexander George Mitchell, NSW LP Hawker, Hon. David Peter Maxwell Wannon, Vic LP Hayes, Christhopher Patrick Werriwa, NSW ALP Hockey, Hon. Joseph Benedict North Sydney, NSW LP Hull, Kay Elizabeth Riverina, NSW Nats Hunt, Hon. Gregory Andrew Flinders, Vic LP Irons, Stephen James Swan, WA LP Irwin, Julia Claire Fowler, NSW ALP Jackson, Sharryn Maree Hasluck, WA ALP Jenkins, Henry Alfred Scullin, Vic ALP Jensen, Dennis Geoffrey Tangney, WA LP Johnson, Michael Andrew Ryan, Qld LP Katter, Hon. Robert Carl Kennedy, Qld Ind Keenan, Michael Fayat Stirling, WA LP Kelly, Hon. Michael Joseph, AM Eden-Monaro, NSW ALP Kerr, Hon. Duncan James Colquhoun, SC Denison, Tas ALP King, Catherine Fiona Ballarat, Vic ALP Laming, Andrew Charles Bowman, Qld LP Ley, Hon. Sussan Penelope Farrer, NSW LP Lindsay, Hon. Peter John Herbert, Qld LP Livermore, Kirsten Fiona Capricornia, Qld ALP McClelland, Hon. Robert Bruce Barton, NSW ALP Macfarlane, Hon. Ian Elgin Groom, Qld LP McGauran, Hon. Peter John Gippsland, Vic NP McKew, Hon. Maxine Margaret Bennelong, NSW ALP Macklin, Hon. Jennifer Louise Jagajaga, Vic ALP McMullan, Hon. Robert Francis Fraser, ACT ALP Marino, Nola Bethwyn Forrest, WA LP Markus, Louise Elizabeth Greenway, NSW LP Marles, Richard Donald Corio, Vic ALP May, Margaret Ann McPherson, Qld LP Melham, Daryl Banks, NSW ALP Mirabella, Sophie Indi, Vic LP Morrison, Scott John Cook, NSW LP Moylan, Hon. Judith Eleanor Pearce, WA LP Murphy, Hon. John Paul Lowe, NSW ALP Neal, Belinda Jane Robertson, NSW ALP Nelson, Hon. Brendan John Bradfield, NSW LP

iii Members of the House of Representatives Members Division Party Neumann, Shayne Kenneth Blair, Qld ALP Neville, Paul Christopher Hinkler, Qld Nats O’Connor, Hon. Brendan Patrick John Gorton, Vic ALP Owens, Julie Ann Parramatta, NSW ALP Parke, Melissa Fremantle, WA ALP Pearce, Hon. Christopher John Aston, Vic LP Perrett, Graham Douglas Moreton, Qld ALP Plibersek, Hon. Tanya Joan Sydney, NSW ALP Price, Hon. Leo Roger Spurway Chifley, NSW ALP Pyne, Hon. Christopher Maurice Sturt, SA LP Raguse, Brett Blair Forde, Qld ALP Ramsey, Rowan Eric Grey, SA LP Randall, Don James Canning, WA LP Rea, Kerry Marie Bonner, Qld ALP Ripoll, Bernard Fernand Oxley, Qld ALP Rishworth, Amanda Louise Kingston, SA ALP Robb, Hon. Andrew John, AO Goldstein, Vic LP Robert, Stuart Rowland Fadden, Qld LP Roxon, Hon. Nicola Louise Gellibrand, Vic ALP Rudd, Hon. Kevin Michael Griffith, Qld ALP Ruddock, Hon. Philip Maxwell Berowra, NSW LP Saffin, Janelle Anne Page, NSW ALP Schultz, Albert John Hume, NSW LP Scott, Hon. Bruce Craig Maranoa, Qld NP Secker, Patrick Damien Barker, SA LP Shorten, Hon. William Richard Maribyrnong, Vic ALP Sidebottom, Peter Sid Braddon, Tas ALP Simpkins, Luke Xavier Linton Cowan, WA LP Slipper, Hon. Peter Neil Fisher, Qld LP Smith, Hon. Anthony David Hawthorn Casey, Vic LP Smith, Hon. Stephen Francis Perth, WA ALP Snowdon, Hon. Warren Edward Lingiari, NT ALP Somlyay, Hon. Alexander Michael Fairfax, Qld LP Southcott, Andrew John Boothby, SA LP Stone, Hon. Sharman Nancy Murray, Vic LP Sullivan, Jonathan Harold Longman, Qld ALP Swan, Hon. Wayne Maxwell Lilley, Qld ALP Symon, Michael Stuart Deakin, Vic ALP Tanner, Hon. Lindsay James Melbourne, Vic ALP Thomson, Craig Robert Dobell, NSW ALP Thomson, Kelvin John Wills, Vic ALP Trevor, Chris Allan Flynn, Qld ALP Truss, Hon. Warren Errol Wide Bay, Qld Nats Tuckey, Hon. Charles Wilson O’Connor, WA LP Turnbull, Hon. Malcolm Bligh Wentworth, NSW LP Turnour, James Pearce Leichhardt, Qld ALP Vaile, Hon. Mark Anthony James Lyne, NSW Nats Vale, Hon. Danna Sue Hughes, NSW LP Vamvakinou, Maria Calwell, Vic ALP

Members of the House of Representatives Members Division Party Washer, Malcolm James Moore, WA LP Windsor, Anthony Harold Curties New England, NSW Ind Wood, Jason Peter La Trobe, Vic LP Zappia, Tony Makin, SA ALP

PARTY ABBREVIATIONS ALP—Australian Labor Party; LP—Liberal Party of Australia; Nats—The Nationals; Ind—Independent

Heads of Parliamentary Departments Clerk of the Senate—H Evans Clerk of the House of Representatives—IC Harris AO Secretary, Department of Parliamentary Services—D Kenny (Acting)

v RUDD MINISTRY Prime Minister Hon. Kevin Rudd, MP Deputy Prime Minister, Minister for Education, Minister for Hon. Julia Gillard, MP Employment and Workplace Relations and Minister for Social Inclusion Treasurer Hon. Wayne Swan MP Minister for Immigration and Citizenship and Leader of the Senator Hon. Chris Evans Government in the Senate Special Minister of State, Cabinet Secretary and Vice Presi- Senator Hon. John Faulkner dent of the Executive Council Minister for Trade Hon. Simon Crean MP Minister for Foreign Affairs Hon. Stephen Smith MP Minister for Defence Hon. Joel Fitzgibbon MP Minister for Health and Ageing Hon. Nicola Roxon MP Minister for Families, Housing, Community Services and Hon. Jenny Macklin MP Indigenous Affairs Minister for Finance and Deregulation Hon. Lindsay Tanner MP Minister for Infrastructure, Transport, Regional Develop- Hon. Anthony Albanese MP ment and Local Government and Leader of the House Minister for Broadband, Communications and the Digital Senator Hon. Stephen Conroy Economy and Deputy Leader of the Government in the Senate Minister for Innovation, Industry, Science and Research Senator Hon. Kim Carr Minister for Climate Change and Water Senator Hon. Penny Wong Minister for the Environment, Heritage and the Arts Hon. Peter Garrett AM, MP Attorney-General Hon. Robert McClelland MP Minister for Human Services and Manager of Government Senator Hon. Joe Ludwig Business in the Senate Minister for Agriculture, Fisheries and Forestry Hon. Tony Burke MP Minister for Resources and Energy and Minister for Tour- Hon. Martin Ferguson AM, MP ism

[The above ministers constitute the cabinet]

RUDD MINISTRY—continued Minister for Home Affairs Hon. Bob Debus MP Assistant Treasurer and Minister for Competition Policy and Hon. Chris Bowen MP Consumer Affairs Minister for Veterans’ Affairs Hon. Alan Griffin MP Minister for Housing and Minister for the Status of Women Hon. Tanya Plibersek MP Minister for Employment Participation Hon. Brendan O’Connor MP Minister for Defence Science and Personnel Hon. Warren Snowdon MP Minister for Small Business, Independent Contractors and Hon. Dr Craig Emerson MP the Service Economy and Minister Assisting the Finance Minister on Deregulation Minister for Superannuation and Corporate Law Senator Hon. Nick Sherry Minister for Ageing Hon. Justine Elliot MP Minister for Youth and Minister for Sport Hon. Kate Ellis MP Parliamentary Secretary for Early Childhood Education and Hon. Maxine McKew MP Childcare Parliamentary Secretary for Defence Procurement Hon. Greg Combet AM, MP Parliamentary Secretary for Defence Support Hon. Dr Mike Kelly AM, MP Parliamentary Secretary for Regional Development and Hon. Gary Gray AO, MP Northern Australia Parliamentary Secretary for Disabilities and Children’s Ser- Hon. Bill Shorten MP vices Parliamentary Secretary for International Development As- Hon. Bob McMullan MP sistance Parliamentary Secretary for Pacific Island Affairs Hon. Duncan Kerr MP Parliamentary Secretary to the Prime Minister Hon. Anthony Byrne MP Parliamentary Secretary for Social Inclusion and the Volun- Senator Hon. Ursula Stephens tary Sector and Parliamentary Secretary Assisting the Prime Minister for Social Inclusion Parliamentary Secretary to the Minister for Trade Hon. John Murphy MP Parliamentary Secretary to the Minister for Health and Age- Senator Hon. Jan McLucas ing Parliamentary Secretary for Multicultural Affairs and Set- Hon. Laurie Ferguson MP tlement Services

vii SHADOW MINISTRY Leader of the Opposition Hon. Brendan Nelson MP Deputy Leader of the Opposition and Shadow Minister for Hon. Julie Bishop MP Employment, Business and Workplace Relations Leader of the Nationals and Shadow Minister for Infrastruc- Hon. Warren Truss MP ture and Transport and Local Government Leader of the Opposition in the Senate and Shadow Minister Senator Hon. Nick Minchin for Defence Deputy Leader of the Opposition in the Senate and Shadow Senator Hon. Eric Abetz Minister for Innovation, Industry, Science and Research Shadow Treasurer Hon. Malcolm Turnbull MP Manager of Opposition Business in the House and Shadow Hon. Joe Hockey MP Minister for Health and Ageing Shadow Minister for Foreign Affairs Hon. Andrew Robb MP Shadow Minister for Trade Hon. Ian Macfarlane MP Shadow Minister for Families, Community Services, In- Hon. Tony Abbott MP digenous Affairs and the Voluntary Sector Shadow Minister for Agriculture, Fisheries and Forestry Senator Hon. Nigel Scullion Shadow Minister for Human Services Senator Hon. Helen Coonan Shadow Minister for Education, Apprenticeships and Train- Hon. Tony Smith MP ing Shadow Minister for Climate Change, Environment and Hon. Greg Hunt MP Urban Water Shadow Minister for Finance, Competition Policy and De- Hon. Peter Dutton MP regulation Manager of Opposition Business in the Senate and Shadow Senator Hon. Chris Ellison Minister for Immigration and Citizenship Shadow Minister for Broadband, Communications and the Hon. Bruce Billson MP Digital Economy Shadow Attorney-General Senator Hon. George Brandis Shadow Minister for Resources and Energy and Shadow Senator Hon. David Johnston Minister for Tourism Shadow Minister for Regional Development, Water Security Hon. John Cobb MP

[The above constitute the shadow cabinet]

viii

SHADOW MINISTRY—continued Shadow Minister for Justice and Border Protection; Assist- Hon. Chris Pyne MP ing Shadow Minister for Immigration and Citizenship Shadow Special Minister of State Senator Hon. Michael Ronaldson Shadow Minister for Small Business, the Service Economy Steven Ciobo MP and Tourism Shadow Minister for Environment, Heritage, the Arts and Hon. Sharman Stone MP Indigenous Affairs Shadow Assistant Treasurer and Shadow Minister for Su- Michael Keenan MP perannuation and Corporate Governance Shadow Minister for Ageing Margaret May MP Shadow Minister for Defence Science, Personnel; Assisting Hon. Bob Baldwin MP Shadow Minister for Defence Deputy Manager of Opposition Business in the House and Luke Hartsuyker MP Shadow Minister for Business Development, Independent Contractors and Consumer Affairs Shadow Minister for Veterans’ Affairs Hon. Bronwyn Bishop MP Shadow Minister for Employment Participation and Ap- Andrew Southcott MP prenticeships and Training Shadow Minister for Housing and Shadow Minister for Hon. Sussan Ley MP Status of Women Shadow Minister for Youth and Sport Hon. Pat Farmer MP Shadow Parliamentary Secretary Assisting the Leader of the Don Randall MP Opposition and Shadow Cabinet Secretary Shadow Parliamentary Secretary Assisting the Leader of the Senator Hon. Ian Macdonald Opposition in the Senate and Shadow Parliamentary Sec- retary for Northern Australia Shadow Parliamentary Secretary for Health Senator Hon. Richard Colbeck Shadow Parliamentary Secretary for Education Senator Hon. Brett Mason Shadow Parliamentary Secretary for Defence Hon. Peter Lindsay MP Shadow Parliamentary Secretary for Infrastructure, Roads Barry Haase MP and Transport Shadow Parliamentary Secretary for Trade John Forrest MP Shadow Parliamentary Secretary for Immigration and Citi- Louise Markus MP zenship Shadow Parliamentary Secretary for Local Government Sophie Mirabella MP Shadow Parliamentary Secretary for Tourism Jo Gash MP Shadow Parliamentary Secretary for Ageing and the Volun- Mark Coulton MP tary Sector Shadow Parliamentary Secretary for Foreign Affairs Senator Marise Payne Shadow Parliamentary Secretary for Families and Commu- Senator Cory Bernardi nity Services

ix CONTENTS

WEDNESDAY, 14 MAY Chamber Social Security and Veterans’ Entitlements Legislation Amendment (One-off Payments and Other Budget Measures) Bill 2008— First Reading ...... 1 Second Reading ...... 1 Tax Laws Amendment (2008 Measures No. 2) Bill 2008— Second Reading ...... 2 Consideration in Detail...... 23 Third Reading...... 30 Higher Education Support Amendment (Removal of the Higher Education Workplace Relations Requirements and National Governance Protocols Requirements and Other Matters) Bill 2008— Second Reading ...... 30 Questions Without Notice— Budget 2008-09 ...... 51 Budget 2008-09 ...... 51 Budget 2008-09 ...... 52 Budget 2008-09 ...... 52 Budget 2008-09 ...... 53 Budget 2008-09 ...... 53 Budget 2008-09 ...... 54 Budget 2008-08 ...... 54 Budget 2008-09 ...... 55 Distinguished Visitors ...... 56 Questions Without Notice— Budget 2008-09 ...... 56 Budget 2008-09 ...... 57 Budget 2008-09 ...... 58 Budget 2008-09 ...... 58 Budget 2008-09 ...... 59 Budget 2008-09 ...... 60 Budget 2008-09 ...... 60 Fuel Prices ...... 61 Alcohol Abuse ...... 61 Alcohol Abuse ...... 62 Budget 2008-09 ...... 64 Questions to the Speaker— Points of Order ...... 65 Speaker’s Ruling...... 65 Public Gallery...... 65 Documents ...... 65 Matters of Public Importance— Economy...... 66 Business— Consideration of Private Members’ Business—Report ...... 76 Export Market Development Grants Amendment Bill 2008— Referred to Main Committee...... 77 Business ...... 77 Telecommunications (Interception and Access) Amendment Bill 2008— Consideration of Senate Message...... 78 Social Security and Veterans’ Entitlements Legislation Amendment (One-off Payments and Other Budget Measures) Bill 2008— Second Reading ...... 78 Third Reading...... 80 Vet er a ns’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008— Report from Main Committee ...... 80 Third Reading...... 80 Higher Education Support Amendment (Removal of the Higher Education Workplace Relations Requirements and National Governance Protocols Requirements and Other Matters) Bill 2008— Second Reading ...... 81 Consideration in Detail...... 93 Third Reading...... 96 Reserve Bank Amendment (Enhanced Independence) Bill 2008— Second Reading ...... 96

CONTENTS—continued

Adjournment— Second Sydney Airport...... 101 Wakefield Electorate: Budget 2008-09...... 102 Bravehearts...... 103 Blair Electorate: Budget 2008-09 ...... 104 Ryan Electorate: Budget 2008-09...... 104 Epidermolysis Bullosa...... 105 Notices ...... 106 Main Committee Statements by Members— Mitchell Electorate: Wrights Road Reserve...... 107 Middle East...... 107 Indi Electorate: Nagambie Bypass...... 108 Pastor Rod Denton...... 108 Vietnam...... 109 AHS Centaur...... 109 Budget 2008-09 ...... 110 Budget 2008-09 ...... 110 Small Business Field Officers Program...... 111 Back to Booktown 2008 ...... 111 Ballarat Electorate: St Brendan’s Primary School ...... 111 Vet er a ns’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008— Second Reading ...... 112 Vet er a ns’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008— Second Reading ...... 138 Governor-General’s Speech— Address-in-Reply...... 141 Questions in writing Immigration and Citizenship: Staffing—(Question No. 8)...... 166 Attorney-General’s: Staffing—(Question No. 21)...... 166 Resources, Energy and Tourism: Tourist Complaints—(Question No. 76)...... 166

Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 1

Wednesday, 14 May 2008 mature age, partner or widow allowance, or wife or ————— widow B pension. The SPEAKER (Mr Harry Jenkins) took the chair Older Australians not actually receiving the relevant at 9 am and read prayers. payment on that date will still get the bonus if they had SOCIAL SECURITY AND VETERANS’ claimed the payment by that date and later have their ENTITLEMENTS LEGISLATION AMENDMENT payment backdated to cover that date. (ONE-OFF PAYMENTS AND OTHER BUDGET Self-funded retirees qualified for seniors concession MEASURES) BILL 2008 allowance on 13 May 2008 will also get the 2008 bo- First Reading nus of $500. The bonus will also go to people who are notionally qualified for seniors concession allowance Bill and explanatory memorandum presented by Ms on that date because they had claimed by that date a Macklin. seniors health card and were later established as eligi- Bill read a first time. ble for the card on that date. Second Reading The second of the 2008 bonus payments is for car- Ms MACKLIN (Jagajaga—Minister for Families, ers. Carers receiving carer income support on 13 May Housing, Community Services and Indigenous Affairs) 2008 in the form of a social security carer payment or (9.01 am)—I move: carer service pension under the Veterans’ Entitlements That this bill be now read a second time. Act will be paid a $1,000 one-off payment. Carers who receive the non-means-tested social security income This bill delivers on the government’s commitment to make bonus payments to carers and seniors in 2008. supplement known as carer allowance in addition to either wife pension or partner service pension under Seniors and carers will also be among the benefici- the Veterans’ Entitlements Act will also be paid a aries of a further measure in this bill, which will intro- $1,000 one-off payment. Any carer receiving carer al- duce a limited non-cancellation period for holders of lowance will be paid a separate $600 one-off payment concession cards, allowing people to keep their cards for each eligible care receiver. Carers who have during short-term absences from Australia. claimed the targeted payments on or shortly before 13 The government values the role and contribution of May 2008 and are subsequently granted those pay- carers, who make enormous personal sacrifices through ments—with effect from 13 May 2008 or earlier—will their selflessness and hard work. Our senior Austra- receive the one-off payments. lians, through a lifetime of effort, have laid the founda- Carers who claim carer allowance after 13 May tions of the prosperous nation we all have the privilege 2008 and whose payment is backdated due to the ap- of calling home. plication of the carer allowance backdating provisions The government understands that the rising cost of will not be eligible for the bonus payment, even though living is putting many Australians, especially seniors the backdated period will have included payment for and carers, under increasing financial pressure. The 13 May 2008. government’s commitment to providing the bonus The second major measure the bill introduces is a payments to carers and seniors is a modest measure to limited non-cancellation period for social security or relieve some of this financial pressure. veterans’ entitlements concession cards while the card- A range of other measures introduced in the gov- holder is overseas. This means that cards will generally ernment’s first budget are also designed to address remain valid for up to 13 weeks, should cardholders these cost-of-living pressures. These include increased leave Australia, which will make things easier both for financial support, better services and responsible eco- cardholders and for Centrelink. nomic management, which is addressing the challenge The new non-cancellation period will apply to the of rising inflation. pensioner concession card, the Commonwealth seniors Bonuses for 2008 will be paid before the end of the health card and the health care cards that have previ- financial year, and with no need for a claim. As well as ously had no provisions allowing overseas travel. being tax free, the bonuses will not count as income for At present card holders must be in Australia to retain social security, veterans’ entitlements or family assis- their card, and so if they leave Australia on holiday tance purposes. their card must be cancelled even if they leave for a The first of the 2008 bonus payments provided by short period and even if the card has been automati- this bill is for older Australians. Around 2.7 million cally issued because it is linked to a primary income older Australians will receive the 2008 bonus payment. support payment that is portable during their trip. A one-off payment of $500 will go to each person of While the card is generally not usable overseas, pension age, or veterans’ qualifying age, who is receiv- there are distinct benefits in keeping the card valid during an income support payment on 13 May 2008. The ing short periods of absence. Firstly, people will not same $500 payment will go to recipients at that date of

CHAMBER 2 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 have to go to the trouble and delay of reclaiming cards tion for members and institutions of Australia’s on their return, significantly reducing administrative 120,000-member Australian Jewish community. Gov- costs and inefficiencies involved in cancelling and reis- ernment members—and, I believe, the opposition— suing cards within short time frames. have long supported this measure and wished these Secondly, people will have the chance to use their organisations well, in concert with what we believe to cards right up to the day of leaving Australia and im- be the way forward in terms of security measures for mediately after they return, especially to buy pharma- schools—Labor’s school security program: a policy ceuticals they may need. that we took to be 2007 election. I am very pleased that the Minister for Education, the Deputy Prime Minister, Thirdly, the risk and confusion of having cancelled has been so hard to the task with that particular funding cards in circulation, often duplicating cards reissued proposal. later, will be considerably reduced. It began on 10 August 2007 when the then shadow The new rules, allowing cards to remain valid for up minister for education announced that Labor would to 13 weeks after the person leaves Australia, subject to provide funding for up to $20 million for special secu- any portability restrictions on the primary income sup- rity needs for schools that are assessed to be at risk, port payment to which the card may be linked, will whether they are public or private, religious or secular. also apply to a card that is issued during the person’s In January the Deputy Prime Minister, in her capacity absence because their payment or card claim is deter- as education minister, reaffirmed the government’s mined during the absence. commitment to ensuring the safety of these schools. The new non-cancellation-of-cards rules will apply The government has long been aware that Australian from 1 July 2008, making a significant improvement in Jewish community schools are in a range of at-risk concession card arrangements for all concerned. I religious ethnic and secular schools and are forced to commend the bill to the House. maintain often elaborate and very costly security The SPEAKER—I understand it is the wish of the measures above and beyond those of other schools to House to grant leave for the debate to be resumed at a guarantee the safety of their students. Hitherto these later hour this day. If there is no objection I will allow schools have received no Commonwealth funding for that course. these measures. Often these expenses act as a signifi- Mrs Bronwyn Bishop—As the relevant shadow cant drain on the capacity of these schools to devote minister in this area I must say I have not been in- resources to educational pursuits. Some of the families formed of that arrangement but I am, nonetheless, very I introduced the shadow minister for education to last concerned that any benefit accrue to veterans and year before the election were large. We went to one therefore will agree to it. school where the two little girls we met both came from families of 14 and 15. The problem of having to Debate (on motion by Mrs Bronwyn Bishop) ad- pay security costs constitutes an unfair impost, on top journed. of school fees, to pay for security costs per student TAX LAWS AMENDMENT (2008 MEASURES No. simply because the students, owing to an accident of 2) BILL 2008 birth, are deemed at risk. In my view, and the govern- Second Reading ment’s view, this is grossly unfair. Debate resumed from 13 May, on motion by Mr I want to emphasise that these schools and institu- Swan: tions are not at risk from normal violence and that they That this bill be now read a second time. are not at risk, as are some schools, from normal van- Mr DANBY (Melbourne Ports) (9.10 am)—As I dalism—if we can use the expression ‘normal’. But, as was saying before I interrupted myself yesterday, I par- I mentioned on the Sunday program that I participated ticularly want to focus on schedule 6 of Tax Laws in some years ago, the schools face a national security Amendment (2008 Measures No. 2) Bill 2008, which risk that is equivalent to the risks faced by some em- amends the Income Tax Assessment Act of 1997 to bassies. While the government’s policy of providing update the list of deductible gift recipients. There are a direct assistance to these schools is a more holistic ap- number of worthy organisations that the Assistant proach than the policy of the previous government— Treasurer had identified in schedule 6. Schedule 6 al- and it is one that I have campaigned for for more than a lows deductions for gifts to the Council for Jewish decade—the policy of providing a deduction gift re- Community Security from 10 August 2007. I want to cipient status for the Council of Jewish Community focus on that area in particular, because I have long Security is also a step in the right direction. It is a identified this area as a problem for a minority in Aus- complementary step that the government can and has tralia, but it is a serious problem. taken to meet this burden. This should encourage people to lend a helping hand to this worthy activity. The Council of Jewish Community Security was established to assist the provision of security and protec-

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 3

I want to pay tribute in particular to the professional the education minister has undertaken. This item in but very dedicated security people who look after all of schedule 16 means that people who are Australian citi- these institutions. If one goes to a synagogue or a Jew- zens can, like all other Australian citizens, attend their ish community centre at any time one would see that institutions and schools with some degree of under- these people from the community security group pro- standing that their safety will be protected, as with vide security and coordination with the various appro- other Australians. I commend this bill and this schedule priate police forces. I cannot mention them by name, to the House. because that might jeopardise their security, but Gavin Mr MORRISON (Cook) (9.17 am)—I also wish to and the other people who are responsible for this very address my remarks on this bill to schedule 6. This serious task are owed great credit. Any responsible amends the list of deductible gift recipients in the tax reasonable measure which helps ensure the wellbeing act to assist listed organisations attract public support of schoolkids of any colour or creed is to be com- for their activities. The inclusion of these new organi- mended. This measure makes it easier for members of sations as part of this bill is an initiative of the previous the Australian Jewish community to donate to causes government, and I am pleased to support these meas- that aid the provision of safe education and the safe ures. I commend all of those organisations listed and operation of the institutions. those to whom the matter is extended for the work they It is a positive development, especially for those do in our community. More generally, we debate this who until now have had to dig very deep simply to bill today during National Volunteers Week. The com- have their children or their institutions operate in safety bination of these events presents an important opportu- and in accordance with their religious beliefs. In the nity to reflect on the status of our not-for-profit sector, often quoted words of Edmund Burke, ‘all that is re- their contributors and volunteers and the important role quired for the triumph of evil is for good men to do they play in our community at a global, national and nothing’. With this measure, the men and women of local level. this parliament are showing their commitment to those Australia is a strong and prosperous country. We who ensure that the potential for evil to target minority have also demonstrated our ability to be a very gener- in this country will not prevail, and ensuring that they ous country. In my own electorate of Cook, in Syd- can continue to be supported through measures that ney’s Sutherland shire, we have a proud record of vol- increase the tax effectiveness of community members unteering and support for community organisations. supporting such initiatives. My predecessor, the Hon Bruce Baird, would often I want to pay tribute in particular to two gentlemen quote the statistic that there were more volunteers for in Melbourne who I am very aware of. For years they the Sydney Olympics from the Sutherland Shire than have shouldered the task of making sure that these se- from any other part of Australia. Our challenge as a curity organisations have enough to protect the various nation is to see our generosity rise to a new level. We institutions: Mr Roy Tashi and Mr David Smorgon. are living in a post-prosperity world, and this is the They, in particular, have led this vital work. I do not result of our success. On this side of politics, economic normally praise journalists. People know that I have a questions have never been a passing interest. The man- very sceptical attitude to people like old ‘Scissorhands’ agement of our economy has always been core busi- who sits up there in the press gallery, but I do want to ness for the coalition. Our commitment to economic identify Mr John Lyons, the former executive producer policy and reform has fuelled the policy visions of of the Sunday program and formerly of the Sydney generations of Liberals, and the fulfilment of these Morning Herald. He decided to take this issue up as a policies, most significantly by the Howard-Costello personal investigation and I believe sparked the interest government, has played a central role in the prosperity of a large number of my colleagues in the House, both we enjoy today. on this side and on the now opposition side, in this is- A by-product of this success, however, has been that sue. That has actually led to this change in legislation. economic prosperity is no longer seen by new genera- I am proud to be part of a government that takes a tions of Australians as an end in its own right. The holistic approach to this problem of the security of a question being asked by these new generations is, minority of Australians—the serious, non-partisan ‘What is our prosperity for?’ In responding, we must be identification by this House of organisations that are a careful to prevent complacency returning to economic risk to all Australians; the 13 organisations that are so management. Prosperity can never be taken for comprehensively looked at by the intelligence commit- granted. Our longstanding principles of economic con- tee and then reported back to this parliament and dealt servatism remain hallmarks of the Liberal approach— with in a non-partisan way. They are not dealt with by not a passing fashion or a politically expedient slogan the Attorney-General as a matter of fiat; the whole par- to wheel out at election times. As Liberals, we believe liament takes this thing very seriously, together with we should leave what people do with their hard-won the security measures for schools and expenditure that prosperity to themselves. After all, it is our opponents

CHAMBER 4 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 who champion the nanny state—as evidenced again communities are not in such a derelict state. However, last night by their fortnightly payments now for the our community institutions are in need. Our sports baby bonus. clubs, volunteer clubs and charitable organisations, like But as we see surpluses and individual wealth grow, those that are mentioned in this bill, are all under- there is no danger in giving voice to how we can har- resourced and overworked. Surely an objective of gov- ness this prosperity to work together to create an even ernment should be to reinforce and support the health better and more generous society. Our opponents be- of these organisations so as to enable the government lieve that such efforts are best directed through the sector to retreat from the front-line role of service de- state. The Liberal answer rests in returning the focus of livery in more areas, opening up the opportunity for such efforts to our communities. Our communities are direct community action and involvement by commu- the front line in creating a better society, and I believe nity organisations. We should certainly seek to fund, this is a fundamental Liberal notion. In our post- but why, as under the Labor model, should government prosperity age, there is a fresh hunger for real commu- seek to control and own? nity—not the community of government institutions Community organisations are best run when they are and bureaucrats, but the community of families and community owned and directed. There is an account- individuals that create identity and purpose for life. As ability that exists under this model that governments a society, we have allowed the realm of community to cannot replicate. Those making the decisions on ser- retreat. Our communities have become desensitised vices are the ones who will more often find themselves and disempowered by our state-centric models. It has in front of someone who is using and relying on those got to the point where we barely notice we are even services, whether it is in the direct provision of those doing it any more. services or as part of their local community. By all We have created an expectation for the role of gov- means provide a national or state-wide context to fund- ernment that exceeds its natural mandate and, too of- ing arrangements and ensure appropriate protections ten, its capacity. Just ask anyone who relies on—or for public funds, but do not let centralised bureaucra- even works for—the Department of Community Ser- cies use such reasons as an excuse to commandeer. The vices in New South Wales and they will tell you so. Labor view, I believe, is to command and control in Our response today is too often, ‘What is the govern- these areas. I believe the Liberal view is to nurture and ment doing?’ rather than, ‘How as a community can we support. And I believe that this is the intention of this act to address the crises we face?’, whether it is ageing, bill: to encourage community support for community respite, youth homelessness, suicide, mental illness or organisations, to address community problems. substance abuse, just to name a few. The question for However we must go further. As a nation we have government is, ‘What role can it play to strengthen and demonstrated our generosity, but it must become a support the naturally formed institutions of our com- more permanent and substantial feature of our society. munities to enable communities to play a greater role Such a goal should be an objective of government. We and a more direct role in addressing the challenges we need to develop a serious culture of philanthropy in face, in particular the social challenges?’ this country that can build a not-for-profit sector that Our role in the Northern Territory intervention is a can provide the institutional depth and capacity neces- case in point. Our objective in the Northern Territory sary to be a more significant partner in dealing with the intervention, as introduced by the Howard-Costello many challenges our community faces, as well as pro- government, is not to run these communities but to viding support for those in need, both within Australia help these communities find their feet again. After dec- and overseas. ades of socialisation and dependency, the Howard gov- The Giving Australia report, funded by the previous ernment acted to support these communities by seeking government, concluded that ‘a diverse and healthy to re-establish a secure environment for families by non-profit sector contributes to a stronger, more pros- removing influences that would undermine their reha- perous and cohesive civil society’, and I agree. The bilitation, such as pornography, and ensuring that gov- report notes that there are 700,000 non-profit organisa- ernment support was targeted to restoring individual tions in Australia, with an estimated total revenue of health and wellbeing by tying welfare to food, hygiene $33.5 billion back in 2000. Approximately 20,000 or- and education. ganisations have tax-deductible status. In 2004, 13.4 Our objective is to not be there, or at least no more million Australians, or almost 87 per cent of the adult so than in any part of the wider community. That is population, gave a total of $5.7 billion. Half of those what closing the gap actually looks like: functional donations were $100 or less and just over half, 51 per communities. The former approach would leave us in cent, of those donations were one-off. Furthermore, these communities to a disproportionate level forever. since 1997, personal giving has increased in absolute This is Liberal community policy in action in the most terms by 88 per cent, or by 58 per cent in real terms extreme of conditions. Thankfully, the rest of our after adjusting for inflation.

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 5

It is not just in the area of donations that we are in- study recently undertaken by BERL in New Zealand, creasing; it is also in the area of volunteering itself. in March last year, estimated that Australian giving ABS statistics show that, in 2006, 5.2 million Austra- accounted for 0.68 per cent of GDP. This compares to lians, or just over a third of our adult population, par- 0.81 per cent of GDP for New Zealand and 1.6 per cent ticipated in voluntary work and contributed 713 million for the United States. So there is a further distance to hours. This is up from 4.4 million Australians in 2000 travel. The QUT study also noted that the total value of and 3.2 million in 1995. The same statistics show that donations claimed by individuals as tax deductions in people who are volunteers are more likely to have 2005 was $1.7 billion. This accounted for 5.3 per cent made a donation than those who are not volunteers— of the total value of deductions. This is only slightly 85 per cent compared to 72 per cent. It is also true that higher than the amount claimed for using tax agents in these volunteers do more than just give their time, of- this country. ten putting themselves out of pocket for expenses di- The study also noted that there were 4.3 million rectly incurred in performing their service or in lost Australians who made charitable gifts and claimed wages or earnings. I particularly note the sacrifice them in their tax returns for 2005. That is the highest made by small business people who are involved in level on record. However, this represented an average volunteering, who take time away from their busi- of just one-third of one per cent of these donors’ as- nesses and incur a loss of earnings for that reason. sessable taxable income. Across all taxpayers, when The study attributes a number of key reasons for the this is averaged out, this represents just 0.00032 per growth in volunteerism and the increase in charitable cent of the average Australian taxable income. So we giving: the increasing size of the adult population; sus- can do better and we must do better if we are to ensure tained economic prosperity, with more people in em- that our non-profit organisations who stand in the ployment, rising wages—and let us not forget that over breach for our communities can continue to perform the course of the last government there was a 21.5 per their valuable service and, even better, expand their cent increase in real wages—rising disposable income operations. and improved business profitability, which are all To this end I believe we need a national strategy on things that went forward under the previous govern- philanthropy and volunteering that builds on the suc- ment; and greater and positive publicity for giving and cess of the Howard government’s policies and leader- increased fund-seeking activity by charitable organisa- ship in this area and works to deliver better and more tions, using more sophisticated methods. inclusive outcomes for our communities. This must I also note the report says that, while 51 per cent of include increasing our current level of giving as a tar- donations are one-off, non-profit organisations are al- get, increasing and recognising volunteer involvement most always likely to be sustained by regular and gen- in non-profit organisations in all ways that we can and erous giving than by one-off measures, and they ac- increasing the institutional strength of our not-for- knowledge that taxation measures are a good way to profit sector. We need more A-list non-profit institu- foster planned giving, as is provided for in this bill. It tions evident in other Western democracies—these in- is therefore not surprising that the following measures stitutions that have depth, capital, experience, properly introduced by the previous government have played an structured governance, the capacity to step in in so important role in encouraging greater giving by Austra- many more conditions in a way that government can- lians. Those measures included: five-year averaging of not and the capacity to engage the not-for-profit sector donations; deductions for gifts of property over $5,000; as a key partner in addressing community challenges. deductions for gifts of shares under $5,000; deductions We need better institutions that become better partners. for minor benefit contributions, such as gala dinners; Such a strategy will require us to look at many is- deductions for workplace giving, which has been par- sues, including additional taxation measures that pro- ticularly successful; conservation covenants; capital vide an incentive for planned giving and compensation gains tax for gifts within the cultural gifts program; and and/or relief for out-of-pocket expenses for volunteers. the introduction of the prescribed private fund. Costs and processes associated with background A recent study by the Australian Centre for Philan- checks are something that Volunteering Australia has thropy and Nonprofit Studies at the Queensland Uni- highlighted. This is a very necessary step in the process versity of Technology, titled Good times and philan- but one we must ensure the not-for-profit sector is re- thropy, identified that between 2001 and 2006 more sourced to perform. The implications of occupational than 450 PPFs had been established by individuals and health and safety requirements also need to be ad- companies and that since that time estimates point to dressed. There is a need to increase awareness of non- more than 600 in operation. So these are successful profit organisations and their activities, and I must ad- measures that have encouraged the flow of charitable mit this bill does go some way towards advancing that giving in this country. As a nation we have become goal. We also need to look at partnership models for more generous, but I believe we can do much better. A accessing public sector support to build institutional

CHAMBER 6 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 capacity, information and data resources to better un- It is a shameful fact that Australia is in the grip of a derstand the incidents and influences upon philan- serious skills crisis. I believe one of the major policy thropic activity, a review of red-tape regulation impact- failings of the previous government was its cavalier ing on the activities of non-profit organisations and attitude towards our future prosperity, as evidenced by improving the transparency in governance arrange- its neglect of skills formation in Australia. Our nation ments for nonprofits. A national strategy that can ad- has simply not trained enough new or existing workers vance these causes is one that I believe can lead to to keep up with the demands on our economy and our greater institutional capacity in the non-profit sector in workforce. As you know, Mr Deputy Speaker, even in this country and ensure a greater response by our the meatworks in your own electorate we have seen the community to address the challenges we face. skills shortage hit hard. In times of record prosperity, In closing I wish to make particular reference and this is unforgivable. give recognition to a constituent of mine whose own Unlike the previous government, the Rudd govern- activities are recognised in this bill—Ian Thorpe’s ment takes this skills shortage very seriously. We know Fountain for Youth. Ian Thorpe is a proud resident of that investment in skills creation is fundamental to the the shire, in the seat of Cook. Ian is an inspirational next wave of economic reform. That is why, earlier this Australian whose achievements in the pool provided us year, the Minister for Education, Minister for Em- all with a sense of what is possible when great talent is ployment and Workplace Relations and Minister for combined with great dedication. He has been an out- Social Inclusion introduced the Skills Australia Bill, standing ambassador for Australia, in and out of the the first step of many that this government will take as pool, most notably in tourism. Both before and while I part of a comprehensive approach to secure a prosper- was managing director of Tourism Australia, Ian was a ous future which maximises workforce participation fantastic ambassador for Australia, particularly in Ja- and productivity. That is why in the budget last night pan, and always made himself available to advance our we delivered on our commitment to establish Trade national cause wherever he could. He was deeply ad- Training Centres in secondary schools to give young mired and remains deeply admired by the Japanese people the opportunity to study a trade at school. That people. He is a great asset to Australia in our relations program is worth $2½ billion over the next decade. with that country. He has been an outstanding ambas- That is why last night the budget delivered our com- sador for Australia and he is now applying those same mitment to 450,000 new training places over the next characteristics to his post-sport life. His foundation four years. In fact, the budget extended that commit- focuses on advocacy for the needs of ill children, ment to $1.9 billion over five years to fund 600,000- building alliances with the corporate sector and general plus new training places. community to raise awareness and funds to bring posi- I congratulate the Prime Minister, the Treasurer and tive changes to the lives of children by improving their the Deputy Prime Minister for proving to the Austra- health and education. These include, for instance, a lian people that promises made during the election literacy empowerment project in remote Indigenous campaign are actually promises kept by the Rudd gov- communities east of Katherine in the Northern Terri- ernment’s first budget. Australians know that, for our tory as well as funding research into Rett syndrome, country to prosper and thrive, we urgently need to de- which is a devastating genetic disorder that is one of velop our whole base of skills training. the most common causes of severe, progressive intel- I think these tax law amendments are another step lectual disability and affects one in 10,000 female chil- down that path. I would like to refer in particular to dren. I commend both Ian and his organisation for their schedule 5, early completion bonuses for apprentices. work and all those organisations that are included in This measure ensures that apprentices in areas with schedule 6 of this bill, and I commend the bill to the skills shortages will not pay tax on early completion House. bonuses provided by state and territory governments up Mr SHORTEN (Maribyrnong—Parliamentary Sec- to $1,000. As of now, these early completion bonuses retary for Disabilities and Children’s Services) (9.34 are treated as taxable income. This measure will am)—In rising to support the Tax Laws Amendment change that, and I think this is a great incentive for (2008 Measures No. 2) Bill 2008, which improves our those young apprentices eager to get out into the work- nation’s tax and superannuation laws, I would like to force and help ease our skills crisis. As this bill out- concentrate on two of the six amendments—and, if it is lines, this will apply to the early completion of appren- not forgoing too much of the convention of this place, I ticeships in specified occupations affected by the skills would like to say that I agree with the member for shortage. At the moment, the great state of Queensland Cook, perhaps not so much with his praise of the de- is the only state to have an early completion bonus for parted Howard government but with his thrust about apprentices. I hope that perhaps other state and terri- the importance of charity and giving in Australian life. tory governments, with the passage of this bill, will introduce similar bonuses to encourage apprentices.

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 7

I would also like to comment specifically about I am also happy to note that Playgroup Australia has schedule 6, deductible gift recipients. This is a crucial been listed for deductible gift recipient status. Play- intersection between generous Australia and the non- group Australia—which I have the pleasure of working profit sector. The Parliamentary Secretary for Social with in my portfolio—is the national body and leading Inclusion and the Voluntary Sector, Senator Ursula representative and advocate for playgroups. As a fed- Stephens, has spoken at length on this matter, and I am eration of eight state and territory playgroup associa- grateful for her research on the matter. As we have tions across Australia it collectively represents more heard previously, there are approximately 700,000 non- than 100,000 families and 135,000 children at ap- profit organisations in Australia. Many of these are proximately 8,000 playgroup sessions every week. The small and depend on voluntary commitment. About Australian government has funded playgroups since half of them are incorporated. Perhaps about 35,000 of 1975, and the evidence is clear that forums such as these organisations employ staff. As the member for playgroups are not only fun but also a valuable invest- Cook correctly stated, 20,000 of these organisations ment in a child’s cognitive, physical, social and emo- have deductible gift recipient status. In fact, the contri- tional wellbeing. Community playgroups are initiated bution of the non-profit sector’s total revenue is about and self-managed by parents or caregivers. Supported $35 billion. Indeed, in the 2005 Giving Australia report playgroups are initiated by a paid coordinator who it was estimated that the donation of money, goods and works with the families to help them develop skills to services to non-profit organisations by individuals and participate in or run a community playgroup independ- business was estimated at $11 billion a year. In 2004 ently over time. Supported playgroups target families Australians gave $7.7 billion. Of this, $5.7 billion was from culturally and linguistically diverse groups and donated by 13.4 million people, or 87 per cent of all backgrounds, Indigenous families, families with mental adult Australians. Two billion dollars, interestingly, health and/or disability issues, teenage and young par- was provided by 10.5 million people through charity ent families and families who are socially isolated and gambling. $3.3 billion came from 525,000 businesses, disadvantaged. I have been working with Playgroup or two in every three Australian businesses. In terms of Australia since I was given the privilege of represent- personal time, 41 per cent of Australians volunteered in ing people and disabilities by our Prime Minister, and I the year 2004, providing no less than 836 million hours hope that this listing helps them continue to offer the of their time—an average of 132 hours per year. vital support that they provide to the parents and chil- Despite all of this good work, it is crucial to dren who need them so much. strengthen the generosity of Australians and the re- I would also like to comment briefly on the AE2 sources of the not-for-profit sector. Even with the in- Commemorative Foundation. It is a fantastic organisa- creasing size of our population, for sustained future tion. What this is about is ensuring and dealing with prosperity and nation-building and to deliver for work- the issue of the fate and the future of the Australian ing families it is necessary to increase the number of submarine AE2. Talking to the organisation, I found non-profit organisations able to seek increased dona- that they are pleased with this status listing for them tions. Therefore, I strongly support this measure giving because it will make the source of funding much more deductible gift recipient status to 13 worthy groups, available from individuals and organisations. Many including groups active in my own portfolio area of philanthropic organisations have a requirement in their disabilities, such as Wheelchairs for Kids. We are charter about the status of who they donate money to. aware that this government is strongly committed to The AE2 Commemorative Foundation is hoping to supporting people with disabilities, and we know that raise $2 million plus. In fact, as recently as the Anzac out there in the community there are thousands and Day period, they were meeting in conferences in Istan- thousands of people working tirelessly to do the same bul to talk about the future of the AE2. There have thing. Wheelchairs for Kids looks further afield, to the been plenty of grandiose schemes to raise the AE2, but great unmet need which exists for children with dis- it has been decided to leave the AE2 to lie on the bot- ability right through the developing world. Twelve tom. Instead, the foundation will protect and preserve years ago, a member of the Rotary Club of Scarbor- her and educate people about the AE2. ough began making wheelchairs for children with dis- Having welcomed the listing of these organisations ability in the Third World. Now 100 volunteers make for deductible gift recipient status, I find it extraordi- these wheelchairs, and in enormous numbers—13,000 nary that to recognise such legitimate efforts on behalf by the end of 2007. This organisation is funded entirely of people we have such a complex process, requiring by donations from the public except for the rental ex- the amendment of the tax act in the manner in which penses, which are covered by the Western Australian we are doing it. Perhaps it is time for fundamental re- government. I hope that, this initiative having been form of charities legislation and for an appropriate granted this status, many more donations will flow to piece of legislation which captures the specific work of the initiative, which brings desperately needed assis- charities and not-for-profit organisations. I commend tance to the marginalised and often neglected children. the legislation and these organisations—the organisa-

CHAMBER 8 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 tions listed, especially in schedule 6, and the other are they actually doing with the money? Is it an anti- 20,000 organisations and, indeed, all of the not-for- inflationary budget? Is it cutting government spend- profit sector. Perhaps they deserve better. Perhaps we ing?’ No, far from it. It was a spending budget, raising need to provide better legislation, better regulation and government spending by around $3 billion. You would greater support for the invaluable support that they not do that if your heart were in fighting inflation. Any provide to the Australian community. of those cuts that were described last night have simply Mr LAMING (Bowman) (9.44 am)—The tax laws been matched and exceeded by further Labor spending. amendments were fundamentally crafted and con- That is not the way to fight inflation at all. ceived by the previous coalition government, and for The second point to look at is: exactly who were the those reasons I will be supporting all six schedules. losers? There is almost a sense that if you are not mates The first three are significant improvements for the with the government then you lost out last night. The business community, and the remaining three are also carers who dared stand up for their one-off payment modifications to the tax laws, which we support. still have not got the security of that being an ongoing Of course the key event overnight, the release of the payment. It is quite easy to say, ‘We are looking at re- first Rudd government budget, is of great concern to visiting and revising carer payments,’ but there is noth- those very businesses that are affected by this legisla- ing to stop you putting it in those forward estimates. tion, the Tax Laws Amendment (2008 Measures No. 2) But of course it has not been done. It was a begrudging Bill 2008. They will be looking at legislation like this single payment to those that need it most: the carers. to see whether there really is any follow-on at all, any You do not have to look too far to see that the vet- follow-up, any commitment and any heart for small eran community got almost nothing out of last night, business. For those who read the fine print, there is almost as punishment for not queuing up and revering very, very little in it for the small business community. the new Commonwealth government. Seniors have That is a surprise, because right now of course we are very little to show for it. And what about those genu- facing the abyss of unemployment, interest rates and inely living with disabilities? The Parliamentary Secre- inflation. tary for Disabilities and Children’s Services, who has You only have to go back about 12 months to re- just left the chamber, has almost nothing to show for it member those fateful statements by Wayne Swan and in the form of improved payments for a group that Kevin Rudd that the economy was on autopilot, that needs it most. we were riding on the back of a mineral boom, that it We appreciate that we have a Prime Minister who was so easy to run an economy like Australia’s. Of takes months and months—even years—to come up course, now they have realised that it is not. The narra- with a new idea. Looking at last night’s budget, can I tive that we are hearing at the moment about this econ- find even a single idea that belongs to Kevin Rudd? I omy being in diabolical stress and under crisis from the saw plenty of copy from the coalition government. Tax threat of inflation is just a softening up, with the reality cuts were announced because the government commit- being that there will be significant job losses faced in ted to them. But those tax cuts delivered last night, Australia over the next 12 months. courtesy of the hard work of former Treasurer, Peter Let’s be honest about working families. There is Costello, were promised nearly 12 months ago. If the nothing Robin Hood about losing a job, certainly not if economy has shifted so much, where was the will from we are talking 65,000 or 130,000 Australians. If you this new government to say: ‘If we are serious about drill it down to a community like Redlands, you are fighting inflation we will pay some of those tax cuts looking at a thousand people who are in work at the into superannuation. We will actually do something moment being out of work by this time next year under genuine with that $30 billion to fight inflation’? But this government’s watch. Last night was the first op- there was no heart, no courage; they were just meeting portunity for a clear articulation of exactly what this that obligation, which of course we support, being our government intends to do about it. own tax cuts. We have had a clear opportunity over the last three Let’s go through the rest of the budget. Find for me or four weeks of budget leaks—this new approach with in that budget one idea that we can sheet home as being federal budgets where you leak components of it to Kevin Rudd’s idea. I saw a few Kim Beazley ideas. I assess media reaction without actually providing any saw plenty of coalition copy. But did we have a single opportunity for a close, hard look at the detail. So, by idea from this person, our Prime Minister, in the the time we got to the budget last night, there was ac- budget last night? I saw a budget of almost nothing. I tually nothing left after we took away these authorised felt that you could just pop the numbers in and pop the leaks. numbers out. It could have been any government in the world releasing a budget in a surplus environment. I A new government’s first budget is always that would like to see one idea from an individual who has hallmark moment where you say, ‘Where are they predominantly feasted on the media around a 2020 heading?’ You take away the spin and you say, ‘What

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 9

Summit. He has had 12 months in opposition to get his haps it is a sign of an immature government, perhaps a ideas together, 12 years in opposition as a party to sign of a government that simply runs on announce- come up with some ideas, and what do we have? We ments with very little follow-up and very little detail. have articulated root and branch tax reform. That was We may talk about some of the groups affected by thought bubble No. 521. It got a headline for him. these tax laws amendments to get a picture of that, be What is he talking about—root and branch tax reform? they the apprentices or those running small businesses. We are going to have the future tax system reporting They will feel the first pinch that we are already seeing back to the government over the next 18 months to two in the southern states of the loss of jobs and the loss of years. Is this a government with vision? Where are the strength in the economy. It will lead directly to the ideas on tax reform? Where was the tax policy at the need for increased welfare and to the support required last election? We are talking about a vacant approach to for Work for the Dole, which has also been diluted af- policy setting relying on consensus driven summiteer- ter last night’s budget. ing. The state governments will surely follow up with History will recall the horrible reality that we have a their own summits and will stack those seats at the new government with an opportunity to take the tough summits and just listen to the ideas that we may choose decisions, but it did not. Let us try to work out in a to implement. This is a government without any idea at multiple-choice scenario whether we have (a) a gov- all on tax. To simply say, ‘We are matching what you ernment here prepared to take tough and unpopular are doing and we might add a dollar here or there’ is decisions that are right for the long term or (b) the an- policy vacancy at its worst. We have had six months to nouncement effect of constant symbolism and token- deliver a budget that actually set a new direction for ism and fiddling around the edges when in fact they Australia. And all we have heard is the Robin Hood, have a wonderful mandate with their own state gov- the tough decision of stealing from the rich and giving ernments to make significant reform. I am not talking to the poor. about just wiping away this year’s surplus by transfer- For those 48,000 families involved, my recollection ring it to universities. I would support many of these was that the baby bonus was effectively an incentive, payments and seeing infrastructure issues being ad- not a welfare payment. Aren’t we confusing the two dressed particularly in bottleneck areas of the econ- here? It was an incentive that we saw in a falling fertil- omy. But last night was an opportunity for the really ity rate to increase population. And Australia appears to big decisions that simply never came. be one of the few countries that can actually report a The horrible reality is that Australia is an economy turnaround and an increase in fertility rates. The baby that has weathered some extraordinary external stresses bonus was part of that suite. It did not act in isolation and has an internal stress at the moment and a govern- and I do not say that it had complete causation, but the ment that is refusing to take responsibility for it. It is baby bonus was an important part. refusing to take responsibility on petrol prices. How There are a lot of policies here that I think have been many times do we have to hear about FuelWatch and built more on ideology than on evidence. You saw the the cop on the beat as we watch the fuel prices rise? Of challenges yesterday. Lay down the evidence for your course I do not hold the government responsible for tax policy. Lay down your evidence for the means test- crude oil prices and global fuel prices, but I hold them ing. There simply has been none laid out whatsoever. responsible for promising ordinary Australians that So that hope that we might be moving away from poli- they would do something about it. If they know they tics by ideology—the accusation laid upon this gov- have no control over it, why do they engage in that ernment when they took office late last year—is far vacuous promise-making about making it easier for from being played out, and the suspicion remains dis- working families when the only formula they have is tinctly that this was a budget to punish those who had putting them out of work? How is that the Robin Hood not supported the government. philosophy in the end? When the three key markers of This is a country obviously awash with money and it government success—inflation, unemployment and takes a certain brand of economic management to do it interest rates—are judged two years from now, you effectively. I am not saying that the textbooks on eco- want to be very certain, members on the other side of nomics can tell us exactly how to manage a booming this chamber, that you are in front on the ledger on at economy with all the threats of inflation. Of course it is least two of those three markers. Right now two of a serious problem that requires addressing. But this them are slipping and, with the greatest respect, you situation is predominantly being politicised by a gov- appear to have no control over them whatsoever. ernment desperate to sheet home any of the bad news I do not like to make the analogy of a little bloke sit- to the decisions made years and years ago. I have al- ting in the cockpit of the 747 whose feet cannot touch ways challenged that side of the House to say that from the ground and with a sea of dials in front of him. The today they take the responsibility for the outcomes of plane is on cruise control at the moment but there is the Australian economy. They are still yet to do it. Per- that sense that the government do not know what

CHAMBER 10 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 touching any of those buttons or knobs will do and 0.3 and 0.4 per cent. So why are you engaging in taxa- they are just hoping that the plane is going to stay tion measures that are making things more expensive level. There is that fearful moment when you think in the phase where you are actually trying not to do with your first budget that you have to touch a control that at all? and work out what happens and you realise that run- We can already see some of this Labor labour ideol- ning an economy is far more difficult than you ever ogy coming through, attacking those who take respon- realised from the opposition benches. sibility for their own health insurance. Make no mis- Right down in Redlands where the tax laws amend- take here, people of all income levels pay for private ments will be biting home, there will be a sense of sad- health insurance for their own reasons. The great suc- ness that investing in our schools has gone, that com- cess of the coalition government was that they man- munity water grants have effectively gone, that some aged this blend of private and state funded service proof the really important programs that were delivering vision in health, education and child care. By moving infrastructure where it is most needed have gone. The the Medicare surcharge levy to $150,000, it is effec- criticism already from my area is that in that wonderful tively saying, ‘We are a government that does not want opportunity to have an inspiring budget it really was to pay the 30 per cent rebate anymore but we lack the visionless. Work for the Dole has been semidismantled. courage to remove it. We are a government that want to There is almost a sense that the government is doing as reward those who do not plan for their own health in much as they can without getting any opprobrium from the future and support the private health system and we what is at the moment predominantly a fawning and are not going to support those who choose to take the sycophantic media, that it is effectively a case of: go burden off the public hospital system.’ I know that that ahead, do whatever you want while it is washing over is deeply ingrained Labor ideology that you have never us at the moment. You have free rein so, for something managed to have the courage to articulate, but after different, why not try something visionary and long writing a letter of comfort to the industry, you will term. You have got effectively no scrutiny at the mo- simply achieve it by stealth. ment. It is nothing less than fawning media approba- What we really wanted in this budget was fiscal re- tion. straint—but you increased government spending. We So why don’t you go right ahead and try something wanted national saving—but all we heard about were truly daring like making a long-term decision rather nebulous funds. We wanted infrastructure bottlenecks than just talking about these nebulous funds that are addressed—but there was not that long-term commit- going to be delivering all the key infrastructure in the ment to anything except feasibility and planning. Most future. What have we got for the next 12 months? You importantly of all, I think ordinary Australians, every- have got a chance right now to plan for tomorrow. We day Australians, wanted increased participation in the have got feasibility and planning in the tens of mil- workforce. It is a simple request, that we get more Aus- lions. You had six months and every possible group to tralians involved and engaged and fewer of them rely- report back to you—and we have talked about the ad- ing on state funded welfare. Well, we—the bad news visory groups and committees—but it almost seems is—are heading in exactly the reverse direction. that it has come to nothing. You had months to pull this The symbolism we have seen trotted out over the together and years in opposition to pull together those apology for Indigenous affairs and the weak-hearted in think tanks that were going to give you direction. support for the intervention was horribly revealed last But I truly have the sense of a Prime Minister devoid night when we saw a tiny mention—just three or four of any ideas whatsoever. It all sounds great on Sunrise, lines—for Indigenous Australia. Those commitments but is there one thing in that budget that could truly be last night, for between $50 million and $60 million per laid on the table and you could say, ‘This is Kevin year for the next four years, were chickenfeed. I can Rudd’s plan for the future’? There is more a sense of: respect that there is still a review going on of the inter- how do I distribute the surplus without making things vention and I can understand that those findings are yet any worse for me than they are already. to come back. But let’s be honest about the interven- The objective of cooling the economy obviously re- tion. It is the first step in 35 years to set out positive quires an anti-inflationary approach. But of all the re- social norms and reinforce them through a carrot-and- forms we have read about, you are taking with one stick approach, and it would not have been that hard hand and giving with the other. If you are going to in- over the last six months to have had some supporting troduce a ready-to-drink tax, if you are going to have legislation encouraging states to join the intervention excise tax for trucks and remove that support for those and to be putting the support where it is most required. who are actually moving food around this country, and We are not talking about building more schools or if you are going to introduce a luxury car tax, of course more homes. What we are talking about is stopping you will be pushing up prices. Some of the internal child abuse. That was the essence of the intervention, analysis shows that it could increase CPI by between but there was no mention of that last night. I challenge

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 11 the minister to explain whether she truly cares about chamber to be turning working families into non- the intervention or whether this is something that gets working families. There is no excuse for cutting back rolled out because it was an election commitment you hours for the very aspirational Australians who over had to make so that you got into government, and the last 10 years have benefited from a strong econ- warmth in the embrace of this intervention is com- omy. You have a responsibility here to look after those pletely lacking. who need it most, and part of that is a job. As my col- This intervention will roll out over 12 months. It league the member for O’Connor on this side of the will be reviewed. Those who have had their health chamber has so frequently said, it is one thing to rob checks will get their follow-up. But the intervention from the rich and give to the poor, but you do not want was so much more than that. The intervention was re- to start paying the poor in unemployment benefits. Is ordering community social norms so that families that your plan? Because business will be left with that could come together and say: ‘We regard attending simple reality, that with an unfriendly government and school as something important. Looking after your with no chance to raise productivity and workforce home through tenancy agreements is something that participation, there may be no other future for Austra- should be supported. Having your kids checked out at a lian business. (Time expired) health centre is something that should be common, Mr NEUMANN (Blair) (10.04 am)—Listening to ordinary practice. Possession of pornographic DVDs in the previous speech I was reminded of the time some communities where there is one television on the ve- years ago when an American missionary who did char- randah and the whole community gathers around is ity work came to my home town of Ipswich and I took probably not going to be a good thing where child her to watch an AFL game. The Brisbane Lions were abuse is reported as endemic.’ That is just common playing St Kilda. As she watched the game she could sense for you and me in a community where we long not quite understand what was going on. At the end of ago understood ratings and classifications, but in In- the match we went down on the field, as you do, and digenous communities things work differently. So the ‘Aka’ was doing his handstands. It was a great time— intervention said, ‘For the moment, let’s have no por- the Brisbane Lions had won, we all sang their song and nographic DVDs, let’s not broadcast R18+ pornogra- it was terrific. As we were going away she said to me, phy into Indigenous communities and give them a ‘Wasn’t that a great soccer match!’ I said to her, ‘Well, chance to regather, reorder the positive social norms you know, it really isn’t soccer, it’s AFL.’ And as I was and have a hope that, for those who do not agree with listening to the previous speaker, the member for those norms, their income could well be managed be- Bowman, I was wondering whether he had actually cause, for the first time ever, there has been a tiny bit been there last night when the Treasurer gave his of a stick together with the carrot.’ But there is nothing speech. So I am going to go home and scan the ABC coming from that side of the House; there is just a footage to see whether he was there, because I do not watch and wait. And that signal does percolate down to think he understood anything of what was said last those working on the ground, to the public health offi- night. I am not sure whether the Liberal Party has a cials and bureaucrats, that this is what we call a soft- national secretariat, as we on this side of the House do, pedalling government on the Indigenous intervention. but I was wondering whether his speech was faxed The classic example was not only the legislation to over to him this morning and so he said: ‘Right, I’m which I just referred but your decision to extend CDEP, going to make this speech that is completely irrelevant unreformed, for another 12 months. Here was the one to the bill that is before the House; I’m just going to opportunity to turn sit-down money into genuine work, wing it’—and that is what he has done. My back- and it was lost through the simple signal of extending ground is as a litigation lawyer, and if I had got up and CDEP for 12 months. made a speech like that in these circumstances a judge To conclude my remarks on this legislation, the would have told me, ‘Mr Neumann, you’d better get businesses that will be affected by it will be seriously back on track.’ That was an extraordinary speech by thinking in the next six months about whether they can the previous speaker. Mr Deputy Speaker, I am actually employ more people. Unemployment has increased going to address the bill before the House. It may be from 4.0 per cent earlier this year to 4.2 per cent. Much shocking, it may surprise those opposite, but I am actu- of that I put down to the collapse in small business ally going to address the bill, which is all about good confidence that occurred over the Christmas holidays. government. It is no coincidence that there was a change of gov- I speak in support of the Tax Laws Amendment ernment, but now we have unemployment at 4.2 per (2008 Measures No. 2) Bill 2008. This bill covers a cent and rising and a government that is just starting to broad range of areas by schedule, and I want to address make those first little noises about: ‘We will have loss four in particular that show that this government is pro of jobs but a whole lot more if we don’t control infla- business, pro market and pro working families. The tion.’ Well, of course we have to control inflation, but extension of the late payment offset, which will allow there is no excuse for you on the other side of the employers to use a late contribution to offset part of

CHAMBER 12 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 their superannuation guarantee charge liability, is the the current law, so it is an impost upon them and a bur- first point. The second point is the provisions to ensure den. It is a double payment rule, effectively, for those the market value substitution rule does not apply where who unintentionally miss their quarterly superannua- a capital gains tax event C2 occurs in relation to a tion payments. The truth is that those who deliberately widely held company or a unit in a widely held unit avoid making contributions to their employees’ super- trust. The third point is exempting the first $1,000 of an annuation are not likely to be caught by that because early completion bonus paid to an apprentice from in- they simply will not do it, and the Australian Taxation come tax and the fourth point are the amendments to Office must adopt a very strenuous and tough approach the uniform capital allowance and capital gains tax in that regard. provisions in circumstances where amounts are misap- In opposition we called upon the former coalition propriated by an employee or agent. The previous government to fix this harsh treatment of employers. speaker, I note, did not address any of those topics. However, it was not corrected in 11½ years. It is disap- Firstly I want to speak about the extension of the pointing that Labor’s calls for this fell on deaf ears, late payment offset to allow an employer to use a late although, in fairness, it must be said that the former contribution to offset part of the superannuation guar- government were proposing to do it before the lapse of antee charge liability. This bill is an important part of the last parliament. It is a constant complaint from em- the Rudd government’s plan to reduce the burden on ployers and it is good that the current Rudd Labor gov- small business. As someone who worked for 21 years ernment has listened to employers as part of its consul- in small business, I am pleased to support it. It will tation with all segments of the community. In line with allow fairer treatment to employers who make contri- our commitment to reducing red tape for small busi- butions after the due date. It amends the previous act to ness, we are taking this early action to show employers further extend the period within which an employer that we are fair dinkum about listening to their con- can make the required superannuation guarantee concerns and complaints. Our priority is to help small tribution after the formal due date and still be eligible business because small business is the engine driving to use the superannuation guarantee late payment off- economic productivity and growth in this country. set. Profitable businesses mean high wages, highly skilled The current act prescribes a minimum level of su- employees and helps working families in our commu- perannuation support that all employers are required to nity. pay for eligible employees into a complying superan- Currently there is a disproportionate penalty im- nuation fund. Otherwise the employer will incur liabil- posed on employers who pay that late superannuation ity to pay the superannuation guarantee charge. The contribution, and we want to change it. This initiative purpose of this bill is to remove the anomaly in the will be welcomed in my community of Blair, which system which imposes harsh penalties on well-meaning takes in all the Lockyer Valley, part of the old Boonah employers who pay their superannuation contributions shire and two-thirds of the city of Ipswich. There are late. The bill extends the late payment offset for em- many business people who work hard in my commu- ployers and ensures that late contributions are still nity. They have profitable businesses making contribu- counted towards the required superannuation guarantee tions not just in terms of the work they do on a daily payments of an employee. The implication is that em- basis but also in terms of their community’s life as ployers will no longer be required to pay the same well. I am pleased with the philanthropic type provi- amount twice. It reduces the burden financially as well sions that we see in this current legislation as well. as in a regulatory way. Currently, if employers fail to This legislation will end, once and for all, the possibil- make the required contribution within 28 days of the ity that employers find themselves with additional due date, they must make the payments through the costs. As someone who was running a business and superannuation guarantee charge and make them pay- who built it up from scratch, I know that you need all able to the Australian Taxation Office. Many employ- the help you can get. This will be helpful to those who ers I have spoken to do not understand this and, unfor- are struggling. There are significant incentives—and tunately, make the payments to the employees’ super- they will remain—to ensure employers make their con- annuation fund. Under the pre-existing legislation that tributions for their employees. Penalties and interest payment is not taken into account and they are forced can be imposed by the Australian Taxation Office on to pay twice thus increasing their financial burden. employers for late payments—and so they should. I The law currently says that from 1 January 2006 an believe this bill is part of the Rudd Labor government’s employer who makes a late payment within one month pro-market, pro-business and pro-working families after the due date can use that late payment to offset agenda. their superannuation guarantee charge for the quarter— The second area also helps those who received no the payment is quarterly. However, if they make it after capital gain but in fact are stuck in circumstances that one month, they are unable to use the offset under where they end up having to pay capital gains tax on

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 13 unrealised gains. This bill will ensure that the market their efforts productive businesses. We need to do eve- value substitution rule does not apply when a capital rything we can to reward hard work and effort. Com- gains tax event C2 occurs in relation to companies and pletion bonuses are a way to do it and tax relief con- unit trusts. The bill amends the tax laws to ensure that cerning early completion bonuses will help. the market value substitution rule does not apply where Currently, only Queensland pays a bonus to appren- a capital gains tax event C2 occurs. Taxpayers will now tices who have completed their training contract in an be treated fairly; they will only be taxed with capital identified skills shortage occupation. If they are full- gains tax on the amounts they actually receive in their time apprentices, they must complete their apprentice- pockets. ship at least six months early; however, if they are a The former coalition government received serious part-time apprentice they need to complete it at least 12 representations from shareholders in companies, par- months early. I hope the other states and territories will ticularly shareholders in listed companies, who were follow Queensland in this regard. I hope that this will adversely affected by the operation of the market value encourage apprentices to quickly complete their train- substitution rule. But that fell on deaf ears as well. ing. It is good policy. Eventually, they wanted to change it right before the The final issue that I want to talk about is amounts election, and parliament lapsed. Often, shares are can- misappropriated by employees or agents. The changes celled at a price set in advance and there is an upward here will overcome a technical problem in the tax laws movement in the share price by the time the cancella- which prevents amounts misappropriated by employees tion actually occurs. In these cases shareholders are or agents not being deductible and taken into consid- unfairly subject to capital gains tax on unrealised gains. eration for capital gains tax purposes. As an employer, I am pleased for the provision of equity that this I have been in circumstances where an employee has change will take place. misappropriated money from me, so I am pleased to be This rule was originally designed to prevent people able to talk about this. It is a difficult area to cope with. from manipulating capital proceeds arising from a There is a sense of betrayal, and then you find that, capital gains tax event which occurred when they were even though the money is not available to you, you not dealing at arms length. But it has resulted in an have to pay tax on it. injustice to shareholders. The existing tax law means Capital gains tax from asset sales are taxable for that people pay tax on capital gains when they should other CGT purposes or under the uniform capital al- not. We should reduce the burden on working families lowance provisions. The uniform capital allowance in this community. I am pleased to support this. It is provisions apply to business operations and allow on- good for my community and the hard-working busi- going deductions for capital expenditure. However, the nesses in my area. This turning off of the market value CGT often only applies in the circumstances of the substitution rule is a good thing in terms of justice, disposal of assets. The current tax laws do not ac- equity and fairness to business. knowledge that amounts misappropriated by employ- The third issue was really a Queensland issue. Like ees and agents following an assets sale should be taken on a lot of things, we are ahead of the pack in Queen- into consideration. It is right that these misappropriated sland. This third thing is exempting from income tax amounts reduce the termination value of an asset, the the first $1,000 of early completion bonuses paid to disposal of which is assessed under CGT provisions. apprentices. This schedule amends the Income Tax As- Under the uniform capital allowance provisions, the sessment Act 1997 so that the first $1,000 of an early amount of income misappropriated is included in completion bonus paid to an apprentice by a state or working out the tax consequences. It is appropriate that territory government will not be subject to income tax. the amount misappropriated is also recognised as loss Queensland is ahead of the pack on this. This will put when the malfeasance occurs. more money in the pockets of apprentices. Generally These tax law amendments by schedule are about speaking, the apprentices in my constituency are not helping business. They are about helping shareholders. well paid. They have made personal sacrifices to com- They are about cutting red tape. They are about fair- plete their education and training. We need to encour- ness and equity. I am pleased that they follow on the age them to complete their apprenticeships. Treasurer’s speech last night. If the member for Bow- Putting more money back into the pockets of low- man needs a copy of it, I am happy to provide one for paid apprentices to meet their daily needs by reducing him. If he wishes to come to my electorate office in the their income tax is the fair thing to do. It is good policy Brassall shopping centre, I would be happy to sit down, in terms of encouraging people to undertake their ap- have a cup of coffee with him and explain it to him. We prenticeships more quickly. It is good for apprentices build on a Labor budget. Unfortunately, the born-to- and it is good for business. We cannot have apprentices rule mentality of the previous speaker must go. From dropping out of courses. We need a well-trained and time to time we win elections, and from time to time highly paid workforce. Productive employees cause by we deliver Labor budgets. I am pleased that the Treas-

CHAMBER 14 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 urer has delivered for my electorate. I look forward to This was a very common complaint from employers to the Building Australia Fund financing critical infra- Labor’s superannuation spokesman when we were in structure in my area, I look forward to the Health and opposition. Labor pushed the then Coalition govern- Hospital Fund helping Ipswich General Hospital and ment for the changes that are contained in this bill in other places, and I look forward to the Education In- relation to superannuation guarantee contributions. As vestment Fund helping the universities in my area. I with so much else, the Coalition promised to act on the look forward to having the cup of coffee with the matters that employers and industry were calling for member for Bowman at Michel’s Patisserie at Brassall but had not done so at the time that the last election shopping centre, Hunter Street Ipswich if he wishes to was called. The measure in relation to superannuation come and have a chat with me. guarantee contributions, which forms part of this bill, Mr DREYFUS (Isaacs) (10.21 am)—I rise to sup- is part of Labor’s agenda of supporting small business. port the Tax Laws Amendment (2008 Measures No. 2) It removes an anomaly that many employers had been Bill 2008. Like the member for Blair I feel bound to concerned about. Labor is listening to small business comment on the extraordinary contribution made by and the concerns of employers. the member for Bowman, the previous speaker from This bill also seeks to exempt income tax from the the opposition, to this debate. The member for Bow- first $1,000 of early completion bonuses received by man managed to say nothing about the bill before the apprentices from state governments. As the member for House and spent his time railing against imagined Blair has already pointed out, this is a Queensland ini- faults in the budget announced last night. By contrast, tiative, which I acknowledge. It is a good initiative and the member for Blair has addressed the bill and I pro- it is something that I hope will be extended by other pose to do the same thing. state governments for the early completion of appren- This is a bill which will amend Australian tax laws ticeships. The tax measure now being introduced will to fairly recognise the loss a taxpayer receives as a re- assist other state governments to introduce the scheme sult of having an amount misappropriated from them. introduced in Queensland. The amendment ensures that Secondly, it is a bill which will improve Australian apprentices will not have to pay tax on the bonus they superannuation laws by ensuring that employers are receive for completing their apprenticeships early. not harshly penalised for failing to pay their superan- The amendment is needed because income tax law nuation contributions on time. Thirdly, the bill will would otherwise treat remuneration for services, which ensure that taxpayers are treated fairly by only paying is what this is, as part of ordinary income. That would their capital gains tax on the amount they actually re- mean that payments that are very much one-off and in ceive from a transaction. The bill will also ensure con- the nature of a bonus, like this early completion bonus, sistency in taxation treatment of Endeavour Awards, a would be taxable as ordinary income. And of course merit based scholarship program administered by the what that means is that some of the incentive that is Department of Education, Employment and Workplace sought to be provided by schemes of this nature for Relations. early completion will be removed. This amendment I want to deal first with schedule 2 of the bill be- ensures that the full amount of the bonus remains in the cause that amends the Superannuation Guarantee (Ad- hands of the apprentice who is keen enough to finish ministration) Act 1992 to further extend the period her or his apprenticeship early. within which an employer can make the required su- In a time such as now of skills shortages in critical perannuation guarantee contributions after the formal areas it is essential that we provide as many incentives due date and still be eligible to use the superannuation as possible for workers to receive training and to guarantee late payment offset. Effectively, this means speedily complete their training. We face a shortage of that employers who make a very late superannuation more than 200,000 skilled workers in Australia over guarantee payment will not be required to pay twice the next five years. The Rudd Labor government is the required amount. At present, an employer who fails committed to closing the skills gap by expanding to make the required superannuation guarantee pay- places in a more responsive vocational education and ment after the due date is potentially liable to pay the training system. As announced in the budget last night, required superannuation guarantee contributions twice. the government will provide $1.9 billion over five This occurs where the employer makes a late payment years to deliver up to 630,000 new training places and into their employees’ superannuation fund after the end that includes of course 85,000 apprenticeship places. of the second 28-day period and is then liable to pay We are also committed to ensuring that not only the ATO the relevant superannuation guarantee charge. programs like that but also associated legislation such The amendment contained in the bill has as its aim as this bill are put in place to ensure that training to the removal of an anomaly in the superannuation guar- help ease the skills shortage is delivered in a way that antee system that imposes harsh penalties on employ- ensures that those who are training are not worse off. ers who pay their superannuation contributions late. As the Treasurer has stated on numerous occasions, we

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 15 face significant inflationary pressures and that has we have just had in the last few weeks both of Anzac driven up the prices of petrol, housing and groceries. Day and, in the last couple of days, in this House, of The government understands how this affects working the Battles of Fire Support Bases Coral and Balmoral. families. We realise that every single dollar counts and About three weeks ago, the whole country celebrated amendments like this, which seek to tax-exempt the the spirit of the Anzacs at dawn services and marches bonus for early completion of an apprenticeship, will across Australia, taking time to reflect on how, on 25 ensure that there is more money back in the pockets of April 1915, young soldiers landed in Anzac Cove in workers and working families, including apprentices. Gallipoli. On that day, we remembered the 1.5 million The other part of this bill that I wanted to address is Australians who have served their country proudly. The some, but not all, of the deductible gift recipients who deductible gift recipient status has been conferred on are now to be added to schedule 30 of the legislation. I the AE2 Commemorative Foundation because it is ap- will take some time to discuss how all of these recipi- propriate to recognise some of the lesser-known stories ents are very deserving organisations for deductible of Gallipoli, sometimes referred to as the ‘silent An- gift recipient status, but I want to deal with some in zacs’. particular. The HMAS AE2 was the first allied submarine to The first is the Amy Gillett Foundation. It is a fact successfully dive and evade the heavily mined areas off that the manner in which cyclists and motorists share the Gallipoli Peninsula. As the Anzacs prepared to the roads is the subject of negative media stories more storm the beaches, it was her mission to create a diver- often than one would wish to see. I am convinced that sion, to draw fire away from the soldiers and to ‘run the majority of motorists do show cyclists the due re- amok in the shallows’. The AE2 was then ordered to spect that they deserve. But unfortunately, as we have enter the inland Sea of Marmara and cut off supply seen from a spate of recent stories from Sydney, there lines to the Ottoman Empire. Other allied submarines are always individuals who disappoint. Road rage inci- had tried and failed, yet a characteristically Australian dents surrounding cyclists are entirely unacceptable approach allowed the crew to evade capture for five and there does need to be an active education and days. They supported their army brothers until finally awareness campaign for the public. I am very glad succumbing to Turkish fire. Her 32 crew were taken therefore to see that the Amy Gillett Foundation is one prisoner of war and the AE2 lay on the seabed, un- of the deductible gift recipients that has been added to found until 1992. The AE2 Commemorative Founda- the tax legislation by this bill. tion’s objective is to protect and preserve the AE2 and to tell the uniquely Australian story of her brave crew The Amy Gillett Foundation was inspired by the life as part of the great Anzac tradition, to remind Austra- of Amy Gillett, who was tragically killed while training lians that for every well-known story you hear about in Germany in July 2005. She was an Olympic rower the Anzacs there are many others you have not heard, who moved to cycling, and her life was ended at the which should not be forgotten. tragically young age of 29. The terrible accident in which she was killed severely injured and jeopardised Over 100,000 Australian servicemen and service- the careers of Katie Brown, Lorian Graham, Kate women died in the horrors of the two world wars. The Nichols, Alexis Rhodes and Louise Yaxley—all then Memorials Development Committee, which is also to members of the Australian Institute of Sport’s elite cy- be given deductible gift recipient status, seeks to en- cling squad. The Amy Gillett Foundation seeks to re- sure that their deaths are not forgotten and that the sac- duce the incidence of injury and death caused by inter- rifices they made on the battlefield are remembered in action between cyclists and motorists. It does that by our nation’s capital on its most spectacular avenues. raising awareness, educating cyclists, conducting re- The Memorials Development Committee seeks to search, fundraising and influencing public policy. It place two separate but complementary national memo- also conducts an annual ride called Amy’s Ride, which rials on Anzac Parade, leading up to the Australian Na- is a fundraising ride held in Victoria on the Bellarine tional War Memorial, to commemorate the sacrifices Peninsula around Geelong. It is also designed to pro- that these service men and women made to their coun- mote key messages of safe and responsible road use. try. These memorials will honour the men and women who gave up so much so that we can continue to live in As a keen amateur cyclist myself, I am well aware this great country of ours. that these messages and their education campaigns save lives. They ensure that motorists and cyclists are The night before last, I stood in the Great Hall of constantly aware that they should be accommodating Parliament House to commemorate the Battles of Fire of each other on busy roads. For that reason, the Amy Support Bases Coral and Balmoral, Australia’s largest Gillett Foundation is a very worthy recipient of de- and most protracted engagement of the Vietnam War ductible gift recipient status. campaign. It was a humbling experience to stand alongside the veterans and their families. Yesterday, There are some other organisations that have been they attended a ceremony at the Australian Vietnam added to the list that invoke the commemorations that

CHAMBER 16 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

Forces National Memorial on Anzac Parade. I look The Howard government failed my electorate and forward to attending a ceremony on Anzac Parade to the Australian people in this task. The member for commemorate those who have fallen in both world Bowman today spoke about the government taking wars, when the Memorials Development Committee responsibility for their actions, yet we are still to see project is complete in 2010. The Memorials Develop- the opposition taking responsibility for their lack of ment Committee is another worthy recipient of de- investment in education, training, health, infrastructure ductible gift recipient status. and the environment and for the effect that the Work The member for Melbourne Ports has spoken in de- Choices laws had on working families. Last night the tail about the Council for Jewish Community Security, Rudd Labor government and the Treasurer, Wayne which is also a worthy recipient of the deductible gift Swan, announced a budget that commits to the finan- recipient status. The measure is an adjunct to the $20 cial investment necessary to deal with the skills crisis. million school security plan for all schools that was For too long education and training has been ig- announced by Kevin Rudd during the election cam- nored. Investment in education has fallen behind and paign last year and confirmed in January of this year training has been undervalued. Over the past decade by the Deputy Prime Minister. As the member for Mel- the Howard government failed not only the resource bourne Ports explained, the Council for Jewish Com- sector but many small and medium businesses across munity Security does wonderful work. It relies on a my electorate and across the country by failing to in- large number of volunteers from the community who vest in apprenticeships. We became a nation obsessed provide protection for community institutions. It is a with university qualifications to the detriment of trade matter of regret that in our country there should be a qualifications. We, as a community and as a society, need for a community security organisation at all for must regain the pride that we held in tradespeople. We any community. But since there is, regrettably, then must recognise that a trade qualification is just as valu- deductible gift recipient status is an appropriate gov- able as a university degree and that a trade is a career ernmental response. path that provides many opportunities. The people that Finally, I will briefly comment on the deductible gift I talk to in my electorate want investment in education. recipient system. It is my hope that the review of the They want investment in training. Adults and students tax system, which has been announced by the govern- alike want the opportunity to enrol in apprenticeships. ment and which is to take place later this year, will The state governments, with Queensland playing a look closely at the somewhat cumbersome system of significant leading role, had been tackling the skills using legislative identification of particular organisa- shortage problem for the past few years. The problem tions—which is what we see here in this bill—where is that they had no support from the federal govern- there is added, to an already long list of organisations ment. They had a federal government that failed to lead which receive deductible gift recipient status, some the agenda. That is why Labor’s education revolution further organisations. Using this system potentially is essential to this nation and to my community. By causes a long delay between the establishment of a reinvesting in our children’s future, by opening up new charitable organisation and confirming the tax deducti- opportunities to gain skills, we are laying the founda- ble status of gifts that are made to that organisation. A tion for a highly skilled workforce. Our aim is to en- system which identifies eligible classes and enables courage businesses once again to see the important role quick administrative approval of deductible status they play in Australia in establishing and maintaining a would be desirable. skilled workforce. That is why it is the federal govern- Mrs D’ATH (Petrie) (10.38 am)—I rise today to ment’s responsibility. It is a responsibility that this speak in support of the Tax Laws Amendment (2008 government, the Labor government, has acknowledged Measures No. 2) Bill 2008. My comments in support of and embraced. Labor’s commitment to establishing this bill today go specifically to schedule 5 and, in a trade training centres in all 2,650 secondary schools small way, to schedule 6 of the proposed bill. As peo- across the country is a groundbreaking initiative that I ple in my electorate of Petrie are well aware, I am strongly support, as do the schools, parents and stu- strongly committed to the area of education and train- dents throughout my electorate. ing, and to seeing improvements in these areas in the The work that schools across my electorate are al- future. That is why it is my pleasure to be speaking ready undertaking is inspiring, and discussions are oc- about this amendment. The schedule 5 amendment is curring throughout the schools about the needs of our just another step towards addressing the skills shortage local community and our local businesses to determine in this country. The people in my electorate and my what the focus of their trade training centres should be. communities want a federal government that will in- Many older Australians in my electorate understand the vest in education and in training—a federal govern- importance of trade qualifications. They know the ment that has a long-term strategy for addressing the value that the community placed in such skills. They skills crisis and productivity levels in this country.

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 17 know that people were proud to be tradespeople. We ing to ABS 2006 census data, in the electorate of need to restore this pride, this value. Petrie, males between the ages of 15 and 19 years have Schedule 5 is another step towards achieving this a 12.2 per cent unemployment rate. For ages 20 to 24 aim—to encourage our current and future workforce to years, there is a seven per cent unemployment rate. For enter into apprenticeships. Schedule 5 does this by ex- females in the electorate between the ages of 15 and 19 empting from income tax the first $1,000 of early years there is a 9.6 per cent unemployment rate; and completion bonuses paid to apprentices by state or ter- between the ages of 20 and 24 years there is a 6.3 per ritory governments, where certain conditions are met. cent unemployment rate. In total, for ages 15 to 19 This exemption plays an important role in addressing years there is a 10.9 per cent unemployment rate, and the skills shortage in this country, and the measures between the ages of 20 and 24 years there is a 6.6 per being taken by the federal government and the Queen- cent unemployment rate. In addition, areas such as the sland government do address this shortage. Redcliffe Peninsula have a median weekly household income of $774 compared to the Brisbane region’s The Queensland government has committed $7.2 $1,157. Initiatives to encourage individuals into ap- million over four years for the new $1,000 bonus prenticeships and the early completion of apprentice- scheme for apprentices completing their training early. ships are vital for our youth and low-income workers The early completion bonus is an initiative of the De- in the community. The benefits of obtaining a skill in a partment of Education, Training and the Arts in Queen- skill shortage occupation increase the likelihood of sland. The bonus became available from 1 January full-time employment and higher earnings. That is why 2007 to apprentices, in apprenticeships from selected I support this bill and will continue to promote the skill shortage industry sectors, who complete their ap- benefits of a trade qualification. prenticeships early. To be eligible apprentices must complete their apprenticeship at least six months early, Having been a member of the Training and Em- in the case of full-time apprenticeships, or 12 months ployment Recognition Council for many years, I am in the case of part-time apprenticeships. The selected aware of the need to address the skills shortage in this skills shortage industry sectors of automotive, con- country and that new initiatives need to be imple- struction—including general, civil and off-site— mented to assist in achieving this aim. The Queensland engineering, hospitality and electro technology are the government is moving forward in their efforts to ad- targets of this initiative and under each of those catego- dress the skills shortage through the release of the ries there is quite a long list of certificate 3 trade quali- Queensland skills plan. The federal government now fications that are available and considered to be skill has the opportunity to build on that initiative through shortage industry occupations that would be entitled to its education revolution and the new directions for vo- this $1,000 bonus. The bonus arises from a number of cational education and training. actions identified by the Queensland skills plan, which As recently as last Friday, I had the opportunity to was launched by the Queensland government on 8 visit Craigslea State High School in my electorate. I March 2006. These actions include dealing with the was there to witness the school being awarded accredi- demand for skilled tradespeople, attracting more peo- tation with the Council of International Schools. I ple into apprenticeships and making apprenticeships would like to take this opportunity to congratulate work better for apprentices and employers. The bonus Craigslea State High School on this significant addresses these actions by applying only to identified achievement. I know that the school has worked ex- apprenticeships where there are skills shortages, acting tremely hard over the past two years to achieve this as an incentive to attract more people into apprentice- recognition. In addition, while at the school, I had the ships and encouraging early completion, and making opportunity to inspect the school’s new commercial apprenticeships work better for both apprentices and kitchen. The school strives for excellence, and that is employers, through an increased awareness and im- clearly evident in the efforts it has gone to in establish- plementation of competency based training. ing a fully functioning commercial kitchen that re- Since the introduction of the program, 2,871 appren- flects, and in many cases is superior to, a normal tices have received a payment of $1,000 each for early workplace environment in the hospitality sector. completion. Four hundred and thirty-three of these ap- The school is currently delivering certificates I, II prentices—approximately 15 per cent—were employed and III qualifications in hospitality. It is exciting to see in the Brisbane north region. The fact that in the past a school delivering Certificate III in Hospitality Opera- 12 months 433 additional trade qualified workers have tions as this course contains units from food and bever- been able to enter the workforce earlier than otherwise age and also commercial cookery. The certificate III may have occurred is exciting news for north Brisbane also counts as eight credits towards the student’s and my electorate of Petrie. Of course, as this initiative Queensland secondary education. The benefit of the is only 12 months old, it is expected that these numbers school based apprenticeship and traineeship system is will continue to grow over the coming years. Accord- that it ensures that students leave school with multiple

CHAMBER 18 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 pathways to pursue a career. Upon completing their Shorten and I joined the Chermside West playgroup for secondary schooling, students who have completed the their morning playgroup session recently. I also had the Certificate III in Hospitality Operations with Craigslea opportunity to attend the World’s Biggest Playgroup State High School will be able to, if they desire, enrol Day ‘Pollies at Play’ held at the Speaker’s Green at in the Certificate III in Hospitality (Commercial Cook- Queensland Parliament House. Of course, many events ery) and have units of competency recognised as prior were held all around Queensland and Australia during learning. This is important in addressing the skills National Playgroup Week, and I take this opportunity shortage in Queensland as the Certificate III in Hospi- to congratulate Playgroup Australia for their fantastic tality (Commercial Cookery) is a recognised skill efforts in organising those events. I am sure many par- shortage occupation and forms one of the apprentice- ents and children alike enjoyed the day and appreciate ships that the early completion bonus applies to. the work of Playgroup in providing a social and safe To show the holistic approach to further education, environment for both parents and children. This bill students who are enrolled in a school based apprentice- will benefit many in the electorate of Petrie and I am ship and who then enter into a full-time or part-time pleased to commend it to the House. apprenticeship in a skill shortage occupation after their Mr CRAIG THOMSON (Dobell) (10.52 am)—I schooling is complete would be able to access the early rise today to lend my support to the Tax Laws Amend- completion bonus if they finish within the eligible pe- ment (2008 Measures No. 2) Bill 2008. In starting, I riod. This is just another incentive to get trade qualified have to make some comments in relation to the contri- workers into the workforce sooner. These facts empha- bution—if we can call it that—from the member for sise the need for the amendment before this House. To Bowman. I think it is quite extraordinary that, in rela- tax this bonus is to take away the primary purpose of tion to his contribution, we had a 20-minute rant which the bonus: to act as an incentive to apprentices to com- at no time at all addressed the bill that is before the plete their qualification early. This amendment is House today. Consistent with the contributions made needed because currently this bonus is characterised as from this side of the House, I will be addressing the income. This proposed amendment will directly benefit bill and indicating the areas where I support this impor- many in Queensland who are currently undertaking, tant legislation. and who will undertake in the future, apprenticeships Tax policy is an area that always can be improved. in skill shortage occupations. It is for these reasons that There is no doubt in my mind that our current taxation I support the amendments as prescribed in schedule 5 arrangements are creaking with age. We need a good, of this bill. hard look at our system before it becomes a significant In relation to schedule 6, I am pleased to support an hindrance to our economic growth. I look forward to a amendment to the tax laws that will give recognition as comprehensive tax review during this 42nd Parliament. deductible gift recipients to a number of organisations I welcome the Prime Minister’s comments following that fulfil important roles in our community. This not the very successful 2020 Summit that the time has only will allow for tax deductions for donors who cur- come for a root and branch review of taxation and, fur- rently give to these organisations but hopefully will ther, the Treasurer’s announcement last night in the encourage new donors and larger donations in the fu- budget for the most comprehensive review of taxation ture. The following organisations appear in schedule 6 since World War II. The bill that is before the parlia- of the amendment bill: World Youth Day 2008 Trust, ment today does not regard the root and branch review, the Council of Jewish Community Security, Wheel- but there are positive aspects nonetheless. Though I see chairs for Kids Inc., Memorials Development Commit- the need for a root and branch approach to tax reform, tee Ltd, AE2 Commemorative Foundation Ltd, Ian it does not hurt us at this stage to do some pruning. We Thorpe’s Fountain for Youth Ltd, Amy Gillett Founda- are a government that gets on with the job and that is tion, the Spirit of Australia Foundation and Playgroup why this legislation is here before the parliament be- Australia Inc. Each of these organisations plays an im- fore we do the a root and branch analysis of the taxa- portant role, the significance of which has been cov- tion system. ered by some of the other speakers to this bill including In particular I wish to support schedules 4, 5 and 6 the member for Melbourne Ports, the member for of this bill. Schedule 4 exempts the Endeavour execu- Maribyrnong and the member for Isaacs. It is appropri- tive awards and the Endeavour research fellowships ate for this government to provide what assistance it from income tax for all recipients in respect of the can to these organisations through this amendment, to amounts received on or after 1 July 2007. These re- encourage and support donations to these organisa- search fellowships allow our best and brightest to study tions. here and abroad. The length of a scholarship ranges I would like to give a special mention to Playgroup from four months to three years, depending on the par- Australia, who recently celebrated National Playgroup ticular award. They are worth between a minimum of Week and World’s Biggest Playgroup Day 2008. Bill $25,000 for a short-term scholarship to a maximum of

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 19

$160,000 for a long-term scholarship, depending on the nucleus of the operations of Wheelchairs for Kids. In specific award. The Department of Education, Em- the interests of quality and efficiency, production in the ployment and Workplace Relations administers the schools and prison workshops has discontinued now program and it is funded by the Commonwealth gov- that the workshop has been set up properly. ernment. While some Endeavour award programs are Recognising that demand was virtually limitless and exempt from tax because their recipients are studying that more funds could be raised, further expansion was full time, others are not fully tax exempt because the planned. At the same time it was realised that better recipients are classed as only studying part time. We wheelchairs could be economically produced from new seek to change this in this bill. To me, this is an impor- materials. Wheelchairs for Kids soon moved into larger tant small step in combating the brain drain at the high dedicated premises, financed by the Scarborough Ro- end of business, industry, education and government. tary Club and Christian Brothers. The modern manu- I also seek to make some comment in relation to the facturing workshop in the light industry area of Wan- early completion bonuses for apprentices. This is a gara in Western Australia is well equipped with power commitment from this government to make sure that tools and all equipment needed for manufacturing, those who complete their apprenticeship early, those mostly donated by tool manufacturers and suppliers. who are helping to resolve the skills shortage that this All work is voluntary; no wages or salaries are paid, government has inherited from those opposite, effec- with Rotary and Christian Brothers providing the ad- tively get the full value of that particular bonus. It is ministration. The labour to turn the tubing and dozens important that we saw last night a further 85,000 ap- of other components into shippable chairs comes from prenticeships announced in the budget—an indication more than 100 retired volunteers. They work mornings of the commitment from this side of the House to ad- on a self-imposed roster as a very effective and good dress the skills shortage that so threatens to constrain humoured team, drilling, bending, assembling, check- our economy. The Prime Minister, Kevin Rudd, and his ing out and, finally, packing. Today’s versions reflect government are committed to the education revolution. feedback from the field—rough paths, lack of mainte- This amendment in the bill is a small step in the right nance facilities and exposure to harsh weather all need direction. to be accommodated. The wheelchairs have aluminium Schedule 6 updates the list of deductible gift recipi- square-section tube frames, powder-coated steel axles ents. Among the list of organisations added to the list and wheels with soft but puncture-proof tyres. A photo by this schedule are the World Youth Day 2008 Trust, of this model—a strong, non-folding, three-wheeled the Council for Jewish Community Security, the Me- chair that will negotiate a rough surface—can be seen morials Development Committee, the AE2 Commemo- on the organisation’s website. I recommend that col- rative Foundation, Ian Thorpe’s Foundation for Youth, leagues have a look at the type of work that they are the Amy Gillett Foundation and Wheelchairs for Kids doing. Inc. I want to talk in a little bit more detail about one of Wheelchairs for Kids are fortunate that the large car- those organisations: Wheelchairs For Kids. Wheel- tons used for shipping the wheelchairs and their trans- chairs for Kids Inc. is one that will benefit from being port to the airport or to container packing centres on included in the deductible gift recipients list. This or- the east coast are donated. The overseas transport is ganisation has a wonderful story to tell. They build provided by various aid agencies, who help with for- wheelchairs and send them overseas to countries not as eign import problems and distribution in remote loca- lucky as our own. tions. In 2007 almost $500,000 was donated, the sup- As of this month, Wheelchairs for Kids Inc. have pliers were generous and 3,500 wheelchairs were built 14,149 wheelchairs and shipped them overseas. made. The increase in cash received allowed Wheel- Their organisation’s website tells a very interesting chairs for Kids to purchase components in larger quan- story. The Rotary Club of Surfers Sunrise had the idea tities and set up 2008 for significant growth at a con- of helping disabled kids in distressing circumstances strained cost. The demand is for thousands, and the by providing wheelchairs made partly of components team has the capacity to easily double or triple output. retrieved from salvaged bicycles. After a lucky break All that is needed is money to buy the components and with television fundraising, they asked other Rotary materials that must be bought in. Clubs to join and the project grew. Through a family Every $100 raised provides a child with a wheel- connection, the Rotary Club of Scarborough in Western chair. The organisation can do this because all of their Australia took it a stage further and involved prison manufacturing and administration labour is voluntary; inmates from two prisons and three schools in the task administration is provided free by the Rotary Clubs, of making the chairs. The Rotary Club had been as- with the workshop manager, Brother Olly Pickett, pro- sisted by Christian Brothers, sponsoring Olly’s Work- vided by the Christian Brothers; suppliers provide ma- shop, a fully trained facility for troubled youth. The terials at discounted prices and, in some cases, free, obvious synergy saw that the workshops became the and transport is usually donated; rent for the now three

CHAMBER 20 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 workshop units is paid for by the government of West- of this problem. That is on record, and he has done it ern Australia, and that needs to be acknowledged in on many occasions. I quote from the Financial Review this place today; and overhead costs are met by the of 9 February this year: Rotary Club of Scarborough. Every cent donated goes Asked if inflation was out of the target band, Mr Turnbull towards making and delivering a wheelchair to one of said ... it was not. these seriously disabled children. No donated money is He had previously said that it was a fairy tale; it was a spent in any other way. This is an organisation worthy myth that the Treasurer was trying to create. I saw of support in our tax system. I commend the work that some of the shadow Treasurer’s comments last night in Wheelchairs for Kids are doing to make the lives of response to the budget. There was an alerted sense of disabled children around the world that little bit easier. concern about inflation, and the shadow Treasurer was I also commend this bill to the House for the tax break indicating that the government perhaps should have that it provides in schedule 6 for organisations such as gone further and made further cuts. From someone Wheelchairs for Kids. who was denying the problem of inflation just a short Mr BRADBURY (Lindsay) (11.02 am)—I rise in time ago, he has become someone who is now chal- support of the Tax Laws Amendment (2008 Measures lenging the government, suggesting that the govern- No. 2) Bill 2008. In particular, I wish to comment on ment has not gone far enough in inflicting those cuts two of the schedules, principally schedule 1 and sched- that are necessary to slow overall demand. But, when ule 6, under which various organisations have been asked to identify where he might have gone further, we identified for listing as deductible gift recipients. Be- had silence from the shadow Treasurer—a further indi- fore I turn to those schedules, I would like to respond cation of the opposition’s failure to come to a unified to some of the comments of the member for Bowman, position on how to tackle the challenge of inflation. who, as the member for Dobell rightly pointed out, In fact, yesterday I noted the comments by the oppo- engaged in very little discussion of the matters cur- sition leader, who had previously said that the inflation rently before the House in this bill and went off on a crisis is a complete charade. For those of us who have rant about more general matters which I think we could been studying the comments of the Reserve Bank, describe as a response to the government’s budget. there are not a lot of hand movements and gesticula- In the member for Bowman’s comments, we see fur- tions required in order to see the less than subtle mes- ther contradictions emerging from within the opposi- sages coming from the bank—that is, that inflation is a tion ranks when it comes to inflation—compared to our genuine challenge that needs to be confronted. That is government’s determination to take the challenge of why I am very proud that the budget that was handed inflation head on. The member for Bowman referred to down last night by the Treasurer is one of the key ar- inflation, I think, as the abyss of inflation. There is an maments in this government’s fight against inflation, increase in the hyperbole coming into the rhetoric from and that is something we will have more to say about those on the other side; really, the rhetoric has gone in the future. from nought to 100 in 10 seconds. If you go back and I would like to turn my attention to the provisions of look at some of the comments that have been made the bill, in particular schedule 1. I note that the meas- previously by the members opposite, there has been a ure outlined in schedule 1 of the bill really does bring real degree of complacency when it comes to the issue into effect a common-sense outcome that had previ- of inflation. ously not been achieved under the tax laws. I think that We do not have to go back all that far, just into re- there is a comment in the explanatory memorandum cent history, to see when the member for Higgins pro- that goes to the very heart of the issue that is being ad- claimed, ‘There’s no life left in the inflation dragon.’ dressed by this particular measure. I will read from We see here today, in the member for Bowman, some- point 1.5 of the EM: one strapping on the armour again, coming out to go a There is currently no provision in the tax law that recognises second round with the inflation dragon, someone on the reality that the taxpayer did not receive the economic the other side who has now come to an appreciation benefit from the disposal as a result of the misappropriation. and understanding that we are facing a considerable This goes to the issue of the disposal of a depreciating inflation challenge. It is an inflation challenge that is asset in circumstances where, by virtue of the balanc- the legacy of the former government. The highest infla- ing adjustment event, there may in some cases be a tax tion level in 16 years is stripping away the value of the liability arising—in particular, in cases where an em- wages of working people in this country. That is why it ployee or an agent may have been involved in carrying is one of the No. 1 priorities of this government. No out the disposal and, in the course of doing so, may doubt there will be more opportunities to address this have misappropriated the proceeds. Therefore, you in the course of debate about the appropriation bills. have a situation where, under the tax law as it currently But I will just make the very simple point that the exists—which this amendment seeks to change—in shadow Treasurer had previously denied the existence those circumstances the holder of the depreciating asset

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 21 will end up paying an amount, or have an amount in- families in the district in the Penrith area. They are one cluded in their assessable income, by virtue of the bal- of the pioneering families of the district. They were a ancing adjustment event, which will be an amount that very large family. One of the significant points that I they are required to pay notwithstanding the fact that wish to note is that, in fact, they had five sons who they may not have actually received any of those pro- served this nation in its armed forces. I think that is a ceeds as a result of the misappropriation that had oc- significant contribution that should be acknowledged, curred by the actions of their employee or agent. It is a and I wish to have that acknowledged in the parliament mischief that this amendment will correct. today. The other element of it is in respect of the disposal I will briefly quote from an article in one of my lo- of those depreciating assets that may have been held cal papers, the Penrith City Star, where Mr Warren for a partly or wholly non-taxable purpose. The rele- Morphett, the brother of Merton Morphett, reflects vant CGT provisions would otherwise give rise to a upon the impact of losing his brother with the going potential tax liability being imposed upon the holder down of the Sydney and also on what the finding of the and disposer of that depreciating asset. The amendment Sydney has meant for him and his family. He said: seeks to ensure that the economic realities of what the “I’m pretty sad about the whole thing … It shattered the holder of the depreciating asset faces are actually re- family.” flected in terms of what requirements for tax to be paid The article goes on: are actually brought to account by the tax legislation. Mr Morphett’s father was the first in the family to find out So it is a very sensible amendment. It is one that, I that the Sydney had sunk when he received a telegram on think, would not be in dispute or contest, either in this November 28. place or for the common man on the street. There is no Mr Morphett told me that the most significant thing reason why tax should otherwise be payable. about finding the Sydney was that it really has brought I would like to now turn my attention to schedule 6 some closure to this chapter of his family’s history. It is and the various provisions that are outlined there, par- a significant chapter in our nation’s history. I want to ticularly in relation to one of the organisations that acknowledge the Morphett family and the suffering have been identified and will become deductible gift that they have felt as a result of the contribution that recipients as a result of this amendment: the Finding their five sons have made to this country and, in par- Sydney Foundation. I wish to make a few comments in ticular, the fact that now there is some closure. I wish relation to the good work that the Finding Sydney to add my voice in support of the work of the Finding Foundation have been involved with. We are all very Sydney Foundation because, without their involve- much aware of the success that they have recently had ment, this closure could never have been achieved. I in locating the Sydney, having located the Kormoran. know that Mr Morphett and his family are also very This is a matter that has really been brought to comple- grateful. I also acknowledge that one of my staff mem- tion, and there is no doubt that it has been greeted with bers’ great-grandfather, Mr Percy Willis, was also one mixed emotions by most Australians and, in particular, of those Australians who went down on the Sydney. So those who have been in some way personally affected this is a matter that I have taken a particular interest in, by the going down of the Sydney. This provision allows and I am very pleased to see that we are, by virtue of for that particular foundation—which has done much this amendment, proposing to give deductible gift re- good work, building on the back of a grant that had cipient status to the Finding Sydney Foundation. previously been made by the former government—to I wish to offer a couple of general observations on raise the funds necessary in order to achieve what has the operation of the deductible gift recipient status pro- been achieved. I think most people would agree that it visions that are outlined within division 30 of the In- is sensible that this matter be resolved in this way and come Tax Assessment Act 1997. I will add to and am- that deductible gift recipient status be awarded to this plify some of the comments that have been made pre- particular foundation. viously in this debate by the member for Maribyrnong I want to offer a couple of personal reflections on and the member for Isaacs in relation to the somewhat the impact of the work that the Finding Sydney Foun- unwieldy nature of this particular division, which has dation have been able to achieve. There were two indi- grown in size considerably and in my experience and viduals who went down on the Sydney who lived in my view has made the job for many non-profit or- within the area that is now my electorate. In particular, ganisations in this country very difficult when it comes I wish to acknowledge Cook Merton James Morphett to trying to assess whether or not they are eligible for and Stoker Robert Stevenson. These gentlemen went the tax concessions that are associated with deductible down with the Sydney. I have not been able to locate gift recipient status. I think it is particularly relevant to Mr Stevenson’s family, but I have had some discus- make this point in Volunteer Week. sions with Mr Morphett’s family. I should also ac- By way of illustration I wish to point out that the knowledge that the Morphett family is one of the finest particular provisions that affect the endorsement or

CHAMBER 22 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 otherwise the listing of deductible gift recipients now process involves the Assistant Treasurer issuing a press account for approximately 90 pages in the tax legisla- release at the time that a decision has been taken by the tion. So there are 90 pages to wade through for a not- government and the government subsequently bringing for-profit organisation wishing to determine whether or legislation before this House. It is a very unwieldy not they are entitled to endorsement or have other ave- process, particularly when there are administrative ar- nues of redress in terms of seeking listing as a deducti- rangements in place that can be undertaken as an alter- ble gift recipient status. In my experience it is becom- native. ing increasingly the case that for a non-profit organisa- It would be my suggestion that, if we now have in tion to obtain the benefit of endorsement they need the excess of 200 groups that have to be specifically identi- assistance of a lawyer. In my previous profession, in a fied, there is in fact a case for reviewing the categories pro bono capacity, I often provided that assistance. But themselves. We have not found over the last few years the pro bono resources available in this area are quite just one or two organisations that do not fit neatly limited, and that means a range of organisations simply within the 20-odd categories and 40-odd subcategories; do not have access to the knowledge, the expertise and we now have over 200. I very much would like to see the know-how to frame an application that meets the this whole issue of the not-for-profit sector and the way requirements for endorsement under the act. in which they are treated—not just for income tax ex- The other point I wish to make is that the act clearly emption purposes, which is a separate issue, but for allows for two alternative paths, the first being en- deductible gift recipient status considerations—dealt dorsement by the commissioner, and that involves with as part of our broader consideration of simplifying characterising your organisation or demonstrating that the tax system. Frankly, in my experience, there are your organisation fits within one of the established many organisations—manned, staffed by volunteers— categories in division 30. The other avenue is by way that in the end walk away with their hands in the air of what we are now doing: specifically identifying and say, ‘This is just too complex, too difficult; we are those organisations within the tax legislation as organi- not going to go through the process.’ Alternatively they sations that are deductible gift recipients. put an application in, not understanding the process, I wish to note a trend in recent years. We now have and they end up having it rejected because they are not some 226 groups that are specifically identified in the aware of what the requirements are or they are not ca- tax legislation. In this particular bill, we are now dis- pable of drafting that application in a way that reflects cussing inserting another 13 groups. I wish to make it the true realities of what they are doing. abundantly clear that I am not in any way opposing the Notwithstanding that and those comments, I think it entitlement, the eligibility or the appropriateness of is a matter for future reform. I would very much like to these particular organisations being identified as being see it on the government’s agenda as part of the worthy of deductible gift recipient status. What I am broader approach to tax reform. But I certainly endorse suggesting is that, as we have now reached a situation the objectives and the hard work and the contributions where some 226 individual groups have had to go of all of those volunteers associated with the organisa- through a process that has resulted in amendments to tions that are now being listed as part of this amend- the law so that the name of their organisation fits ment. I support the amendment and in particular add within the tax legislation, it is no wonder that this par- my voice in support of schedules 1 and 6. ticular division has now reached 90 pages. Mr BOWEN (Prospect—Minister for Competition In addition to that, the other alternative is to demon- Policy and Consumer Affairs, and Assistant Treasurer) strate that your organisation fits within one of the cate- (11.21 am)—I thank all honourable members who have gories. There are somewhere in the vicinity of 22 cate- made a contribution to this debate on the Tax Laws gories available under which you can make an applica- Amendment (2008 Measures No. 2) Bill 2008. I par- tion for endorsement. Within those 22 categories there ticularly thank the honourable member for Lindsay are further subcategories. On my count there are at who always makes a very well-considered contribution least 40 subcategories. So the legislation sets out 20- to tax law amendment bills based on his considerable odd categories and 40-odd subcategories and those experience in this area. He has correctly identified categories are the categories under which application many of the issues that go to the complexity of getting can be made for endorsement by the Commissioner of status under the tax act for charities and benevolent Taxation. I note that, in statistics released by the Com- institutions in this country whether it be deductible gift missioner of Taxation, at the end of November 2007 recipient status or PBI status or the other capacities to there were somewhere in the vicinity of 24,000 active be recognised under the tax act. He has correctly iden- deductible gift recipients. So clearly the categories are tified the difficulties in operating under the Statute of dealing with a large number of those applications; not- Elizabeth which has been in operation some 400 years, withstanding that, there has still been a considerable and charities have changed just a little in those 400 need to go through the process of specific listing. That years. It is something that is exercising the mind of the

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 23 government and something the government will be been lobbying members of the shadow ministry to have turning its mind to in a more detailed way during this the particular security needs of some schools recog- term. nised, whether they were Jewish or of other religious I thank all honourable members including those op- minorities, because these were real issues that many of posite—the shadow minister, the member for Stirling, those schools are facing. for his contribution; the member for Cook for his con- I also briefly take the opportunity of recognising the tribution in relation to philanthropy, which nobody contribution of the former member for Cowan, whom could disagree with; and the member for Bowman, many of us deeply miss in this House. He lobbied who I am not sure actually did make a contribution in strongly for DGR status for Wheelchairs for Kids. In relation to the bill in any meaningful way but certainly fact he took the opportunity in his valedictory address made a long speech. I thank the member for Melbourne to this House to make that case. So although he has Ports, the Parliamentary Secretary for Disabilities and departed from this House, he deserves a large degree of Children’s Services, the member for Blair, the member the credit for the implementation of Wheelchairs for for Isaacs, the member for Petrie and of course the Kids in relation to the deductible gift recipient status. I member for Lindsay and the member for Dobell. recognise his contribution and I am sure that all hon- I am glad that the measures in this bill are seen as ourable members join me in wishing him all the best in relatively uncontroversial. It is appropriate that it be so. his retirement. I commend the bill to the House. I will They are sensible measures which, as some members be moving amendments in the consideration in detail pointed out, have been introduced by both sides of the stage, which the shadow minister, I understand, has House. They do deal with technical inconsistencies in been informed of by my office as a matter of course. relation to the amount misappropriated by an employee Question agreed to. or agent after they dispose of an asset on behalf of a Bill read a second time. taxpayer. Schedule 2 removes an anomaly in the super- Message from the Governor-General recommending annuation guarantee system by extending the superan- appropriation announced. nuation guarantee late offset payment. Schedule 3 amends the tax law to ensure that the market value Consideration in Detail substitution rule does not apply to certain CGT events, Bill—by leave—taken as a whole. and schedule 4 provides an income tax exemption for Mr BOWEN (Prospect—Minister for Competition the Endeavour executive award and for all research Policy and Consumer Affairs, and Assistant Treasurer) fellowships under this award. (11.27 am)—I present a supplementary explanatory Schedule 5, as several honourable members have memorandum to the bill. I seek leave to move govern- pointed out, exempts from income tax the first $1,000 ment amendments (1) to (6) together. of eligible early completion bonuses paid by state or Leave granted. territory governments. At the moment this only applies Mr BOWEN—I move: to Queensland but of course it will apply to any state or territory which chooses to implement such a bonus. (1) Clause 2, page 2 (table item 4), omit the table item, substitute: Schedule 6 adds a number of organisations to the In- 4. Schedules 6 The day on which this come Tax Assessment Act 1997 in relation to deducti- and 7 Act receives the Royal ble gift recipient status. I particularly take the opportu- Assent. nity of thanking the member for Melbourne Ports not 5. Schedule 8, The day on which this only for his contribution in this debate but for his on- Part 1 Act receives the Royal going contribution in relation to the status of the Coun- Assent. cil for Jewish Community Security. He has played an 6. Schedule 8, 1 July 2012. 1 July integral role in getting that particular committee recog- Part 2 2012 nised in terms of the tax act. We remember of course 7. Schedules 9 to The day on which this that the previous government announced this particular 11 Act receives the Royal recognition on the same day that the then Labor oppo- Assent. sition announced a funding package for security in (2) Page 20 (after line 12), at the end of the Bill, add: Jewish schools. As the then Leader of the Opposition and the then shadow minister were in the car on their Schedule 7—Superannuation lump sum paid to a way to make that announcement the previous govern- member having a terminal medical condition ment was informed that that was the case and they rushed out this announcement in order to counteract the announcement that the Labor opposition was at that point making. It was an announcement that was being made with the member for Melbourne Ports who had

CHAMBER 24 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

Part 1—Amendments (i) paid from a complying superannuation plan; Income Tax Assessment Act 1997 or 1 Section 11-55 (table item headed “superannua- (ii) a superannuation guarantee payment, a small tion”) superannuation account payment, an unclaimed money payment, a superannuation After: co-contribution benefit payment or a super- roll-over superannuation benefits ..... 306-5 annuation annuity payment. insert: (2) The lump sum is not assessable income and is not superannuation lump sum for re- exempt income if a terminal medical condition ex- cipient having terminal medical 303-10 ists in relation to you at a time in the period: condition ...... (a) starting when you receive the lump sum; and 2 At the end of Division 303 (b) ending at the later of: Add: (i) 90 days after you receive it; and 303-10 Superannuation lump sum member benefit (ii) 30 June 2008. paid to member having a terminal medical condition Part 2—Application * (1) This section applies to a superannuation member 5 Application benefit that: The amendments made by this Schedule apply to (a) is a *superannuation lump sum; and payments made on or after 1 July 2007. (b) is: (3) Page 20, at the end of the Bill (after proposed Sched- (i) paid from a *complying superannuation ule 7), add: plan; or Schedule 8—Capital expenditure for the establishment of trees in carbon sink forests (ii) a *superannuation guarantee payment, a *small superannuation account payment, an Part 1—Income years 2007-08 to 2011-12 *unclaimed money payment, a Income Tax Assessment Act 1997 *superannuation co-contribution benefit 1 Section 12-5 (table item headed “capital allow- payment or a *superannuation annuity pay- ances”) ment. After: (2) The lump sum is not assessable income and is not telecommunications site Subdivision 40-B *exempt income if a *terminal medical condition access rights ...... exists in relation to you when you receive the insert: lump sum or within 90 days after you receive it. trees in carbon sink for- Subdivision 40-J Note: For a lump sum you receive in the 2007-08 ests ...... financial year, the period of 90 days may 2 Section 12-5 (after table item headed “travel be extended until 30 June 2008: see sec- expenses”) tion 303-10 of the Income Tax (Transi- tional Provisions) Act 1997. Insert: 3 Subsection 995-1(1) trees in carbon sink forests Insert: see capital allowances terminal medical condition has the meaning given 3 Section 40-10 (at the end of the table) by the regulations. Add: Income Tax (Transitional Provisions) Act 1997 2.4 Capital expenditure for Subdivision 40-J 4 After Division 302 establishing trees in carbon sink forests Insert: You can deduct amounts Division 303—Superannuation benefits paid in spe- for capital expenditure for cial circumstances the establishment of trees Table of sections in carbon sink forests. 303-10 Superannuation lump sum paid to mem- 4 Subsection 40-50(1) ber having a terminal medical condition Omit “or 40-G (about capital expenditure of pri- 303-10 Superannuation lump sum member benefit mary producers and other landholders)”, substitute paid to member having a terminal medical condition “, 40-G (about capital expenditure of primary pro- (1) This section applies to a superannuation member ducers and other landholders) or 40-J (about capi- benefit that you receive during the 2007-08 finan- tal expenditure for the establishment of trees in cial year and that: carbon sink forests)”. (a) is a superannuation lump sum; and (b) is:

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 25

5 After subsection 40-630(2B) (a) you can deduct an amount for an income year Insert: under subsection (3) in relation to particular trees; and Exception: deduction available under Subdivi- sion 40-J (b) you incur capital expenditure in the next income year for establishing other trees; (2C) You cannot deduct an amount under this Subdivi- sion for capital expenditure if any entity can de- in determining whether you can deduct an duct an amount for that expenditure for any in- amount under subsection (1) for the next income come year under Subdivision 40-J. year in respect of the other trees, for the purposes of paragraph 40-1010(2)(a), disregard the 6 At the end of Division 40 trees mentioned in paragraph (a). Add: (5) The conditions are as follows: Subdivision 40-J—Capital expenditure for the establishment of trees in carbon sink forests Conditions for deduction for establishing trees in carbon sink forest Guide to Subdivision 40-J Item Condition You can deduct amounts for capital expenditure incurred for establishing trees that meet the 1 You own the trees and any holder of a requirements for constituting a carbon sink forest. lease, lesser interest or licence relating to the land occupied by the trees 40-1000 What this Subdivision is about does not use the land for the primary Table of sections and principal purpose of *carbon se- Operative provisions questration by the trees. 40-1005 Deduction for expenditure for establishing 2 The trees occupy land you hold under trees in carbon sink forests a lease, or a *quasi-ownership right 40-1010 Expenditure for establishing trees in car- granted by an *exempt Australian bon sink forests government agency or an *exempt 40-1015 Carbon sequestration by trees foreign government agency, and: 40-1020 Certain expenditure disregarded (a) the lease or quasi-ownership 40-1025 Non-arm’s length transactions right enables you to use the land Operative provisions for the primary and principal 40-1005 Deduction for expenditure for establishing purpose of *carbon sequestration trees in carbon sink forests by the trees; and (1) You can deduct an amount for an income year if: (b) any holder of a lesser interest (a) you incur capital expenditure that is covered or licence relating to the land under section 40-1010 in relation to particular does not use the land for the trees established in the income year; and primary and principal purpose of carbon sequestration by the (b) you satisfy a condition in subsection (5) for the trees. trees when they are established. 3 You: (2) The amount of the deduction is the amount of the expenditure. (a) hold a licence relating to the land occupied by the trees; and (3) You can deduct an amount for an income year if: (b) use the land for the primary (a) you incur capital expenditure in the income * year or an earlier income year for establishing and principal purpose of carbon particular trees; and sequestration by the trees, as a result of holding the licence. (b) that expenditure is not covered under section 40-1010 in relation to the trees, because 40-1010 Expenditure for establishing trees in car- some or all of the trees are established after the bon sink forests end of the income year; and (1) Expenditure is covered under this section in rela- (c) the trees established after the end of the income tion to particular trees if: year are established within 4 months after the (a) the trees are established in an income year; and end of the income year; and (b) you incur the expenditure in the income year or (d) you could deduct the amount for the income an earlier income year for establishing the year under subsection (1) in respect of the ex- trees; and penditure, assuming that, for the purposes of (c) you are carrying on a *business in the income paragraphs 40-1010(1)(a) and (2)(a), the in- year; and come year ended 4 months after it actually ended. (d) your primary and principal purpose for estab- * (4) If: lishing the trees is carbon sequestration by the trees (see section 40-1015); and

CHAMBER 26 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

(e) your purposes for establishing the trees do not (7) A person may apply to the *AAT for review of a include any of the following: decision (as defined in the Administrative Appeals (i) felling the trees; Tribunal Act 1975) of the *Climate Change Secre- (ii) using the trees for *commercial horticulture; tary to give a notice under subsection (6). and (8) The Commissioner may give the *Climate Change (f) you do not incur the expenditure under: Secretary a copy of the statement mentioned in * paragraph (1)(h), for the purposes of subsec- (i) a managed investment scheme; or tions (5), (6) and (7). * (ii) a forestry managed investment scheme; and 40-1015 Carbon sequestration by trees (g) all of the conditions in subsection (2) are satis- Carbon sequestration by trees means the process fied for the trees; and by which trees absorb carbon dioxide from the at- (h) you give the Commissioner, in accordance with mosphere. subsection (4), a statement that: 40-1020 Certain expenditure disregarded (i) sets out all information necessary to deter- In working out a deduction under this Subdivision mine whether all of the conditions in subsec- in relation to the establishment of trees, disregard tion (2) are satisfied for the trees; and expenditure incurred: (ii) is in the *approved form. (a) in draining swamp or low-lying land; or (2) The conditions are as follows: (b) in clearing land. (a) at the end of the income year, the trees occupy 40-1025 Non-arm’s length transactions a continuous land area in Australia of 0.2 hec- If an entity incurred capital expenditure under an tares or more; *arrangement and: (b) at the time the trees are established, it is more (a) there is at least one other party to the arrange- likely than not that they will: ment with whom the entity did not deal at (i) attain a crown cover of 20% or more; and *arm’s length; and (ii) reach a height of at least 2 metres; (b) apart from this section, the amount of the ex- (c) on 1 January 1990, the area occupied by the penditure would be more than the *market trees was clear of other trees that: value of what it was for; (i) attained, or were more likely than not to the amount of expenditure taken into account attain, a crown cover of 20% or more; and under this Subdivision is that market value. (ii) reached, or were more likely than not to 7 After subsection 70-120(5) reach, a height of at least 2 metres; Insert: (d) the establishment of the trees meets the re- No deduction for carbon sink forests quirements of the guidelines mentioned in subsection (3). (5A) You cannot deduct under this section so much of * an amount you paid or incurred as is attributable to (3) The Climate Change Minister must, by legislative the establishment of trees for which any entity has instrument, make guidelines about environmental deducted, or can deduct, an amount for any in- and natural resource management in relation to the come year under Subdivision 40-J. establishment of trees for the purposes of *carbon 8 Subsection 995-1(1) sequestration. Insert: (4) The statement mentioned in paragraph (1)(h) is to be given to the Commissioner no later than: carbon sequestration has the meaning given by section 40-1015. (a) if you lodge your *income tax return for the income year within 5 months after the end of 9 Subsection 995-1(1) the income year—the day you lodge that in- Insert: come tax return; or Climate Change Minister means the Minister ad- (b) otherwise—5 months after the end of the in- ministering the National Greenhouse and Energy come year. Reporting Act 2007. (5) However, expenditure is not covered under this 10 Subsection 995-1(1) section if the *Climate Change Secretary gives the Insert: Commissioner a notice under subsection (6) in re- Climate Change Secretary means the Secretary of lation to the trees. the Department that administers the National (6) The *Climate Change Secretary must give the Greenhouse and Energy Reporting Act 2007. Commissioner a notice in writing under this sub- 11 Application section if the Climate Change Secretary is satisfied The amendments made by this Part of this Sched- that one or more of the conditions in subsec- ule apply to the 2007-08 income year and later in- tion (2) have not been satisfied for the trees. come years.

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 27

Part 2—Income year 2012-13 and later income years 15 Paragraph 40-1010(1)(d) Income Tax Assessment Act 1997 Omit “your”, substitute “the establishing entity’s”. 12 Subsections 40-1005(1), (2), (3) and (4) 16 Paragraph 40-1010(1)(e) Repeal the subsections, substitute: Omit “your”, substitute “the establishing entity’s”. (1) You can deduct an amount for an income year if: 17 Paragraph 40-1010(1)(f) (a) you or another entity incurred capital expendi- Omit “you do”, substitute “the establishing entity ture that is covered under section 40-1010 in re- does”. lation to particular trees; and 18 Paragraph 40-1010(1)(h) (b) you satisfy a condition in subsection (5) for the Omit “you give”, substitute “the establishing en- trees for at least part of the income year; and tity gives”. (c) you are carrying on a *business in the income 19 Paragraph 40-1010(4)(a) year; and Repeal the paragraph, substitute: (d) you use the land occupied by the trees for the * * (a) if the establishing entity lodges its income tax primary and principal purpose of carbon se- return for the income year within 5 months af- questration by the trees (see section 40-1015); ter the end of the income year—the day the es- and tablishing entity lodges that income tax return; (e) your purposes in using the land occupied by the or trees do not include any of the following: 20 At the end of Subdivision 40-J (i) felling the trees; Add: * (ii) using the trees for commercial horticulture; 40-1030 Extra deduction for destruction of trees in and carbon sink forest (f) you do not use the land in connection with: (1) You can deduct the amount worked out under sub- (i) a *managed investment scheme; or section (2) for an income year if: (ii) a *forestry managed investment scheme. (a) you or another entity incurred capital expenditure that is covered under section 40-1010 in re- (2) The amount of the deduction is worked out under lation to particular trees; and this formula: (b) you use the land occupied by the trees for the Write-off days in income year * Establishment ××Write-off rate primary and principal purpose of carbon se- expenditure 365 questration by the trees; and where: (c) the trees are destroyed during the income year; establishment expenditure is the amount of ex- and penditure mentioned in subsection (1). (d) you satisfy a condition in subsection write-off days in income year is the number of 40-1005(5) for the trees just before they are de- days in the income year: stroyed. (a) that occur within the period: (2) Work out the amount of the deduction as follows: (i) starting on the first day of the income year in Method statement which the trees are established; and Step 1. Work out the total of the amounts you (ii) ending 14 years and 105 days after that day; could have deducted under this Subdivision in and relation to the trees for the period: (b) on which you use the land occupied by the trees (a) starting on the first day of the income for the primary and principal purpose of year in which the trees are established; *carbon sequestration by the trees; and and (c) on which you satisfy a condition in subsec- (b) ending when the trees were destroyed; tion (5) for the trees. assuming that, during that period, you satisfied a write-off rate is 7%. condition in the table in subsection 40-1005(5). (3) You cannot deduct more in total than the amount Step 2. Subtract from the expenditure that is of capital expenditure incurred for establishing the covered under section 40-1010 in relation to the trees up to the time at which they are established. trees: 13 Paragraph 40-1010(1)(b) (a) the result from step 1; and After “you incur”, insert “or another entity in- (b) any amount you received (under an curs”. insurance policy or otherwise) for the destruction. 14 Paragraph 40-1010(1)(c) The remaining amount (if positive) is your Omit “you are”, substitute “the entity incurring the deduction under subsection (1). expenditure (the establishing entity) is”.

CHAMBER 28 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

(3) This deduction is in addition to any deduction for Limits on giving a notice the income year under section 40-1005. (8) Only one notice can be given in relation to the 40-1035 Getting information if you acquire a car- same trees. bon sink forest 21 Application (1) This section applies if: The amendments made by this Part of this Sched- (a) you or another entity incurred capital expendi- ule apply to the 2012-13 income year and later in- ture; and come years. (b) the expenditure is covered under sec- (4) Page 20, at the end of the Bill (after proposed Sched- tion 40-1010 in relation to particular trees; and ule 8), add: (c) you begin to satisfy a condition in the table in Schedule 9—Tax offset for Equine Workers Hard- subsection 40-1005(5) for the trees. ship Wage Supplement Payments (2) You may give the last entity (if any) that satisfied a condition mentioned in subsection 40-1005(5) Income Tax Assessment Act 1936 for the trees a written notice requiring the entity to give you any or all of the following information: 1 Subsection 160AAA(1) (at the end of the definition of rebatable benefit) (a) the amount of the expenditure covered under section 40-1010 in relation to the trees; Add: (b) the income year in which the trees were estab- ; or (g) known as the Equine Workers Hardship Wage lished. Supplement Payment. (3) The notice must: Income Tax Assessment Act 1997 (a) be given within 60 days of your beginning to 2 Section 13-1 (after table item headed “entre- satisfy the condition mentioned in para- preneurs’ tax offset”) graph (1)(c); and Insert: (b) specify a period of at least 60 days within Equine Workers Hardship Wage Supplement which the information must be given; and Payment (c) set out the effect of subsection (4). see social security and other benefit payments Note: Subsections (5), (6) and (7) explain how 3 Section 13-1 (table item headed “social secu- this subsection operates if the entity to rity and other benefit payments”) which the notice is to be given is a partner- After: ship. Cyclone Larry or Cyclone Requirement to comply with notice Monica income support pay- 160AAA(3) (4) The entity to whom the notice is given must not ment ...... intentionally refuse or fail to comply with the no- insert: tice. Equine Workers Hardship Wage 160AAA(3) Penalty: 10 penalty units. Supplement Payment Giving the notice to a partnership 4 Application (5) If the entity to whom the notice is given is a part- The amendments made by this Schedule apply in nership: relation to Equine Workers Hardship Wage Sup- (a) you may give it to the partnership by giving it plement Payments received in the 2007-08 income to any of the partners (this does not limit how year and later income years. else you can give it); and (5) Page 20, at the end of the Bill (after proposed Sched- (b) the obligation to comply with the notice is im- ule 9), add: posed on each of the partners (not on the part- Schedule 10—Tobacco industry exit grants nership), but may be discharged by any of Income Tax Assessment Act 1997 them. 1 Section 11-10 (table item headed “sugar indus- (6) A partner must not intentionally refuse or fail to try exit grants”) comply with that obligation. Repeal the item. Penalty: 10 penalty units. 2 Section 11-15 (before table item headed “copy- (7) Subsection (6) does not apply if another partner right collecting societies”) has already complied with that obligation. Insert: Note: A defendant bears an evidential burden in agricultural industry exit grants relation to the matters in subsection (7), sugar industry exit grants...... 53-10 see subsection 13.3(3) of the Criminal Code. tobacco industry exit grants...... 53-10

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 29

3 Section 53-10 (after table item 4B) income year. Schedule 7 makes tax-free superannua- Insert: tion lump sum payments to persons with terminal 4C Tobacco The program As a condition of medical conditions. This is an important change which industry known as the receiving the assists in relieving the financial stress which terminally exit grant Tobacco grant, you entered ill persons and their families may be suffering due to Growers Ad- into an undertak- their situation. The amendments have the effect for justment As- ing not to become payments made on or after 1 July 2007. This has been sistance Pro- the owner or op- commented on widely by me, by the shadow minister gramme 2006 erator of any agri- and the former minister in the debate on tax laws * cultural enterprise amendment bill No. 1. within 5 years after receiving the Schedule 8, which like schedules 10 and 11 was in- grant troduced by the former government in Tax Laws 4 At the end of subsection 118-37(1) Amendment Bill (2007 Measures No. 6) Bill 2007, provides a concession for the cost of establishing a Add: carbon sink forest. This measure will encourage the ; (g) a tobacco industry exit grant that you receive establishment of carbon sink forests and, in turn, make under the program known as the Tobacco a contribution to carbon sequestration and deliver natu- Growers Adjustment Assistance Programme 2006 if, as a condition of receiving the grant, ral resource management benefits. Schedule 9 extends you entered into an undertaking not to become the beneficiary tax offset to the equine workers hard- the owner or operator of any agricultural ship wage supplement payment. This payment is made *enterprise within 5 years after receiving the fortnightly to individuals who can demonstrate the loss grant. of their primary source of income, which is earned in 5 Application of amendments the commercial horse racing industry, as a direct result The amendments made by this Schedule apply to of the equine influenza outbreak and its associated tobacco industry exit grants received in the quarantine and movement restrictions. This schedule 2006-07 income year and later income years. will ensure that no tax is payable on the payment if the (6) Page 20, at the end of the Bill (after proposed Sched- only income received by the recipient is the payment. ule 10), add: Schedule 10 provides tax-free status to grants under Schedule 11—Farm management deposits the Tobacco Growers Adjustment Assistance Program Income Tax Assessment Act 1936 2006 to tobacco growers who undertake to exit all agricultural enterprises for at least five years. The grants 1 Paragraphs 393-37(3)(b) and (c) in Sched- ule 2G are being paid following the loss of a market in Austra- lia for domestically grown tobacco. Schedule 11 makes Repeal the paragraphs, substitute: minor technical amendments to the early withdrawal (b) at the time of the withdrawal, that owner is provisions to the Farm Management Deposits scheme. eligible for the issue of an exceptional circum- This amendment will improve the Farm Management stances certificate (within the meaning of subsection 8A(2) of the Farm Household Support Deposits scheme by ensuring that all primary produc- Act 1992) that relates to a primary production ers who are eligible for early withdrawal due to excep- business of that owner; tional circumstances will retain the tax benefits. Full (c) by the end of 3 months after the end of the year details of the measures in this bill are contained in the of income in which the withdrawal is made, supplementary explanatory memorandum. such an exceptional circumstances certificate is These amendments are necessary because the oppo- issued in respect of that owner; sition is attempting to obstruct the passage of tax laws (d) a declaration of exceptional circumstances (as amendment bill No. 1 and to delay its implementation referred to in paragraph 8(c) of the Rural Ad- due to their objection to the removal of tax deductibil- justment Act 1992) was not in force in relation ity for political donations. This is a great shame, con- to that primary production business when the sidering that the Labor Party campaigned on this and deposit was made. has a mandate for this very sensible and important re- 2 Application form. I make it clear that the government will be taking The amendment made by this Schedule applies to all necessary steps to ensure that the tax deductibility is assessments for the 2002-03 year of income and removed from 1 July, as indicated in our election cam- later years of income. paign and as legislated. But to remove any risk to these These amendments, in effect, reflect schedules 2 to 6 other very sensible and important measures—which I of the Tax Laws Amendment (2008 Measures No. 1) note do have the support of the opposition—being im- Bill 2008. These amendments are necessary to ensure plemented on 1 July, we are moving them all to tax that certain measures of benefit to taxpayers in tax laws laws amendment bill No. 2 so that they can pass this amendment bill No. 1 are passed before the end of the

CHAMBER 30 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

House today and pass the other place in good time and Third Reading be implemented. We will continue to debate with the Mr BOWEN (Prospect—Minister for Competition opposition about the other schedule which remains in Policy and Consumer Affairs, and Assistant Treasurer) tax laws amendment bill No. 1, which is the abolition (11.34 am)—by leave—I move: of deductibility for political donations. This is very That this bill be now read a third time. important to the government’s agenda. It is very important for increased transparency and it is a very impor- Question agreed to. tant savings measure that the government is determined Bill read a third time. to introduce. HIGHER EDUCATION SUPPORT AMENDMENT The opposition are delaying and obfuscating on this (REMOVAL OF THE HIGHER EDUCATION bill in a most disappointing fashion. However, we will WORKPLACE RELATIONS REQUIREMENTS not allow their delays and obstructions to affect the AND NATIONAL GOVERNANCE PROTOCOLS other matters, particularly the tax-free payment of su- REQUIREMENTS AND OTHER MATTERS) perannuation benefits to people with terminal illnesses. BILL 2008 There should be no doubt as to when these measures Second Reading will pass the parliament and when they will be imple- Debate resumed from 13 February, on motion by Ms mented, so we are taking this sensible step. The oppo- Gillard: sition complained quite cynically that these measures were put together in the same bill, despite the fact that That this bill be now read a second time. it is normal practice for various tax measures to be Mr ANTHONY SMITH (Casey) (11.35 am)—The placed in omnibus bills. That was the previous gov- government’s Higher Education Support Amendment ernment’s practice and it is this government’s practice. (Removal of the Higher Education Workplace Rela- It is not something I ever complained about when I was tions Requirements and National Governance Protocols shadow minister. If the opposition wants to have a de- Requirements and Other Matters) Bill 2008 proposes a bate about tax deductibility of political donations we number of changes in the operation of the parent act, will have that debate on that bill, with that being the the Higher Education Support Act. They include allow- only measure. It is a debate we will welcome and ing a higher education provider to list a body as a qual- prosecute with vigour. ity auditing body, allowing for requirements to be set out on the conduct of audits and providing authority to Mr KEENAN (Stirling) (11.32 am)—The opposi- the minister to revoke a higher education provider’s tion have no objection to these amendments. There is approval if they cease operation as a business and for good reason why we need to pass these measures other reasons. The bill also contains a principal major quickly. I do note that all of the measures are coalition amendment, which is the removal of conditionality of policy, either introduced or announced by the previous increased funding of universities and higher education coalition government, with the exception of the tax providers on meeting the requirements of the national deductibility for political donations. I just might say on governance protocols and the higher education work- that matter that the opposition are very, very happy to place relations requirements. The opposition have said have a debate about the funding of political parties in publicly and to the government that we have signifi- Australia. I think it is a very important debate. What cant concerns about this particular amendment with we do object to is this cynical exercise of including respect to the removal of funding conditionality con- within a tax bill a measure that should appropriately be tained within the government’s bill, wholly and only referred to the Joint Standing Committee on Electoral with respect to the operation of the national govern- Matters, where these matters are traditionally debated ance protocols. Both the protocols and the HEWRRs, at the conclusion of any election in Australia. I think it as they were known, were incorporated into the Higher is a good indication of the cynicism of this new gov- Education Support Act in 2003, for operation in 2004 ernment that they would include a measure like this and 2005 respectively, following the increased invest- within a tax bill with these much needed measures. As ment made into higher education in the Our Universi- I have said, we are very happy to have a conversation ties: Backing Australia’s Future package that saw fund- about the funding of political parties in Australia. It is a ing to the sector rise to levels of more than $8 billion. terribly important discussion, but it is not one that we should have in relation to a tax laws amendment bill. I It is the case that the workplace relations require- support what the government is doing in bringing these ments and the protocols were introduced to assist uni- measures forward. This has the support of the opposi- versities to become competitive, both internationally tion. and domestically, and to offer career opportunities and managerial integrity to staff of universities and univer- Question agreed to. sities themselves. Both the HEWRRS and the national Bill, as amended, agreed to. governance protocols were a condition of universities and higher education providers receiving increased

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 31 levels of funding of 2.5 per cent in 2005, five per cent Under the government’s amendment, if there were in 2006 and 7.5 per cent in 2007. The higher education an issue in the future with a university not meeting best workplace relations requirements provided for a wider practice then it appears the government could do little degree of choice in agreement making and covered or nothing. That is the simple fact of the government’s direct relationships with employers as well as flexibil- amendment. I would not like to see, in a worst case ity and a focus on workplace productivity. Of course, scenario, the minister having to come back into this under the government’s new workplace relations sys- House and move amendments to her own amendments tem that the opposition has not opposed, the previous so that she could tackle a governance problem that had government’s measures under the HEWRRS will be- arisen at a higher education provider or university. The come inconsistent with the wider workplace relations Commonwealth will, of course, provide significant law and therefore will become obsolete. For this reason funding to higher education over the next four years. the opposition is not seeking to stand in the way of the With this allocated money, it is expected that universi- removal of conditionality of funding as it relates to the ties’ governing bodies will provide the necessary over- meeting of the HEWRRS contained within the bill. sight to ensure that it is being spent properly. Austra- We note that in her second reading the minister lians expect and deserve to know that universities have speech did not address the issue of assisting universi- the best governance that they possibly can. ties in overcoming the immense difficulty in attracting The history behind establishing consistent, well- the best and brightest minds to teach and work in our defined and responsible national protocols for good universities. Maybe she is not aware of the problem. governance is relatively recent. The national govern- Nowhere is it more evident than in our universities ance protocols, as included in chapter 7 of the Com- that, in order to attract and keep the best staff, staff monwealth grants scheme guidelines No. 1, go back to need to be rewarded in accordance with their skills. 2002 when emerging concerns were raised through the The problem of how to attract and retain world-class Higher education at the crossroads review conducted staff will remain an unanswered question on the part of by the then education minister and now Leader of the the government. However, as I have indicated, the op- Opposition. However reviews conducted into univer- position’s concern is with the heart of this bill which sity governance, such as the Hoare review in 1995 and removes conditionality of funding for universities and the Victorian government’s review of 2002, also raised higher education providers to meet the national gov- similar sorts of issues—which, apparently, the minister ernance protocols. In doing so it removes the account- is at best unaware of or trying to deny the existence of. ability the minister currently has in place to ensure best Twelve years ago the Hoare report identified a num- practice. The protocols are working today as a mecha- ber of problems associated with the performance of nism to promote accountability and integrity in the governing bodies. It argued that they lacked focus on process of university governance. In fact, as represen- strategic issues, that members of governing bodies had tatives from the Department of Education, Employ- inadequately articulated roles and responsibilities, and ment and Workplace Relations were able to confirm to that there was a lack of commitment and interest senators in estimates committee earlier this year, the shown by some members. What is clear from the re- guidelines had been met by every university and higher views of the past is that changing the face of university education provider in the previous year—meaning governance required an end to the old detached, ama- every higher education provider is compliant. teurish, academic leadership models and required an In opposition, the Labor Party never felt the need to end to reliance on politically-selected lay boards for support the implementation of the protocols to cover university governance. all our Commonwealth funded universities. Now the The Victorian Review of university governance minister seems to be saying that she accepts the proto- noted the need to strengthen not only the process but cols but intends to have a non-legislative focus on uni- also the perception of university governance in the versity governance arrangements, as she referred to in wider community. For example, the review found that her second reading speech. To move away from legis- because of the increasing responsibilities of and de- lative guidelines and requirements is in our view a rec- mands placed on university councils: ipe for failure in the future. The reason for Australia- The review believes that university councils’ discharge of wide compliance last year is that the protocols on good these increased responsibilities should be transparent and governance mechanisms are intended to work within open to public scrutiny as well as being accountable to the the discipline of legislative conditionality. The removal Minister. of the requirement of meeting the national governance Not surprisingly the review proposed: protocols as a condition of increased funding will, in our view, mean a slow return to the sort of issues that ... a system of corporate governance and accountability to Government that sheets home responsibility to universities to were troubling universities with respect to governance advance their public purposes, with transparent governance in the past prior to the introduction of those protocols. of and effective accountability for all their activities, including their commercial ventures. The intent of the recom-

CHAMBER 32 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 mended changes is to enhance public confidence that effec- The third protocol for example demands that mem- tive decisions are being made by those who are charged with bers be required to be trustees of the institution and act responsibility for advancing the universities’ public pur- solely in the interests of the university, rather than as a poses. delegate or representative of a particular constituency. That is exactly the intent of the national governance It states that ‘all members of the governing body must protocols that the government here intends to remove be responsible and accountable to the governing body’ funding conditionality on. The current chair of the Fu- and that a member ‘must always act in the best inter- ture Fund, and then Commonwealth Bank Chief Ex- ests of the higher education provider as a whole, with ecutive Officer, David Murray, recognised this in 2002 this obligation to be observed in priority to any duty a when he urged state and federal ministers—and, I member may owe to those electing or appointing him might point out to the government, they represented or her’. both political parties—to get behind the national gov- These protocols also deal with perfectly reasonable ernance protocols. He said: tenets of corporate governance that encourage universi- If the taxpayers’ funds are coming from the federal gov- ties to endorse best practice in their governing bodies. ernment, then the federal government is the one that has to These include requirements for an induction process answer for the outcome of the funding. for new council members and ongoing professional He went on to add that the business community would development, as well as for transparent nomination be willing to invest more in our universities if they procedures for new members going on to council who could be assured of the outcomes. It would be interest- are not subject to an election. They also require that ing if the minister could comment on exactly what has there is proper experience and diversity on boards. changed in the need to support university councils in Removing the funding condition of having these proto- aiming for the highest standards in governance. Indeed, cols would remove the incentive for universities to in the issues paper Meeting the challenges: the govern- strive for and excel in best practice—not for all univer- ance and management of universities commissioned by sities, of course, but it would provide the opportunity the department, it was found—and the Labor Party are for some to slip back to the very problems that the pro- not yet able to accept this point—that: tocols were introduced to try and overcome. like other major institutions in our society, we must demand Moving to a non-legislative focus will not ensure new levels of accountability of the university for the integrity continued high standards in university governance. It is of its financial operations, the quality of its services, and the a way backwards. Like the recommendations from the stewardship of its resources. reviews of the past pointed out, so many difficulties The opposition is of the firm view that the national needed leadership to overcome, leadership provided by governance protocols, as derived from chapter 7 of the both state and territory government ministers and the Commonwealth Grants Scheme Guidelines No. 1, are council. The minister needs to demonstrate some lead- essential to the continued good governance of universi- ership in taking up the challenge of ensuring that best ties. Without these protocols anchored on continued practice is maintained into the future in all of our uni- funding conditionality, university governance standards versities and higher education providers. would in our view slip over time. It would be a return I have outlined to the House why the government to the past. It might not happen overnight, but it would happen over time. should accept—and I say this respectfully—that it has got it wrong with respect to their treatment of the gov- It is the opposition that continues to support the pro- ernance protocols. We understand that the minister in tocols for good governance. The protocols specifically the first week of parliament was keen to make her deal with internationally recognised best practice point on workplace relations but the government’s bill methods. For example, protocol 5 deals with the size of here fails to realise that the governance protocols are the membership of governing bodies. There are some necessary policy when you are talking about the huge horror stories from the past of dysfunctional and ineffi- amounts of investment governments, students and the cient university councils with too many members, all community place in our universities. In the interests of representing competing sectional interests. It is inter- the convenience of the House today, I will not be seek- esting to note that the average size of university coun- ing for the opposition to oppose the second reading. cils in 1990 was 27 members. In one university some However, I give notice that I will move an amendment years ago, the council size was said to be as high as 35. on behalf of the opposition in the consideration in de- Successive reviews have argued for governing bodies tail stage of the debate. of between 10 and 15 members. The protocols make The amendment that will be circulated will have the provision for no more than 22. As to the intent of the protocols, what happened to the membership of univer- effect of continuing to require universities and higher education providers to meet the national governance sity councils after 2002? Their average size dropped to around 21 members. protocols as a condition of increased funding. It will put back what we think should not have been taken

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 33 away. The amendment will require universities and in conjunction with the current legislation. We are higher education providers to keep meeting the gov- aware the chapter also contains conditions with respect ernance protocols as a condition of the funding. It will to the HEWRRs although, as members would be retain the provision that the minister must be satisfied aware, it is simply not possible to selectively disallow that the provider meets the protocols. In the event that part of a chapter that deals with the governance proto- the minister is not satisfied, it will provide the minister cols without also disallowing everything else within with the same penalty mechanism that existed previ- the guidelines. I reiterate that if the government accepts ously. our amendment the legislative framework for the op- Importantly—as I outlined at the start and a number eration of the HEWRRs, as prescribed in the guide- of times since—the coalition’s amendment in no way lines, will be removed. In any event, the act will refer affects the government’s aim of removing the higher only to the national governance protocols. education workplace relations requirements from force In any event the important point is that the work- should it be accepted. Our amendment does not pro- place relations laws have changed since the last elec- vide for conditions of funding with respect to the tion—so the substance of the law has changed— HEWRRs; it only provides for funding conditionality rendering obsolete a lot of the HEWRRs guidelines, with respect to the governance protocols. That is our particularly relating to AWAs. If the minister’s wish aim. That is our objective. That is what we are seeking was to introduce a new instrument—a new set of to achieve. guidelines that dealt with just the HEWRRs—I say If the coalition’s amendment is successful, it will here and now that the opposition would not seek to ensure that those protocols are substituted back into the disallow that if it is a housekeeping measure to just bill. If the amendments are not successful, we intend to clean up the guidelines. As I have said, our amendment oppose the government’s bill currently under debate in specifically ensures that it relates only to the national the House, because we will not support legislation that governance protocols. removes that funding conditionality with respect to Mr COMBET (Charlton—Parliamentary Secretary governance protocols. In that event, we would oppose for Defence Procurement) (11.55 am)—I wish to speak the third reading of the bill and vote against the pas- on the Higher Education Support Amendment (Re- sage of the bill in the final vote. Of course, in the Sen- moval of the Higher Education Workplace Relations ate, a similar amendment will be moved. We hope that Requirements and National Governance Protocols Re- the minister is prepared to consider this issue. Our con- quirements and Other Matters) Bill 2008. The bill will cern is just the issue of the national governance proto- remove the Howard government’s extreme workplace cols. It is up to the government to indicate their inten- relations agenda from our universities. It will provide tions towards our amendments, which we have pro- the universities with greater flexibility in their govern- vided to them. ance by removing unnecessary government interfer- The minister has also changed regulations with re- ence in their management. spect to the Commonwealth Grant Scheme Guidelines. Today I will go into some detail about the system These had the effect of removing chapter 7 from the that this bill seeks to abolish, because it is very impor- guidelines and replacing it with the term ‘Not used’, tant that we understand exactly what the previous gov- therefore removing altogether from the guidelines both ernment was doing and offer some reflections on why the HEWRRs conditions and the protocol conditions the Howard government introduced this system. Hav- for governance. The minister tabled these changes to ing listened to the member for Casey it is interesting the guidelines in the House and in the Senate on 11 that the previous support by members of the former March. They are currently on the Senate disallowable Howard government for the higher education work- instruments list as they are disallowable instruments place relations requirements appears to have collapsed. under the act. On Friday 29 April 2005, the then Howard govern- Whilst chapter 7 of the guidelines ceased to exist on ment announced a set of higher education workplace 28 February, the day after they were registered on the relations requirements for Australian higher education Federal Register of Legislative Instruments, our institutions. They are referred to as the HEWRRs. In amendment to the government bill will refer to guide- short, the HEWRRs were strict workplace relations lines as they were on 27 February, when they were in criteria that universities had to comply with in order to force. be eligible for $280 million of assistance funding under My colleague Senator Brett Mason, the shadow par- the Commonwealth Grant Scheme. liamentary secretary for education, apprenticeships and The first and key element of the HEWRRs was the training, has given notice in the Senate that he will criterion that universities were required to offer Austra- move today that the guidelines be disallowed. The op- lian workplace agreements. As is now notorious, Aus- position has moved to disallow this instrument so as to tralian workplace agreements, or AWAs, are individual maintain those national governance protocols that work employment contracts that were able to undercut im-

CHAMBER 34 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 portant protections and safety net conditions contained casual employment at Newcastle in the light of experi- in the awards and collective agreements that operated ences such as Rosalie Bunn’s. But these efforts to im- within the higher education system, in this instance, prove the employment security of someone such as but of course they operated throughout the economy Rosalie Bunn—effectively a casual for 10 years in and all other industries. what was a permanent position—and afford her com- The HEWRRs within this sector required universi- munity accepted standards such as annual leave were ties to offer AWAs to all new staff employed after 29 made completely illegal, unlawful and impossible by April 2005 and to all existing staff by 31 August 2006. the imposition of the HEWRRs. As a result, Rosalie The HEWRRs also required universities to include a and people like her are still casuals—and it is not 10 clause in collective agreements that expressly allowed years; it is now well beyond 10 years that she has been AWAs to operate to the exclusion of any collective in that position. agreement. It is important to consider exactly what was The second consequence arising from this specific being asked here by the former government. What we change was that job security and the management of now know about AWAs from official data—data that change provisions in many agreements were weakened. the Howard government was not keen to see become That was an intentional element of the HEWRRs. Pre- public—is that 89 per cent of the AWAs, in quite broad vious commitments in collective agreements—for ex- surveys, removed at least one protected award condi- ample, to maintaining particular staffing levels or to tion. In fact 52 per cent excluded more than six pro- providing job security through no compulsory redun- tected award conditions. Employment was casualised dancies—had to be removed because of the HEWRRs. under many AWAs and, as we have also heard from the Another element of HEWRRs was the removal of de- Deputy Prime Minister on occasion in this House, the tail from agreements. Under the rubric of requiring AWAs in effect were used to significantly reduce peo- collective agreements to be simple, flexible and principle’s take-home pay, often by very considerable ple based, avoiding excessive detail and prescription, amounts. as was required, some conditions which were previ- We know that the way in which that was commonly ously included in agreements had to be removed. These achieved was through the removal of award conditions included things such as position classification stan- such as shiftwork penalties, annual leave loading and dards, award provisions relating to casual employment other forms of penalty rates such as overtime pay. This and aspects of leave, management of change and unsat- was the regime, and it was the intent of the Howard isfactory performance, and misconduct procedures and government to force it upon the higher education sector processes. In the wake of the removal of detail such as by making funding conditional upon the offering of that, it became harder for employees under the agree- AWAs. ments to access things such as dispute-settling procedures to protect their rights, oftentimes in circum- Another key element of the HEWRRs was the re- stances where unfairness may have been exacted upon moval of restrictions on fixed term and casual em- them. It was also much more difficult to access union ployment. The HEWRRs stipulated that university representation in those circumstances. agreements, policies and practices must not place limi- tations on the forms and mix of employment arrange- Another element of the HEWRRs required universi- ments. In practice this had two consequences. Firstly, ties to implement performance management systems to existing agreement restrictions on the use of fixed term reward high-performing staff and efficiently manage and casual employment had to be removed. The effect poor-performing staff. As a principle that is not contro- was, unsurprisingly, a marked increase in fixed term versial; however, in the circumstances of the HEWRRs employment in universities and a continuation of quite the outcome was a push on the part of some of the a rapid increase in casual employment across the management in the higher education sector to imple- higher education sector. In summary, employment se- ment performance pay systems which were disruptive curity was undermined to a significant degree by the to the cohesiveness of staff and which encouraged an HEWRRs through this measure alone. overconcentration on short-term results. One individual example of the effect of these provi- Finally, the HEWRRs required that university sions involved a woman named Rosalie Bunn, who agreements, policies and practices must be consistent held a long-term casual teaching position in the Open with the freedom of association principles contained in Foundation and Newstep program at the University of the Workplace Relations Act. This in practice meant Newcastle in the region that I now represent. She has that agreements had to be stripped of provisions which now been a casual for more than 10 years, during the Howard government interpreted as encouraging which time she has had no access to sick leave, annual union membership. In essence it meant that there was leave, long service leave or any other kind of leave, no no leave to attend things such as workplace meetings job security and no incremental advancement. There or to invite a union representative to come into the was an effort at the time, several years ago, to limit workplace to represent you in an industrial situation.

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 35

The HEWRRs system gave the ministers for education trial relations agenda. To understand that agenda is to under the former government unprecedented power, in understand the wider intention of its form of industrial fact, to involve themselves in the management of relations embodied in the Work Choices legislation. workplace relations in the sector. All decisions on the That was what the HEWRRs were really all about: to HEWRRs were made directly by the minister and there impose the Work Choices type of philosophy on the was no scope for review or repeal of those decisions. university system. It was never about improving the Furthermore, the minister was able to unilaterally higher education system. It was never about promoting change the requirements at any time. If you are to con- flexibility, innovation or skills development within sider this, this is an extraordinary level of ministerial universities and it certainly did nothing to relieve the interference in staff management by a government, as burden on university staff or students. it would be in any sector but particularly in higher edu- The HEWRRs system was about the fulfilment of cation. the government’s ideological obsessions in industrial At the time of the original legislation establishing relations. It was a plan conceived at least substantially the HEWRRs, there was understandably widespread by the then Minister for Education, Science and Train- criticism of the system, criticism that was completely ing—now, of course, the Leader of the Opposition— ignored by the government. At the Senate hearing into and several of his colleagues. It should give cause to the legislation establishing the HEWRRs, there was consider exactly where the opposition may be going in fierce opposition. Some of the criticisms raised at those relation to industrial relations. I note from the member hearings, particularly by the National Tertiary Educa- for Casey’s contribution that, if the amendment that is tion Union, were that the HEWRRs failed to address proposed to be moved is defeated, the opposition in- the real workplace issues being faced within the uni- tend to vote against this bill, which means that they versities, that the HEWRRs lacked appropriate ac- will be voting in this circumstance to continue the im- countability and parliamentary scrutiny, that they cre- position of HEWRRs within the higher education sys- ated uncertainty and confusion and provoked industrial tem, in effect. disharmony within the universities, that they gave the The fact is that, when Dr Nelson was in charge of federal government unprecedented and unwarranted the nation’s higher education system, instead of con- capacity to interfere in the operation of the higher edu- centrating on how he could improve the services of the cation institutions, and that they did not assist Austra- universities or how we could make an investment for lia’s higher education institutions with respect to the the future, there was a preoccupation with the imposi- quality of learning, research or outcomes for employ- tion of this workplace relations agenda. Education is ees. They were specifically focused industrial relations vital to the ability of individuals to fulfil their potential initiatives designed on the basis of conditionality to the and to maximising the productive capacity of the coun- access of funding to allow the government to force on try. Over the last 150 years the measure of a nation’s the sector its industrial relations agenda, which I think economic development was the number of tonnes of is now widely held throughout the community to have iron and steel it produced. In this century it will be the been one of extreme unfairness, lacking in justification. number of graduates that a nation produces, especially The Australian Vice-Chancellors Committee, now in science and engineering, that will be important. known as Universities Australia, essentially represent- Investment in education is the linchpin of our future ing the management and administrators of the universi- economic potential and yet the last government failed ties, also opposed the introduction of the HEWRRs. In in this area, particularly in tertiary education—the level their submission to the Senate committee, they said of education that the Commonwealth has the most re- that the HEWRRs would be: sponsibility for. Australia ranks a mediocre 15th out of … very intrusive in terms of universities’ capacity to manage 28 OECD nations in terms of total spending on educa- their internal affairs. The HEWRRs proposal constitutes a tion as a percentage of GDP. In the decade since 1995, ‘one size fits all’ approach, whereas the AVCC takes the view Australia was the only OECD country to cut public that the focus should be on desired outcomes, rather than investment in tertiary education by an amount of seven specific industrial processes and particular industrial instru- per cent. In dire contrast, the average increase in public ments. investment by other OECD countries was 48 per cent. That was an extremely important criticism made by the We are entirely against the trend of all other OECD vice-chancellors charged with the responsibility of the countries, instead concentrating on imposing things management, administration and governance of Austra- like HEWRRs and completely losing focus on the im- lia’s universities. They did not want the HEWRRs importance of investment in quality tertiary education. posed—and for good reason. An important aspect of this is our failure to train en- It is important to note for the record that the Howard gineers, and this is especially crucial in the defence government completely ignored all of the well-founded industry, which is a portfolio area for which I now have criticism of the system that it proposed to introduce, some responsibility. Australia ranks 20th out of the 21 instead preferring to implement its ideological indus-

CHAMBER 36 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

OECD nations surveyed in terms of the share of engi- racy on the leaders and administrators of the universi- neering graduates to total graduates. Only 10 per cent ties. That is why the bill proposes to remove the condi- of Australian graduates are engineers, compared to an tionality related to the national governance protocols. OECD average of 14 per cent. Imagine the impact on The bill amends the Higher Education Support Act productivity in the country and the relief on inflation- 2003, the parent act, by repealing section 33.17. This ary pressure if we were able to improve that outcome. I section of that act currently requires that the HEWRRs am not just speaking as an engineer. I think it is actu- and the national governance protocols are adhered to as ally critical to the future economic prosperity of the a condition of the Commonwealth Grant Scheme for country that we improve the numbers of graduates student places. The removal of this section will help coming out of engineering and science disciplines. remove the burdens, in the government’s belief, on our Coupled with the Howard government’s obsession higher education sector while also granting them with AWAs was a deep-seated and divisive attitude to greater financial certainty. those who work in higher education. I think this partly I am pleased to be able to speak on this bill, given informed the former government’s approach to the im- that I campaigned against the HEWRRs consistently in position of the HEWRRs. Universities, under the pre- my former role as the leader of the ACTU. I am very vious government, were not necessarily seen as institu- proud to be able to support these changes. I cam- tions that promoted creativity and built the productive paigned strongly with the National Tertiary Education capacity of our society. They were in part a battle Union and other higher education unions in recent ground to play out what has been described as some of years before coming to this place, and I would like to the ‘culture wars’. In a well-publicised recent speech to congratulate them for the way in which they conducted an American conservative group, the former Prime what I think was a sensible campaign against com- Minister, John Howard, had the following to say: pletely unreasonable requirements imposed by the pre- Those who hold to conservative values continue to face a vious Howard government. I am optimistic that the major ideological battle. The left liberal grip on educational Rudd Labor government will be able to rebuild the institutions and large, though not all, sections of the media relationship between the government and the universi- remains intense. ties that was disturbed by this unnecessary interference That is something of an insight into some of the previ- imposed on the universities by the former Howard ous government’s motives. It was this view of universi- government. I would simply like to conclude by saying ties as bastions of supposed left liberalism that made that in today’s world, given the economic challenges the Howard government, at least in part, eager to im- this country confronts, the value of higher education pose these kinds of constraints and conditionality on cannot be understated. This bill seeks to help that sec- the availability of funding. If that were not bad enough, tor of education by allowing for greater flexibility in what better way to further punish the supposed left their workplace relations and in their governance ar- liberals than by pushing universities to implement rangements. I commend the bill to the House. some of these changes? That is what the laws were Mr LINDSAY (Herbert) (12.16 pm)—I know one about. or two things about these issues that we are debating in The substance of the bill is also concerned with the parliament this afternoon, and I do hope that there what are called ‘the national governance protocols’ that are a number of fair-minded people who will listen to the member for Casey referred to. These required or this debate and make a decision on the basis of what is imposed, again on the basis of conditionality with ac- put to the parliament. I do believe that those fair- cess to funding, what could be described as a standard- minded listeners and viewers this afternoon will come ised governance approach to the management and ad- down on the side of not supporting the Higher Educa- ministration of the universities. Under the current sys- tion Support Amendment (Removal of the Higher Edu- tem, Commonwealth Grant Scheme funding was also cation Workplace Relations Requirements and National contingent on adherence to these national governance Governance Protocols Requirements and Other Mat- protocols. The practical result of this has been an in- ters) Bill 2008. What is wrong with allowing choice to crease—in the Rudd government’s belief—in red tape any Australian in the decisions that they make in their and bureaucracy for universities as part of ongoing lives? What is wrong with that? The Labor Party seems compliance checks. These checks are conducted de- to believe that everyday Australians should not be al- spite the fact that all universities have already taken the lowed a choice. We have choice when we go shopping necessary steps to implement these protocols—an im- and we have choice when we go looking for a partner. portant point in considering the changes contained in Why should we not have choice when it comes to how this bill. The Rudd government, in contrast, believes in we work? Any fair-minded person would say, ‘That greater flexibility and the encouragement of good gov- seems a reasonable position.’ ernance practices within universities—we believe in The former government found that universities were encouraging that—and does not feel the need to im- not allowing their workforce to have choice and that pose standardised and excessive red tape and bureauc-

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 37 precluded their employees from making a better ar- est-spending, highest-taxing budget that we have ever rangement with their employer. I want to tell the par- seen. And then to add ‘And by the way we are going to liament this afternoon about Norm Canton. Norm put 134,000 people out of work as well’ is extraordi- works for Buildings and Grounds at James Cook Uni- nary. When you link that in to what this particular bill versity—the premier university in the tropics in the is about you see the connection. This is the Labor world. James Cook University is in Townsville, the Party, for ideological reasons, taking choice away from area that I represent in the Australian parliament, and I the Australian worker. I certainly feel very disheart- am very proud of James Cook University. But James ened about that. Cook University had a closed mind in relation to how The other main part of the bill in relation to the na- it would employ Norm Canton. Norm wanted to make tional governance protocols requires that, as the Aus- an Australian workplace agreement with the university tralian government provides virtually all of the money authorities because he thought that he could find a bet- to run our universities, universities should conduct ter way of working for the university and that he could themselves properly in a governance sense. The Labor earn more money because the arrangement that he Party seems to think we should not have any control would make would suit both him and the university. over a fundamental issue like that. I think the Austra- That seems like a fairly common-sense thing to do, lian people will understand that they need to think doesn’t it? But the university would not allow that. about this. Fortunately, the Howard government put in place the Back to my university, James Cook—and this, higher education workplace relations requirements. All again, is where governance issues come in. Currently that those requirements said was that universities Central Queensland University, based in Rockhampton, should offer Australian workplace agreements. Staff is having significant financial problems. It may well be were not required to take them up—they were not even that it is having significant governance problems. I required to ask for them—but if they did want to con- have certainly suggested that James Cook should be sider an AWA then the university had to make that allowed by the Queensland government to take over available. Norm Canton went to the authorities at CQU’s patch in Mackay. There is a synergy which James Cook University and said, ‘I’d like to negotiate happens with JCU Townsville and JCU Cairns—and it an AWA for myself’—a single employee workplace should be with JCU Mackay. Because of the difficul- agreement. Norm did, thanks to the Howard govern- ties CQU has got itself into, it may well have to be ment. Do you know what happened? He got higher taken over by one of the universities in Brisbane. pay, he got better working conditions, the university I urge the Queensland government, in looking at had a better arrangement for when Norm worked and these governance issues related to higher education, to everybody was happy. And now the Labor Party wants look at the opportunity now presented for James Cook to take it all away. The Labor Party that claims to rep- University to move its courses and its support to Mac- resent the workers of this country does not want the kay, a very significant city in North Queensland. I want workers to have choice. That is a disgraceful position. the parliament to know in no uncertain terms—from But more than that—this was revealed by the budget me and from Norm Kent in Townsville—that the avail- last night, and it undermines what this particular bill is ability of AWAs in higher education has done a power about—the Labor government’s backward-looking ap- of good and that we are disappointed that the current proach to workplace flexibility, meaning choice, has government wants to take away that power of good. already cast a shadow over the Australian economy. This was revealed in the budget last night. Unemploy- Mr DREYFUS (Isaacs) (12.24 pm)—I rise today to ment is predicted to rise to 4.75 per cent. We heard the support the Higher Education Support Amendment absolutely incredible statement that Labor’s budget in (Removal of the Higher Education Workplace Rela- the coming year will put 134,000 everyday Australians tions Requirements and National Governance Protocols out of a job—and this is the party of the worker. How Requirements and Other Matters) Bill 2008. This bill is could that be? Under the former government, unem- an important step in overturning the regressive and ployment went to record lows. Now that the Labor mean-spirited agenda of the previous government. The Party is in, it is making conscious decisions to drive up introduction of the higher education workplace rela- unemployment. Gosh! When is the Australian public tions requirements and the national governance proto- going to wake up? How can my Labor colleagues on cols themselves represented very directly one of the the other side of the chamber support a budget that puts worst elements of the former government’s policies. 134,000 everyday Australians out of work at a time They represented the ideological commitment to what when they are facing increased grocery prices, in- was, in reality, an unfair workplace relations system. creased petrol prices and are wondering if they can They represented unwarranted interference in the run- own their own home any more and how they are going ning of important national institutions and they repre- to pay for their insurance? It is extraordinary. In the sented very directly the willingness of the former gov- history of Australia, last night’s budget was the high- ernment to use every Commonwealth power to further

CHAMBER 38 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 the government’s ideological attacks on perceived or the balance of power in the workplace dramatically imagined opponents which, in this case, were universi- away from employees. ties and trade unions. Australian workers were told that AWAs would not Work Choices was part of a broader attack by the affect the conditions under which they worked, that former government on the rights of workers. The they would be better off under Australian workplace higher education workplace relations requirements agreements, but the evidence was to the contrary. were a harsh, related measure, which this government Eighty-nine per cent of AWAs cut at least one protected is bringing to an end. Regardless of how the opposition award condition, 83 per cent of AWAs removed two is going to vote on this bill, there should be no mistak- protected award conditions and 52 per cent of AWAs ing the fact that the Liberal Party remains committed to removed more than half of the protected award condi- undermining the rights of employees in the workplace. tions. There was a reason that so many Australians op- We have heard echoes of this just now from the mem- posed the former government’s workplace agenda. It ber for Herbert, who spoke of choice but really demon- was because they understood that, when you shift the strated that the Liberal Party remains committed to the balance of power in the workplace, conditions will be illusion of choice, which—Australian workers learned cut, rights will be removed and choice will be dimin- in no uncertain terms under the Work Choices legisla- ished and not enhanced. tion—was no choice at all. Through the introduction of individual transitional In government, the Liberal Party used every mecha- employment agreements, we have provided transitional nism at its disposal to further its extreme industrial arrangements for employees on AWAs. Importantly, the relations agenda. The government used legislation Forward with Fairness plan allows for the creation of which directly undermined workers’ rights. It used new modern awards to ensure a minimum safety net Commonwealth funding to undermine workers’ rights for all employees, which of course comprises the 10 and used government procurement and purchasing National Employment Standards covering maximum policies to undermine workers’ rights. The casualties of weekly hours of work, requests by parents for flexible these mechanisms and devices were ordinary working working arrangements, annual leave, personal and car- Australians and their families, who had to bear the ers leave and compassionate leave, community service brunt of this Liberal Party agenda through the loss of leave, long service leave, public holidays, parental collective bargaining, diminished working conditions leave and other entitlements, notice of termination and and the reduction—not the expansion—of choice redundancy, and fair work information statements. En- within the workplace. terprise bargaining will remain as the central founda- The new system which Labor is introducing restores tion of Australia’s modern workplace relations system. balance in the workplace, including within higher edu- This provides for collective bargaining with the great- cation institutions—which is what the present bill is est possible flexibility. concerned with. The Rudd government does not be- Work Choices was perhaps the best example of how lieve that employees in the higher education system out of touch with the Australian people the Liberal should be treated differently from employees in other Party had become—or perhaps I should say ‘has’ be- sectors of the economy. come. We had a spectacular demonstration of this with Australia has had 100 years of a largely fair and bal- the comments made by the member for North Sydney anced industrial relations system. By the early 1990s, it on the Four Corners program back in March. He said: needed reform to keep pace with the changing nature Quite frankly, when I took over the job— of what is an increasingly globalised economy. Those he meant as Minister for Employment and Workplace changes were made by the Keating government in in- Relations— troducing enterprise bargaining and moving away from I don’t think many ministers in cabinet were aware that you previous centralisation, providing a basis for linking could be worse off under Work Choices and that you could wage increases with productivity improvements. This actually have certain conditions taken away without bill and the Forward with Fairness plan that the gov- compensation … ernment has committed to build on the progress made Once I started to raise those issues with colleagues and they with the industrial relations system by the Keating became more informed of the impact of Work Choices, we government in a way which is fair to workers and pro- introduced the fairness test. motes economic growth. As promised at the last elec- That is an extraordinary statement for the member for tion, Labor has abolished Australian workplace agree- North Sydney to have made. It is an admission that the ments. We know that, even after the introduction of the former government introduced legislation, as we know, previous government’s so-called fairness test, em- almost without consultation and, as we definitely ployment conditions continued to be removed from know, without proper debate. And it would appear that employees. These were the primary tools used to shift it was introduced without even a proper understanding of what the implications of the legislation were.

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 39

The people of my electorate of Isaacs were in no clear in 2005 that they were directly opposed to the doubt, unlike the member for North Sydney, that you imposition of these higher education workplace re- could be worse off under Work Choices. People in Car- quirements. I note that the member for Charlton has rum Downs, Dandenong South, Springvale, Keysbor- already read this quote in his speech to the House, but ough, Chelsea, Carrum and right throughout my elec- it is worth repeating. The Australian Vice-Chancellors torate made it clear to me as I campaigned through last Committee back in 2005 said that the introduction of year that they understood that the Howard govern- these requirements was: ment’s Work Choices laws had made them or were go- … very intrusive in terms of universities’ capacity to manage ing to make them worse off. These were people who I their internal affairs. The HEWRRs proposal constitutes a met in my electorate at thousands of doors of thou- ‘one size fits all’ approach, whereas the AVCC takes the view sands of homes, outside shopping centres, at commu- that the focus should be on desired outcomes, rather than nity events and at train stations. People told me over specific industrial processes and particular industrial instru- and over again how directly and clearly they under- ments. stood that the Howard government’s Work Choices had The Howard government, of course, was not listening made them worse off. What I heard from people all to what the Australian Vice-Chancellors Committee through last year was that they did not want the kind of had to say any more than the Howard government was workplace that the Howard government’s laws were listening to anything that the trade union movement creating. They did not want the kind of society that the had to say or indeed anyone else had to say in opposi- Howard government’s laws were creating. tion to the Work Choices legislation. They ploughed Many people told me they had been directly affected on. They continued not to listen. by the Work Choices legislation. These included older It is a cruel irony that, having presided over a mas- people trying to re-enter the workforce, 16- and 17- sive decline in public investment in tertiary education, year-old kids trying to negotiate their first employment the Howard government sought to impose its harsh agreements with large corporations and mothers in industrial relations agenda on our universities. As we part-time work trying to earn an additional income for have just heard from the member for Charlton, other their families. Apart from all those people who were OECD countries in the 10 years from 1995 increased directly affected, many people told me of others—their public investment in tertiary education by an average children, grandchildren, friends and associates—who of 48 per cent. The Howard government in the same had been directly affected even when they themselves period cut public investment by seven per cent. Austra- had not been. lia was the only OECD country to cut public invest- The people of my electorate understood very well ment in tertiary education in that period. We aim to that these so-called industrial relations reforms were reverse that situation. not designed as genuine economic reform. They were Mr Pyne—That does not include HECS! not designed to improve government purchasing out- Mr DREYFUS—I am talking about public tertiary comes and, in the case of the matters which this bill is education funding. intending to deal with, they certainly were not designed Mr Pyne interjecting— to improve our higher education system. People in my electorate and indeed across Australia knew that the The DEPUTY SPEAKER (Mr KJ Thomson)— Work Choices laws, including within them these de- Order! The member for Sturt will cease interjecting. vices designed to further the objectives of the Work Mr DREYFUS—We are going to increase public Choices laws in the higher education system, were the investment in tertiary education. We are going to stop outcome of an ideological fixation of the Liberal Party ordering universities around. We are going to welcome on changing the balance of power in the Australian diversity in our higher education institutions. We aim workplace. It was a shameful act of the previous gov- to build a collaborative relationship with universities. ernment to use the Higher Education Support Act to This bill is a very good step in that direction. I com- impose their industrial relations agenda on higher edu- mend the bill to the House. cation institutions. Choice and diversity were not ex- Ms MARINO (Forrest) (12.39 pm)—I wish to par- panded in universities; they were in fact diminished by ticipate in the debate on the bill before the House, the this device. Higher Education Support Amendment (Removal of Australian universities understood this very well and the Higher Education Workplace Relations Require- I note that the peak body, Universities Australia, has ments and National Governance Protocols Require- welcomed and supported the removal of the higher ments and Other Matters) Bill 2008. This bill will education workplace relations requirements as a legis- amend the Higher Education Support Act 2003 by relative condition for funding universities. Indeed the pealing section 33-17. The main purpose of this bill is predecessor organisation of Universities Australia, the to remove the requirement of universities and other Australian Vice-Chancellors Committee, made it very higher education providers to offer Australian workplace agreements to employers as a condition of addi-

CHAMBER 40 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 tional funding provided through the Commonwealth higher education sector funding is a purely ideological Grant Scheme. It will also remove the requirement that amendment. universities and higher education providers meet the The coalition believes that removing these legisla- national governance protocols as a condition of addi- tive conditions with a view to encouraging universities tional funding provided through the Commonwealth to pursue good governance with a ‘non-legislative’ Grant Scheme. The national governance protocols have focus is a backward step in best practice. The protocols ensured that universities and higher education provid- include specific provisions to ensure that university ers’ governing bodies are effectively overseeing the boards represent and meet the expectations of the uni- operations of management and include specific provi- versity and wider community. They stipulate methods sions relating to the size, structure, membership and to achieve best practice in university governance. The experience of university boards and governing bodies. coalition believes that removing these conditions from Under the prior act of the Higher Education Support the legislation acts as a disincentive for universities to Act 2003, universities were required to comply with pursue good governance techniques and allows for a higher education workplace relations requirements and return to governing boards being filled with narrow national governance protocols in order to receive addi- interest groups. tional increased assistance funding of five per cent in The protocols also draw on evidence to achieve best 2006 and 7.5 per cent in 2007 under the Common- practice through those protocols. For example, the wealth Grant Scheme. These requirements were intro- Business, Industry and Higher Education Collaboration duced into the Higher Education Support Act 2003 Council considered that nine to 11 members would be through the higher education legislation amendment appropriate for higher education governing councils. act 2005. Higher education workplace relations re- The existing protocols provide for a maximum size of a quirements required that an employee of a university or governing body to be 22 members, with best practice higher education provider should be free to choose col- evidence in mind. The protocols also cap a maximum lectively negotiated salary and conditions or to negoti- term of appointment for board members at 12 years to ate a common-law contract or an Australian workplace ensure that these bodies reflect the changing constitu- agreement. The requirements encouraged more direct ency of university communities. A non-legislative fo- relationships with employees, greater workplace pro- cus to governance protocols would remove the respon- ductivity and rewards for higher performers by requir- sibility of universities to meet community expectations ing universities to provide employees with genuine into the administration of universities and would deny choice and flexibility in agreement making. The na- the taxpayer the right to expect proper and accountable tional governance protocols required that universities governance for the Commonwealth support provided to and other higher education providers meet best practice universities. in governance by ensuring university councils were In line with the coalition’s approach to wider work- formed by a diverse range of councillors with appro- place legislation, we do not oppose the retraction of priate commercial and business expertise and that pro- higher education workplace relations requirements. fessional development be provided. The repealing of these requirements will allow univer- The amendments are being introduced despite the sities to be subject to the same workplace relations law fact a report is due in the coming months on the review as all other employers. Nevertheless, it was imple- of the protocols by the Ministerial Council on Educa- mented in the best interests of the universities and tion, Employment, Training and Youth Affairs and is higher education providers, to provide them with assis- yet to be handed down. Labor did not announce these tance and recognise the difficulties they faced in at- amendments as a part of their 2007 election policies, tracting and retaining the best quality staff. The staff instead announcing their intention to legislate the retention and attraction problem that was being ad- changes through a speech delivered by the minister to dressed will now only continue to be a worsening prob- Innovative Research Universities Australia on 5 Febru- lem for the higher education sector when this legisla- ary 2008. tion passes this parliament. Consultation with several vice-chancellors, some of I do, however, oppose the provisions of the bill re- whom represent the peak university bodies, has taken lating to the removal of conditionality with respect to place recently. I am informed that most vice- the national governance protocols. I fully support the chancellors support the government’s amendments on efforts of the coalition in opposition to seek to amend both removing the conditionality clause of higher edu- the bill to remove the section allowing the minister to cation workplace relations requirements and national reduce a higher education provider’s basic grant governance protocols, stating that they were an admin- amount if the national governance protocols are not istrative burden. However, the removal of national met. governance protocols requirements as a condition of We have had a review as well, and the minister should include Labor’s plans to abolish the domestic

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 41 full-fee-paying places as part of the review and then independent in the foreseeable future and, as such, no seriously consider the impact it will have on the fund- longer a cost to the public purse. ing stream of higher education sectors. I remind the I welcome the input of Universities Australia to this government that it was only after the coalition gov- further review. I sincerely hope the government re- ernment paid off Labor’s $96 billion of government sponds to all recommendations submitted so that prac- debt that it was able to make important investments in tical recommendations such as the ones I have previ- the higher education sector. This included the ground- ously mentioned are implemented by government, not breaking $6 billion for the Higher Education Endow- just those of an ideological nature. ment Fund and increases in funding, including $1.7 Mr KERR (Denison—Parliamentary Secretary for billion in last year’s budget alone. Pacific Island Affairs) (12.50 pm)—It is a great privi- I note with interest that Universities Australia was lege to be able to speak on the day following the very quick to respond to the minister’s announcement budget announcements of last night on a subject that of a review into higher education. It stated that it wel- was recognised as being of national importance. Uni- comed the review and that the examination of funding versity sectors have been the subject of an ideological arrangements must look at both private and public con- and quite malicious attack, albeit characterised by the tributions and their balance compared to other OECD former government as designed to increase access to countries. It was also interesting to read Universities tertiary education. The effect has been to require more Australia’s recommendations to the review in terms of and more Australians who wish to undertake tertiary social inclusion measures and improving student equity studies to pay quite outrageous fees and to bind the and access. It recommended a staged reduction in the universities into the ideological obsession of the former age of independence for youth allowance from the cur- government with its industrial relations policy pre- rent 25 years to 18, so that university students are not scriptions which were so resoundingly rejected at the assessed on the basis of their parents’ income and as- last election. Might I commence my remarks by sets, and the removal of the assessable income compo- springboarding off the budget last night, simply to ac- nent for all scholarships and bursaries regardless of knowledge that one of the measures will directly bene- their funding source. fit the University of Tasmania. I support this latter recommendation as it does in- While other members might not see that as the acme deed seem to be an impediment for some potential stu- of the budget, nonetheless in my mind a most impor- dents to re-enter higher education. As an example, one tant and significant element of the budget is a special of my constituents, Mrs Margaret Kous from Collie in one-off funding measure of $11.5 million as part of a my Forrest electorate, was awarded her diploma of nationwide total of $500 million from the Rudd gov- education from Edith Cowan University in 2000. Mrs ernment for priority areas in information and commu- Kous is also in receipt of a widow’s allowance from nications technology, laboratories, libraries, student Centrelink. Mrs Kous has been offered a $20,000 study spaces, teaching spaces and student amenities. To scholarship to enable her to continue her studies at have the opportunity to be able to speak on a bill to Edith Cowan University with the aim of re-entering the which this matter is directly relevant and to be able to workforce. However, the scholarship moneys are a express my happiness at this funding initiative directed component of assessable income and are counted as specifically at the University of Tasmania gives me real such by Centrelink. If this scholarship was a gift or pleasure as I am a graduate of that university and a untied to the assessable income component, Mrs member of the parliament who has always taken a very Kous’s pension payments would not be affected. direct interest in the wellbeing of that tertiary institu- Mrs Kous initially thought she might take $10,000 tion. of the scholarship money as a lump sum to assist her I come to the measures which are addressed most with petrol and car expenses, as she would need to specifically in this legislation, and address what I think travel from Collie to Bunbury and back several times was a very wrong direction—that was to tie universi- each week, a distance of 120 kilometres return. But ties’ hands to the Work Choices agenda that the former doing this would reduce her current Centrelink pay- government pressed, to its own destruction, over the ment from $329 per fortnight to just $63 per fortnight. last three years. What the former government did, Mrs Kous is now thinking twice about accepting the through measures introduced by the now Leader of the scholarship because, with the resultant reduction in her Opposition, Brendan Nelson, was to require universi- Centrelink allowance of $266 per fortnight, it would ties, as a condition of receipt of substantial levels of not leave her with enough funds to meet normal living government funding, to offer all staff AWAs and to expenses, plus travel to university. It does seem strange operate in what was called a ‘direct relationship with logic to treat this scholarship as ‘income’, thereby de- employees’ to preclude union involvement. This, of nying Mrs Kous the opportunity to become financially course, is a misuse of the power of the state to intervene in the managerial and operational conduct of the

CHAMBER 42 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 tertiary sector and not only undermined what had been The universities plainly are delighted that this measure a pretty effective and healthy relationship between uni- that is presently under discussion in the House seems versities and staff over a long period of time but guar- set to pass this House with a convincing majority. anteed that those institutions had no choice but to ac- Whilst it is the case that the opposition still has the cept an agenda that they were reluctant to adopt. capacity to be malign, and to exercise such limited au- In our own parliamentary environment we learnt, at thority as it still persists in holding until the new sena- a very early stage of parliament’s development, to tors come into office, I look forward to a clear indica- avoid those kinds of measures. In fact, one of the key tion from those opposite that they will not stand in the standing orders in our parliament is to make certain way of removing restrictions in university funding that that bills that appropriate money contain no other have hitherto tied those universities to AWAs. I sup- measures. The reason for that was the practice of early pose it would be hard to expect otherwise, given the governments, in monarchical times, to tack measures to opposition’s complete acceptance of the abolition of appropriation bills so that if those measure were passed AWAs in recent times and a belated recognition that they would necessarily bring with them other more they took industrial relations too far—that their views unpopular measures that would not otherwise com- had been seen as unfair, had been characterised by the mand the assent of the parliament. So, in the develop- community as unfair and had played a very significant ment of our parliamentary democracy it was decided part in the defeat that they suffered. very early on—as a rejection of that tying of the hands, Another measure that this addresses is the cost of in a sense, of the parliament—that a spending bill degrees. The Higher Education Support Act 2003, could not have tacked to it other kinds of measures. So which was the product of the now Leader of the Oppo- you could not put forward a bill that would say, ‘The sition, created a greater number of user-pays students only way this particular spending measure can be ap- through the FEE-HELP and OS-HELP schemes. I re- proved is if it incorporates some other quite draconian member very clearly the contemptuous dismissal of the measure that could not otherwise be introduced and idea that university fees would reach $100,000, but gain the support of the parliament.’ That, of course, had sadly in the course of the last three years over 100 such been the way previously that governments had got degrees nationwide came into operation at Australian away with very unpopular measures that would not tertiary institutions despite the 1999 pledge to the con- have passed the parliament. trary. So we now have a situation where we are starting But it was seen fit by the former minister for educa- to move towards the abolition of fee-paying arrange- tion, in the time he occupied that portfolio—he now ments for tertiary study for Australian students to make occupies the position of Leader of the Opposition—in certain that access is on the basis of merit and not on a sense to tack measures that the universities would the basis of who can afford to pay their way into terti- have rejected onto funding allocations so that the only ary institutions against the opportunities that would be choice they had was either to accept a level of poverty open to students of greater capacity but lesser means. in terms of the courses and arrangements they could We are getting rid of a situation where over 100 de- offer or to accept the ideological agenda of the gov- grees nationwide are now offered at a price of over ernment of the time. The universities have suffered $100,000. I have no doubt that that will be very wel- under those arrangements for a considerable time, and come to those who look forward to entry into the terti- some reflection of their present view can be had from ary education sector. the statement issued by Universities Australia last This debate is one of the oddest because it is charac- night. That media statement says: terised by many people who have benefited from the Universities Australia supports the Government’s action in openness of the university sector at a time when the this session of Parliament to remove the Higher Education Labor government under Gough Whitlam first re- Workplace Relations Requirements (HEWRRs) as a legis- formed the education sector. It made it possible for lated condition of funding for universities. people of limited means to enter the university sector, “Universities Australia would welcome the removal of the removed fees, saw the growth of the tertiary sector as HEWRRs as an indication from the Government that it is something that was essential for Australia’s long-term happy to loosen existing prescriptive requirements and allow prosperity and recommitted Australia, in a way that had universities to pursue their missions as self governing bod- not been done hitherto, to an expanded university sec- ies”, Universities Australia Chair, Professor Richard Larkins tor where those who had come from backgrounds of said. limited means could enter. Those same people, having The release continues: benefited from that period of innovation and openness Universities Australia looks forward to other restrictions in education, came forward and committed themselves being eased or removed across a range of Commonwealth to slamming the door shut and offering degrees that funding and regulatory activity. Universities have been their were open only to those who were wealthy or who had most dynamic in areas least directed by government ... scores which were sufficiently high to get them into the limited number of places that were open access.

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 43

Universities responded, of course, to this new edu- departed but with little prospect of coming to reality; cational economy. They had to in order to support and although, there may be some on the other side who still fund themselves. Increasingly, fee-paying places be- wish to retain fees of above $100,000. I am not certain came more important in overall university economies, whether the letting go of the Work Choices demon has and the distortion of the education sector began and exorcised with it the $100,000-degree golem that sat continued apace. That distortion was also continued with it. We will discover whether that is so when the through the determination to link universities to an matters hit the Senate. ideological agenda so that staff working in those uni- I am very pleased to have been able to come forward versities would have to be employed on arrangements in this parliament, in one of the first speeches after the that were consistent with the views of the government budget, to recognise this important change and also to of the day—that is, individual contracts—taking away conclude, as I began, with the recognition that the work the opportunity of representation through staff associa- is only beginning and that there is a far greater finan- tions and unions and deliberately pursuing an agenda cial contribution foreshadowed in the budget, in a $10 which was compelled on the universities by reason of billion education fund, together with a very specific set the funding clout that the Commonwealth had as their of commitments, some of which have been earmarked principal funding source. Labor, by contrast, has a for the tertiary institution where I studied and where I commitment to supporting higher education which was formerly the President of the Tasmania University means making universities accessible to a new genera- Union. I am certain that all those who are staff and stu- tion of Australians by phasing out full-fee degrees. dents at the University of Tasmania will be very This commitment builds upon federal Labor’s election pleased to acknowledge the receipt of that additional commitments to provide incentives for young Austra- $11.5 billion that was earmarked as part of the nation- lians to study and teach maths or science at university, wide fund—$500 million for those priority areas that to double the number of undergraduate scholarships, to were identified. double the number of postgraduate PhD and masters- I thank you, Mr Deputy Speaker Bevis, and com- by-research scholarships and to create 1,000 mid- mend this reform legislation to the House. I look for- career fellowships for Australian researchers. It sits ward to discovering whether or not the opposition still within the government’s broad policy of introducing a wishes to bat on with any resistance to a direction compact model of university funding consistent with which the community so comprehensively endorsed at ALP policy dating back to the 2006 white paper pro- the last election. duced by Jenny Macklin whilst in opposition. Mr SLIPPER (Fisher) (1.08 pm)—At the outset I These are healthy changes for the university sector. would like to congratulate the minister at the table, the Most importantly, they are healthy changes for our Hon. Duncan Kerr, who in my view ought to have been community because they mean we go back to a merit given a much higher position than that of parliamen- based system of selection for entry rather than the ca- tary secretary in this government. Having said that, I pacity to pay. They mean that universities can offer and agree with some of what he said. I must say, though, operate employment to staff by arrangements that are that I disagree with much of what he said in relation to negotiated effectively with their faculty, and they re- the Higher Education Support Amendment (Removal move the obligation that was imposed by the previous of the Higher Education Workplace Relations Re- government of running internal management issues in quirements and National Governance Protocols Re- industrial relations that were ideologically driven in an quirements and Other Matters) Bill 2008. This bill is area where this government had the capacity. We have really just a piece of Labor ideology. I suppose we are seen that the Work Choices legislation, whilst re- going to see more of this sort of legislation introduced moved, still casts a real shadow over those that were as we proceed into the term of this government. forced into circumstances of employment where they had limited choice. There is a transitional process that Some of the changes proposed in the bill may, as a will phase those things out. AWAs will no longer be consequence, remove the safeguards that promote ac- offered, but this is a slow transition. We are making it countability, business efficiencies and staff flexibility. plain that we have no desire to confront employers or These include requirements that tertiary institutions employees with arrangements that need to dislocate comply with certain workplace relations requirements settled employment contracts that have been entered and also that specific governance protocols be adhered into, but on the other hand we must make sure that we to so as to ensure these institutions are eligible for ad- move forward with fairness. This legislation comple- ditional government funding. This is underpinned by ments earlier legislation introduced into this parliament the theory that the allocation of these funds is accom- and passed by both the House and the Senate to get rid panied by a requirement to use the funds wisely and of the Work Choices legislation. I imagine the spectre responsibly. The removal of these governance proto- that this will be somehow resisted when it reaches the cols in particular also could have the potential to open Senate might be merely that—a spectre of a ghost long the door for a reduction in the transparency of the op-

CHAMBER 44 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 erations of universities, which are largely taxpayer sure that they promote best governance practices. funded, and counteracts what is a natural expectation Amendments to the Higher Education Support Act that the use of government or taxpayer funds by uni- 2003 in 2005 included requirements such as ensuring versities ought to be scrutinised very closely. university councils included membership with a wide The workplace relations requirements included that range of expertise and considerable commercial and staff were able to be offered the choice for their work business experience. It is important that people who are to be managed through an Australian workplace administering educational institutions do have business agreement alongside other available choices of a col- and commercial experience, because, let’s face it, one lective agreement or a common-law contract. Mr Dep- of the reasons that higher education institutions such as uty Speaker Bevis, you would be aware that an Austra- universities exist is to turn people out who are suitably lian workplace agreement gave a staff member who is qualified to play their role in the commercial market- highly qualified and a respected academic or opera- place and the commercial workplace in Australia. If tional employee the opportunity to negotiate a salary you have suitably qualified people, then that gives our and conditions in line with what the staff member be- nation the skills it needs to compete around the world. lieves that he or she is worth. He or she would be able It also gives the people who graduate successfully the to negotiate on his or her own terms and utilise his or capacity to have a long and successful work life. her own skills rather than be subject to a collective The requirement to include on university councils agreement or other contractual arrangement that the people with a wide range of experience, including staff member feels may not be in the best interests of commercial and business experience, was not a re- the staff member or may not best meet the wishes of quirement that aimed to control or limit the governing the staff member. body of an institution. Rather, it was designed to open The opportunity to choose an Australian workplace up the collective mind of the institution to ensure that it agreement as an alternative to others was one of the did not become bogged down in specific or narrow very sensible inclusions enshrined in the Higher Edu- viewpoints or bogged down in a specific way of doing cation Support Act 2003. This was an option that may things. It follows a theory that variety in membership not have been offered if not for the legislation but it works to encourage a wide range and number of views was an option that gave the employee greater flexibil- and to promote wider discussion to enable institutions ity in the workplace. It also gave the employee the op- to have the very best chance of success. portunity to make arrangements mutually satisfactory Other governance protocols included suggestions as and assisted to encourage openness and freedom of to the number of people on the council of an institution choice for employees when it came to these particular and a limit for those on councils to a period of 12 matters. Australian workplace agreements also had the years, which helped to foster a regular sense of renewal benefit of encouraging and fostering better and more and turnover, keeping the council fresh and maintain- direct relationships between employer and employee, ing a direction in line with the requirements of our encouraging the comfort of staff by delivering to them changing communities and society. more flexibility and personal control over their respec- Some of the changes included in this bill are ideo- tive work conditions—greater flexibility in workers logically based—such as the removal of an employee’s being able to negotiate conditions to their liking and choice to be employed under an Australian workplace the ability to reward outstanding employees. The need agreement—while others will remove safeguards to the to reward outstanding employees is a very important efficient and open operation of these facilities and in- principle because, unless employees are able to be ap- stitutions. propriately remunerated and rewarded for levels of The opposition is not opposing amendments relating competence, capacity and diligence, it could well be to workplace relations changes, consistent with the that tertiary institutions will not be able to attract the position taken by the opposition on other workplace quality of staff member or employee that the institu- legislation introduced into the parliament and subse- tions need to be able to compete as first-class tertiary quently carried. We are also not opposing amendments institutions in the world tertiary education marketplace. that do not relate to the national governance protocols. With this requirement being removed—that is, the abil- The legislation also covers a range of subsidiary mat- ity to negotiate—a concern may arise that some valued ters, which is occurring increasingly in this parliament. employees will not be satisfied with their work conditions and may feel that those conditions are not on a I am pleased to participate in this debate and I would par with what they would like, and we could see a sincerely ask the government to take on board the op- situation where those people are lost to the tertiary sec- position’s concerns with respect to improving this leg- tor. islation before the chamber. The bill also affects governance issues. It does make Mr NEUMANN (Blair) (1.17 pm)—I rise to speak sense to set requirements for these institutions to en- in support of the Higher Education Support Amend- ment (Removal of the Higher Education Workplace

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 45

Relations Requirements and National Governance Pro- not want employers and employees and universities tocols Requirements and Other Matters) Bill 2008. generally to be uncertain about funding and workplace This bill removes section 33-17 from the Higher Edu- agreements. cation Support Act 2003. The section required higher The removal of those conditions of funding under education providers to meet higher education work- section 33-17 means that universities will not be co- place relations requirements and national governance erced into offering AWAs to employees. I really won- protocols imposed by the previous government under der: if the Howard government was so convinced of the the Commonwealth Grant Scheme. If they did not, worth and desirability of AWAs, why did it make offer- those providers had imposed on them a reduction in ing them a financially coercive measure and why was it scheme funding for Commonwealth supported places. necessary to promote AWAs in this way to the higher Under section 33-17, a provider would have its funding education sector? Surely AWAs would have stood on reduced by 7.5 per cent if the minister could not be their own merits, and people would have flocked to satisfied the provider had complied with both the re- them, signing up to them everywhere! During my elec- quirements and the protocols as of 31 August each tion campaign, I found no-one who welcomed this sort year. of conditional funding and this big-fisted type of inter- The previous coalition government’s requirements vention in the higher education sector. I really do won- consisted of five elements in this section: a require- der: if AWAs were so attractive, so beneficial, so ad- ment to offer Australian workplace agreements to all vantageous, why the coercion? Why the big-stick ap- employees of providers of higher education; the prohi- proach? Why the bullying? We know what the higher bition of automatic third-party representatives; alleged education sector believed about it all. The Vice- workplace flexibility; productivity and performance; Chancellors Committee and its successor, Universities and freedom of association. The requirements formed Australia, opposed this aspect of the draconian Work part of the Howard government’s now discredited Choices legislation. Work Choices scheme. Work Choices stripped away The removal of the requirement as a condition of hard-won terms and conditions of employment, affect- funding means that the higher education sector need no ing families and individuals, including my constituency longer offer mandatory statutory contracts to its em- in Blair. Undoubtedly, it was the most important vote- ployees. The higher education sector will now come changing issue in my electorate in the 2007 federal under the Rudd government’s transitional industrial election. relations arrangements. Unlike the previous, coalition How did Work Choices come upon us? It came upon government, we do not distrust the higher education us in this way: no mandate was sought in 2004; no sector. The Rudd government’s new workplace rela- public consultation ever took place before it was im- tions scheme offers employers and employees flexibil- posed upon us; no consensus in the community was ity to negotiate in the workplace. The Rudd govern- formed before Work Choices was thrust upon us; and ment will streamline the awards and bring in new, sim- no amount of taxpayer funded advertising could con- ple national standards, which will be fully operational vince the Australian public that Work Choices was a by 1 January 2010. In the interim a genuine, not a fake, good thing. no-disadvantage test will be there—not a dodgy one The Rudd Labor government supports a fair, simple like the one the previous coalition government put in. and flexible industrial relations system. We believe that We will ensure that employees in my constituency the telephone book known as Work Choices should be of Blair will not be worse off. We will not sacrifice replaced and we should have National Employment employees’ terms and conditions on the altar of ideo- Standards—and I am pleased that they were released in logical zealotry. We heard a lot about ideology from the form of an exposure draft on 14 February which is those opposite. I have listened intently to the speeches open to submissions. We believe in award modernisa- of those opposite. They talk about ideology but fail to tion. Modernisation of awards is important to provid- recognise the ideology in the Work Choices legislation. ing a fair and relevant safety net, and it is a key objec- The Rudd Labor government has consulted with busi- tive of Forward with Fairness. It is important that peo- nesses, unions and community groups to ensure that ple understand that we in the Rudd Labor government there is balance in the industrial relations system. Con- are not against flexible work arrangements. The proto- trast that with 2004 and the Work Choices experience cols of the previous government talked about the size under the Howard government. In opposition, we told and composition of governing bodies of providers and the Australian people our policies, unlike Mr Howard the duties of governing body members. The Rudd La- in 2004. bor government will continue to ask providers to pro- The high priests of Work Choices opposite should vide good governance. The Rudd government wants be ashamed of themselves. They should tell the higher universities to be efficient administrators and effective education sector and the Australian public, once and educators of our people. The Rudd government does for all, just where they stand on Work Choices. As its

CHAMBER 46 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 architects, they should say what a future coalition gov- that to me. But we know the higher education sector ernment would do in relation to individual statutory knew the wrath of the coalition, and they have felt it. agreements. They warn of woe, and we have heard I will tell you where the people in my electorate speeches which say that the whole country is going to stand. I campaigned from Kalbar to Karalee, from rack and ruin. They also said that when we released our Ropeley to Ripley and from Booval to Boonah, and no- Forward with Fairness industrial relations policies in one said that they absolutely had to have Work Choices 2007. If they had the courage of their convictions, they in the higher education sector. It never happened. On would stand up for AWAs and Work Choices. They the contrary, I had conservative voters come up to me would not have sat there, and we would not have seen everywhere telling me they were going to vote Labor, the spectacle we saw earlier this year in this parlia- sometimes for the first time. I remember meeting one ment. woman, who was in her 60s, at the markets at Boonah. What are their policies now? I have listened to the She came up to me and said, ‘Shayne, I do not know speeches, and I just cannot work out where they stand. why Mr Howard has done this to me.’ I asked her what What will it be at the next election? These are all ques- it was, and she could not quite get the terminology tions which have been left unanswered by the Liberal straight, but it seemed that she was put on an AWA and Party. They are all over the place on Work Choices. she lost her terms and conditions which she had taken One minute they are devoted to it; the next minute they for granted. She told me she had been a coalition voter are denying it. Then they are denigrating it; then they all her life and never voted anything other than coali- are dealing with it; then they are dodging it. We are tion. I met a woman who had changed jobs, only to never quite sure where the Liberals stand. And yet not have an AWA put in front of her at the end of a week in a sign of contrition have we seen from those opposite. a training section. Her employer said, ‘If you don’t They could have done it all in March 2008; they could sign it, you lose your job.’ And do you know what that have done a mea culpa and said, ‘We got it wrong.’ But AWA said? It said that if you were five minutes late we have not seen that. They had their chance for re- then you could be sacked. That is what happened. She demption, forgiveness and a new start, and they have had to take the job because she had two kids at home to blown it. They have refused to support the govern- look after. People hated the deception. They knew ment’s motion to rule out individual statutory contracts about the ideology, and the Australian public voted once and for all. against ideology on 24 November 2007. The apostles of Work Choices are all publicly agnos- What is the legacy of Work Choices? Higher interest tics now. We really do not know what they believe, and rates, almost zero productivity growth, infrastructure I do not know that they believe themselves. They have deficiencies, skills shortages, terms and conditions secretly never renounced their faith in Work Choices. stripped away from working Australians, and higher They are the true believers—the true believers in Work education the least affordable in memory. The Work Choices. They campaigned for Work Choices, they are Choices legislation was fundamentally flawed because committed to Work Choices and they are converted to it assumed equality in the bargaining between employ- it. But they dare not speak its name. You do not hear it ers and employees. There simply is not. Employers mentioned in speeches in this House. It reminds me of decided the terms and conditions of employment and Harry Potter and JK Rowling. Remember Lord Volde- the way they were done. Despite the rhetoric we heard mort. Lord Voldemort was talked about by everyone. about flexibility in the workplace, it was wilfully mis- Harry was the only person who was able to say his leading. Very rarely was there any real negotiation with name. Everyone talked about ‘the Prince of Darkness’ employees, and very often signing AWAs was the con- and ‘He Who Must Not Be Named’. Work Choices is dition of employment, promotion, transfer or wage the Lord Voldemort of Australian politics now. increase. All too often, women and those in low-paid I have two university campuses in my electorate of jobs—for example, in the retail and cleaning sectors— Blair, one in Ipswich—the University of Queensland suffered. The evidence is in. It eroded standards of liv- Ipswich Campus—and one in Gatton—the University ing and left workers worse off, and it really was an of Queensland Gatton Campus. I have met with the offence to the traditional Australian values of decency higher education sector, and I have talked to the em- and fairness. The notion of a fair go was undermined, ployees, the unions and the Vice-Chancellor. I have sat and the fairness test was a joke. The government’s in- down and talked to them about this issue. I did that troduction of a real fairness test is about fixing the before the election, and I have done it since. During the fairness problems, not about fixing the next election as campaign and in my discussions, not one of the staff happened in May 2007. said to me, ‘You know, we need to cut funding to the During the 2004 election John Howard promised higher education sector and we need AWAs to meet the Australian working families that he would keep interest challenges of the higher education sector.’ No-one said rates at a record low. There was absolutely no mention of his extreme workplace relations system. On the day

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 47 that Work Choices became law, John Howard breached Relations between the higher education sector and his contract with the Australian people, forcing his ex- any government will not always be easy. Like any sec- treme laws through. It was an assault on the people in tor of the country, the higher education sector will have my constituency and not once did my opponent men- its barrows to push and its interests to protect, and no tion Work Choices when he criticised me for cam- doubt it will let the Rudd government know what its paigning on issues. Work Choices was egregious, ex- position is. But relations must be based on respect, treme and unfair, and that is why the voters in my elec- trust and cooperation. Dictating is not the way to go torate ousted the incumbent. How could members op- and it is not the Australian way. posite not know what Work Choices would do to peo- The bill before the House is about securing a Work ple? How could you possibly believe the member for Choices-free higher education sector. It is about pro- North Sydney on the Four Corners program when he tecting working families and individuals involved in said he did not know and the members in the cabinet our universities. It is about ensuring that employers and did not know what Work Choices would do to people? employees cooperate in the workplaces of our universi- Section 33.17 says everything about the coalition’s ties. Our universities must be places of learning, life attitude to university education, to academia and to the skilling and vocational preparation, not battlegrounds sector generally. It is emblematic of the previous gov- for the proponents and ideologues of Work Choices. I ernment’s attitude to the higher education sector. Re- know that my constituents and those in the higher edu- placing that section of the act makes it crystal clear to cation sector in Blair will welcome this bill, and I do the higher education sector that the days of conditional also. I commend the bill to the House. funding based on workplace agreements are over. Re- Mr PERRETT (Moreton) (1.33 pm)—Mr Deputy moval of the guidelines contrary to the prescriptive Speaker Bevis, with your education background, I elements of the requirements and protocols is the right know how interested and concerned you are with the thing to do by the sector and by the working families Higher Education Support Amendment (Removal of and individuals whose members work as lecturers, tu- the Higher Education Workplace Relations Require- tors and in administrative capacities. ments and National Governance Protocols Require- The other important aspect of this bill is technical. It ments and Other Matters) Bill 2008. It is an honour to deals with the Commonwealth being allowed to desig- speak about it in front of you today. Like the previous nate bodies to perform auditing re higher education speaker, the member for Blair, I am very pleased to providers and to set requirements that must be met. It is speak in support of the higher education support anticipated that state and territory accreditation au- amendment bill, a bill that could be paraphrased as thorities and not just the Australian Universities Qual- ‘sending down the HEWRRs’. This bill will overturn ity Agency would be involved. Two states— part of the Howard-Costello ideological crusade to in- Queensland and Victoria—had a trial of this process. It fect Australian workplaces with harsh, extreme, unfair is expected that audits and the accreditation process and impractical workplace laws. That last word, ‘im- can be done contemporaneously to reduce time and practical’, is most important. Unfortunately, the previ- bring about efficiencies. This is likely to reduce costs, ous government was so hell-bent on this ideology that red tape and the administrative burden for all con- they even forced Australian workplace agreements on cerned. universities and then had the hide—the hide of a rhi- The Rudd Labor government is serious about good noceros—to call it choice. When members opposite governance. Witness the Commonwealth Authorities talk about choice, obviously the ‘Hobson’s’ is silent. and Companies Bill, which was passed earlier this The bill before the House today revokes section year. That was about transparency, accountability and 33.17 of the Higher Education Support Act 2003. This good governance in relation to companies and directors Hobson’s choice piece of legislation tied universities’ and bringing these in line with the Corporations Law. funding to their implementation of higher education The higher education sector has taken steps to ensure workplace relations requirements, colloquially known compliance with National Governance Protocols, and as the HEWRRs, and also the National Governance all the requisite state and territory legislation amend- Protocols, the NGPs. When I was growing up, when- ments necessary in this regard have been enacted. The ever it rained in St George, which was not very often, Rudd government will encourage good governance in my mum would always say, ‘Send it down, Hughie!’ the higher education sector also. However, relations So it is amazing that we have now got some legislation between universities and the previous coalition gov- that is about sending down the HEWRRs, although I ernment were distrustful and antagonistic. The Work do not think it is connected to the previous word Choices requirements imposed by the Howard gov- Hughie, which I think is a corruption of Jupiter or ernment on universities were about financially punish- something like that. ing universities if they did not become paid-up mem- Under this strange piece of ideology, in practice, a bers of the Work Choices party. university would have its basic Commonwealth grants

CHAMBER 48 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 scheme amount reduced by about 7.5 per cent—that is, Hobson’s choice section 33.17. It is a history that needs a higher academic institution would have its funding to be hung around the necks of those people opposite cut by about 7. 5 per cent if it failed to satisfy the pre- like a dead albatross. Who was it who introduced this vious minister that it had complied with HEWRRs and unfair legislation to the parliament? You do not have to NGPs. In other words, the Howard-Costello govern- go to your history books, because it is the former edu- ment held universities and higher education providers cation minister, the current Leader of the Opposition, to ransom. Either they had to pursue the former mem- Brendan Nelson. It is the same opposition leader who ber for Bennelong’s and the current member for North is now trying to scratch away from this policy like a Sydney’s approach to workplace relations or they veritable scrub turkey. Now he is trying to leave the would suffer a significant financial penalty. I say that dungheap that he created behind. It is just another ex- percentage again: 7.5 per cent. It is still hard for me to ample of the flip-flop characteristics of his personality. accept that, in this millennium, a government would be The main element of the John Howard-Peter committed to taking money out of higher education or Costello higher education workplace relations require- any education establishment rather than pouring money ments was for universities to offer Australian work- in. Furthermore, universities and higher education pro- place agreements to all employees—yes, all employ- viders were not able to compete on an even playing ees, not just the academics at the top of their game who field with the universities down the road unless they might be on a decent wage. It was actually being im- chose to undercut the rights and conditions of their posed on all the employees in the universities, and we workers. have heard from the previous speaker, the member for Universities are already under significant financial Blair, of the consequences for people who have no bar- pressure after nearly 12 long years of neglect when we gaining power and no opportunity to negotiate with saw the funding ripped out of the higher education sec- their employers. The fact that these requirements were tor. The OECD’s Education at a glance 2007 report—a included in legislation in the first place is a sign that very respectable journal—found that public investment even back then the former coalition government knew by the Howard-Costello government in tertiary educa- that workplace agreements were toxic. They knew that tion between 1995 and 2004 declined by four per cent, AWAs were so unpopular with employers and staff that while in the other OECD countries it increased by an the only way to get universities—and obviously with average of 49 per cent. universities we are talking about many educated peo- I have got a couple of university degrees. I have got ple, informed people who have perhaps a little bit of a diploma of teaching and a law degree and an arts de- clout in terms of understanding industrial legislation— gree, so it is completely unbelievable to me that a uni- to consider offering AWAs was to hold a gun to the versity system could be attacked by a federal govern- heads of the universities through legislation and those ment. That is such a shameful legacy that the people severe financial penalties that I outlined earlier. This opposite need to hang their heads in shame every time was more about prosecuting an ideological agenda than this legislation is discussed. In terms of a plan for the sound public policy. The John Howard-Peter Costello future, they were going to base their plan for the future government thought it knew better than university on the horse and cart, basically, rather than the smarter leaders and staff how to run their institutions. The peo- approach to education. When I was at university, I was ple who were actually involved with running modern either too busy for student politics or too busy study- day academic institutions were not consulted. How ing—and I would like to say that I might be misleading wrong John Howard and Peter Costello were. Their the House. But maybe the people opposite had a differ- ideas added to administrative workloads, but for no ent experience when they were at university and be- gain whatsoever. cause they had a bad history of student politics they The passing of this bill will ensure that universities felt it necessary to wreak some revenge on universities no longer be required to offer AWAs as a condition of with VSU legislation and the like. That record of rip- funding under the CGS. It will ensure full Common- ping money out of our universities over the last 11 or wealth grant funding for universities. In my electorate 12 years is a shameful legacy. of Moreton, Griffith University has suffered because of Unlike the Howard government, the Rudd Labor section 33.17 and the John Howard-Peter Costello government has a long-term enduring commitment to higher education workplace requirements, the the importance of higher education in our universities, HEWRRs. It has imposed a huge administrative burden and we saw some of those measures unveiled in Wayne and a huge cost on the university in setting up an in- Swan’s budget last night. We believe in the future. We dustrial system that was unmanageable, unwieldy and are not trying to make up for gripes or grievances from unfair. It beggars belief why the previous government our university days; we actually have a plan for the would force such an expensive system on already cash- future, a plan for the nation. I think it is important for strapped universities. As I mentioned earlier, there had members to be familiar with the history of this been that real decline compared to other OECD countries. This is a time when universities actually needed a

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 49 helping hand. Instead, all they were offered was a boot I also want to take this opportunity to thank Griffith on their throat. Griffith University, the university in my University for their part in hosting the Moreton 2020 electorate, and all other universities, were forced to Summit on 5 April. The Deputy Vice-Chancellor, Aca- waste huge amounts of time, money and staffing to demic, Professor John Dewar, and his capable senior implement this unwanted system, this bizarre ideologi- staff ensured that more than 400 people from my elec- cal pursuit. torate on Brisbane’s southside had a chance to rock up I am advised that Griffith University did nothing ac- and have their say and explore real solutions for Aus- tively to force AWAs on their staff. Rather, they did tralia’s future. That is the way to proselytise an idea: what was required under the antediluvian legislation invite the public along and talk about things. That is when the gun was at their head. In fact, the very day the way to use academic institutions, rather than hold- that Griffith University signed off on their latest collec- ing a gun to their heads and ramming something down tive agreement was the very same day that the Howard their throats—if that is a mixed metaphor, I apologise. government’s higher education workplace relations Universities should work hand in hand with govern- requirements kicked in. It was a collective agreement ment and their communities; they should be given a negotiated fairly, with justice and with dignity, and one helping hand, not the hammer that was used by John that all the participants agreed to. But, instead, the gun Howard. This is exactly what universities should be all was put to the university’s head, and Griffith, like other about. It is not a university’s job to implement the un- universities, was hamstrung by the requirements which ion-busting agenda of a coalition government, and forced them to offer AWAs to all staff. But how effec- those opposite should be ashamed of their role in that. tive was that system? Only a handful of Griffith Uni- As we have seen in this parliament since November versity staff took on a workplace agreement. And even last year, there have been ample opportunities for them though they were academics and knowledgeable in to scrape Work Choices off their shoes but, no, while their academic areas, those areas were not industrial they can still smell it they have not agreed to do so. I law and so some of them had no idea what they were look forward to a productive and healthy relationship signing up for. They were offered AWAs but, although with my university, Griffith University, and I am proud they are literate and academic, they did not understand that such a progressive institution was acutely involved the documents that were put to them. in the Moreton 2020 Summit. It was a fantastic event and I look forward to those ideas being implemented in In fact I heard a story about one senior academic the lead-up to the end of the year. staff member at Griffith who took on an AWA inadvertently after returning to Queensland from a stint over- Returning to the legislation in front of us, the higher seas. He came back to the university, thought things education support amendment bill, I think it sends a were much the same as they had always been, was of- strong message that the Rudd Government is serious fered a job contract, effectively, but did not read all the about restoring a fairer workplace relations system in details and so inadvertently signed up to an AWA. He Australia. It will also remove the unnecessary adminis- was employed in 2006 under an AWA at a 2005 pay trative burden for universities—running around doing rate. It was not until 18 months later, when he was talk- something that had no productive benefits—at a time ing to his colleagues and found out he had not got a when they are strapped for cash. As the Group of Eight pay rise like all the other staff, that he realised what universities have said: was going on and that he had signed up to an AWA. I There will be a much reduced compliance, bidding and re- am not suggesting there was duress or undue influence porting burden placed on universities and greater flexibility or anything like that. But it goes to show that if an aca- over the use of resources. demic, who is educated and has resources, does not I will also quote from a media release from Universi- understand what they are signing up for then what ties Australia, which is the peak body. The release, is- chance does someone like an uneducated cleaner have? sued on Tuesday, 13 May, says: Under the Australian workplace agreement that this Universities Australia supports the Government’s action in academic had signed, even though he had 18 months this session of Parliament to remove the Higher Education without a pay rise while his colleagues did progress, he Workplace Relations Requirements— had no protection whatsoever. He was just another vic- Nelson’s HEWRRs— tim of John Howard and the current member for North as a legislated condition of funding for universities. Sydney’s unfair workplace laws. This was certainly not “Universities Australia would welcome the removal of the the fault of the university, just the result of that un- HEWRRs as an indication from the Government that it is workable, unfair system. I know the higher education happy to loosen existing prescriptive requirements and allow sector will welcome the passing of this bill. I have cer- universities to pursue their missions as self-governing bod- tainly been approached by many academics over the ies,” Universities Australia Chair, Professor Richard Larkins past couple of months who are very keen for that to said. take place because the bill ensures university funding is no longer tied to Brendan Nelson’s HEWRRs.

CHAMBER 50 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

That is basically saying: to do what they do best. Pro- Work Choices road. It is a very important bill to restore fessor Larkins continues: the rights of employees and employers to enter into “Universities Australia looks forward to other restrictions agreements of their choosing. But it has a wider con- being eased or removed across a range of Commonwealth text in the sweep of our country’s traditions. The need funding and regulatory activity. Universities have been their for this bill shows that, when John Howard left office, most dynamic in areas least directed by government, such as liberalism was dead and buried in the Liberal Party. postgraduate coursework and international student initiatives These laws put in place by the Liberal Party were, in ... many ways, the symbolic gravestone of liberalism in That dry academic language—’universities have been the Liberal Party. These Liberal Party laws are total their most dynamic in areas least directed by govern- anathema to the higher education system. These Lib- ment’—does not tell the story of how hamstrung they eral coalition laws represented a clear and present dan- have been and how that has been such an assault on ger to university academics. what universities do best. Traditionally the role of higher education institu- The universities will be subject to the government’s tions formed an integral part of liberal philosophy and fairer and more balanced transitional workplace rela- thought. Universities were places where freedom of tions which are also before the House. This govern- thought was paramount. The liberal tradition held that ment understands how to consult with industry, how to knowledge, the advancement of social theory and sci- consult with unions, how to consult with the commu- entific development were best fostered free from the nity. We do not try to rush things through quickly. We interference of the state. Universities under the liberal certainly will not be having the farce of one day’s con- tradition have clung fast to that view for centuries. sultation, like John Howard did in the past. More im- Then along came Prime Minister John Howard, who portantly, we went to the electorate seeking approval tore up and totally shredded that theory, and who did for what we stood for in terms of industrial relations not worry about liberal principles or traditions. The and then we received a mandate in November last year then government decided exactly how universities to implement that. That is unlike the 2004 experience, would be run right down to every agreement entered when there was no mention of industrial relations in into between universities and every member of their any of the political propaganda, and then all of a sud- staff across Australia. John Howard tore up the liberal- den, after election night and the Senate result, John ism and got his way on narrow ideological obsession, Howard was a born-again industrial relations advocate. which amounted to a petty antisocial vendetta against It was a shameful display in terms of his contribution university staff with more social views of the world. to the Australian community. So, from now on, the All universities and higher education institutions were universities will be subject to a much fairer regime. compelled to think his way or lose millions of dollars Thankfully, this goes hand in hand with the Rudd gov- in funding. All universities had to have John Howard’s ernment’s approach to the future, which is: we believe view of the way people acted and reacted in their in a future beyond election night 2010 or 2011, when- working arrangements. All universities and their work- ever that might be. We have a plan for all of Australia ing arrangements had to treat their tutors, professors, for all of the future, not just through to election night. I associate professors, deans and vice-chancellors as thank the Deputy Prime Minister for addressing this John Howard decreed or be harshly penalised finan- matter so quickly and, in doing so, I commend the bill cially. The clauses rammed through on the Higher to the House. Education Support Act 2003 by John Howard should Mr CHEESEMAN (Corangamite) (1.52 pm)—It is be inscribed on the gravestone of the Liberal Party a pleasure to speak on a bill that will remove system- when they finally have the courage to admit that they atic intimidation from the Australian higher education are no longer liberals and the Liberal Party is no longer system. It is also good to speak to a bill that will help a liberal party. return some of the underpinnings of academic free- Under liberal university tradition, tenure was very doms. The Higher Education Support Amendment important. It was something that enabled university (Removal of the Higher Education Workplace Rela- staff, academics, tutors, professors, associate profes- tions Requirements and National Governance Protocols sors and researchers to pursue ideas and theories with- Requirements and Other Matters) Bill 2008 is designed out fear or discrimination. Of course, over the years, to correct gross interference and clear intimidation suf- views about merits of tenure have changed. The one fered by universities and their staff. view that has remained constant in this time, however, In having to introduce this bill, the Rudd govern- is Labor’s view. We have always held fast to our prin- ment shows how far the Howard government went ciples. A core principle is that employees, whoever with their ideological obsession before they were un- they are—whether academics, teachers, health work- ceremoniously turfed out of office. We know this bill is ers, journalists or tradespeople—are entitled to some about getting rid of the laws that forced every em- job security. We believe job security is important to ployee, every employer and every institution down the people’s peace of mind. It is important for people to do

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 51 basic things like knowing that they can pay the mort- QUESTIONS WITHOUT NOTICE gage but it is also important in terms of them being Budget 2008-09 able to express an opinion. Under the Work Choices Dr NELSON (2.00 pm)—My question is to the legislation, how many times had we heard stories about Prime Minister. Why has the Prime Minister failed to an employee getting targeted, bullied, taken advantage take decisive action and lay out a plan to deal with gro- of or sacked because they had expressed a view con- cery, petrol and mortgage stress on all Australian fami- trary to their employer? Time and time again we heard lies in last night’s high-taxing budget? Prime Minister, it. As we know most employers are not like this, but how will $19 billion of extra taxes, including taxes on some are. Some, when they have a bad day, take it out family cars, oil, alcohol and computer software, ease on others. the inflationary pressure on Australian families? The academic world is to a large extent a world of Mr RUDD—I thank the honourable member for his ideas. It is also increasingly a competitive academic question. This budget begins an era of responsible eco- world. There is vulnerability for people in the aca- nomic management in Australia. The reason is that we demic world to be targeted and punished for their ideas have generated in this budget a surplus which is the under Work Choices legislation—which is what John second highest in a decade. It is also a significant Howard wanted. The changes he put through under the budget in Australia’s recent economic history in terms Higher Education Support Act forced universities to go of the surplus rendered. The reason that we delivered down the Work Choices path. Universities had no this sort of economic outcome was because we needed choice. Every university had to put on the Work to take on the fight against inflation. That meant ensur- Choices straitjacket and goosestep down the recently ing that when it came to our handling of government unseated Prime Minister’s road. Work Choices, of outlays we did not perpetuate the spendathon of those course, shreds any sense of job security or tenure in opposite. As we have seen in recent years, government any form at all. We need to give universities the chance expenditure has mounted and mounted. Instead, we had to choose. Universities should not be forced to offer to send that back in reverse direction. Now we have AWAs to staff. Universities should be able to sit down landed at a point where government expenditure as a with their staff and work out the industrial relations proportion of gross domestic product is now lower than arrangements that best suit them. They should be given anything delivered by those opposite in their entire the opportunity to sit down, talk with staff and work period in government. out a compromise to satisfy management’s desire to effectively manage employees’ desires for job security Turning to the tax side, tax as a proportion of GDP and reasonable salary and conditions. has gone down as a consequence of this budget. That comes on the heels of our predecessors having run a The Work Choices laws that were foisted on Austra- series of tax outcomes for the Commonwealth which lian universities meant that, anywhere, anytime, em- imposed larger and larger taxation burdens not just on ployees could be sacked for no reason. If you were a families but also on businesses. All these measures lecturer at the University of Melbourne or the Univer- were necessary to place downward pressure on infla- sity of Sydney and someone took a set against you, tion. When it comes to the alternative put by those op- anyone with a basic grasp of Work Choices could send posite, their alternative, as articulated by the shadow you off down the highway—John Howard’s ‘my way Treasurer is this: there is no economic case to cut gov- highway’. ernment spending. That is the core characteristic of the These terrible laws, which resulted in the Prime economic strategy offered by those opposite. It is a Minister losing his seat, along with dozens of his cro- recipe for economic disaster, because those who bear nies, are bad for universities, bad for TAFE colleges, the inflationary burden are working families. We have bad for schools and bad for every Australian work- acted responsibly for them in the fight against inflation place. They are especially bad for universities. The and we have delivered at the same time a package of overwhelming majority of Australians recognise that. measures to support those working families under fi- This bill will rid us of Work Choices from another im- nancial pressures, a package of which the government portant area of Australian life. This bill will rid impor- is proud. tant institutions of these rotten laws. Budget 2008-09 The SPEAKER—Order! It being 2 pm, the debate Mr TREVOR (2.02 pm)—My question is to the is interrupted in accordance with standing order 97. Treasurer. Will the Treasurer outline for the House the The debate may be resumed at a later hour. The mem- steps taken in the budget to fight inflation and invest in ber for Corangamite will have leave to continue speak- the future? ing when the debate is resumed. Mr SWAN—I thank the member for Flynn for his question. Last night, this budget began a new era of investment in the future, something that every member

CHAMBER 52 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 on this side of the House can be proud of. It is a budget failure to address the supply side challenges in the Aus- that delivers for working families and invests in the tralian economy is the Reserve Bank acting time and future. It is a budget in which there is some real spend- time again. Ultimately, that has an impact on domestic ing restraint for the first time in a very long time. activity; hence the projections for growth and employ- Every single dollar of new spending was more than ment that you see in the budget papers. On the question matched by savings elsewhere in last night’s budget. of tax, we have delivered an outcome which represents We have begun a new era of responsible spending after a decrease in tax as a proportion of gross domestic 11 years of recklessness from those opposite, and par- product, in contrast to what we inherited from those ticularly from the former Treasurer, who went on a opposite. It is a record of which we are proud. Those spending spree in the run-up to previous elections, opposite should hang their heads in shame. which put upward pressure on inflation and upward Budget 2008-09 pressure on interest rates. That is why this government Ms CAMPBELL (2.07 pm)—My question is to the has tackled the inflationary challenge. Prime Minister. Will the Prime Minister inform the It is also why we have decided to make the invest- House of the benefits of last night’s budget to Austra- ments in the future that we announced. We have an- lia’s future? nounced three multibillion dollar funds to invest in the Mr RUDD—Australia has begun, through this future. The first one is the $20 billion Building Austra- budget, a new era of responsible economic manage- lia Fund. It has the strong support of everybody from ment because we have delivered a big surplus of $21 this side of the House—after decades of neglect from billion plus. It is a budget surplus which is the second those opposite. We have announced the $11 billion highest in 35 years. It is a budget surplus of which this Education Investment Fund, which will pay for ongo- government is proud. Furthermore, we have done so by ing improvements in our TAFEs and universities as bringing down government outlays. We have generated part of the education revolution. That is what we sup- one per cent growth in government outlays in contrast port. Thirdly, the $10 billion Health and Hospitals to the 4.5 per cent real increase in outlays inherited Fund will pay for better hospitals, better healthcare from our predecessors. And before they talk about what generally and important medical research. That is what they were planning to do in the future, look at what this side of the House supports. they projected for the year ahead, 2008-09, in terms of What does the other side of the House stand for in their own outlays when they were last in government— the middle of all of this? The Liberal Party has lost its an increase in outlays of nearly three per cent. Even way on the economy. What they are is the party of wel- against that measure we represent one-third of what fare for millionaires. They are the high inflation party. those opposite were proposing to spend. This is not just They are the same old Liberals who neglect hospitals a comparison in reflection; it is a comparison in antici- and neglect the education system. We on this side of pation of the clear plans outlined by those opposite. the House are the only ones who are fair dinkum about So in terms of delivering a responsible outcome on fighting inflation and investing in the future. That is outlays we have delivered an outcome with expendi- what last night’s budget proves. ture as a proportion of GDP being the lowest since Budget 2008-09 1989-90—lower than any of the budget outcomes de- Dr NELSON (2.05 pm)—My question is to the livered by those opposite. On top of that we are reduc- Prime Minister. Prime Minister, how does increasing ing the overall taxation burden as a proportion of gross taxes on Australian families by $19 billion help the domestic product, which is consistent with our pre- additional 134,000 Australians the government predicts election promises, and we do so having inherited eco- will be out of work over the next year? Doesn’t rising nomic circumstances whereby those opposite delivered unemployment across Australia illustrate that the Prime to this nation the highest inflation rate in 16 years. Minister has failed to take decisive action in his high- Therefore, within that framework, the government taxing budget to help people keep their jobs? has brought forward an economic strategy which does Mr RUDD—I thank the honourable member for his three things. Firstly, it fights against inflation by deliv- question. As we have seen the unfolding of the global ering a responsible economic outcome with a signifi- financial crisis and its impact across North America, cant budget surplus. Secondly, it does not accept the across Eastern Europe and across the East-Asian hemi- proposition advanced by those opposite that working sphere, the impact on growth across the world has been families have never been better off—that was their drawn down. As a consequence, that has impacted also boast and they never contested it. We believe that on Australia. Secondly, if we are looking at impact on working families are under pressure. That is why the growth, one of the things which does have an impact centrepiece of our budget strategy is a $55 billion sup- on economic growth is 12 successive interest rate rises. port package for working families, of which we are What we have had as a consequence of economic mis- proud. management on the part of those opposite and their

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 53

On top of that, as the Treasurer has just outlined, we band, as well as the needs in our TAFE system, our have brought down a nation-building budget for the university system and our health and hospital system. 21st century. We have brought down three investment We believe this is the right way forward. It will take funds for the future totalling $40 billion. We have time to do, but we are determined to embark upon this brought forward the $20 billion Building Australia course of nation building for Australia’s future and we Fund, the $10 billion Health and Hospitals Fund and are proud of this plan; it is core to the government’s the $11 billion Education Investment Fund. We have budget strategy. done this because these have been areas of systematic Budget 2008-09 neglect on the part of those opposite who year after year have taken budget surpluses and squandered them Mr TURNBULL (2.13 pm)—My question is to the through unprofitable consumption. Treasurer. I refer to the Treasurer’s promises to make big cuts in net expenditure in his budget and to put We in contrast have a different economic strategy, downward pressure on inflation—promises so convinc- which is to invest in the future. If you take infrastruc- ing that we were concerned that the Treasurer’s cuts ture alone, CEDA reports that, as a result of underin- might be too savage. Why is it then that the Treasurer’s vestment, the backlog in infrastructure investment for own budget papers show that $15 billion of Howard water, energy, and land transport is alone around $25 government expenditure was cut, yet it was replaced billion. That is costing around 0.8 per cent of GDP a with more than $30 billion of his own expenditure? year in lost production—that is $8 billion a year. That Will the Treasurer now concede that there will be a net is a stunning statistic given that those opposite had 12 increase in expenditure in this high-taxing budget over long years to act on that underinvestment. the next four years and that all of his prebudget rheto- Well, we have decided to act. We have established ric was a complete con? the Building Australia Fund and we therefore will be Mr SWAN—I will be pleased to answer that ques- acting on these key areas of challenge—challenges that tion because I think the member for Wentworth is play- the Reserve Bank of Australia presented those opposite ing with the figures as usual. with multiple warnings on during their period in government: skills constraints and infrastructure bottle- Dr Nelson interjecting— necks. Mr SWAN—And the numbers of course—he knows Look at the specific projects that we will investigate, the numbers. The ones in the party room, they are the with the states, in the 12 months from here, before the ones he knows. funds flow from the Building Australia Fund, from 1 Spending in this budget as a share of GDP is the July 2009: the western metro rail link and the eastern lowest for any budget since 1989-90—lower than any section of the M5 in New South Wales; components of year of the Howard government. And so is the tax to the east-west transport corridor and the Western Ring GDP ratio. I do not expect those opposite to take my Road in Victoria; key sections of the Bruce Highway word for it but I tell you what I think they should take and the Gateway Motorway in Queensland; a transport the word of. They should take the word of Goldman master plan for Perth airport; a transport sustainability Sachs and their budget review today. This is what they study for Adelaide; and other projects as well. had to say: Opposition members interjecting— After 2 years of notable conflict, finally we have fiscal Mr RUDD—I hear injections from opposite about policy that is pushing in the same direction as monetary policy. these being state responsibilities. If you look at the cost of any one of those major projects for metro Australia, That is what Goldman Sachs had to say today in their whether we are talking about Sydney or Melbourne or economic monitor. This is what they also had to say: other transport projects for elsewhere across Australia’s A clear picture of the restrictive nature of the budget capital cities, these are megaprojects. The response of emerges from the expenditure estimates which suggests that those opposite is to say, ‘Not our problem. Buck pass the reduction in new policy decisions is equal to the coali- to the states—blame the states. Not our job.’ Our re- tion’s first and only attempt at fiscal restraint. sponse is: let’s be part of the national solution, not just End of story. be part of a carping national problem, which those op- Budget 2008-09 posite seem to specialise in. Mrs D’ATH (2.16 pm)—My question is to the We are proud of our investment plans for the na- Treasurer. Will the Treasurer explain to the House the tion’s future. The money invested in these funds for the need to provide transfer payments in the most respon- future—$40 billion—is not our money, it is not the sible way? Liberal Party’s money, it is taxpayers’ money. What we Mr SWAN—I thank the member for Petrie for that have decided to do through this budget is invest their question. This side of the House does not believe that money back into the priorities which they themselves the wealthiest Australians need welfare from the gov- identified: transport infrastructure, ports, roads, broad-

CHAMBER 54 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 ernment. Paying transfer payments to millionaires is Budget 2008-08 simply impossible to defend. We believe we need to Ms JACKSON (2.20 pm)—My question is to the put transfer payments onto a more sustainable footing Minister for Education, the Minister for Employment to help us with the fight against inflation. That is why and Workplace Relations and the Minister for Social we took the tough decisions in last night’s budget to Inclusion. Will the Deputy Prime Minister update the means test family tax benefit part B and the baby bo- House on how the 2008-09 budget will boost produc- nus. That is a decision we made; it is a decision we tivity? stand by. Unfortunately, those on the other side of the Ms GILLARD—I thank the member for Hasluck House do not appear to have any idea about where they for her question. Of course, I do wait every day to be stand on this issue. asked a question by the shadow minister for education, The Leader of the Opposition was interviewed this but it never happens. The Marcel Marceau of Austra- morning. He was asked on ABC TV, ‘Is that reason- lian politics, he still cannot quite work his way out of able—$150,000?’ Dr Nelson said, ‘Of course we, that imaginary glass box. But one of these days we well—just have a look at this.’ Chris Uhlmann asked might see him actually spring out to the dispatch box Dr Nelson, ‘You have not got an opinion on that?’ Dr and ask a question. Nelson said, ‘Well, let’s just have a look at the fine The member for Hasluck has asked an important print.’ That is really decisive, isn’t it? Of course, we question about the future of this nation and what was have the shadow Treasurer. Last week, he said there delivered for productivity in last night’s budget deliv- was no case for spending cuts; this week, there is a real ered by the Treasurer. Productivity is a concept that the case for spending cuts and he wants more. They do not Liberal Party has never understood. It never under- know whether they are Arthur or Martha. The Liberal stood that you needed a fair and balanced workplace Party have lost their way. relations system to deliver productivity and it never Budget 2008-09 understood that you need a world-class education sys- Mr TURNBULL (2.18 pm)—My question is to the tem now so that we can have productivity, participation Treasurer. I ask the Treasurer to confirm that his high- and prosperity in the future. Our government, the Rudd taxing budget will directly increase the price of alco- Labor government, is committed to delivering a new hol, cars and, as the Prime Minister confirmed today, era for our education system: the education revolution health insurance premiums. I ask the Treasurer: how that we promised the Australian people. An important can he reduce inflation by increasing prices? What kind thing to recognise in this budget is this is a government of voodoo economics is he peddling? Doesn’t this that delivered what it promised at the last election. show, yet again, the government has no decisive strat- Across the suite of education—from the education of egy to meet Australia’s economic challenges? our smallest children in preschool through to our uni- Mr SWAN—It is a bit rich getting that question versity system, through schools, through vocational from the Liberal Party. They are the best friend infla- education and training—this is a government that is tion ever had. A 16-year high—that was the legacy to delivering on its commitments. That was a foreign this country. It has fallen to the Labor Party in govern- concept to the former government, which, of course, ment, the Rudd government, to take the decisive action invented the terminology ‘non-core promise’. that is needed in cutting spending: $7 billion worth of This is a government that takes its promises seri- spending cuts, $7 billion worth of savings in the 2008- ously and is delivering them through this budget. I do 09 year, and $34 billion over the forward estimates. not have the time to take you through every education That is our contribution to the fight against inflation. measure in this budget but it is important to recognise Those opposite do not have a policy to tackle inflation that the earliest education of our youngest children— at all. Before this week and before the budget, the where the world research undoubtedly says that if you Treasury spokesman said there was no need for spend- can invest in the education of children between the ing cuts. Today he is out there saying there is a need ages of zero and five it is the most prudent sort of infor substantial cuts. He does not know what he is do- vestment—is an area where Australia, courtesy of the ing. Howard government, radically underperforms by world Mr Turnbull—Mr Speaker, I rise on a point of or- standards. In this area, in this budget, the government der of relevance. I have asked the Treasurer whether he has committed $2.4 billion to early childhood educa- would confirm that the budget will increase the price of tion and care initiatives, including our commitment to alcohol, cars and health insurance premiums and how universal preschool for all children in the year before that can reduce inflation. He has not chosen to answer schooling. either question. And, of course, this budget delivers on the substan- Mr SWAN—The whole budget is tackling inflation. tial investments we want to make in schools: on our The forecasts are there. digital education revolution, our trades training package, national curriculum, Asian languages—and the list

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 55 goes on. This is a budget that invests in the future of in the future of universities and charting their course Australian schooling. It is a budget that assists fami- for the next decade, and in the future of our vocational lies, through the education tax rebate, to enable fami- education and training system, and charting its course lies to have some assistance to afford that expenditure for the next decade. This stands as a stark contrast to that they want to make to facilitate their child’s educa- the former government, which used to abuse university tion. So whether it is with broadband at home or a academics, micromanage their affairs and impose ex- textbook at home, there is relief for working families treme industrial relations on them. It is a stark contrast with the education tax rebate. Then, in vocational edu- to their failure to invest in vocational education and cation and training, this is a budget that delivers on the training, which has created today’s skills crisis, putting government’s promise to address the skills crisis left to upwards pressure on inflation and interest rates. This is it by the inaction and neglect of the former govern- a budget that lays the foundation stones for the gov- ment. It is a skills crisis entirely of its making, on the ernment’s education revolution. It is part of ensuring watch of the Leader of the Opposition and the Deputy we have a world-class education system—something Leader of the Opposition, because they did not invest valued by every member on this side of the House, and in skills. something dismissed as irrelevant by every member on This budget delivers on the government’s promises that side of the House. to bring on 450,000 new training places within the next Budget 2008-09 four years to enable that investment in skills and to Dr NELSON (2.28 pm)—My question is to the make sure that people have the skills they need to be in Prime Minister. I remind the Prime Minister of his work and be able to progress in work. We are investing commitment to Australian seniors and carers to lock in in the skills and future of the Australian community. the annual lump sum payment. Why has the Prime And, in universities, we have not only delivered on our Minister failed to honour his promise to seniors and promises; we have delivered more. We have delivered carers in last night’s high-taxing budget? Doesn’t this on our promises to phase out full-fee-paying places. illustrate that the government has failed to take deci- We have delivered on our promises about scholarships sive action in helping seniors and carers facing higher and the like. I understand the opposition think educa- fuel, grocery and housing prices? tion is boring. They manifested that in government Mr RUDD—Seniors and carers are doing it tough through their neglect and lack of investment. I know in Australia, and that is why the government has sought they think it is boring. They do not care about educa- to provide some assistance through this budget pack- tion, and that is why their shadow minister never age. We are committing $5.2 billion in additional fund- speaks. ing for seniors in this budget. That is 3½ times the Apart from that, we are a government that has not amount pledged by the previous government in the only delivered our promises to universities but deliv- 2007-08 budget. The implementation of Labor’s elec- ered more—including a $500 million investment this tion commitments in this budget will provide age pen- year in our universities. I am sure the member for Has- sioners and seniors with an additional $900. To put this luck would be interested to know about the $50 million in perspective, the average gains of age pensioners which will be delivered to Western Australian universi- over the last six coalition budgets was around $327 ties before 30 June this year. I am sure the member for and, for seniors, $400. Today we introduced into the Rockhampton will be interested to know about the $5.5 parliament a bill to pay age pensioners and seniors a million to be delivered to Central Queensland Univer- $500 bonus; 2.7 million Australians will benefit from sity. I am sure that the member for Kingston will be this measure. This bonus will be paid from the end of interested to know about the $8.9 million being deliv- the current financial year, 30 June 2008. ered to Flinders University. I am sure the Tasmanian These bonuses come on top of an increase in the members of this parliament will be interested to know utility allowance from $107.20 per year to $500 per about the $11.5 million being delivered to the Univer- year, and this is locked in. We have already paid out sity of Tasmania. And I have no doubt that the member the first quarterly instalment to age pensioners and sen- for Lindsay will be interested in the $15.9 million be- iors in March, and we are working to deliver our coming delivered to the University of Western Sydney—a mitment to index pensions by the highest of the living down payment on making up for the decade of neglect cost index for age pensioner households, consumer of our university system by the Howard government. price index or male total average weekly earnings. We have also made special provision for educational These important financial measures come on top of an investments in the future—an $11 billion fund to bring extension to the telephone allowance, new dental fund- renewal to our higher education institutions and voca- ing for concession card holders and petrol vouchers for tional education and training institutions. For the first volunteers who use their own transport. time ever, this money will be delivered in accordance Dr Nelson—Mr Speaker, I rise on a point of order. with a strategic plan. This is a government that believes The question is, ‘Why has the Prime Minister broken

CHAMBER 56 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 his promise to carers and seniors to lock in the lump government we have started the important work of re- sum payment?’ building the health system. The SPEAKER—If points of order are going to be We are investing $3.2 billion in a range of health used to repeat parts of the question, they need to rec- programs which I will take you through, but that $3.2 ognise that there were other parts to the question which billion will bring health expenditure next year, for the the Prime Minister is addressing. first time ever, to over the $50 billion in one year Mr RUDD—I also note that these measures that are threshold. It is something that we are very proud of. contained in the budget for seniors and other related When we add the $10 billion Health and Hospitals measures for carers, from our point of view, represent Fund announced last night by the Treasurer—the single barely a start. Seniors and carers have real challenges biggest investment in health infrastructure ever made in terms of cost of living pressures. We recognise that. by a Commonwealth government in the history of the That is one reason why the question of future financial country—we are very proud that we are spending and support by the Commonwealth for seniors and carers investing in our future and in the health needs of the will form part of the overall commission of inquiry country. This fund is going to support the future health conducted by the Secretary of the Treasury which infrastructure priorities which will include health and looks at the totality of tax, welfare and retirement in- hospitals facilities and equipment, medical technology comes policy. On top of that, could I just remind those and equipment, and major medical research facilities opposite that in every budget where the previous gov- and equipment, including projects and facilities which ernment indicated that it would make a one-off pay- will support links between hospital based clinical re- ment at the conclusion of that financial year it made no search and high-quality clinical practice. In short, this forward provision for that bonus in the out years, and is a major step towards building a modern health sys- they know it. tem for the future. DISTINGUISHED VISITORS What I think is also important to announce today— and I am sure that, even if the members opposite are The SPEAKER (2.31 pm)—I have received a few not interested, the members on this side will be—is messages from members indicating that there are for- that, despite the very difficult circumstances in which mer members and senators in the gallery. As there are the Treasurer framed this budget, I am very proud to several former members and senators in the gallery, I announce that for the first time ever a Commonwealth do not intend to recognise them all, but I welcome government, the Rudd Labor government, will be pro- them all. As an alternative, I welcome the Australian viding funding for insulin pumps for type 1 diabetes in Institute of Sport cricket squad, because importantly, children. For the first time ever, up to $2,500— amongst the former members, there are now a number of cricket tragics who I think would recognise that Mr Hockey interjecting— these young men are the future of Australian cricket. I Ms ROXON—The shadow minister just comes welcome them. right in after 11 years of doing nothing. All that the Honourable members—Hear, hear! previous government can say is that they promised it. They never delivered it. All they did was promise it. QUESTIONS WITHOUT NOTICE Mr Hockey—Mr Speaker, I rise on a point of order. Budget 2008-09 The minister is delivering half what we promised at the Mr SULLIVAN (2.32 pm)—My question is the last election. Minister for Health and Ageing. Will the minister out- The SPEAKER—The member for North Sydney is line to the House what steps the government is taking warned. That was not a point of order; it was abuse of to build a better health system for a modern Australia? the standing orders. You are warned. Ms ROXON—I thank the member for Longman for Ms ROXON—It might not have been a point of or- his question. I am sure that everybody on this side of der, but it was right. We are delivering when you did the House will be very interested to hear of the invest- not. That is the difference. You had 11 years, and we ments that the Rudd Labor government is making in are delivering in our first budget up to $2,500 for chil- shaping a health system for the future. It is interesting dren who have type 1 diabetes. This is an important that the members opposite do not want to hear about initiative. I would be very surprised if the member for investments that are being made across the health sec- Flinders does not think it is a good idea to support tor—across the public and private sectors—because children with type 1 diabetes but, if he does not, that is when they were in government they neglected the pub- fine. He will probably stand alone as the one person in lic health sector. The previous government did not ac- this House who does not think that this is a good idea. cept that in a modern Australia the modern health system that we need needs a strong public and a strong Mrs Mirabella interjecting— private health system. That is what our budget has de- The SPEAKER—Order! The member for Indi is livered, and after 11 years of neglect by the previous warned!

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 57

Ms ROXON—Other measures that are very impor- Dr Nelson—Mr Speaker, I rise on a point of order. tant in the health area include an extra $1 billion— To assist the Treasurer, I would be happy to assist by Mr Hunt—Mr Speaker, I rise on a point of order. I reading the full transcript. do find those remarks offensive. I have walked 500 The SPEAKER—There is no point of order. The kilometres around my electorate to raise funds for ju- Leader of the Opposition will resume his seat. venile diabetes, and if the minister bothers to do the Mr SWAN—If the Leader of the Opposition wants same then I would be happy for her to make those re- to talk about transcripts, let’s have a look at the tran- marks. script that he issued last night at 9.30 pm—a transcript The SPEAKER—Again, because of the interrup- which was actually doctored from earlier in the day. tions of others and the general hubbub, I am unclear as Mr Hockey—Mr Speaker, I rise on a point of order. to what it is that the member for Flinders is wishing to The Treasurer was asked a question about his own have withdrawn but, if it caused him offence, on this words on radio this morning where he did not know the occasion I will ask for it to be withdrawn only so that answer to a question about his own budget. we can get on with proceedings. The SPEAKER—There is no need to debate the Ms ROXON—I withdraw. I am pleased that the point of order. I will listen carefully to the Treasurer’s member for Flinders and other members on the other response. side of the House support our initiative to fund insulin Mr SWAN—At 9 pm last night the Leader of the pumps for people with type 1 diabetes. Opposition issued a statement— Mr Dutton—Stop playing politics with it. Ms Julie Bishop interjecting— The SPEAKER—Order! The member for Dickson! The SPEAKER—Order! The Deputy Leader of the Ms ROXON—What I am sure that many members Opposition will resume her seat. She can seek the call in this House will also be relieved to know is that an if she has a different point of order to the member for extra $1 billion is flowing to our state hospitals, our North Sydney, otherwise I am listening carefully to public hospital system, an area neglected year after where the Treasurer is going with his response. year after year by the previous government. We add to Mr SWAN—The Leader of the Opposition, in the that $600 million for elective surgery, $780 million for doorstop transcript issued at 9 pm last night, said this: dental care, $275 million for GP superclinics in local ‘Our economic analysis is that one quarter of one per communities and, as I said, bring to an absolute his- cent will be’— toric high Commonwealth funding for health and ageing, topping $50 billion for the first time in the coming Ms Julie Bishop—Mr Speaker, I rise on a point of financial year—something we are very proud of. order. The question was about the Treasurer’s transcript this morning and the fact that he did not know his own Budget 2008-09 budget. He is continuing to defy your ruling and refer Dr NELSON (2.38 pm)—My question is to the to other transcripts at other times which are not his. Treasurer. I refer the Treasurer to his budget statement The SPEAKER—The Deputy Leader of the Oppo- last night, in particular that rural Australia has been sition will resume her seat. The question then went on, going through the worst drought in 100 years. I further after mentioning the radio— refer the Treasurer to his radio interview this morning in Melbourne on 3LO. When asked about interest rate Mr Downer—So he’s in order. assistance for drought-stricken farmers the Treasurer The SPEAKER—The member for Mayo can go replied, ‘I can’t give you the exact answer. I’ll go and and have his cup of tea for an hour under 94(a). Off look it up.’ Treasurer, if you do not have confidence in you go. The question went on to query the Treasurer’s your own ability to understand something as important ability to run the trillion-dollar budget, and I guess that to this country as farmers and drought, how can Aus- the Treasurer is now going to make some comments tralian families have confidence in you to manage their about varying abilities to run a trillion-dollar economy. home loans, let alone a $1 trillion economy? The member for Mayo then left the chamber. Mr SWAN—I do welcome that question because it Mr SWAN—At 9 pm last night the Leader of the is a partial reading of the transcript, which is what you Opposition issued a transcript which said: ‘Our eco- always get from the Leader of the Opposition. What I nomic analysis is that one quarter of one per cent will said was that the exceptional circumstances were con- be added to the Consumer Price Index.’ Then at 9.30 tinuing—that is what I said. Interest rate relief is part pm he issued a revised transcript which said: ‘Our eco- of exceptional circumstances. And I said I would get nomic analysis is that 0.4 per cent will be added to the further detail—a perfectly reasonable and responsible Consumer Price Index’—a doctored transcript from the thing to do. Leader of the Opposition.

CHAMBER 58 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

Budget 2008-09 announced last night, to do the planning now on impor- Mr BEVIS (2.43 pm)—My question is to the Min- tant projects for Australia’s future. As part of our ister for Infrastructure, Transport, Regional Develop- commitment to end the blame game, the states will ment and Local Government. How will the govern- kick in a further $57½ million dollars, bringing the ment’s plans for the Building Australia Fund help pre- total to $132.5 million. In Melbourne, we will look at pare Australia for its long-term future and change the improving the east-west road and rail connections way that the Commonwealth has approached infra- through the recommendations of the Eddington report, structure coordination? How will the government be and we are looking at advancing planning for the West- tackling urban congestion and planning for the future? ern Ring Road. In Brisbane, we are planning the Gate- way Motorway missing links. In north and Far North Mr ALBANESE—I thank the member for Brisbane Queensland, we are planning for the $2.2 billion that for that question. The creation of the Building Australia we have committed to fix up the Bruce Highway— Fund announced last night, together with the estab- improvements in Cairns, Townsville, Mackay and lishment of Infrastructure Australia, once again reaf- Gladstone. In Sydney, we are looking at the western firms that it is Labor that is the nation-building party metro line, a visionary urban public transport plan that for this country. It is an unprecedented overhaul of the would not have been touched by those opposite. There way that we think about infrastructure coordination for is the M5 duplication, which will assist in getting the nation. The Commonwealth government is back— trucks to the port and off our urban roads. In Adelaide, we are back—in the business of nation building. We there is a transport sustainability study. In Perth, we are are setting about repairing years of neglect by those looking at the airport transport master plan, including a opposite. We all know that capacity constraints at our rail link. ports, on our roads and in our rail lines all add to inflationary pressures in the economy. Congested roads and Doing this work now means that we will be ready to rail lines add to the cost of moving freight from the go when the $20 billion fund comes online. This comes farm gate to the kitchen table and from the mines to the on top of the government’s commitment to invest $25.8 ports. It adds to the cost of doing business. billion between now and 2013-14 under AusLink. It was also added to in the budget last night by bringing That is why the business community, including the forward $560 million in funding to get early starts on Business Council of Australia, ACCI even and other our election commitments: the Ballina bypass, the new organisations such as Engineers Australia, have all ap- Perth to Bunbury Highway, the Northern Expressway plauded the Building Australia Fund, just as they all in Adelaide and the Townsville port access road. We supported the creation of Infrastructure Australia— are getting on with the job. because they know that the previous government did not invest for the future, did not build for the future But those opposite continue to criticise this plan for and did not plan for the future. The only thing they had infrastructure, and maybe there is a hint as to why they a plan for was the next election. Of course, the infra- do that in the Leader of the Opposition’s comments on structure failure of those opposite does not have just an ABC radio in Queensland last month. Those comments economic cost; there is a social cost. Urban congestion highlight a big difference between the Labor approach means that many working families spend more time in and the approach of the Liberal and National parties, their cars commuting to and from work than they spend because this is what the Leader of the Opposition said: at home with their kids. In terms of infrastructure the Federal Government is primar- Last night, the Rudd government proudly began the ily responsible for airport infrastructure. That’s it. long process of reversing 12 years of neglect. By estab- That is their approach to nation building and infrastruc- lishing Infrastructure Australia, we established the way ture. The Rudd government will end the neglect that forward. Yesterday we provided the means to back up occurred under those opposite over 12 years. It is no that commitment. The $20 billion Building Australia wonder that the business community has been unani- Fund will secure investment in Australia’s infrastruc- mous in its support for the plan announced by the ture. It will enable the Commonwealth to attack infra- Treasurer in last night’s budget. (Time expired) structure bottlenecks in regional Australia that are re- Budget 2008-09 stricting our export potential. It is also a loud an- Mr TRUSS (2.51 pm)—My question is directed to nouncement that the Commonwealth is back in the the Prime Minister. Can the Prime Minister confirm business of our cities and that we will engage in infra- that he will spend not just the earnings but also the structure in our cities, including public transport. It capital from the $40 billion in slush funds set up in last comes on top of the establishment two weeks ago, as night’s high-taxing budget? Why isn’t the Prime Minis- we announced, of the Major Cities Unit, which will ter trying to lock in the benefits of the mining boom work with Infrastructure Australia. rather than squandering all the income to prop up failed But we are not sitting back waiting for the $20 bil- state Labor governments? lion to come online. We are investing $75 million, as

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 59

Mr RUDD—Here we have the once great National measures, totalling savings of approximately $7.3 bil- Party deserting the people of rural and regional Austra- lion. Government spending growth has gone from lia yet again—because, if you travel through rural and about five per cent in real terms in the financial year regional Australia, what is lacking most? Effective in- that is about to end to one per cent in real terms, a sig- frastructure. And where does the lack of infrastructure nificant contraction of fiscal policy in order to assist start? It lies in the absolute lack of effective broadband the Reserve Bank and to put downward pressure on services right across rural and regional Australia. For inflation and interest rates. 12 long years, those opposite had an opportunity to Honourable members may have noticed that Budget address that constituency’s need for broadband ser- Paper No. 2 this year—which, of course, is the state- vices, and they did practically, absolutely nothing. All ment of all the measures in the budget—is a little bit we had was one fund after another, with nothing really thicker than it usually is. It is actually quite a bit longer happening. As a consequence, there are second-rate, than it usually is. In fact, it is 104 pages longer than third-rate or fourth-rate services out there for rural and last year’s Budget Paper No. 2. There is a simple ex- regional Australia, and they are unacceptable. planation for that, and that is that there are 106 pages If you go to rural and regional Australia, you find of savings measures in the budget in Budget Paper No. the other thing that those there legitimately object to is 2. The reason why the two figures are almost exactly the state of many of the roads. When you look at major the same is that there were virtually no savings meas- roads for which there is a particular responsibility here, ures at all in the 2007 budget—and, in fact, in the last including the Bruce Highway, the response that we get four budgets there were virtually no savings measures from people in rural and regional Australia is, ‘Where at all. is an effective long-term plan for dealing with these The government has done the hard yards not done critical infrastructure and road transport needs?’ It is by the previous government. But, inevitably, some for these reasons that this government has decided, commentators say that we should have done more. To ‘Enough of the buck-passing; enough of the blame be fair, some of those people have been consistent in game. Let us get on with the business of building the this message over a number of years. But imagine my nation.’ That is why we have established a Building surprise last night when, casually watching The 7.30 Australia Fund, as the minister for infrastructure was Report, I saw that they had been joined belatedly by just outlining in response to the previous question. We the member for Wentworth, who described this budget believe the national government has a responsibility to as ‘a high-taxing, high-spending budget’. As I was lead. watching this I asked myself, ‘Is this the same member When I look at those opposite, particularly those for Wentworth who, on Meet the Press only 10 days representing that once great National Party—the party earlier, said that there was no need to cut government of Jack McEwen, the party of Doug Anthony and now spending, that inflation is not a problem and that infla- the failed rump that it has become—it is time they tion is merely a fairytale?’ Somehow, within the space stood up for the requirements— of 10 days, the member for Wentworth has moved Mr Schultz interjecting— seamlessly and shamelessly from saying, ‘Don’t do anything,’ to saying, ‘You haven’t done anything.’ Mr RUDD—Stop laughing, Alby. It is time they Somehow or other, he has slipped from one to the other stood up for the interests of rural and regional Austra- with nothing in between. This, of course, is a great lia. That begins with infrastructure. Our fund delivers mystery to me. I have racked my brains for an explana- on that. tion for this blatant contradiction. The only explanation Budget 2008-09 I have been able to come up with is that somehow the Mr SYMON (2.53 pm)—My question is to the member for Wentworth has managed to clone himself Minister for Finance and Deregulation. What steps has and that there are actually two Malcolm Turnbulls out the government taken to reduce spending growth in the there. He has managed to clone himself—and there is budget? What is the government’s response to claims no truth in the rumour that he used his ego as the stem that this is a high-spending, high-taxing budget? cell either, by the way. Mr TANNER—I thank the member for Deakin for Mr Hartsuyker—Mr Speaker, I raise a point of or- his question. The budget last night delivered in full on der on relevance. The cloning of the member for Wen- the Prime Minister’s January commitments to macro- tworth was not part of the question. economic management. It delivered a surplus of 1.8 The SPEAKER—Order! The minister will return to per cent of GDP—$21.7 billion—over 1.5 per cent of the question and continue his response. which was not reliant upon a minor revenue surge; $3.8 Mr TANNER—It would appear that, commenting billion in spending cuts, on top of the $1.6 billion in on the budget, out there we have somewhere a soft spending cuts that were projected prior to the election Malcolm and a hard Malcolm. We have got two Mal- during the campaign; and $1.9 billion in revenue colms: one is out there with his leader feeling every-

CHAMBER 60 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 body’s pain, protecting the millionaires’ baby bonuses pressure on inflation and interest rates and protect the and ensuring that every child gets a prize; and then working people of this country. there is hard Malcolm, off with the big end of town, off Budget 2008-09 with his mates, hurrumphing about middle-class wel- Mr ABBOTT (3.01 pm)—My question is to the fare, demanding big cuts in spending on poor people Prime Minister. I refer the Prime Minister to the gov- and promising big tax breaks for the wealthy. No doubt ernment’s Centrelink website, which states: ‘If you are this comes in useful in his manoeuvrings within the not eligible for the childcare benefit, you will not get Liberal Party, because soft Malcolm can have dinner the childcare rebate.’ Can the Prime Minister confirm with the wets and hard Malcolm can have dinner with that last night’s budget means that eligibility for the the dries both at the same time. childcare benefit has been capped to families earning Mr Hockey—Mr Speaker, I raise a point of order. If less than $110,000 a year? Does this change mean that the Minister for Finance and Deregulation has not got parents earning more than $110,000 will not be eligible anything to say about his budget then he should be for the 50 per cent childcare tax rebate? I ask: why has asked to sit down. the government imposed what looks like a stealth The SPEAKER—Order! The member who asked means test on the working families of Australia? the question—a very well-crafted question—asked Mr RUDD—Based on my advice, the answer to the about alternative comments that have been made about honourable member’s question is no. On the changes to the budget. This is a response in the tradition of re- the childcare tax rebate, I would have thought that all sponses that cater to the standing order of relevance. It working families in Australia would welcome the fact is bordering on debate, and I am not happy as an occu- that we have increased that rebate from 30 per cent to pant of this chair that answers do go into debate, but 50 per cent, helping working families under financial that might be something that the new Standing Com- pressure. mittee on Procedure might look at and might get Budget 2008-09 agreement from both sides of the chamber to change. But I suggest to the minister that he return to the dis- Ms KING (3.02 pm)—I will endeavour to ask my patch box and conclude his answer. question without breaking anything! My question is to the Minister for Families, Housing, Community Ser- Mr TANNER—I will conclude with an observation vices and Indigenous Affairs. What support is available about a specific budget matter that the opposition has for working families? commented on and criticised the government on, claiming that we are high taxing, notwithstanding the Ms MACKLIN—I thank the member for Ballarat fact that, of course, all the data shows the contrary. for her question. This budget is delivering a $55 billion That is that yesterday the opposition managed to put package for working families, implementing our elec- out two different calculations of the implications of tax tion commitments and investing for the future. Work- changes in the budget—two different figures. On the ing families know that these are very, very challenging basis of what we have had from the Leader of the Op- economic times, putting families under very significant position and the member for Wentworth, it is abso- financial pressure. Whether it is increasing mortgages, lutely clear that they cannot even add up. They cannot increasing prices or other cost of living pressures, even add up their own assessments of the tax impact of families know that inflation is their No. 1 enemy. That the budget because they put out two different figures. is why this budget is, at its heart, about fighting inflation. The true picture is that government spending for the forthcoming year will be one per cent lower as a pro- By contrast, the opposition really do not seem to portion of the total economy than it was in 2007-08. It have any idea. I certainly cannot figure out what it is will be the lowest that it has been for nearly 20 years that they believe in on these issues. The member for and, importantly, it stays significantly lower— Warringah just a little while ago instructed the gov- substantially lower—than in the previous financial year ernment to— across the forward estimates, and broadly the same Ms Julie Bishop—Mr Speaker, I rise on a point of thing has happened on the tax front as well. There is a order, relating to relevance. I did not hear the question substantial reduction in the tax take as a proportion of go to alternative policies; I thought it was just directed the overall economy, and that is broadly preserved over to the government’s budget. So I raise the question of the forward estimates. relevance, Mr Speaker. Whichever Malcolm was on The 7.30 Report last The SPEAKER—The question was: what support night, it is clear he had not read the budget papers, be- is there for working families? The minister will re- cause the Rudd government’s budget has delivered a spond to the question. substantially bigger surplus, substantially larger sav- Ms MACKLIN—The opposition does not have any ings and a much tougher fiscal positioning in order to policies, so there would not be any point in asking that. put the budget in the right position to put downward What we certainly know is that the opposition cannot

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 61 figure out whether they are for or against making cuts Fuel Prices in this budget. What the government is about is target- Mr TURNBULL (3.07 pm)—My question is ad- ing support— dressed to the Treasurer. How does $21 million to es- The SPEAKER—The Deputy Leader of the Oppo- tablish FuelWatch and $11 million to fund the new Pet- sition on a further point of order? rol Commissioner deliver lower petrol prices when all Ms Julie Bishop—Yes. In response to your direc- evidence today is that Perth’s FuelWatch is delivering tion that she come back to the government’s budget the highest petrol prices in Australia? Why has the and the question, she continued to refer to the opposi- Treasurer failed to take any decisive action to deal with tion. rising fuel prices? The SPEAKER—There is no point of order. Mr SWAN—I am pleased to answer that question. The government is doing what we said we would do. Ms MACKLIN—Going to the specifics of the We said we would put a Petrol Commissioner into the benefits that this budget is delivering for working fami- ACCC to make sure we had a competitive market out lies, first and foremost it is delivering more than $46 there and to make sure that people who were buying billion of tax cuts to working families over the next petrol were not being ripped off at the bowser. This four years to really help take the financial pressure off FuelWatch scheme, which will be coming into opera- family budgets. We are delivering to working families tion through the year, will be a very important measure with assistance with child care, which certainly is to give consumers access to information so that they something that so many working families facing in- can access cheaper prices. I simply cannot understand creasing costs of child care will welcome. We are go- why the opposition would oppose it. ing to increase the childcare tax rebate from the current level of 30 per cent to 50 per cent—so half of working Alcohol Abuse families’ out-of-pocket childcare costs will be met as a Ms BURKE (3.08 pm)—My question is to the Min- result of this budget. ister for Health and Ageing. Will the minister provide We are going to double the Commonwealth financial information to the House on the government’s efforts counselling scheme to provide more assistance for to tackle binge drinking in our community? Are there those families who get into financial difficulty. The any alternative public views on this issue? Minister for Health and Ageing has delivered for work- Ms ROXON—I thank the member for Chisholm for ing families a new teen dental health plan, something her question. I know that it is an area that she has been that so many working families will benefit from as concerned with, being particularly interested in the their children grow older. The education tax rebate is health of young women in a range of different areas. something else that will help working families with the We believe that binge drinking is a community wide increasing costs of education. problem and deserves a community wide response. We The Minister for Housing, of course, has delivered think that young people are particularly at risk and we for working families with a $2.2 billion package of know that alcopops are used to hook them on drinking housing affordability measures that will help with the when they are young. In fact, research shows that many very serious pressures that families are facing with the young people cannot detect the taste of alcohol when it cost of housing. Most importantly from my point of is combined with either sweet mixes or milk, which we view, for 19,000 carers who are really doing it hard we know is exactly how these products are used to get are delivering almost $300 million to help carers of young people interested in drinking and hooked for a profoundly disabled children. The eligibility rules for long time. We are not prepared, as a government, to carer payments at the moment are far too restrictive stand by and just let the increase in alcohol consump- and insensitive, and under this government they will tion in the community continue. change. The Rudd government is taking a range of steps to Unlike the former government, this government is tackle this problem through the implementation of our about making sure that it delivers the support and cer- $53 million National Binge Drinking Strategy. This is tainty that families need and making sure that funding going to involve parents, community organisations, is responsibly targeted to those who need it. That is sporting clubs and an advertising and education cam- why we are also introducing as key measures in the paign, which we know and hope will make a signifi- government’s fight against inflation two new income cant difference in slowing the growth of alcohol con- tests, one to family tax benefit part B and the other to sumption amongst young people. the baby bonus, making sure that these benefits go to We have also, as the House is aware, moved to close those families who need it most. What is important is the previous tax loophole on ready-to-drink products. that these measures alone deliver $900 million of sav- This was a loophole that was opened up in 2000 by the ings over the next four years to help in this govern- previous government. It is a loophole that makes no ment’s fight against inflation. sense because it treats alcopops differently to other

CHAMBER 62 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 spirits and it has led to an explosion in young women Dr NELSON (3.13 pm)—My question is to the in particular drinking these products. I was initially Prime Minister. I refer the Prime Minister to last pleased to hear, when we announced this measure, that night’s high-taxing budget and note that $3.1 billion is the Leader of the Opposition was going to support it. projected in extra alcohol taxes on ready-to-drink On the first day that the measure was announced, the mixes. Given that this tax increase was meant to tackle Leader of the Opposition—we welcomed it; he was out binge drinking of ready-to-drink alcohol, particularly of the blocks—said: amongst young people, why is alcohol consumption The proposed increase in the excise on alcopops is some- actually going to increase over the next four years? thing that will be supported by us … Why is only $53 million budgeted to tackle binge Only days later the Leader of the Opposition changed drinking? Prime Minister, why is the government on a his mind and called this an outrageous tax binge on tax binge instead of taking decisive action to deal with ready mixed drinks. Last night, the Leader of the Op- binge drinking itself? position confirmed, his U-turn obviously complete, Mr RUDD—I thank the honourable member for his that the Liberals will be opposing this measure in the question. On the question of binge drinking, we in the Senate. Even though he knows 20,000 young women government are responding to the evidence that we under 15 every week are now drinking to risky levels, have been presented with. If you go to the study Alco- the Liberal Party want to stand by and not do anything hol consumption patterns among Australian 15-17 year about it. There has been a lot of discussion in the par- olds from 2000 to 2004, a research report commis- liament and elsewhere about this measure over recent sioned by the Department of Health and Ageing in days. I think there is an important bit of information 2005, it says that between 2000 and 2004 the percent- that this House should have. age of female drinkers aged 15 to 17 reported that they Dr Nelson interjecting— had consumed RTDs on their last drinking occasion, an increase from 14 per cent to 62 per cent. That is the Ms ROXON—The Leader of the Opposition would first point. The second point is this: in addition, be- like some facts. I will give him a fact. Our modelling tween 1999 and 2005 the proportion of teenage girls and the modelling from Treasury show that our meas- aged 12 to 17 who chose RTDs as their preferred drink ure will reduce consumption by 43 million 375-mil rose from 23 per cent to 48 per cent. That is in the Aus- bottles every year. If the Leader of the Opposition tralian secondary school students’ use of alcohol in thinks that it is not a good thing for us to have 43 mil- 2005 report. What is extraordinary about these two lion fewer bottles being drunk—mostly by young peo- pieces of data is that those opposite actually choose not ple—every year, then he should stand up and say that. to act on them. We have looked at this data and said It means that the Leader of the Opposition, who is ac- that we have a responsibility to act. It is very difficult tually a former AMA president and who was a well- not to go around Australia today without being con- respected health professional, now stands totally alone, fronted by the nation’s police commissioners in the not just in his party but amongst the health community, various states to be told that binge drinking is a huge in not recognising that this is an important health problem in inner metro Australia, particularly with measure. He will stand condemned for that. This is girls, and that RTDs are part of the challenge. There- going to have a positive impact on reducing consump- fore, we need to act in this way in order to reduce the tion and, of course, with money that is raised from this growth at which they are consuming. measure, as we have already made clear, we will be able to contribute to the biggest commitment to pre- On the question of the overall integrity of budget vention that a Commonwealth government has ever measures on how these funds are used, the challenge of made. preventative health care is going to require a large injection of funds on the part of the Commonwealth. Mr Robert interjecting— Preventative health care under the previous regime The SPEAKER—I warn the member for Fadden! represented some 1.7 per cent of the nation’s total Ms ROXON—If the Leader of the Opposition is no health budget. If we are serious about dealing with the longer interested in reducing consumption by 43 mil- problems of alcoholism and the problems of other lion bottles per year then he should stand up and tell chronic diseases emerging in the community, we are the Australian public. going to have to invest hugely in this area. That is why Mr Hockey—Mr Speaker, I ask that the minister ta- this government is committed to a significant new ble the modelling from her own department from partnership with the states and territories to ensure that which she was reading. we have a proper funding and policy response to the emerging health needs of the community. Our overall The SPEAKER—Was the minister reading from a strategy on the budget is to make sure that we properly document? invest these funds in the future while at the same time Ms Roxon—Yes, and it is marked confidential. producing responsible economic outcomes for the Alcohol Abuse country.

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 63

In terms of responsible economic outcomes, I would ing to say. Mr Speaker, I ask that the standing orders just say this to the Leader of the Opposition: it is im- with regard to frivolous points of order be enforced. portant that those opposite decide where they stand. The SPEAKER—The member for Aston has the Within a week the Leader of the Opposition said that call, because I promised it to him. he fully supported the extra taxes on RTDs, a measure Mr Pearce—No, thank you. that we are going to introduce, and then he backflipped completely. This is part of a pattern. The Leader of the The SPEAKER—Would the member for North Opposition one day says that there is no inflation prob- Sydney like the call? lem—it is a complete charade—and then we are told, Mr Hockey—I would, Mr Speaker. Further to the of course, that there is a problem because it is now not point of order of the Leader of the House, the Prime sufficiently an anti-inflationary budget. We see the Minister and the Leader of the House made commit- same conflicting position emerging between the Leader ments that they would improve question time by short- of the Opposition and the alternative Leader of the Op- ening answers and making them more relevant. position, the member for Wentworth, on the whole Clearly, when the Prime Minister is asked a question question of cuts. Remember that the member for Wen- about binge drinking and the baby bonus starts to wea- tworth says, ‘No, we do not think that there is any eco- sel its way into his answer, then you ask yourself: is he nomic need to cut it,’ meaning overall— being relevant? I just make the point that the Prime Mr Hartsuyker—Mr Speaker, a point of order on Minister is very good at asking himself questions and relevance: the question related to binge drinking. answering them. He can ask himself one on the baby bonus, but answer the question about binge drinking. The SPEAKER—The Prime Minister is relevant. The SPEAKER—The first observation that I would Mr RUDD—The answer goes to the overall ques- make is that I hope that those members of the Proce- tion raised by the Leader of the Opposition about the dure Committee who have listened to this exchange of integrity of budget finance and how it is deployed and points of order might address it in any future inquiry it goes to the consistency of the Leader of the Opposi- on matters surrounding question time. tion’s position on binge drinking, on inflation and on the need for expenditure cuts. Then, of course, we go Mr Billson—Or poor quality answers. to this extraordinary debate that we have had in the last The SPEAKER—If the member for Dunkley has a 24 hours between the Leader of the Opposition and the comment, he could seek the call. Perhaps he does not alternative Leader of the Opposition on whether the have a comment, so he will sit there quietly. Successive baby bonus should be means-tested. On and on it goes. Speakers have been in great difficulty over these mat- Should there be a $150,000 means test? We have a ters for time immemorial. The point is that one would question that goes— hope that there could be an understanding from both Ms Julie Bishop—Mr Speaker, a point of order on sides of the chamber of the need to have a question relevance: the question was why the tax increase is time that is more of what the people observing the pro- based on an increase of alcohol consumption, not about ceedings of the House think is relevant. the baby bonus. I ask you to draw the Prime Minister Whilst I have not used this ruling before in this par- back to the question of why the budget takes into ac- liament, it has been understood that both the Prime count an increase of alcohol consumption, not a de- Minister and the Leader of the Opposition have been crease. given longer lengths of rope than other members of the Mr Albanese—Mr Speaker, my point of order goes House. So this particular occasion probably was not the to the standing orders relating to frivolous points of greatest example to bring into this debate about points order. During 2007 there were 178 points of order of order. In that context and given that this is the ques- moved at an average of 12.7 per week or 15.3 per cent tion time after a budget, when people are perhaps a of total questions interrupted. We are just into the fifth little testy, that is where we are really at. week of sittings and already there have been more With regard to other matters, it would be helpful if points of order taken this year than the entire sittings answers were shorter. It would be helpful if they were last year. not interrupted as much with points of order that are The SPEAKER—The member for Aston will re- fairly obvious but are not points of order that I can sume his seat. I will give him the call when the Leader agree with and rule on. In relation to the way in which of the House has completed his point of order. relevance has been conducted in this parliament for quite some time and answers, since the election, which Mr Albanese—Over 180 points of order have been I think have been consistent with previous rulings, moved by those opposite with 40 per cent of questions there has been a slight improvement in the way in asked being interrupted by those opposite, as a deliber- which questions have been couched, to make sure that ate tactic to hide from the fact that they have got noth- they do not give us an opportunity to have debates

CHAMBER 64 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 when we should not be having debates during question portunity for regional Australia where we were able to time. deliver on the commitments we had made, where we Mr RUDD—Thank you, Mr Speaker. To recap were able to provide a long-term vision and, in particu- where we were on the question of alcopops, I ran lar, where we were able to take on the war against in- through before the evidence upon which the govern- flation, to which rural communities are particularly ment is acting. These are sober reports indeed about the sensitive. A centrepiece of the preparation for that fu- impact of these particular ready-to-mix drinks on ture is the program Australia’s Farming Future, criti- young girls. I think all responsible members of this cised by the opposition spokesperson for being too fo- House would wish to act in an appropriate way to deal cused on climate change, yet welcomed by others. I am with this challenge, which families are concerned pleased to note the following comments with respect to about right across the country and which the police Australia’s Farming Future: forces are concerned about right across the country. As The $130 million under ‘Australia’s Farming Future’ begins the Minister for Health and Ageing said in terms of the the shift towards the NFF’s call to better prepare our agricul- impact of the quantitative consumption of alcohol tural productive base for less water, increased climate vari- overall in this category, it is a measure worth backing. ability and the possibility of longer periods of drought. My concluding point is this. This debate would be It’s about long-term management, preparedness and plan- much more focused if we had a consistent position on ning. the part of the opposition. As the Leader of the Opposi- I am pleased to have seen from both the National As- tion said on 27 April: sociation of Forest Industries and the NFF an endorse- The proposed increase in the excise on alcopops is some- ment of the policies contained within the budget. A thing that will be supported by us … criticism went out with respect to what the budget did Then he went on to say on 13 May that, ‘There are a in drought relief. The criticism was fairly scathing. It number of measures,’ referring to tax measures, ‘that came from the leader of the Nationals. The only prob- we are now particularly concerned about,’ referring to lem with his critique of what was contained in the the action which has now been referred to by the min- budget is that his media release criticising it went out ister for health: that they intend to use their numbers in on Monday, before the budget, on the basis that: the Senate to obstruct this measure. It is important for There are extremely strong rumours coming out of the public the Leader of the Opposition to have a consistent posi- service that this much-needed assistance is in the firing line tion when it comes to this important public health pol- in Labor’s first Budget. icy matter, a consistent position on inflation, a consis- Then the budget papers come out, and what is the sys- tent position on whether there is an economic case for tem being used? The same as under the previous gov- cuts in government spending and a consistent position ernment. What is the system used to assess whether or on whether in fact we should have a means test at not people should remain on exceptional circumstances about the $150,000 point. He says there should not be; assistance? The same as under the previous govern- the member for Wentworth says there should be. It is ment. Not only that, the decisions and the determina- very difficult to work out these days where the opposi- tions will be conducted by NRAC, all of whom were tion stands on any core question of economic policy or appointees by previous National Party ministers, with- social policy. out exception. Mr Hockey—On a point of order, Mr Speaker: the I heard the scoffing before about whether regional Prime Minister quoted extensively from the evidence Australia should be concerned about the fight against he talked about in the modelling. I ask that he table inflation. May I make clear to the House that, if anyone those documents and that evidence and make it public. in the bush is concerned about inflation, it is because they are concerned about fertiliser prices and because The SPEAKER—Was the Prime Minister quoting documents? they are concerned about fuel prices. You do not end up with debates about interest rate subsidies unless Mr Rudd—Yes. there are concerns about inflation. The SPEAKER—Are the documents confidential? The thing that concerns me about the scare cam- Mr Rudd—Yes. paign being run by the leader of the Nationals is that, if Budget 2008-09 he wins, if he actually persuades people as he goes Ms SAFFIN (3.26 pm)—My question is to the Min- from regional radio station to regional radio station ister for Agriculture, Fisheries and Forestry. Would the claiming benefits are being slashed, the best he could minister please update the House on what the budget achieve is to end up having farmers who are 100 per delivered for rural and regional Australia and, further, cent entitled to support not claiming it. That is the sort how these measures have been received? of irresponsibility that the leader of the Nationals is willing to go ahead with. Mr BURKE—I thank the member for Page for her question. The government provided an important op-

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 65

It is not only that. While they want to airbrush any by the House of Representatives Practice you will see memory of inflation, they also want to airbrush tran- that that has happened in the past. scripts that refer to it. I say to the members opposite: Speaker’s Ruling you can airbrush your transcripts but you cannot air- Mr BROADBENT (3.33 pm)—Mr Speaker, I brush away inflation. Yesterday the shadow Treasurer wanted to ask you a question about a ruling you made put out a printed press release where he said that the about the member for Mayo, but you have just indi- measures will add 0.4 percentage points to the CPI. cated that you do not want questions on your rulings. That was at 8.30 pm. At 9 pm the Leader of the Oppo- sition said in his actual doorstop that, ‘Our economic The SPEAKER—No. analysis is that one-quarter of one per cent will be Mr BROADBENT—You agreed with him, he added to the consumer price index.’ That is what he agreed with you and then you threw him out. said—one-quarter. But when the Leader of the Opposi- The SPEAKER—No. I do not think that this is a tion released his actual transcript, the figure of one- matter for debate. My observation would be—and I do quarter was gone. It had disappeared entirely because not want to fit him up and put words in his mouth— the transcript had been airbrushed to match the words that he copped it sweet. of the shadow Treasurer. You might be able to airbrush Opposition members interjecting— your transcripts but you cannot airbrush the previous government’s record on inflation. The SPEAKER—There was a comment from the opposition front bench that he might have been pleased Mr Rudd—Mr Speaker, I ask that further questions to leave, but I think I will leave that alone. be placed on the Notice Paper. Public Gallery QUESTIONS TO THE SPEAKER Ms PLIBERSEK (3.34 pm)—I observed during Points of Order question time—and I think that a number of us did— The SPEAKER—I regrettably inform the House that there was a little child who started crying in the that I received a note from someone who did not sign gallery. I just wanted to ask you a question about your it. They have a question to me, but they have not instruction to the attendants just to ensure that we are jumped up. clear that, if children begin to cry in the gallery, their Mr PEARCE (Aston) (3.31 pm)—Mr Speaker, the parents are not asked to leave or made to feel uncom- note was not from me, but I have a question for you. I fortable about that and that if they choose to leave vol- would like to seek your clarification on standing or- untarily they have the soundproof gallery pointed out ders. During question time today the Leader of the to them because, frankly, with the level of interjection House stood on a point of order and then proceeded to we have, particularly from the members for Sturt, debate the point of order, which I understand is against Dickson and Flinders, crying children are like music to standing orders. I rose to make a point of order and to our ears. bring to your attention that the Leader of the House The SPEAKER—First of all, can I go to the last was in fact debating that point of order. Standing order part of that question from the minister. It was not really 86(a) says a member may raise a point of order with helpful. Regrettably, I do not think that the barbershop the Speaker at any time, which is what I sought to do; quartet really need any encouragement about their level however, you did not give me the call. Could you clar- of interjection. I was hoping that the member for ify whether a member can or cannot raise a point of Dunkley could quieten down the other three, but he has order or seek to raise a point of order with you at any not been able to. On the serious matter that the minister time. raises, it took me a while to work out where the crying The SPEAKER—My first proviso is that I am not was coming from because I think the child was not in encouraging this sort of questioning of things that hap- my line of sight early on. I observed that there was an pen during question time. But, as it happened only a attempt to handle it with due consideration. But I take few moments ago and I did offer him the chance to the latter point about whether there was an offer for the make a point of order, I will tell the member for Aston proceedings to be observed from the upstairs gallery, that if he goes off and does his homework and reads which is perhaps something that should be observed. the House of Representatives Practice he will see that You made the point that, given what goes on during that was well within what has happened in the past. I question time, a few sounds of bawling children in the think that I could have anticipated what you were actu- gallery is the least of the House’s worry—and it is the ally going to say. I was willing to let the Leader of the least of the chair’s worries, I can tell you. House finish and then give you the opportunity to raise DOCUMENTS your point of order at that point in time. It was not a Mr ALBANESE (Grayndler—Leader of the House) matter of denying you the right to have your point of (3.36 pm)—Documents are presented as listed in the order; it is a debate about what ‘immediate’ actually schedule circulated to honourable members. Details of means. If you look at the precedents that are covered

CHAMBER 66 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 the documents will be recorded in the Votes and Pro- for the future. In truth, we have the same old Labor ceedings. Party budget. MATTERS OF PUBLIC IMPORTANCE In January Mr Rudd unveiled his five-point plan to Economy tackle inflation. What happened to it? Where has it gone? There was no mention of it at all in the speech The SPEAKER—I have received a letter from the last night. The government’s five-point plan has been honourable member for Wentworth proposing that a the key focus of this government over the last few definite matter of public importance be submitted to months. We were told that spending would be reduced the House for discussion, namely: and maximum downward pressure would be placed on The failure of the Government to act decisively to set out inflation and interest rates. Back on 23 January the a clear economic strategy which addresses the cost of living Treasurer said: pressures on Australian families. … we have said from day one, that we have got to deal with I call upon those members who approve of the pro- the inflation problem that we have inherited … This is ur- posed discussion to rise in their places. gent. We haven’t got a minute to lose. It is a big challenge More than the number of members required by the but we are up to it. standing orders having risen in their places— What happened to the urgency? Was the Treasurer so Mr TURNBULL (Wentworth) (3.37 pm)—The key fearful and inexperienced that he could not take the test that the Rudd government set for itself in this hard and courageous decisions that were needed? budget was whether it would strengthen the Australian It is clear from last night’s budget that the Treasurer economy and put maximum downward pressure on thinks that increasing spending is cutting spending, that inflation and interest rates. The government, and in increasing taxes reduces inflation and that fiscal profli- particular the Treasurer, has failed miserably on both gacy is fiscal rectitude. Australian families will be counts. Most importantly, the government has failed to scratching their heads today. The effect of this govern- act decisively. It has not set out a clear economic strat- ment’s policy decisions will be that spending will go egy which addresses the cost of living pressures on up and tax revenues will increase. Where is the five- Australian families. point plan? The first budget of the Rudd government is not an Australians will be reading today’s newspapers inflation-fighting budget. It is not a budget that lifts a thinking they are back in the late 1980s and that this is single finger to help Australians battling with the rising the same old Labor Party, and they would be right. The costs of living—petrol, groceries, private health insur- budget reveals that this government is wedded to the ance and home interest rates. The only bright light in same old Labor way of managing the economy— which we can all take comfort is the strength of the higher spending, higher taxes, higher unemployment Australian economy and the cuts in personal income and lower economic growth. That is what the budget tax, which are all courtesy of the previous coalition forecasts, and there is no clear economic strategy to government. address any of these issues. It is an ad hoc set of meas- The Rudd government has inherited the strongest, ures, none of which will strengthen the economy or put most flexible and dynamic economy in our nation’s downward pressure on inflation. history. It could not have inherited a better fiscal situa- The coalition left the Australian economy in the best tion. The substantial surplus is a tribute to strong eco- shape it has ever been in. Real wages increased by nomic management over many years. Remember that more than 20 per cent. Real GDP per capita grew by 32 when the coalition was elected in 1996 interest expense per cent. The unemployment rate was halved and is was two per cent of GDP, a two per cent cost to the now at a 34-year low. More Australians are now in budget. If that were still the case, this budget would be work than ever before. Labor’s $96 billion debt was in deficit and substantially. Instead, today the Com- eliminated and there was no net debt. Inflation was monwealth is a net lender and interest next year, at kept at 2½ per cent, on average, over the cycle. That over $6 billion, is more than one-half of one per cent of did not happen by accident. It was the result of sound GDP to the revenue account, and that does not include economic management by the coalition. The one thing the income from the Future Fund. Australians knew about Peter Costello’s budgets was Australians had high hopes for this government. We that they were decisive. The coalition took strong deci- were told that the Rudd government would provide sions and took action. There was a coherent economic new leadership. We were told the buck would stop with strategy and the dividend was a strong and resilient Mr Rudd. But they were just empty slogans. It is time economy that increased living standards for all Austra- to look behind all the spin and the rhetoric. The reality lians. is that the budget is a missed opportunity. The Treas- With results like these there was good reason for urer failed to seize the moment and do what was right Australians to remain optimistic and confident about our economic future. But since the Rudd government

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 67 came to office that optimism about our economic fu- clearly show the government expects people to drop ture has faded. Business confidence and consumer con- out of private health insurance, which, as the Prime fidence have plummeted. Nothing in the budget will do Minister conceded today, would put upward pressure anything to lift that confidence. The Treasurer does not on premiums and private health insurance premiums inspire confidence at all. He exudes weakness, nerv- will go up. What Australian families are entitled to ousness and uncertainty. He is not even prepared to sit know is: how does increasing the price of goods and here and engage in the MPI debate about his own services reduce inflation? I asked that question of the budget. He is hiding in his office and he sends his jun- Treasurer in question Time. He could not answer it; ior minister along to front. What a gutless wonder. His there was no answer. It is just part of the voodoo eco- anxiety and inexperience are written all over the nomics. You do not have to provide answers. What on budget documents. He does not know what he is doing. earth is he thinking? What on earth are they thinking, Time and again the Treasurer has gone around the imagining that we can be conned, that this country can country saying: ‘Government spending will be cut— be conned, with the claim that the increased tax on al- massive cuts.’ And so has the Minister for Finance and copops is actually going to reduce consumption. And Deregulation, who said on 11 April: yet we know from their own budget papers, Budget Paper No. 2, that the revenue from that increase in ex- We will have substantial spending cuts … They will involve some pain, spread pretty widely across much of the cise will go from $600-odd million in the first year to community. That’s part of getting the budget back under over $800 million in the fourth year. How can that control … happen unless there is more consumption—unless That was the story—big cuts and big downward pres- there are more alcopops drunk and more excise paid? sure on inflation, because aggregate demand would be And yet we have the health minister saying, in blind- reduced by big cuts in government expenditure. And ness to what was in the budget, it will reduce consump- we believed them. We thought they might go too far. tion. Obviously, any cut in net spending that was less than Here is another example. The big anti-inflationary half a per cent of GDP would not make any difference, so-called trump card in this budget was supposedly, so we assumed that they would be true to their word. after a big surplus was generated—no thanks to the But what have they done? Treasurer or his colleagues—to take money out of that As the budget papers show, as a result of the policy surplus and put it away in several new funds. Let there decisions taken by this government, spending will in- be no mistake. What the Treasurer has done with the crease by $14.9 billion over the four years of the for- Building Australia Fund is nothing at all like the coali- ward estimates, and that does not include the extra tion’s Future Fund. When the coalition introduced the spending of $3.1 billion as a result of policy decisions Future Fund, it put in place a strong governance struc- taken in this financial year. How is that cutting spend- ture with an independent investment manager with a ing? We know what he actually meant when he said he responsible investment mandate. The Future Fund’s was going to cut spending. The Treasurer seems to earnings were quarantined and reinvested in the Future think that, if you cut $15 billion in planned coalition Fund. We never claimed the fund’s earnings as part of spending and replace it with $30 billion of Labor the fiscal surplus. There was no confusion about what spending, you are still cutting spending. So the only the Future Fund was designed to do. It was designed to spending he believes in cutting is coalition programs. deal with the unfunded obligations to Public Service pensions and take the burden off future generations. It There we have it. The Treasurer seems to think that was very clear, very accountable and very transparent. when you increase net spending you are really cutting it. Can you believe it? Is that what we can expect from What has Labor done? It has put $20 billion into a the Rudd government during the rest of its term—that Building Australia Fund; a Labor Party slush fund paid when you spend more you are actually spending less? for with the savings of Australians. What rate of return How will that kind of economic logic strengthen our will investment proposals have to achieve? There is no economy? Under Mr Swan’s new accounting rules, investment structure, no governance structure and, spending more means spending less. What hope is most importantly, no guarantee that the money will be there of putting downward pressure on inflation and spent wisely. We will not know what financial or eco- interest rates? Is that what the Prime Minister meant nomic return the fund is required to seek. You could when he talked about new leadership? Well, it is cer- not raise $20 for infrastructure in the public markets tainly new economics. It is voodoo economics. It is with that lack of detail, but this Treasurer—this absent unbelievable economics from an unbelievable Treas- and gutless Treasurer who will not stand in the House urer. to debate his own budget—believes he has the right to draw a cheque payable to himself with the savings of Here is another example. The Treasurer is directly Australians without providing any of the details that increasing the price of cars and alcohol in this budget are owed to Australians as to how their savings are go- by increasing taxes on those goods. The budget papers ing to be dealt with.

CHAMBER 68 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

Compare that to our commitment of $10 billion un- Prospect will be heard in silence as the member for der the National Plan for Water Security—real money Wentworth was. for real infrastructure needs. We made it very clear The member for North Sydney then left the chamber. precisely where that money was to be invested. We Mr BOWEN (Prospect—Minister for Competition made it clear what return we would seek in terms of Policy and Consumer Affairs, and Assistant Treasurer) shared water savings. Everything was laid out and the (3.52 pm)—This MPI is quite encouraging. At long last commitment of the funds was set out in the budget pa- it appears the opposition now accepts that there are pers. Everything was transparent. Nothing, not one cost of living pressures on Australian families. At long dollar of these investments from the infrastructure last it seems that they finally accept that ‘Australian fund, has been dealt with in the budget papers—not a working families have never been better off’ was a dollar. We do not know when it is going to be spent, false premise. At long last they accept that inflation is a how it is going to be spent, what the return is going to problem. This MPI is about cost of living pressures on be or how it is going to be managed. It is just a bank Australian families. What are cost of living pressures? account with ‘infrastructure’ written on it, and that is Cost of living pressures are price rises. What are price all we know. rises? Price rises are inflation. So the proposition being While Labor inherited the strongest budget in our put to us by honourable members opposite today is that nation’s history, the strongest surplus courtesy of deci- last night’s budget did not do enough about inflation— sions taken by the coalition, it is now sowing the seeds not enough about the cost of living. Last week inflation for wasteful spending, leading inexorably to budget was a charade! The Leader of the Opposition said: deficits and debt in the future. A responsible and deci- The inflation crisis is a complete charade. sive Treasurer could have taken action today and put his foot down. He could have insisted that the taxpay- The honourable member for Wentworth has said: ers’ money in this fund be quarantined and the funds We have heard a lot of fairy stories about the important chal- spent wisely. He could have laid down some conditions lenges of inflation ... and parameters. There are plenty of precedents for it, So last week it was a charade and a fairy story; tonight but he chose to do nothing. He lacked the courage and he says that we did not do enough. The view of the the guts to do it. Instead, all we have is a series of opposition is that they would like us to do more about vague suggestions, a blank cheque drawn by the Treas- the charade. They would very much like us to deal with urer to himself. the fairy story. That is the position they are putting to The budget also does nothing to secure the eco- the Australian people. They have been trying to con- nomic future of Australian families. We know that one vince us that the inflation problem is overblown or, as of the great challenges we face is the challenge of de- the shadow Treasurer might say, ‘overdramatised’—as clining birth rates. Indeed, a few years ago, you could he has said about interest rate increases in the past. not find a demographer in this country or anywhere On 6 February he even penned an op ed. He sat that would say that Australia’s birth rate was not inexo- down at his desk and wrote an article for the Austra- rably destined to go down to 1.6 and keep falling. But, lian, claiming that the government was wrong when instead, it has gone up. The reason it has gone up, they said that inflation is higher in Australia than gen- alone in the developed world, is that the coalition made erally in the OECD. And to support his argument he a commitment to send a strong social message, to send pointed out that inflation was actually higher than Aus- a statement that children are a social good and that all tralia in China, India and Singapore. But those coun- of us have a vested interest in each other’s children. tries are not in the OECD—a slight technical problem Part of that strong social message was the universal for the shadow Treasurer! His answer to inflation being availability of the baby bonus, and now the Labor higher in Australia than it is in the OECD is to put Party proposes to means test it. That means test, which more countries into the OECD. Next he is going to be is clumsily designed and will create many disincen- coming in here and saying, ‘Inflation is not much of a tives, will save $70 million a year out of a $1.5 billion problem in Australia because it is actually higher in program—a sum of money which is tiny in contrast to Zimbabwe.’ That is his solution to inflation in this the budget. It is $70 million paid to achieve one thing: country. That is his solution to the cost of living pres- a headline entitled ‘Soak the rich’—an appeal to La- sures on Australian families. bor’s divisive envy politics. (Time expired) There are three things the government can do to deal Opposition members interjecting— with inflation. We can get government spending under Mr Hockey interjecting— control, we can deal with the infrastructure crisis in Australia and we can deal with the skills problems in The DEPUTY SPEAKER (Ms AE Burke)— Australia—the three things that the Reserve Bank has Order! The member for North Sydney will remove pointed out have led to inflation. himself under standing order 94(a). The member for

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 69

Let us deal with getting government spending under slightly ahead of myself—has become the John Cleese control. I have to say that there are people who can of Australian politics. You can just imagine him. He explain this better than I can. I would like to share with says to the Australian people, ‘What does this budget the House an article from the Sydney Morning Herald do for Australian families?’ They say, ‘Well, it delivers by Stephen Anthony, a former very senior official in tax cuts for lower-middle income earners.’ And he the Treasury and department of finance. This is what he says, ‘Yes, but apart from tax cuts for lower and middle had to say about the tax-and-spend Liberals who sit income earners, what does it do for the Australian peo- opposite. He said this: ple?’ They say, ‘It increases the childcare rebate from Unfortunately, the Howard government lost its way from 30 per cent to 50 per cent.’ And he says, ‘Well, apart 2004. When the China boom arrived with soaring commod- from the tax cuts and increasing the childcare rebate ity prices there was no offsetting tightening in fiscal settings what does it do for Australian families?’ And they say, to “bank” windfall revenue gains from mining. The drunken ‘It introduces an education tax rebate.’ He says, ‘Well, sailors pillaged the budget for political expediency and pro- okay, apart from the education tax rebate, the increase duced a structural deterioration in the bottom line. in the childcare rebate and the tax cuts for working Those are not my words; they are the words of a for- families, what does it do for us?’ They say, ‘Well, it mer senior official in the Treasury and the department increases the utilities allowance for pensioners.’ And he of finance. He went on: says, ‘Okay, apart from the increase in utilities allow- The huge spending injection coincided with the further up- ance, and the increase in the childcare cash rebate, the turn in the business cycle. Blind Freddy knew inflation introduction of the education rebate, and the tax cuts, would be the result. what have they ever done for us?’ They say, ‘Well, they That is what Stephen Anthony has said. He has told us got government spending under control, which you of the lie in what the shadow Treasurer has just put never did.’ And he says, ‘Okay, apart from getting gov- before the House. They say they had government ernment spending under control, the childcare cash spending under control. Well, if hypocrisy were a rebate, the education rebate and the tax cuts, what’s crime the shadow Treasurer would be doing life, be- this government ever done for us?’ At least John Cleese cause they had government spending completely out of was trying to be funny. The shadow Treasurer is just a control and it has been up to us to put downward pres- joke and a laughing stock. No wonder the Australian sure on inflation by getting government spending back people have passed their judgement on this mob, who under control. no longer stand for anything but make cheap political We have reduced government spending as a percent- points. age of GDP by a full percentage point to make it the I agree with the comments of several commentators lowest it has been since 1989-90—that is real spending on the complete lack of responsibility that the shadow cuts and real responsible economic management, Treasurer has shown over the last few weeks. Let’s which the former government could not achieve. The have a look at what some of them have said. The increase in government spending of 1.1 per cent is ex- shadow Treasurer said, ‘Inflation is a fairytale,’ actly a quarter of the average over the last four years. whereas Chris Richardson from Access Economics That is what responsible economic management is all says, ‘You have an inflation time bomb.’ Chris Caton, about. That is what being serious about inflation is all Chief Economist of BT Financial, said he was ‘not so about—when you go through an ERC process and put much surprised as amused at the coalition’s attacks on a ruler over ever single item of government expendi- Labor’s cut in government spending’. Saul Eslake said: ture, which they became too lazy to do. The last two terms of the Howard government featured They became too lazy to do that, because they did wasteful and misdirected spending that needs to be corrected. not think inflation was a problem. The previous Treas- He said: urer, the member for Higgins, said, ‘Inflation is right Turnbull is advocating a do-nothing budget. He is all about where we want it.’ That is what they really thought politics and not about economics. about inflation. Now it is ‘a charade and a fairytale, but He is all about the leadership of the Liberal Party, try- we’d like you to do more about it, thank you very ing to make himself look better, and not about econom- much’! No wonder the opposition has lost all economic ics. Economic credibility is actually important in this credibility with the Australian people. The other focus country, and you no longer have any. You have com- to this budget is on helping working families—helping pletely bankrupted yourselves and sold yourselves out. families deal with the cost of living pressures. You can When we are talking about cost of living pressures put downward pressure on inflation by getting gov- we also need to talk about the pressures on the Austra- ernment spending under control but you also need to lian people from things like grocery prices and petrol put measures in place to help working families. prices. Our old friend the member for Dickson has Now the shadow Treasurer—I was almost going to been talking about those. He has been making certain call him the Leader of the Opposition; I am getting

CHAMBER 70 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 commitments on behalf of the opposition. This is what stop this happening and they will not do anything about he said on 14 May: the price volatility. I think Brendan Nelson would have a greater capacity to The government will take FuelWatch to this House, deliver lower petrol prices for families and lower grocery where I expect it might pass, and we will take it to the prices. other house, where crossbenchers have indicated sup- Oh, really! This was the promise by the shadow minis- port. But it would be a lot easier with the support of the ter for finance. He said that they will reduce grocery opposition. You have to decide: are you with motorists prices and petrol prices. Let’s talk about petrol prices. or against them? Are you with the vested interests or Why don’t you give motorists a fair go? Why don’t are you against them? You come in here and lecture us you get on the side of motorists for a change and back about the cost of living. You can do something about our FuelWatch scheme? The ACCC did an analysis of petrol prices. You can do something about giving con- FuelWatch and found that it puts downward pressure sumers more information about where they can get the on prices by 2c a litre. Why don’t you accept the offer cheapest petrol by backing our plan. You have said that of a briefing from the ACCC? The ACCC has offered you could reduce petrol prices. The member for Dick- you a briefing on the modelling and you have declined son said it in his endorsement of the Leader of the Op- it. What have you got to hide? Why don’t you accept position against the member for Wentworth. He said, the offer of a briefing from the ACCC? Members op- ‘Brendan Nelson could do a better job than Kevin posite do not need to take my word for it. They can Rudd about bringing down petrol prices and grocery listen to one of their own, our old friend the leader of prices.’ Where is your plan? Either back our plan or the Liberal Party in New South Wales, Mr O’Farrell, come up with your own. If you cannot come up with who said that FuelWatch: your own then back ours and do something about it. ... will ease the burden on families and pensioners by helping It will hang around your head if you stand in the drive down petrol prices. way of this important reform. At last you say that Aus- That was not from a Labor leader; it was from a Lib- tralian people are doing it tough. For a long time you eral leader. He went on to say: said that Australian working families have never been This is about putting the interests of motorists’ wallets ahead better off. The opposition has said, ‘Australian working of oil company profits. families were never better off than under the Howard Which side are they on? They have a choice. They are government.’ At last now they recognise that the price either on the side of motorists or they are against them. of non-discretionary expenses—groceries and petrol— They have chosen to take the evidence of people with a is putting working families under pressure. But what vested interest ahead of the evidence of the people’s they have to do is back up their promise with a plan, or watchdog, the ACCC. Shame on them. They have out- they have to back ours. They have to back our spend- sourced policy development to the oil companies and ing cuts, back our reduction in government expenditure to people with a vested interest and they are putting as a percentage of GDP and stop going along with motorists last. This government will not do it. We will emotional claptrap about every mother loving their proceed with FuelWatch and we will put it through the baby to justify millionaires getting the baby bonus. You parliament. have got to become serious about economic credibility in this country. You have got to become serious about If the opposition blocks FuelWatch in the other getting inflation under control. You have got to become place, they will have some talking and explaining to serious about getting government expenditure under do. When prices go up at the end of the week and in the control. You have got to become serious about putting lead-up to a long weekend by 10c or 15c a litre and more transparency in the petrol market and more com- people have no notice of that and FuelWatch is not in petition into the grocery market. operation because the opposition blocked it, they will have to explain why they stood in the way of this re- The government announced a modest reform freeing form, which will give motorists more information up foreign investment rules to encourage more foreign about where to find the cheapest petrol and 24 hours owned grocery retailers and supermarkets into this notice of increases in petrol prices so that they can get county, to get more competition. All the evidence ahead and buy the petrol before the price goes up. shows that when you have more competition you have more downward pressure on grocery prices. Do you On any given day in any capital city the difference know what the opposition said? They said, ‘You should between the price of petrol at the cheapest petrol sta- not support foreign grocers and supermarkets.’ They tion and the most expensive one can be as high as 10c engaged in Hansonesque xenophobia instead of putting or 15c a litre. How can people find it at the moment? Australian consumers first. That is what they said. They have to drive around. They have to drive around They have completely bankrupted their policy devel- and use a lot of petrol to find it. Under FuelWatch they opment by refusing to back Labor’s practical and sen- will be able to log on and find where to get the cheap- sible plans to put downward pressure on prices wher- est petrol. But those opposite will stop it. They will

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 71 ever we can and to get more transparency and competi- election that he would bring grocery prices down, and tion into the market. he did nothing in this budget to deliver on that promise. We have a choice. You can have a government The interesting part to examine is the rhetoric and which says: ‘Working families are doing it tough and the debate that took place in the run-up to the budget we will do what we can to help where we can. We will announcement last night—the period between Novem- get government expenditure under control. We will ber last year and the budget announcement last night. increase the childcare rebate. We will introduce an When we have seen ‘Daddy Swan’ out and ably as- education rebate. We will have tax cuts for low- and sisted on many occasion by ‘Cygnet’, when we have middle-income earners. We will put more transparency seen the two of them out talking to— and competition into the petrol market. We will put The DEPUTY SPEAKER (Ms AE Burke)—The more competition into the grocery market, and we will member will refer to ministers by their proper titles. do what we can where we can to help.’ We have an Mr DUTTON—the Australian people, they have opposition that says, ‘We thought Australian families been talking up the issue of inflation. They have said had never been better off.’ It seems they now accept that this budget would be about bringing the cost of that they were wrong, but they say: ‘We are not sure living pressures down by bringing inflation down. what we can do about it. We are going to oppose every- They have said to the Australian people on a constant thing the government puts up to do with it.’ No wonder basis that they need to bring inflation down because you are a joke; you are pathetic, and the Australian that is the biggest scourge in the Australian economy at people have come to that conclusion. the moment. When you look at the facts, though, and Mr DUTTON (Dickson) (4.07 pm)—That was a when you go beyond the media spin that really is the dreadful contribution by the Assistant Treasurer, oth- front of this government, you realise how hollow their erwise known from this side of the dispatch box as rhetoric is and you realise what considerable damage ‘Cygnet’. ‘Daddy Swan’ could not come down, so he the Treasurer has done to this economy over the last six sent baby along and baby went on with the usual rub- months. He has belted the hell out of confidence, not bish that he continues on with. It is good enough for just for consumers but for business as well in this the Treasurer to send down his advisers to the dispatch country over the last six months. It has been a great box, to send advice down to ‘Cygnet’, but it is not demonstration of the way in which a Treasurer—as good enough for the Treasurer to come down and con- Treasurer of probably the greatest nation on earth— tribute to part of this debate, because that man is com- should never, ever conduct himself or herself. It has pletely and utterly out of his depth. been an appalling display and it goes completely to It is a joke when you listen to the rhetoric of the political motive and has nothing to do with economic government on the cost of living pressures. They prom- responsibility and certainly nothing to do with eco- ised the Australian people at the last election that they nomic conservatism. would bring downward pressure on interest rates; they I just want to point to how confused the Labor Party promised Australian families that they would bring is on the issue of inflation. It was the Assistant Treas- downward pressure on groceries; they promised the urer himself who, on 22 January this year at a press Australian people that they would bring downward conference—and this is the Assistant Treasurer whose pressure on petrol prices. They have had six months in contribution we have just heard—in his own words government to come up with a plan to deliver on that said: ‘Inflation has been low in Australia over the last promise and they have done nothing on this, their ma- few years.’ How do you reconcile that statement at his jor piece of policy announcement since they were press conference in January this year with his contribu- elected. The budget that was discussed last night deliv- tion today, because it shows him, like the Treasurer, to ered no support to Australian families. be a liar on the issue of inflation, and that is a— The Australian people will shortly start to under- The DEPUTY SPEAKER—The member will stand that this is a government full of style, full of bra- withdraw that. vado, full of spin but very, very short on substance. Mr DUTTON—I withdraw. But the point that I They have no substance. The Australian people, when make is that they have been running around deceiving they go to the bowsers this week to fill up and see pet- the Australian people on the issue of inflation. They rol prices at record highs, will realise that Mr Rudd have no consistency because they do not have any fun- promised at the last election but in this budget failed to damental understanding of running an international deliver any measure targeted at reducing that petrol economy, and this is a real problem into the future for price. When the Australian people go to do their gro- this country. We have had people like Wayne Swan, the cery shopping at the supermarket shops this week, Treasurer of this country, at a time when there are in- when they pay higher prices at the checkout, they ternational pressures on our economy, when there are should recognise that Mr Rudd promised at the last domestic pressures on our economy, out there saying:

CHAMBER 72 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

... I say it to everyone; we’ve got a difficult fight on our petrol, there is $20 million provided in this budget to hands as a nation. The inflation genie is out of the bottle, it’s prop up the failed FuelWatch scheme, a scheme which been on the march for a couple of years. has operated in Western Australia, which is a market That was a message that was sent to the Reserve Bank that has incredibly high petrol prices. The reality is— Governor and to the Australian business community— Mr Bowen interjecting— that, in the Treasurer’s opinion, inflation was out of Mr DUTTON—And I will take the interjection control. That is what the Treasurer was out there saying from the Assistant Treasurer, saying that Grant Samuel to the markets in this country and then he wondered is one of us, to quote him, which is an irresponsible why inflation tracked up afterwards. The markets hang statement from an Assistant Treasurer. off every word that that man has to say. The markets depend on every word that that man has to say. He is Mr Bowen interjecting— an irresponsible person and he is incapable of manag- Mr DUTTON—No, you said he was one of us. We ing the Australian economy. The Reserve Bank Gover- will check the Hansard, because you are a fraud. You nor has dismissed basically as rubbish the contribution are a fraud, my friend. of the Treasurer in relation to that statement, when he Mr Bowen—Madam Deputy Speaker, I rise on a said that the genie was out of the bottle in terms of in- point of order— flation. He has been slapped down, in essence, by not Mr DUTTON—Check the Hansard. just the Reserve Bank Governor but many business leaders in this country. The DEPUTY SPEAKER—The member for Dick- son will withdraw. The fact is that, in relation to inflation, the Reserve Bank had provided advice to the last government. The Mr DUTTON—I will acknowledge two things, PEFO—which is the most recent document of the last Madam Deputy Speaker. I withdraw, and at the same government that I can point to—offered advice in Oc- time I will say that what I said was an exact quote of tober 2007 to the Howard government in relation to the Assistant Treasurer, and it is shameful. It is shame- inflation along these lines, and I will quote from the ful because it shows the class warfare and the rubbish document. This is PEFO—not signed off by Peter that goes on in the Labor Party. This is a party that has Costello, John Howard, Nick Minchin or anybody else promised a failed FuelWatch scheme to get it through a but signed off by Ken Henry, the Secretary of the political difficulty in relation to petrol. Petrol prices are Treasury, and Ian Watt, the Secretary of Finance. Their at an all-time high, and the Rudd government is going independent advice in October 2007 to the government to do nothing about it. They have promised $20 million was that their forecast for inflation in 2007-08 was 2¾ to put fuel prices up on a website somewhere. It has per cent. In 2008-09 it would be 2¾ per cent. Their not worked in Western Australia; it will not work for projection for 2009-10 was that it would be at 2½ per the rest of Australia. (Time expired) cent, and their projection for 2010-11 was that it would Mr BRADBURY (Lindsay) (4.17 pm)—This matter remain at 2.5 per cent. That is the advice that the gov- of public importance moved by the member for Wen- ernment had from Treasury and Finance in October last tworth is further evidence that those on the other side year. of this chamber know no bounds when it comes to Nobody doubts that inflation is an issue which, for sheer hypocrisy—those who, just a short time ago, is- any developed economy, is a constant that has to be sued that great clarion call that ‘working families have dealt with. The previous coalition government was able never been better off’, a clarion call that was de- to deal with the issue of inflation. We were able to deal nounced by people throughout this country. Hardwork- with inflation at the same time that we continued to ing people in communities right across this country have significant economic growth. We were able to stood up to be counted at the last election. They were deal with and contain inflation at the same time that we not going to take the fact that they were under enor- cut spending, we cut taxes and we lifted the workforce mous financial pressures, many of those pressures cre- participation rate—we had record lows in unemploy- ated by the profligate spending and continual pork- ment. We were able to manage all of those economic barrelling by those on the other side, using budgets outcomes while at the same time keeping inflation year after year to win votes rather than invest in our within the bandwidth set by the Reserve Bank gover- nation’s long-term future. The result of that, their leg- nor. acy, is the highest inflation in 16 years—the highest inflation, stripping away the living standards of work- This debate goes to not just inflationary pressures ing people across this country and eroding the value of but specifically the issue of cost pressures on Austra- the money in their pockets. lian families. As I said in my opening remarks, at the last election the government promised that they would This is the great challenge, a challenge that we as a bring down grocery prices and petrol prices and make government are ready to confront head on. That is why homes more affordable. This budget, as has been in this budget we have reduced government spending. clearly demonstrated, does none of that. In relation to We have brought to an end the rapid increases in gov-

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 73 ernment spending that occurred consistently through- nise that government revenue, tax dollars, is money out the period of the previous government. contributed by hardworking Australians throughout this Mr Keenan interjecting— country. To hoard it and try and funnel it back as a bribe to those who are less deserving has conse- Mr BRADBURY—Under a government more con- quences, and one of those consequences has been that cerned with pork-barrelling in marginal seats than in- inflation has run out of control. People in my electorate vesting in their long-term future, working families who are absolutely stretched to the verge of bankruptcy across this country saw their costs, whether they were in many cases now find that, because inflation is out of child care, fuel, education, mortgage or rental costs, control, the Reserve Bank, using the only instrument spiralling out of control and leading to that 16-year available to it, is having to increase interest rates— high in inflation. It is a massive challenge and one that putting more and more pressure on those people who we are prepared to confront. are on the edge. The opposition leader says that it is a charade. Go This is all occurring because those on the other side and talk to the working families right across this coun- failed to act. They failed to rein in government expen- try who are seeing the money in their pocket eroded, diture. If this government does the same and fails to do ripped away, by the scourge of inflation. Go and tell that, it is going to impact even more on people in my them it is a charade. community than in some others. We have expenditure Mr Keenan interjecting— cuts that are targeted. They are targeted to the people The DEPUTY SPEAKER—The member for Stir- who can absorb those cuts, because if we do not do that ling is warned! then the people who cannot absorb further increases in Mr BRADBURY—Perhaps one or two people in interest rates are going to be the victims. That is why it the course of the opposition leader’s so-called listening is imperative that we run a tighter budget, and that is tour through this country might have pointed it out. I why this government has risen to that challenge. Eco- can tell you that in my electorate they consistently nomic commentators right across this country ac- point it out, because it is having a real impact. I want to knowledge that—even Goldman Sachs. Either the address this issue by making some reference to my quality of advice that they offer has deteriorated local community. somewhat or, some might suggest, it has improved! But, notwithstanding the credentials of a firm of that There have been suggestions that we should ignore nature, even they can see the merits of the budget that inflation or that we should not confront it—and we can we have brought down. go back and look at the record to see the many comments that have been made by those on the other side, Let me quote Peter Anderson from the Australian including the member for Wentworth, as recently as 9 Chamber of Commerce and Industry in relation to the February. Asked if inflation was out of the target band, budget: Mr Turnbull on Friday said it was not. On 28 April It’s good on infrastructure, it’s good on workforce skills and 2008 he said: it makes good progress on reducing the size of government expenditure. I think the Treasurer’s got to be very careful not to be too Scrooge-like with the Federal Budget … Those on the other side say there are no reductions in He said: government expenditure. Well, Peter Anderson seems to believe that there are. He has read the budget papers. … I’m saying there is a lot of grief coming in from outside He focuses on workforce skills and infrastructure, key Australia— elements of our five-point plan. You come into this well, that is a revelation!— place and talk about a lack of a strategy. What is your and this is a time for us here in economic management to be strategy? We have a five-point plan, and it is not just cautious. We shouldn’t be rushing in to measures be they rhetoric; we are delivering on it. The budget delivered monetary or fiscal, that could in effect, overdo the downward last night delivers on each and every one of those five pressure on economic activity that is coming from the rest of points in the plan. the world. It seems a far cry from what we are now hearing. Our The first point, ensuring that we have a surplus of budget, the Treasurer’s budget, this government’s over 1.5 per cent of GDP, was delivered. 1.8 per cent of budget, did not go far enough. But back then—it was GDP was the surplus handed down last night. The sec- not that long ago—we had to be ‘cautious’. We had to ond point is investing in skills and education. We have demonstrate the sort of caution that the member for had over 20 warnings from the Reserve Bank—and I Wentworth was calling for. have to say to the Leader of the Opposition, who thinks that inflation is a charade, that he is clearly not looking The very expenditure cuts that we have announced, at the gestures coming from the Reserve Bank, because in particular the means-testing of the baby bonus, is a they have been very clearly articulating their stance case in point when it comes to the absolute failure of with over 20 warnings about infrastructure blockages, those on the other side in their time in office to recog-

CHAMBER 74 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 skills shortages and the risk of inflation. All of those an opportunity to remind him of what we were doing, cautions and those warnings were not acted upon. But because it goes to the heart of the favourable circum- we are delivering on the education and skills front— stances that have faced this government since they $2.5 billion to trades training centres in schools around came into office. What were we doing when we were this country, delivering access to the skills that our in office? Paying off Labor’s debt, creating two million economy needs in the school. These are significant jobs, keeping inflation low and keeping interest rates changes and measures that we are introducing, includ- low. We halved the rate of long-term unemployed. We ing 630,000 additional training places. That is a sig- doubled net household wealth. That is a pretty good nificant measure that will have a significant impact. record, and this is the economy that the Labor Party Whilst those on the other side sat on their hands and has now inherited. Wayne Swan is the luckiest incom- ignored those warnings, we are acting decisively. The ing Treasurer in the history of Australia, and that is a suggestion that we do not have a plan and have not fact. implemented it decisively really does defy any credi- What we have seen from this government—and we bility and raises the question: what were those people saw it prior to when they were elected—is claims that over there doing over the last 12 years? they were going to put grocery prices, petrol prices and In terms of investing in skills and training, there are our mortgages at the heart of what they do. This was a raft of other measures, including delivering relief to going to be ‘core business’, as the Prime Minister al- families through the education tax refund. This will ways says. In fact, in the Australian this year the Prime make a real impact for hardworking families trying to Minister said that, when it comes to grocery prices and give their kids the best start in life and trying to make food prices, ‘The buck stops with me’. His Treasurer sure that when they go to school each day they have said very similar things. In fact, apparently the Treas- access to the resources that they need to do their urer has been conducting grocery price watches in his homework, to be prepared and to be able to compete own electorate since 1993. with those million-dollar babies that the people on the So we have a new Prime Minister, we have a new other side are so determined to protect. At some point Treasurer, and at the heart of what they are going to do those on the other side need to recognise that we need for the Australian people is controlling the cost of liv- to target government expenditure to areas of need and ing. So in their first big policy document that they have not be throwing it around in order to continue to curry brought down in this place for the Australian people, favour with those constituencies that may happen to be what do we have about easing cost-of-living pres- their supporters. sures—this core business of the new Rudd govern- Our third point is investing in infrastructure. Our ment? We have three lines in the budget speech. What Building Australia Fund, our investment in housing they say is that there are legitimate community con- and the National Rental Affordability Scheme are real cerns about the increasing price of groceries and pet- measures attacking the infrastructure problems. We are rol—we all know that; this Prime Minister has a habit boosting workforce participation with the low-income of stating the absolute obvious. Then they say they will tax offset and tax cuts targeted to middle- and low- have the ACCC look at it and they will introduce a income earners. We are boosting national savings failed FuelWatch scheme. That is line number two. through our first home owners saving scheme. This is Line number three in this budget document about con- the five-point plan. This is our strategy. We have acted trolling cost-of-living pressures is that they are going decisively, and we will now see over the coming period to expand financial counselling services to help fami- results that you would never have seen if those people lies better manage their finances. That is three lines on the other side, who sat on their hands for 12 years, from the main policy document of this new govern- were still on this side and in control of the treasury ment about something that they have been telling the bench. Australian people is core business. Mr KEENAN (Stirling) (4.27 pm)—Late last year What would help Australians control their budgets is there was a change of government in this country, and I for the new government to do something about rising suspect that the people of Australia have been sitting grocery prices and rising petrol prices that works. In- around waiting to see what the nature of this new gov- stead what we get is a budget that will drive up infla- ernment is. Six months later, they have their answer. tion. We get a budget that is increasing taxes and we Quite frankly, this is all there is. The government’s first get a budget that is going to be a record spend for any budget has been delivered under the most fortuitous Australian government. They are increasing the cost of circumstances for any new government in the history air travel in this budget. They are increasing the cost of of this country, and this is all that we get from the new the passenger movement charge. They are increasing Rudd government. the cost of passports. They are increasing the cost of The previous speaker asked what we were doing alcohol. They are increasing the cost of motor vehicles. when we were in government, so I would like to take All of these will drive up inflation. Somebody obvi-

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 75 ously has not told the Treasurer that raising prices will seniors and carers. And of course these measures will drive up inflation. And worse, there are measures all be delivered within an overall budget framework of within this budget that will go to the heart of this con- cuts to government spending and investment in things versation today: the core business that the government like education, training and infrastructure—all aimed at believes that it is engaged in of controlling petrol reducing the capacity constraints and inflationary pres- prices and controlling grocery prices. Last night they sures that the previous government ignored for so long. slapped an extra tax on condensates, which will feed In the time I have left I want to commend the gov- directly into the price of petrol. ernment for one set of measures announced in last If you want to know the nature of this new govern- night’s budget that will address a problem of particular ment, this budget document says everything about it. concern in my electorate and one which has a huge What they are prepared to do about any substantial impact on household budgets. I am talking about hous- issue is to strike a pose that they care about it and then ing affordability. This is something else that the oppo- come up with some stunt about it. Then they will sition completely ignored during its time in office. blithely move onto the next thing without ever achiev- Who could forget the interview on 30 July last year ing any results on what they have set themselves to do. when the then Treasurer was asked: A high taxing, high spending, old-fashioned Labor Do you concede that there is a housing crisis, housing af- budget will not help—(Time expired) fordability crisis in Australia at the moment? Ms LIVERMORE (Capricornia) (4.32 pm)—I am The then Treasurer and member for Higgins waffled delighted to have this opportunity to speak today on the on, but when pressed by the journalist saying, ‘So is Rudd government’s first budget, delivered last night. I there a crisis, Treasurer?’ the member for Higgins re- want to start by congratulating the Treasurer, Wayne plied, ‘Well, no.’ Try as they did to convince the Aus- Swan, for his magnificent work in creating a budget tralian people that there was not a housing crisis in that delivers on each and every one of Labor’s election Australia, in November last year the Australian people commitments and sets Australia on the path to meet the told members opposite that yes, there is a housing cri- challenges of the future. In my electorate we have wel- sis and, in so doing, removed many of them from this comed significant investments in our local sporting House. In fact, one might say that the Liberal Party, infrastructure and health services, just to name a few of which in 2007 denied that we had a housing crisis, was the budget initiatives. Each of the election commit- justifiably evicted from this House not only for its fail- ments for Capricornia has been honoured in full. ure to do something about the problem but also for its We also set out in this budget to relieve financial failure to even acknowledge the existence of the hous- pressure on families, on workers and those on low in- ing problem. It was just a sign of how out of touch and comes such as pensioners and carers. We did that be- arrogant the opposition had become after 12 years in cause we know that many Australians are struggling office. with the legacy of the previous government—12 inter- The cost of houses and the high cost of renting are est rate hikes in a row and the highest inflation this impossible to ignore in my electorate where the coal country has seen for 16 years. It is absolutely ironic boom has brought many opportunities but many pres- therefore that the opposition should choose today’s sures as well, particularly for those people not directly topic for the MPI. Here they are accusing the govern- employed in the industry. The issue of access to afford- ment of failing to address the cost-of-living pressures able housing is especially critical in the mining towns on Australian families. How can they say that with a themselves, where a three-bedroom house could cost as straight face? Members of the opposition have shown much as $800 to $1,000 per week to rent. But we have time and time again that they have no idea about the seen the flow-on effect in nearby cities such as Rock- financial pressures Australian families are under and hampton and Mackay. Not all people are earning min- certainly no intention of doing anything to help allevi- ing town wages, but they are all paying mining town ate those pressures. Let us not forget that until a few rent. It is impossible for a postie, a baker, a nurse, a weeks ago the opposition’s answer to Australians’ fi- council worker in many parts of central Queensland to nancial pressures was Work Choices. According to survive. them the answer to financial pressure was job insecu- The previous government was happy to pocket the rity and AWAs that stripped away basic entitlements proceeds of the mining boom but could not care less and reduced take home pay. about the living conditions of the men and women ac- As we have heard from previous speakers, the tually making the boom happen. In contrast, this gov- budget is full of measures that go directly to relieving ernment not only recognises that there is a problem, the cost-of-living pressures on Australian families. but in its budget last night it also set about tackling There are the tax cuts, of course, there is increased as- housing affordability and homelessness with a budget sistance for childcare costs, there is important help housing package investing $2.2 billion over the next with education expenses and additional measures for four years on boosting rental stocks, helping people

CHAMBER 76 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 save for their first home and building new homes for Speech time limits — the homeless. Mover of motion—5 minutes. The DEPUTY SPEAKER (Hon. BC Scott)— First Opposition Member speaking—5 minutes. Order! The time for the discussion is now concluded. Other Members—5 minutes each. BUSINESS [Minimum number of proposed Members speaking = Consideration of Private Members’ Business 6 x 5 mins] Report The Whips recommend that consideration of this matter should continue on a future day. Mr PRICE (Chifley) (4.37.pm)—I present the report of the recommendations of the whips relating to 2 MR WOOD: To move—That the House: the consideration of private members’ business on (1) notes that: Monday, 26 May 2008. Copies of the report have been (a) microfinance has proven to be a particularly effec- placed on the table. tive and sustainable means of eradicating poverty; The report read as follows— (b) microfinance borrowers, particularly women, gen- erate income that allows them to feed, clothe, edu- Pursuant to standing order 41A, the Whips recommend the cate and care for the health of their children; following items of private Members’ business for Monday 26 May 2008. The order of precedence and allotments of time (c) in December 2006, 93 million of the poorest people for items in the Main Committee and Chamber are as fol- had access to microfinance services, which is a 12- lows: fold increase since 1997; PRIVATE MEMBERS’ BUSINESS (d) in support of the poverty eradication goal of the Millennium Development Goals, the Microcredit Notices recommended for Main Committee (6.55 to Summit Campaign, launched in 1997, is working to 8.30 pm) expand microfinance to 175 million of the poorest 1 MR GIBBONS: To move—That the House: people by 2015; (1) notes the need for Australian businesses to be globally (e) the Microcredit Summit Campaign is holding an competitive in order to sustain economic prosperity after Asia-Pacific Microcredit Summit in Bali between th th the current resources boom; the 29 and 30 July 2008; (2) notes the alarming decline in Australia’s productivity (f) the Asia-Pacific region contains 64 per cent of the and export performance over the last five years; world’s population who live in absolute poverty, and as such it has a large unmet need for credit and (3) notes research findings that less than one in five Austra- other financial services; and lian businesses is currently “world class”; (g) the Bali Summit is a significant opportunity to ex- (4) notes the Government’s election commitments and sub- amine ways to expand the use and effectiveness of sequent policy announcements about measures to im- microfinance in the region and to realise the Gov- prove national productivity including public investment ernment’s policy objective of reducing poverty in in education, skills training and national infrastructure; the Asia-Pacific region; and (5) notes research findings that people management prac- (2) urges the Australian Government to send the appropriate tices are the predominant factor affecting company pro- Minister and appropriate Shadow Minister as leaders of ductivity and performance; an Australian delegation to the Asia-Pacific Microcredit (6) notes research findings that indicate Australian manag- Summit in Bali in July 2008 ers are paying insufficient attention to workplace prac- Time allotted—35 minutes. tices and employee satisfaction; and Speech time limits — (7) supports the establishment of a National Commission for Workplace Innovation and Excellence that will, in Mover of motion—10 minutes. conjunction with the business community, trade union First Government Member speaking—10 minutes. movement, professional associations and education pro- Other Members—5 minutes each. viders: [Minimum number of proposed Members speaking = (a) identify workplace factors that positively impact on 2 x 10 mins and 3 x 5 mins ] workplace innovation, excellence and productivity including human resource management practices The Whips recommend that consideration of this matter and organisational culture; should continue on a future day. (b) develop policies that promote workplace innova- 3 MS OWENS: To move—That the House notes: tion, excellence and productivity including best (1) that Ovarian Cancer Awareness Week will be held from practice models, codes of practice, awareness pro- 24 February to 2 March 2008; grams, business exchanges and awards; and (2) that ovarian cancer is the sixth most common cause of (c) support research, management education and train- cancer death in women, with nearly 1,200 Australian di- ing in conjunction with higher education providers agnoses each year and nearly 800 Australian deaths and professional associations. from it each year; Time allotted—30 minutes.

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 77

(3) that when ovarian cancer is diagnosed at an early stage, (e) the Traveston Crossing Dam will significantly re- the outlook is very good—as many as 90% of women duce water flows into the Great Sandy Straits Ram- diagnosed early are cured. However, 75% of women are sar listed wetlands, threatening fish breeding, Du- diagnosed at the advanced stage when it is very difficult gong feeding areas and the waters of Hervey Bay to treat; and World Heritage listed Fraser Island; and (4) that it is a devastating disease that is difficult to diag- (2) calls on the Minister for the Environment, Heritage and nose early and treat at an advanced stage. A woman dies the Arts, the Hon Peter Garrett MP to exercise his pow- every 10 hours largely because of the lack of early de- ers under the Environment Protection and Biodiversity tection tests and poor knowledge of the disease through- Conservation Act 1999 to reject the Traveston Crossing out the community; Dam absolutely. (5) that a recent Senate Community Affair’s inquiry into Time allotted—30 minutes. gynaecological cancer in Australia (tabled Speech time limits — 27 February 2007) identified a need for increased Mover of motion—10 minutes. awareness amongst the broader community about gynaecological cancers and symptoms and better educa- First Government Member speaking—10 minutes. tional support for general practitioners; Other Members—5 minutes each. (6) that a survey commissioned by the National Breast Can- [Minimum number of proposed Members speaking = cer Centre has revealed that half of all Australian 2 x 10 mins and 2 x 5 mins ] women believe incorrectly that a pap smear will detect The Whips recommend that consideration of this matter ovarian cancer and that 56% of women are unable to should continue on a future day. correctly name any signs or symptoms of the disease; and 2 MR TURNOUR: To move—That the House: (7) the need for greater focus on education and additional (1) congratulates the Government on bringing down a research funding to help Australian scientists to find budget that: early detection markers and more effective treatments of (a) begins tackling Australia’s 16 year high inflation this insidious disease. rate and puts downward pressure on interest rates Time allotted—remaining private Members’ business time so as to ease the pressure on family budgets; prior to 8.30 pm (b) delivers on the Government’s election commit- Speech time limits — ments restoring confidence in an electorate cynical about political promises; and Mover of motion—5 minutes. (c) sets out a plan to tackle the long term challenges First Opposition Member speaking—5 minutes. facing the nation so as to secure our prosperity into Other Members—5 minutes each. the future. [Minimum number of proposed Members speaking = Time allotted—remaining private Members’ business time 6 x 5 mins] prior to 9.30 pm The Committee determined that consideration of this matter Speech time limits — should continue on a future day. Mover of motion—5 minutes. Notices recommended for House of Representatives First Opposition Member speaking—5 minutes. Chamber (8.30 to 9.30 pm) Other Members—5 minutes each. 1 MR TRUSS: To move—That the House: [Minimum number of proposed Members speaking = (1) notes that: 6 x 5 mins] (a) the Queensland Government will soon deliver an The Committee determined that consideration of this matter environmental impact assessment of its proposed should continue on a future day. Traveston Crossing Dam to the Federal Minister for the Environment, Heritage and the Arts, the Hon Report adopted. Peter Garrett MP, under the Environment Protection EXPORT MARKET DEVELOPMENT GRANTS and Biodiversity Conservation Act 1999; AMENDMENT BILL 2008 (b) the Traveston Crossing Dam is an expensive, inef- Referred to Main Committee ficient, unreliable and environmentally destructive option for delivering water to Brisbane; Mr PRICE (Chifley) (4.38 pm)—I move: (c) the Traveston Crossing Dam will displace hundreds That the bill be referred to the Main Committee for fur- of Mary Valley families, inundate some of the finest ther consideration. farm land in south east Queensland, and destroy at Question agreed to. least $1 billion of infrastructure; BUSINESS (d) the Traveston Crossing Dam will decimate the habitat and threaten the survival of the rare or en- Mr SNOWDON (Lingiari—Minister for Defence dangered Mary River turtle, the Australian lung Science and Personnel) (4.39 pm)—On behalf of the fish, the Mary River cod and a range of other spe- Leader of the House, I move: cies; and

CHAMBER 78 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

That standing order 31 (automatic adjournment of the And when that day the Minister for Families, Housing, House) be suspended for the sitting on Thursday, 15 May Community Services and Indigenous Affairs was spe- 2008 and at that sitting, after the Leader of the Opposition cifically asked about this, she was reported by AAP as completes his reply to the Budget speech, the House auto- saying: matically stand adjourned until 12 noon on Monday 26 May 2008 unless the Speaker or, in the event of the Speaker being Ms Macklin refused to rule anything in or out in the budget, unavailable, the Deputy Speaker, fixes an alternative day or but said the government understood the difficulties faced by hour of meeting. carers. Question agreed to. If the government had been committed all along to paying these bonuses, why were these very well- TELECOMMUNICATIONS (INTERCEPTION sourced reports that they were not appearing in at least AND ACCESS) AMENDMENT BILL 2008 two credible newspapers and why did Minister Jenny Consideration of Senate Message Macklin refuse to say that the government was totally Bill returned from the Senate with amendments. committed to paying the bonus when she was given Ordered that the amendments be considered at the that chance? next sitting. The government faced a storm of controversy, as SOCIAL SECURITY AND VETERANS’ you would expect, over its decision at that point in time ENTITLEMENTS LEGISLATION AMENDMENT not to pay the bonuses. At that point in time the Prime (ONE-OFF PAYMENTS AND OTHER BUDGET Minister was off on one of his many overseas jaunts. MEASURES) BILL 2008 When he was finally contacted he said that this was something that would be dealt with in due course. Second Reading When he finally came back to parliament he said that Debate resumed. the minister was investigating how the system could be Mr ABBOTT (Warringah) (4.41 pm)—I am happy improved, saying that ‘one-off payments and bonuses to inform the House that the opposition supports the were an inadequate way to deal with welfare on a long- Social Security and Veterans’ Entitlements Legislation term basis’. Amendment (One-off Payments and Other Budget So let me make this absolutely clear. First of all, the Measures) Bill 2008, but I should also inform the government is paying these bonuses reluctantly. It is House that this is the bonus that almost never was. This only paying these bonuses because Jenny Macklin won legislation resulted from intense pressure brought by a guerrilla war inside the government, against the min- the opposition on the government after it was ex- ister for finance. The second point I make is that it is tremely credibly reported that the government was in- only paying these bonuses temporarily. As the Prime tending to scrap the bonuses which this legislation now Minister himself made clear, and let me quote it again, delivers. ‘one-off payments and bonuses are an inadequate way Back on Friday, 7 March this year, the Australian to deal with welfare on a long-term basis’. So the car- reported on its front page, as senior sources confirmed, ers and the seniors of Australia need to know their bo- that the payments were to be scrapped. It said: nuses are not safe under the Rudd government. They Treasurer Wayne Swan told a business lunch the Howard have only got the bonuses this year because of the op- government had engaged in the “old politics” of pork- position. And there is no assurance whatsoever that barrelling, leaving the incoming government facing the need these bonuses are going to be paid in future years. to make dramatic budget cuts to reduce the inflationary pres- I want to make it absolutely crystal clear that the sure that was driving up interest rates. carers and the pensioners of this country are doing it We now know that there were no dramatic cuts in the tough. They are not doing it as tough as they might budget and there has been no serious fight against in- otherwise have been because of the decisions that the flation in this budget. But we do know, because that Howard government made and the regular payments of particular report in the Australian made it very clear, these bonuses over the last few years. They are not there were strong forces inside the government that did doing it as tough as they might otherwise have been want to see these carers and seniors bonuses scrapped. because of the massive surplus that this government Not only do we have that report, but we also had on inherited, thanks to the good economic management of the same day the Sydney Morning Herald reporting: its predecessor, and thanks to the sustained pressure The Federal Government faces criticism from carer groups that the opposition brought on the government to after it decided not to match a $1600 bonus payment made to thwart their sneak attack on these bonuses through the carers by the Howard government in recent years. minister for finance. But they are still doing it tough, A spokeswoman for the Minister for Families, Jenny Mack- and I commend Carers Australia for pointing out today lin, confirmed the decision last night saying it was part of the just how hard it is for pensioners and carers, for whom Government’s plan to cut spending. the cost of essentials is certainly going up at a faster rate than the standard CPI. It is precisely because of

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 79 this that over the last four budgets the Howard gov- islation we have introduced since last November that ernment paid these bonuses; and it is precisely because we are committed to improving the living standards of of this that the Nelson opposition would not stand for working families and providing economic relief from any attempt by the current government to terminate the pressures they are facing at the moment. This piece these bonuses. of legislation is one important plank in our commit- The opposition certainly support this legislation. We ment to working families because carers and seniors believe that we are, in a real sense, the authors of this are also members of working families. In fact, if it was legislation. We believe that were it not for us this legis- not for the incredible contribution that our elderly lation would not be before the House right now. We are members of the community have made through the pleased to have fought the good fight on behalf of the workforce over many years we would not be in the carers and pensioners of this country. I can assure them privileged position that we are today. And if it was not that we will be here to protect them against the rapacity for the carers who are at home looking after those peo- of the Rudd government. ple who are the most vulnerable and disadvantaged, others would not be able to participate in the work- Ms REA (Bonner) (4.48 pm)—I am very pleased to force. So they are a fundamental part of our working rise to support the Social Security and Veterans’ Enti- families and they deserve the financial support that the tlements Legislation Amendment (One-off Payments government can give them. and Other Budget Measures) Bill 2008 that is before the House. The Rudd government is very much a car- Carers deserve financial support that also gives them ing government, and a caring government must always some financial security. That is why I am pleased that acknowledge the incredible contributions and roles the Minister for Families, Housing, Community Ser- played by the carers, the seniors and, indeed, the veter- vices and Indigenous Affairs, in introducing this legis- ans who also benefit from this particular piece of legislation, has made sure that the bonuses will be paid this lation, by ensuring that their bonuses are not only paid financial year. The minister will also undertake a re- to them but will be paid by the end of this financial view that will look at ways in which welfare and re- year. I listened with breathtaking incredulity, I think, to tirement can be supported through ways that are much the speech from the member for Warringah. There was more certain and that will provide much more financial probably only one point that he made, which was his security than the one-off bonuses that were introduced opening sentence, that I would agree with. He opened by the previous government. It is important, when you by saying that this was ‘the bonus that almost never are living on the breadline and dealing with rising costs was’—and he is absolutely accurate because, in fact, of living, battling the increase in petrol prices and go- this bonus was never contained in the forward esti- ing to a supermarket every week and having to fork out mates of the Howard-Costello government. It is very more money each time, that the government gives you clear that there was no intention by the previous gov- some level of financial support and acknowledges not ernment to continue paying this bonus to these most only your vital contribution to the community and to deserving members of our community. the individuals you are caring for but also the needs you have as an elderly member of the community. It is It is interesting to note that the member for Warrin- also important that you have some level of financial gah referred to the fact that these bonuses were paid security and that you do not have to wait with bated over four budgets by the previous government. For breath each budget night to know what your income four budgets they paid a one-off bonus to carers and will be the following week or the following month. seniors, and in the middle of preparing a fifth one they That is why it is important to ensure that people re- had the opportunity to give carers, seniors and veterans ceive these vital payments this year, which will give a much greater level of financial security in these pay- the government an opportunity over the next financial ments by not continuing them as one-off bonuses but year to look at ways in which it can deliver this finan- providing ongoing support for them in the forward es- cial support in a more effective and a more financially timates and future budgets. But they refused to do that. secure manner. I am very pleased that the minister has As a result, I find it amazing that the member for War- introduced this legislation. I am absolutely astounded ringah can stand up in this place and criticise the Rudd that the member for Warringah was dragged kicking government for paying these bonuses, saying that we and screaming to support this measure. He said not one were never intending to do it, when in fact the uncer- word about the invaluable contribution of carers and tainty was created by them in the first place. seniors. He tried to develop some spurious argument These bonuses are important because the carers and that it is this government that does not support them seniors of this community play an incalculable role in when it was always the intention of the government providing support for our overall welfare. We as a gov- that he was once a member of to get rid of this bonus. ernment have made it very clear through the budget Another aspect of this legislation which reflects this delivered last night, through the election campaign that government’s attitude to carers and seniors and shows was so hard fought last year and in every piece of leg- that we honour and regard them with the level of dig-

CHAMBER 80 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 nity that they deserve is that those holding concession as of 13 May 2008, either a social security carer pay- cards will be allowed to go overseas for up to 13 weeks ment or a veterans carer service pension. Carers receiv- of the year without their cards being cancelled. Whilst ing the non-means tested carer allowance in addition to those cards may not provide support for them while either the wife pension or veterans partner service pen- they are overseas, we all know—we talk to constituents sion will also get the $1,000 one-off payment. Any every day—the hassle of dealing with forms and bu- carer receiving the carer allowance will be paid a sepa- reaucratic offices when reapplying for something that rate $600 one-off payment for each eligible care re- has been cancelled. I believe that this demonstrates that ceiver. Approximately 606,500 bonus payments will be our pensioners are human beings and that they should made to 430,000 care providers as a result of this Rudd enjoy many of the benefits that we all enjoy. If they are government initiative. A further measure introduces a able to travel overseas for up to 13 weeks without hav- limited non-cancellation period for social security or ing to relinquish their card, it is quite a significant in- veterans entitlements concession cards while the card- novation. I am very pleased that the minister has used holder is overseas, which will result in a significant this piece of legislation to allow it to happen. improvement of concession card arrangements. There I am pleased that the opposition is supporting this are around 600,000 temporary trips outside Australia legislation and that they are, for a fifth time, prepared taken by concession card holders. These new rules will to support a one-off bonus. I hope, though, when it allow cardholders who leave Australia for up to 13 comes to the new initiatives that this government will weeks to retain their cards while overseas rather than introduce and when we implement measures that will requiring that the card be cancelled from the day of give financial security in the long term to carers, sen- departure. iors and those veterans who are entitled to them, that Question agreed to. the opposition will also support those initiatives. Those Bill read a second time. initiatives will not only honour the contributions of Message from the Governor-General recommending carers, seniors and veterans but also give those valu- appropriation announced. able members of our community the dignity that they deserve. Third Reading Mr SHORTEN (Maribyrnong—Parliamentary Sec- Mr SHORTEN (Maribyrnong—Parliamentary Sec- retary for Disabilities and Children’s Services) (4.56 retary for Disabilities and Children’s Services) (5.00 pm)—The Social Security and Veterans’ Entitlements pm)—by leave—I move: Legislation Amendment (One-off Payments and Other That this bill be now read a third time. Budget Measures) Bill 2008 delivers the government’s Question agreed to. commitment to make bonus payments to seniors and Bill read a third time. carers for 2008. As the member for Bonner said, it acknowledges the role and contribution of carers as well VETERANS’ ENTITLEMENTS LEGISLATION as the role that our senior Australians have played in AMENDMENT (2007 ELECTION creating our prosperous nation. New one-off payments COMMITMENTS) BILL 2008 will be paid generally before the end of the financial Report from Main Committee year. They will be tax free and will not count as income Bill returned from Main Committee without for the purposes of social security, veterans entitle- amendment, appropriation message having been re- ments or family assistance purposes. A 2008 one-off ported; certified copy of the bill presented. payment of $500 will go to older Australians. Each Ordered that this bill be considered immediately. person of pension age or veterans qualifying age who is receiving an income support payment on 13 May Bill agreed to. 2008, and recipients to that date of mature age allow- Third Reading ance, partner allowance, widow allowance, wife pen- Mr SNOWDON (Lingiari—Minister for Defence sion or widow B pension, will also attract the one-off Science and Personnel) (5.01 pm)—by leave—I move: payment. Around $1.4 billion has been allocated for That this bill be now read a third time. the seniors bonus payment. Self-funded retirees will Question agreed to. also receive a bonus if they are, on that same date, qualified or notionally qualified for the seniors conces- Bill read a third time. sion allowance. The government has provided around $428 million for the delivery of the carer bonus to eligible carers. Despite the comments of the member for Warringah, this government is standing by carers, and carers will be paid a $1,000 one-off payment if they are receiving,

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 81

HIGHER EDUCATION SUPPORT AMENDMENT Removing the requirement that universities meet the (REMOVAL OF THE HIGHER EDUCATION higher education workplace relations requirements as a WORKPLACE RELATIONS REQUIREMENTS condition of funding will remove any requirement that AND NATIONAL GOVERNANCE PROTOCOLS universities must offer AWAs to employees. It will re- REQUIREMENTS AND OTHER MATTERS) move the enormous mistrust that has grown between BILL 2008 the former federal government and tertiary institutions. Second Reading One of the worst manifestations of this distrust was the requirement that universities abide by the higher edu- Debate resumed. cation workplace relations requirements, which re- Mr CHEESEMAN (Corangamite) (5.02 pm)—As I quired them to pursue the Howard government ap- was saying earlier today in this debate, these laws are proach to workplace relations or suffer a financial pen- terrible. They resulted in the Prime Minister losing his alty. The end of higher education workplace relations seat, along with a dozen of his cronies. They are bad requirements will clear the way for the Rudd govern- for universities, they are bad for TAFE colleges, they ment to develop a healthy new relationship with our are bad for schools and they are bad for every Austra- universities based on trust and mutual respect. Full lian workplace. They are especially bad for universi- Commonwealth grant funding will now flow to our ties. And the overwhelming majority of Australians universities. In the future, relations will be based recognised this at the 2007 election. The Higher Edu- around negotiated funding compacts reflecting the dis- cation Support Amendment (Removal of the Higher tinct missions of each university, not around ideologi- Education Workplace Relations Requirements and Na- cal industrial relations agenda. tional Governance Protocols Requirements and Other In her second reading speech, my Deputy Prime Matters) Bill 2008 will rid us of Work Choices in an- Minister spoke of ‘getting the heavy foot of the Liberal other important area of Australian life. Our universities Party off the throat of our universities’. I wholeheart- will work better for seeing the back of Work Choices edly agree with this sentiment. That is exactly what laws, and this is one more step towards achieving this. they were doing: they were choking the institutions University staff will not feel so constrained to speak financially. But I would go one step further than the their mind. The families of university staff will feel Minister for Education: this is not just about getting the better knowing that they are more secure. heavy foot of the Liberal Party off the throats of our There is another important context to this debate, universities; it is about getting the heavy foot of the so- and that is the financial context of the former govern- called Liberal party—the now very much misnamed ment’s financial threats to universities. As we all know, Liberal Party—off the throat of university tutors, pro- John Howard’s record and the record of the remnants fessors, associate professors, deans and vice- of his former government, on the opposite side, are chancellors. close to the worst in the western world on university In conclusion, I would remind the Liberal Party that funding—and their tortuous use of use of statistics will the Australian people overwhelmingly rejected Work never hide it. The record of the previous government in Choices at the last election. The Liberal-National coali- funding higher education was truly shameful. The for- tion of course needs to do a lot of soul-searching about mer government’s reign saw a massive drop in funding this. But I would suggest to the Liberals that they also for higher education, close to the biggest cut, in real need to look even deeper, to think deeply about their funding terms, of any advanced western country during own traditions as Liberals. If they do not wish to re- the same period, at a time when the knowledge indus- cover their lost Liberal traditions, perhaps a merger try was the most important in our nation’s future. It with the Nationals could be made easier. They could was absolutely shameful. just drop the name ‘Liberal’ altogether and become the I will repeat a key statistic here that has already been Australian National Party. The former government’s raised in this debate, because it certainly bears repeat- Work Choices legislation, and other supporting legisla- ing. From 1994 to 2004 other OECD countries in- tion, was absolutely shocking for working families. It creased public investment in tertiary education by an very much hurt the core trust that had been built up in average of 49 per cent. In the same period of the How- universities between staff and those institutions. I ap- ard-Costello government, public investment in Austra- plaud this legislation. lia was cut by four per cent. What a shocker. That sta- Mr SIDEBOTTOM (Braddon) (5.08 pm)—I con- tistic is perhaps the most damning statistic of any of gratulate the member for Corangamite on his excellent the records of the previous federal government, and contribution to this important amending legislation. It there are many records of shame held by the last gov- gives me great pleasure to support the Higher Educa- ernment. If we overlay the previous Howard-Nelson tion Support Amendment (Removal of the Higher Edu- government’s threat to further starve universities of cation Workplace Relations Requirements and National funding against this backdrop of ongoing funding star- Governance Protocols Requirements and Other Mat- vation, you can see the big stick they were wielding.

CHAMBER 82 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 ters) Bill 2008. Put simply, this is part of our promise The abolition of the higher education workplace re- to get rid of the remnants of the Howard government’s lations requirements and the NGPs accords with this insidious industrial relations scheme. It is part and par- government’s public commitment. The government cel of our promise and commitment to do a number of indicated in a white paper on higher education in July things as a government which, I was very pleased to 2006 that ‘workplace relations and governance condi- see last night, were fulfilled very much so in the budget tions attaching to funding will be removed’. Unlike the presented by the Treasurer on behalf of the new Labor Howard government’s unmandated Work Choices leg- government of Australia. Importantly in terms of in- islation, this government made it clear, as I mentioned dustrial relations, this amending legislation will re- earlier, that we would indeed remove these conditions move the results of what really could only be called an related to that section. No equivocation, no doubt, no arrogant government bullying of workplaces and ambiguity about what we have done here. workers, and in this case unwarranted intervention in For those interested, let us be clear what Labor’s our universities and other higher education providers. amendment bill does. First and foremost, will remov- The amendment of the Higher Education Support ing the higher education workplace reform require- Act 2003 effectively repeals section 33.17. This cur- ments stop universities offering AWAs? Indeed it will. rently requires higher education providers to meet the Removing the requirements that universities meet the higher education workplace relations requirements and higher education workplace requirements as a condi- the national governance protocols as a condition of tion of funding will remove any requirement that uni- their Commonwealth Grants Scheme funding for stu- versities must offer AWAs to employees. As soon as dent places. What are or, indeed, were the conse- chapter 7 of the Commonwealth Grants Scheme guide- quences of section 33.17? Failure to meet these re- lines, which contain the prescriptive elements of the quirements outlined in section 33.17 fundamentally higher education workplace relations requirements, as results in a reduction of a provider’s Commonwealth well as the national government’s protocols or NGPs, Grants Scheme funding for student places. That is what including the mandatory offering of AWAs, is removed the consequences of this section are if you fail to carry the day after registration, universities will no longer be out the requirements. Labor’s bill clearly will remove required to meet the requirements as a condition of this condition. funding under the CGS. So repealing section 33-17 of In essence, the higher education workplace relations the Higher Education Support Act 2003 will make the requirements require universities such as my own, the government’s intention to remove the requirements as a University of Tasmania, firstly, to implement the How- condition of funding absolutely clear. Universities will ard government’s ideologically driven workplace rela- be subject to the government’s transitional workplace tions agenda; and, secondly, in practice the governance relations legislation. protocols require adherence to what is effectively a It may be asked whether, if the proposed amendment one-size-fits-all model of how to run a university—a does not pass the Senate prior to July 2008, universities straightjacketing, a uniformity. Section 33.17 is de- will be forced to comply with the higher education monstrative of what choice meant under the Howard workplace relations requirements as at 31 August 2008. government—effectively, little or no choice. The answer is no. As soon as chapter 7 of the Com- Under section 33.17 a provider would have its basic monwealth Grants Scheme guidelines, which contain Commonwealth Grants Scheme amount reduced by the prescriptive elements of the higher education approximately 7.5 per cent if it failed to satisfy the workplace relations requirements, as well as the NGPs, minister that it had complied with both the higher edu- including the mandatory offering of AWAs, is re- cation workplace relations requirements and the na- moved, universities will no longer be required to meet tional governance protocols as at 31 August each year. the requirements as a condition of funding under the The higher education workplace relations require- CGS. Removing the relevant guidelines and repealing ments—I would use the acronym if I could pronounce 33.17 of the act will remove the HERRSs and NGPs as it; I think it is HEWRRs—consist of the following five a condition of university funding. elements: so-called choice in agreement, including the Do these changes go far enough? The answer is yes. requirement to offer Australian workplace agreements Removing the relevant guidelines and repealing 33-17 to all employees; direct relationships with staff which of the act will indeed remove the higher education prohibit automatic third-party representation—this workplace relations requirements and the NGPs as a stuff is all very familiar; workplace flexibility—fair condition of university funding, as mentioned. enough; productivity and performance—fair enough; What about these national government protocols, the and freedom of association. The national governance NGPs? There is the question of whether these will sig- protocols, or NGPs, are a set of standards primarily nal that the government is not interested in university covering the size and composition of governing bodies governance. That is far from the truth, far from the and the duties of governing body members. facts. All universities have already taken the steps nec-

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 83 essary to comply with NGPs and all the amendments to rather than be bullied by interventions and other big- state and territory legislation that were necessary to stick approaches. underpin them have been enacted. There is no need for In conclusion, I would also like to place on the re- ongoing compliance checking. The government will cord—apart from my support of this amendment, of continue to encourage universities to adopt good gov- course—my support for and recognition of the work of ernance practices. This will include pursuing options the University of Tasmania in my state. Although it is for a non-legislative focus on the governance standards the one university in Tassie, it provides three cam- in response to the forthcoming report of the review of puses. I am pleased to say that it gives considerable the NGPs by the Ministerial Council on Education, support to our campus at Burnie, very much a regional Employment, Training and Youth Affairs. campus, which was formed in 1995. I recognise the I note with interest that Universities Australia put work of Simon Crean in setting up the university cam- out a press release in relation to this legislative pus at Burnie and also providing much-needed places amendment on Tuesday, 13 May 2008. I would like to for that university. I would invite anyone who is visit- share that with members of the House because it rein- ing my beautiful part of Tasmania to go up to the uni- forces Labor’s intention and indeed action to move versity and have a look at the campus and the services those amendments. The statement reads: they provide. One of the great advantages is that it has Universities Australia supports the government’s action in smaller class sizes and more one-on-one contact with this session of parliament to remove the Higher Education teaching staff. It is no different when people are in Workplace Relations Requirements (HEWRRs) as a legis- teaching and learning situations in schools: the smaller lated condition of funding for universities. the class size and the more one-on-one contact people Further, Universities Australia chair Richard Larkins have, the better. The campus’s students have an oppor- says: tunity to study closer to home. I know, Mr Deputy Universities Australia would welcome the removal of the Speaker Scott, that you are well aware of the pressure HEWRRs as an indication from the government that it is on people to leave rural and regional Australia to study happy to loosen existing prescriptive requirements and allow elsewhere. This campus provides the opportunity to be universities to pursue their missions as self-governing bod- much closer to home, to retain their contact with and ies. keep their skills in their local communities. The statement goes on to say: The other great thing about this university campus is ‘Universities Australia looks forward to other restrictions that it works very closely with the communities that it being eased or removed across a range of Commonwealth represents and serves. It provides a raft of undergradu- funding and regulatory activity. Universities have been their ate bachelor and associate degree programs and post- most dynamic in areas least directed by government, such as graduate degree programs. They are not full courses, of postgraduate coursework and international student initia- course, because they have to leave after one or two tives,’ Professor Larkins said. years. But the University of Tasmania is working to- Finally, it says: wards having full degrees provided at the campus. I do In relation to the national governance protocols which recognise the work of the University of Tasmania and I could also be removed by this change to the Higher Educa- particularly recognise the work of the Burnie campus. tion Support Act, it is the view of Universities Australia’s I am very pleased to support this bill to allow greater vice-chancellors and chancellors that members of governing bodies of universities should not be subject to more prescrip- flexibility, fairness and cooperation with our university tive requirements than apply to directors of bodies governed sector and to get this mantle of Australian workplace by corporation law. agreements and penalties off the back of universities so The statement by Universities Australia, the rationale they can get on with what they do best and provide a provided by the Deputy Prime Minister and Minister bit of diversity rather than uniformity, which the for- for Education and the detail of this amendment clearly mer government tended to impose on these universi- indicate that this government wants to work in coop- ties. It is with pleasure that I support the bill. eration with the universities. It is by no means not Ms BURKE (Chisholm) (5.25 pm)—I am proud to showing interest in proper governance protocols and speak in support of the Higher Education Support indeed productivity and flexibility in their workplaces, Amendment (Removal of the Higher Education Work- but they want to do this in negotiation and in coopera- place Relations Requirements and National Govern- tion. The former government’s quite pronounced inter- ance Protocols Requirements and Other Matters) Bill vention in universities, laying on the stick with very 2008, which will mark a positive new beginning for the little carrot, was demonstrated in its other interventions relationship between the federal government and Aus- in other areas of Australian governance, no more so tralian universities. This bill will amend the Higher than in health, particularly in my electorate. The Aus- Education Support Act 2003 by repealing section 33, tralian people prefer to work in a cooperative manner subsection 17. It will remove the higher education workplace relations requirements and the National

CHAMBER 84 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

Governance Protocols requirements that dogged uni- technology systems, laboratories, libraries and student versity administration for five years and made their study spaces, teaching spaces and student amenities. jobs so much harder—all because of the Howard gov- Deakin University received $13.8 billion for the same ernment’s ideological power trip to impose AWAs on purposes. This will help significantly. university staff and get greater control of university These funds will go a significant way towards re- decision-making processes. pairing the damage done to the universities through the Under section 33-17, a university would have its ba- years of neglect of the Howard government. This fund- sic Commonwealth Grant Scheme funds reduced by ing has been welcomed by university staff and students 7.5 per cent if it failed to satisfy the minister that it had alike. The Rudd government is investing in higher edu- complied with both the HEWRRs and the protocols. cation to build stronger universities for the future bene- This bill is also important to me because I have two fit of us all. Not only are we investing but we are build- fine universities in my electorate: Monash University ing a new and better relationship with our universities at Clayton, one of Australia’s largest universities; and and the people who teach, research and learn within the city campus of Deakin University at Burwood. The them. The new relationship is built on trust and respect contribution that these two universities make to the and on the building of diverse, different universities, Australian economy and to the life of our nation is sig- each pursuing a distinct vision and mission. nificant. Both have excellent reputations in teaching Now let me return to the matter of the bill, which and research. It was an honour to have the Vice- will go a long way towards restoring trust and respect Chancellor of Monash University, Richard Larkins, up between the government and our universities. It will last night listening to the budget. take the foot of the government off the throat of uni- A significant number of the universities’ students, versities and let universities get on with what they do staff and graduates live in my electorate. So universi- best—that is, teaching and research. Under the Howard ties are not only important to the country but they are government relationships with universities were vitally important to my local community. It is therefore marked by distrust. One of the worst manifestations of of personal interest to me to see a better relationship this trust was the requirement that universities abide by between universities and our government. It is also the higher education workplace relations requirements greatly in the interests of Australia. Unlike the Howard and the National Governance Protocol, which forced government, the Rudd government does not see uni- them to pursue the Howard government’s approach to versities as places for the elite—quite the opposite. For workplace relations or suffer a penalty. Under the us, universities are places where every Australian can Higher Education Support Act 2003, enacted by the aspire to excellence in whatever field they choose. We Howard government, higher education providers had to acknowledge universities as the engine rooms of inno- meet the higher education workplace relations re- vation and social and economic progress. quirements and the National Governance Protocol as a I was recently quite startled to read that former condition of the Commonwealth Grant Scheme fund- Prime Minister John Howard’s brother said that his ing for student places. If the universities did not meet family had a hatred of academics and public servants. I the HEWRRs and the protocol, their Commonwealth was quite stunned that you as a family or you as an Grant Scheme funding would be reduced. individual would have an active hatred of academics The HEWRRs required universities to implement and public servants—people who give to our commu- the Howard government’s ideologically driven work- nities, people who offer their services for the better- place relations agenda. One aspect was that universities ment of our society. So I suppose what we saw in the had to offer Australian workplace agreements to em- previous government rang true to that philosophical ployees, otherwise they would lose funding. This was belief. so-called choice in agreement making, but it was not The Rudd Labor government sees universities at the popular with staff or students and provided no choice. centre of our efforts to lift prosperity, enhance oppor- Indeed, in 2005 the Australian Vice-Chancellors Com- tunity and well-being for Australians, and to increase mittee, or AVCC—now known as Universities Austra- productivity in our economy. Universities are a key lia—opposed the higher education workplace relations part of the education revolution. This was set out yes- requirements, claiming that they would be inflexible terday in the budget through our investment in higher and increase administrative workloads. Tellingly, the education. In yesterday’s budget the Treasurer an- AVCC said they would be: nounced a funding injection of more than $2 billion for ... very intrusive in terms of universities’ capacity to manage higher education—and I can tell you that it is incredi- their internal affairs. The HEWRRs proposal constitutes a bly welcome within my electorate. Indeed, I am de- ‘one size fits all’ approach, whereas the AVCC takes the view lighted to say that Monash University has received that the focus should be on desired outcomes, rather than $29.6 million in extra funding for urgent capital works specific industrial processes and particular industrial instruments. to renew and upgrade information and communications

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 85

So the AVCC had effectively outed the government’s terfering in the affairs of business. Universities are legislation as the ideological power trip that it was. large businesses and they certainly interfered exten- After all, who should know better how to run the uni- sively in them. While they had to accept and imple- versities than the universities themselves? But, rather ment them, they opposed any further prescriptive re- than follow the AVCC’s advice, the Howard govern- quirements that added costs and compliance requirement arrogantly went ahead and put the proposal into ments that were inconsistent with potential benefits. law. But staff did not exactly flock to take up the offer These protocols added a costly administrative red tape of AWAs either. By July last year, out of 150 AWAs burden on universities. In their submission to the re- offered only 2,000 university staff left the security of view of the protocols, university chancellors and vice- collective agreements to go onto individual contracts. chancellors stressed: Clearly AWAs were on the nose. The proof of the pud- ... it was not wise to apply a “one size fits all” governance ding was in the eating and the staff were not exactly model (that extends into areas of management), particularly lining up for a serve. when the stated object of the Government is to promote di- But the Howard government went even further than versity ... merely offering staff the so-called genuine choice be- This was again the Howard government meddling in tween collective agreements and AWAs. In July last university affairs to fit its own ideological agenda. year the University of New England was threatened by This bill removes those tools of control. They are the Howard government that, unless it offered jobs on not needed in this new era of trust and respect between an AWA-only basis, it would lose its funding alto- the Rudd government and our universities. The Rudd gether. How completely outrageous! We knew that the government will take the foot of government off the Howard government was desperate to stamp out collec- throats of universities. The Rudd government trusts tive bargaining in a free and fair environment and dis- universities to manage their own workplace relations. allow staff the opportunity to be represented by a un- The end of HEWRRs will clear the way for the Rudd ion, but this was just beyond the pale. The standover Labor government to develop healthy new relation- tactics and unwanted interference in the university’s ships with universities, staff and the unions who are industrial affairs were just breathtaking, and they did active in them. Universities will no longer be required absolutely nothing to engender confidence in the uni- to offer AWAs to employees to get funding. Higher versity sector or to build sound relationships between education providers will be subject to the same laws as the government and the universities. In fact, it did the all other employers. Full government grant funding opposite. The Howard government did not trust univer- will now flow to our universities. In the future, rela- sities. It regarded them with suspicion. It believed that tions will be based around negotiated funding com- universities needed to be controlled and told what to do pacts reflecting the distinct mission of each university. and how to do it—the Howard government way. Uni- The Rudd Labor government’s tools will be tools of versities were told how to run workplace relations and accountability and focused on results or outcomes, not how to manage their own governance and affairs ac- on process and inputs. University funding compacts— cording to the Howard government’s own mad ideo- to be first negotiated between the government and each logical agenda. university in 2009—will hold universities accountable The HEWRRs and the NGPs were the tools of con- for their use of public funds and for the delivery of trol and the symbols of mistrust. Severe financial pen- agreed outcomes linked to each university’s distinct alties imposed by the Howard government on universi- mission. Funding compacts will be agreed between ties for not running things the Howard-Costello way respected and respectful parties; they will not be a meant core funding for teaching and research—the standover set of requirements set on pain of financial very roles that universities are meant to perform—was penalty. The Group of Eight universities envisage that reduced. The higher education workplace relations re- under a compact model of university funding: quirements and the National Governance Protocols ... there will be a much reduced compliance, bidding and showed that the Howard government thought it knew reporting burden placed on universities, and greater flexibil- better than university leaders and staff how to run their ity over the use of resources ... institutions. It marked a trend of increasing centralisa- This will free our universities from restrictive, direction of power over universities by the Canberra bu- tive requirements that have diverted time and effort reaucracy that would lead to more, not less, control and away from where it is needed most: the delivery of intervention in university operations. The governance quality teaching and research. While the protocols will protocols required universities to adhere to a one-size- be removed as a condition of funding, the Rudd gov- fits-all model of how to run a university. There was a ernment will continue to encourage universities to set of standards covering the size, composition and adopt good governance practices and increase produc- duties of university governing bodies. Again, the uni- tivity and efficiency. versities were not in favour of the protocols. The previous government said they were not interested in in-

CHAMBER 86 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

In addition to these timely changes, a number of In Australia since the mid-1990s, higher education technical adjustments have been made in this bill. In has been subjected to a seemingly random blend of relation to the approval of higher education providers, neglect with occasional bursts of ideologically driven this bill amends the act so that the approval of a pro- interference. Public funding has been cut. Too many vider that no longer meets certain criteria may be re- faculties at our universities are in decline, with a huge voked. For example, if the provider no longer has its backlog in deferred maintenance. Financing has be- central management and control in Australia, this bill come chaotic, compromised and unsustainable, based enables for its approval to be withdrawn. The bill also on ever-higher fee burdens and a dangerous over- amends the arrangements for quality auditing of higher reliance on cross-subsidisation from overseas student education providers. Currently, the only quality audit- revenue. A bewildering array of student financing ar- ing body in this country is the Australian Universities rangements has been put in place, each change adding Quality Agency. This bill amends the act to allow the another layer on top of past mistakes, but none advanc- Commonwealth to designate additional bodies, such as ing the important goal of educational equity. The aca- state and territory government accreditation authorities, demic workforce has been allowed to age and the qual- to perform this role. This bill will set limits on the pro- ity of campus life has been undermined. We have even viders that can be audited. This is also an efficiency seen the sad spectacle of higher education policy being measure. By state and territory government accredita- driven by a sometimes highly unsustainable anti- tion authorities conducting audits at the same time as intellectualism, with the central idea of higher educa- they conduct their normal registration and approval tion—the pursuit of knowledge as a crucial public processes, the administrative burden on private provid- good—dismissed as the wasteful activity of a selfish ers will be reduced. The approach has been subject to elite. consultation with private providers and a trial process Despite the mishmash approach of the Howard gov- with two state accreditation agencies, Queensland and ernment, which ranged from neglect at one moment to Victoria. The approach has been well received. Impor- ideologically driven interference at the next, most of tantly, the bill also includes the addition of a transi- our universities struggled through remarkably well. It tional mechanism so that existing funding commit- is a great testament to the quality and commitment of ments made to providers under the Collaboration and our university leaders and the academic community. Structural Reform Fund can be honoured now that the Thanks to their commitment the number of those in new Diversity and Structural Adjustment Fund has higher education remains high, graduate employment been established. outcomes are strong, graduate and employer satisfac- The Rudd Labor government is committed to a tion levels are generally good, provision of higher edu- strong, diverse higher education sector that makes an cation to international students has grown to be one of essential contribution to our national prosperity. We our leading export sectors, and we have notable areas look forward to rebuilding the relationship between of world-class research. government and higher education providers. We want Labor’s achievement in the eighties and nineties was to turn around the decline in our universities that so to shift our higher education system to a mass system, marked the Howard government years. It presided over building on record levels of secondary school attain- a massive decline in public investment in our universi- ment. Other nations adopted our approach. But, under ties. From 1995 to 2004, while other OECD countries John Howard, government slept at the wheel for more increased public investment in tertiary education by an than a decade. The Rudd Labor government is now average of 49 per cent, on the Howard-Costello watch taking up the next reform challenge—to inject diver- public investment in Australia was cut by four per cent. sity, choice and the highest quality into our mass Their legacy has been to leave our higher education higher education system. Unless we resource and re- system lagging behind the rest of the world. spect higher education institutions, we simply will not Over the course of the last decade the issue of hu- maintain our standard of living. It is clear that Australia man capital has risen dramatically in public policy im- needs a new direction in national higher education pol- portance globally. Policy makers now accept that in- icy, one that aims to exploit fully our human capital vesting wisely in knowledge, skills and innovation is potential in order to spread opportunity, raise economic one of the best means available to ensuring long-term productivity and transfer the economic gains of the prosperity, leading to both overall economic growth resources boom into sustainable prosperity for all in and to better education and work opportunities. Around the future. Our goal must be the creation of a globally the world governments have responded by increasing competitive higher education system for a modern Aus- their policy focus in all areas of education, particularly tralia. higher education—everywhere, it seems, except here in The education revolution policies Labor took to the Australia. federal election and which we are now implementing have begun to address the neglect of the last 11 years—

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 87 by targeting resources to areas of skill shortage, by Australia is now starting to fall behind our competi- restoring equity and by enabling university leaders get tors in graduations in crucial areas. We are now below on with the business of running their institutions with- the OECD average for the proportion of graduates in out interference from politicians and public servants. science and agriculture, and way below them in engi- But the reform process will need to go further. Taking neering, manufacturing and construction—7.2 percent it further will require no less than a system-wide re- compared with 12.2 percent. In Korea the figure is 27.1 think. To facilitate that, we have announced a major percent—four times Australia’s density. Research is review of Australian higher education, which will help also being badly affected. In the last 10 years, research us shape the next steps in the education revolution for output has grown rapidly in countries like Singapore, our universities. And we have announced a new long- Korea, Taiwan and China—which is now the second term goal for our post-secondary education system: biggest investor in research and development in the guaranteed access to higher education or skills training world. But it has only limped along here in Australia. If for every young Australian with the talent and willing- you want to know why investing in research is impor- ness to give it a go. tant, ask the University of Queensland’s Professor Ian I am proud member of a government that under- Frazer, who discovered the vaccine for a cancer that stands the importance of education to our economy and kills 250,000 women every year. to our society. The Rudd government’s rationale for Over the last decade, Australian higher education improving the performance of our higher education has practically stood still in terms of numbers, quality system is that higher education leads to higher produc- and output, while our competitors have surged ahead. tivity, which leads to higher economic growth. This The picture is clear: we are under-investing in our hu- case is now well accepted by the world’s leading man capital, and in the long run this will stall our economists and economic bodies. Human capital global competitiveness. This policy failure has grave economists like the University of Chicago’s James potential consequences for every single Australian. We Heckman, who won the Nobel Prize for Economics in have been led to believe in recent years that what hap- 2000, have been telling us for some two decades that pens to our universities does not matter to ordinary public spending on education and skills leads to higher Australians. This is a dangerous fallacy. Every Austra- rates of return on investment for countries. OECD lian is now feeling the consequences of the Howard analysis of human capital suggests significant positive government neglect of higher education in things like a correlations between rising levels of educational at- shortage of Australian-trained doctors and nurses; a tainment on the one hand and both economic growth shortage of early childhood educators and school and improved physical and mental wellbeing on the teachers, especially in crucial areas like maths and sci- other. The organisation has estimated that one year of ence; and a shortage of qualified engineers and logis- average additional educational attainment for a popula- tics workers for our booming resources and construction adds between three to six percent to long-term tion sectors. GDP growth. Skill shortages are driving up the cost of doing busi- Our competitor nations are aware of this thinking ness as we all end up paying through higher inflation and have been acting on it. Australia, by contrast, has and higher interest rates. If you want to know why in- not. Consider this analysis. Between 1995 and 2004 vesting in higher education is important, simply look at public funding of tertiary education increased by an the waiting list at your hospital or GP surgery, the lack average of 49 percent across the OECD but declined by of subject choice in your child’s school, the rising costs four percent in Australia. This makes Australia the only of items in the shop and your monthly bank balance. OECD country where the total level of public funding By boosting national productivity, increasing Austra- of tertiary education decreased during that time. While lia’s investment in higher education will ultimately private investment in Australia went up by 98 percent, allow us to sustain higher economic growth with lower this actually compares poorly with the average OECD inflation and interest rates. The new President of the increase of 176 percent. Most nations managed to in- Business Council of Australia, Greg Gailey, got it right crease both public and private investment substantially. recently when he said: Rather than leverage more private investment through More than ever, governments need to focus on fiscal policies a partnership for growth, Australia shifted responsibil- and broader reform agendas in areas such as infrastructure, ity from the public sector to the private. Mostly this has education, skills and workforce participation that collectively meant a shift to individual students and their families, enhance the nation’s capacity to grow. who have paid more through higher tuition fees. Be- Australia simply cannot afford a short-sighted, ideo- tween 1995 and 2004 total funding per tertiary student logically driven and backward-looking approach to increased by an average of nine percent across the higher education policy any longer. The moment is OECD but increased here by only one percent. now for us to start seriously investing in human capital at all levels, including higher education. For that reason, I commend the bill before the House this evening.

CHAMBER 88 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

Mr MELHAM (Banks) (5.45 pm)—As I rise today this bill will take the initial steps towards dismantling to make some comments on this bill, it occurs to me the unfair workplace changes introduced by the How- that it will not be the last bill before the parliament ard government. To tie tertiary funding to industrial which seeks to undo the ideologically driven agenda of relations requirements is un-Australian. Fortunately, the previous government. The Higher Education Sup- we are now seeing the dismantling of that strategy and port Amendment (Removal of the Higher Education the replacing of it with a fair and balanced system. Workplace Relations Requirements and National Gov- To some, the introduction of workplace relations re- ernance Protocols Requirements and Other Matters) quirements on university funding was seen as the sin- Bill 2008 removes some of the more odious measures gle greatest attack on the autonomy of universities. introduced by the coalition in relation to workplace Under Section 33.17 of the act, a provider could have relations. For the Labor Party, this was a threshold is- its basic funding under the Commonwealth Grant sue. No government should be in the position of im- Scheme reduced by up to 7.5 per cent if it failed to sat- posing industrial relations conditions on educational isfy the minister that it had complied with both the funding. Yet the previous government took this step in higher education workplace relations requirements and 2003. Instead of using the available funding for the national governance protocols. It is worth taking some improvement of the quality of education in schools, the time to consider these requirements. There were five of Howard government effectively blackmailed the uni- them. versities into implementing its grossly unjust industrial First there was choice in agreement making. Higher relations policies. In effect, the previous government education providers were required to provide choice to pushed to reduce conditions and allow AWAs to over- employees by ‘offering AWAs to all new employees ride existing agreements. Not one of those changes had employed after 29 April 2005 and to all other employ- a scrap of relevance to the universities’ core functions ees by 31 August 2006’. I fail to see the choice offered of teaching and research. under this condition. The requirement to do with direct I recall an open letter from the National Tertiary relationships with employees states that there must be Education Industry Union published in the Australian direct consultation between employees and the higher on 7 November 2005 which opposed the legislation. education provider. Involvement of third parties was One of the comments in that letter was: only able to occur at the request of an affected em- Academic freedom is part of the collegial and collaborative ployee. It is all very well to assume that the people culture of the best Universities in the world, and is at the primarily dealing with the employer are articulate aca- core of their international reputation. demics who are regarded as able to speak up for them- The international reputation of our universities has suf- selves. But we should not forget the thousands of non- fered greatly in the past decade and this government is academic staff employed by universities, for whom now taking steps to revise that state of affairs. This dealing directly with senior management at the univer- government can say, in truth, that it was elected with a sity could be a terrifying ordeal. mandate to dismantle the workplace relations agenda Workplace flexibility was, as we have seen, the clas- of the previous government. That government had no sic contradiction in terms. The guidelines specified that such mandate yet chose to impose its political and so- working arrangements and conditions of employment cial agenda on the electorate. should be tailored to the circumstances of the higher In its first months, the Rudd Labor government has education provider and also to its employees. What I sought to introduce the changes it promised at the elec- find incredible is the following specification: tion. The budget last night showed that in a way that I The HEP’s [Higher Education Provider] workplace agree- have not seen in the 18 years that I have been in this ments should expressly displace previous workplace agree- place and in the 18 budgets that I have witnessed. The ments and relevant awards. first budget of a new government can tell you a lot Yet the current opposition would have us believe that about a government. The first budget of the Howard the whole idea of AWAs was about choice. There government, with its drastic cuts, particularly those to seems to be absolutely no choice about the express ATSIC of $470 million, showed its mean spirit. The displacement of prior agreements and awards. There budget last night shows that this government is fair was also a bit about productivity and performance. dinkum when it makes a promise and that it will de- AWAs were to support organisational productivity and liver on it in full. The feedback in the electorate is of performance. people feeling pretty happy, pleased and refreshed at a Finally, freedom of association was, we are to be- new approach after more than a decade of a different lieve, at the heart of these arrangements. Contained approach. This bill is another step in the government’s within this requirement was the directive that the pro- intended direction on promises. vider must neither encourage nor discourage union When taken with the Workplace Relations Amend- membership. Also specified was the fact that the pro- ment (Transition to Forward with Fairness) Bill 2008, vider was not to use Commonwealth Grant Scheme

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 89 funds to pay union staff salaries or to fund union facili- chancellors and chancellors in Sydney next month and ties or activities. Freedom of choice seems to be the I hope that they will use the meeting to give the gov- missing element here. ernment some very clear commitments about maintain- It is no surprise that the universities were generally ing and enhancing governance within the university not happy with this arrangement. At the Senate inquiry sector. The government has given them the opportunity into the provisions of the original bill, there were seven to take greater responsibility for management of their submissions. Of those, six opposed it, including the own affairs. They will need to demonstrate that they submission from the then Australian Vice-Chancellors are fully prepared to accept that responsibility. Committee. Labor opposition senators in their dissent- The university chancellors might also take the op- ing report commented on the fact that the universities portunity to make a clear statement of their commit- surmised that they were being singled out for special ment to academic freedom—the principle that makes treatment in particular regulations for their industry. universities unique institutions—about which the vice- The dissenting report noted that the universities were chancellors have been very quiet through the years of joining other industries, such as the building and con- the Howard government. It is to be hoped that the ram- struction industry, to be special industrial relations tar- pant commercialism that has been encouraged in gets of the then government. higher education institutions over the past decade has As I stated earlier, times have changed and the new not extinguished the commitment of the sector’s lead- government has a genuine mandate to reform the in- ers to this vital principle. dustrial relations system in this country. Universities In conclusion I would like return to and comment will now be subject to the Workplace Relations more widely on the primary issue underlying this Amendment (Transition to Forward with Fairness) Bill bill—the matter of workplace relations. As I have al- 2008. The removal of the previous grossly unfair legis- ready noted, the government has introduced the transi- lation will ensure that the government will be able to tional bill to remove the worst excesses of the so-called move forward and develop healthy relationships with Work Choices legislation introduced by the previous the tertiary sector—a relationship based on mutual trust government. Time and again we asked the Howard and respect. The bill will provide certainty to the government to reconsider, to play fair by all Austra- higher education sector. It does not reduce a provider’s lians and to ensure that every member of the workforce Commonwealth Grant Scheme funding. Universities was employed under a fair, just and transparent system. should be subject to the same workplace relations laws We were ignored. as other employers. These amendments give effect to The Australian people have now made their judge- that position. ment and those laws will be overturned. There is no A second part of the bill we are debating today deals doubt in my mind that the Your Rights at Work cam- with the governance of universities. The National Gov- paign, with its real world experiences portrayed on ernance Protocols are standards which primarily cover television and in print, contributed to this decision. In the size and composition of governing bodies of uni- its ideological passion, the Howard government over- versities and the duties of the governing bodies’ mem- looked more than 100 years of history. The system of bers. These will now be removed as a condition of conciliation and arbitration that has operated in this funding. At the same time, the Deputy Prime Minister country since Federation provided an effective base for has indicated that the government will encourage uni- the Australian workplace. All through our industrial versities to adopt and maintain good governance prac- history, that body was the lynch pin for workplace pay tices. In any case most of the required measures have and conditions, and it worked, even in the most ex- been enacted through amendments to the various treme cases. Australians always knew that they had pieces of state and territory legislation that set out the somewhere to go when all else failed. The Australian governance arrangements for our universities. community has now voted on Work Choices and we However, it will be down to the university vice- are now able to present to the workers of Australia a chancellors and more particularly the chancellors to fair and transparent system of industrial arrangements, demonstrate their commitment to good governance, and I know that those instalments will continue under especially in managing and accounting for the use of the direction of the Deputy Prime Minister. large sums of public funding, while also engaging in I want to finish up with some other remarks that I very extensive commercial activities. Something of the think are also pertinent in relation to the sector. Last scale of this issue was recently revealed in the Can- week I was invited to Glebe Books to launch a book berra Times newspaper, which reported that at one about women and IT. The University of Western Syd- point in the stock market slide earlier this year the Aus- ney’s Bankstown campus is in my electorate. There tralian National University had lost $100 million— were I think three or four other universities involved in approximately eight per cent of its $1.4 billion invest- terms of the contributors to this book. There were ment portfolio. There will be a joint meeting of vice- about 60 or 70 people present. I was invited to a meal

CHAMBER 90 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 afterwards at which there were about 20 academics and tually been doing in the sector, in the way that they had staff, who were all women. I have to say that it was received feedback and in the way the government was fascinating listening to what they had to say about their interacting with the sector. The symbolism meant more sector and to see their enthusiasm and their reinvigora- to them than the actual substance of dollars and cents tion, not only with the election of a new government— or whatever—what was important was the fact that because the AWAs I have just talked about were a con- they could have somewhere where they could put their cern for them—but there was a refreshing view about ideas and government could look at them, listen to the relationship between government and the universi- them and react in a way that had not been the case, ties. It was a change from what had happened during frankly, for the last decade or so. So I am pleased to the previous decade, in particular in relation to the speak in support of the bill and say those few extra minister, Deputy Prime Minister Julia Gillard. There words. was tremendous hope, expectation and enthusiasm due I know that those on the other side at the moment to her being the relevant minister for this portfolio. are not feeling too good about themselves. And the They accept that the government and the minister are truth is they have good reason for that. All they have not going to be able to deliver on all of their concerns. got to do is look in the mirror. But they recognise that with the change of government Mr Ciobo—Be humble. there has been a change of attitude in the relationship between the sector and the government. Mr MELHAM—It is not about being humble. Of course I believe in being humble. I come from a hum- From my point of view, I think the education sector ble family. I have been humble all my life. is the most important sector that we as a nation need to nurture, because it creates opportunity, not only for Mr Ciobo—You’re a humble man. individuals but for industry and for our whole commu- Mr MELHAM—Do not tell me about being hum- nity. We are well placed in the region if governments ble. I will match my record to yours any day of the nurture the sector. week, and there is one big difference: I am a giver, not I had no politics as such before I went to university a taker—and the record speaks for itself. What I am in 1974. It was at the time of the 1974 election. It was trying to say to you is that we all suffer losses. I was on the Whitlam government’s policy that allowed me to the losing side for the last 11½ years. I was one of the go to university and get interested in politics. It also few who was in the former government. It is transient, allowed me an opportunity that I otherwise would and at the end of the day we will all be out of here. If never have had—that is, as one of 10 children, to go to you go and have a look at the turnover— university and to have all of these opportunities beyond Mr Ciobo—We’re all dead in the long run. that once I had a higher education. I would like to think Mr MELHAM—We are all dead in the long term. that if you repeat that throughout the industry and Some of us do not necessarily have to have the posi- throughout our community we will get the same re- tions that others occupy to actually make a contribu- sult—and it does not take much; a lot of it is symbol- tion. I am pleased to be up here speaking on this bill. I ism. do not get up and speak on every single bill in this It was fascinating for me was when I was having the place because, frankly, I do not think you have to. But, dinner with these women, who were quite educated— for me, with a university campus in my electorate, I better educated than me. Their book was about why can tell you the people I have mixed with for 18 years women in higher education were not using computers and who I know have a genuine commitment can add as much as men, and they were coming up with solu- to our society. I get my inspiration from the academics tions. The minister will receive a copy of the book and from those at university when I meet them in the from me because I know it is part of what this govern- context of science meets parliament functions and so ment promised in the lead-up to the last election. These on. That is why I am here speaking on this bill: to con- studies had taken place over a number of years, and gratulate the minister and the government for acting on what fascinated the researchers was that the govern- our commitment, for taking it forward. This bill will do ment was in sync with their studies, which were all a lot for the morale of the higher education sector. This about improving the education base and improving will help them take forward the contribution they are opportunities for our citizens. Government is crazy not prepared to make to our society. That is where gov- to embrace that, as against harassing it and trying to ernments can take the lead. I am not going to take any push a particular ideology. garbage from the other side in relation to this matter. I The second area where there was great hope was understand they are well intentioned and well moti- that there was great affection towards the Deputy vated, but they should also grow up. Prime Minister—there was not a person in the room Ms GILLARD (Lalor—Minister for Education, who did not have a good thing to say about her. That Minister for Employment and Workplace Relations and was not tokenism; that was based on what she had ac- Minister for Social Inclusion) (6.03 pm)—in reply—I

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 91 thank all members who have spoken on this bill and I stances. We want to see our universities forge their thank the member for Banks for his very generous re- own distinct missions. Universities under this govern- marks. The Higher Education Support Amendment ment will be freed from the micromanagement and red (Removal of the Higher Education Workplace Rela- tape which characterised the approach of the previous tions Requirements and National Governance Protocols government and freed from their ideological interven- Requirements and Other Matters) Bill 2008 is a clear tions in workplace relations. Universities will now be expression of the government’s commitment to abol- able to direct their attention and resources back to ishing Australian workplace agreements and our clear where they are needed most: the development and de- commitment to removing unnecessary government livery of world-class higher education teaching and interference with the workplace relations and admini- research. stration of our universities and other higher education While the national governance protocols will be re- providers. moved as a condition of funding, of course the gov- Earlier this year I announced the setting up of a ma- ernment wishes to encourage good governance prac- jor review of Australian higher education to be led by tices in universities. We want to develop those high Emeritus Professor Denise Bradley. In announcing that standards of governance in a collaborative way. Our review I said that the Rudd Labor government would universities are standing ready to meet this challenge. be addressing the next reform challenge in higher edu- Today, Universities Australia announced its support for cation, and that is to inject diversity, choice and the the government’s legislation. Its chair, Professor Rich- highest quality into our mass higher education system. ard Larkins, welcomed the government’s intention to: In last night’s budget, the government began the … loosen existing prescriptive requirements and allow uni- process of addressing the Howard years and their ne- versities to pursue their missions as self governing bodies. glect of funding to higher education. This financial Already the government has begun discussions with year we are going to invest $500 million in higher edu- Universities Australia with a view to leading the devel- cation. We are delivering our election commitments for opment of an agreed voluntary code or set of best prac- higher education and, of course, we are creating the tice university governance principles. These will be Education Investment Fund with $11 billion, of which developed and implemented by universities; they will higher education will be a beneficiary. not be forced on them by government. I understand The previous government, by contrast, not only ne- that this issue is on the agenda for vice-chancellors and glected investment in the higher education sector; by chancellors to discuss at their forthcoming meeting in its actions it thwarted the very diversity that we need to June. develop in higher education. Two of the worst exam- Our approach is one of collaboration and trust. We ples of this were the higher education workplace rela- trust universities to manage their workplace relations. tions requirements, the HEWRRs, and the national We trust universities to deal with their governance governance protocols. This bill amends the Higher structures in a proper way. This government will—and Education Support Act 2003 to bring about an end to all governments should—require rigorous reporting the previous government’s HEWRRs, which as speak- and accountability in relation to the expenditure of ers on this side of the parliament have forcefully re- government funds. This government will have rigorous minded the House were all about requiring higher edu- accountabilities. But this government’s approach is cation providers to offer Australian workplace agree- about accountability being around outcomes, not about ments to their employees. This was industrial relations the micromanagement of inputs. We do not believe that by threat, by coercion and by reference to penalty— you get the best performance by telling universities because, of course, no matter what choice they wanted what inputs to use; we believe that you get the best to make about their own industrial relations frame- performance if you define what outcomes and outputs work, universities were at risk of losing money unless you want from government funding and then you allow they joined the Howard government in its industrial universities to use their expertise, to diversify, to ex- relations extremism. periment, to innovate, to deliver the best. We are talk- The bill also removes the national governance pro- ing by definition about some of the most highly quali- tocols, which impose governance conditions on higher fied, highly educated and highly intelligent Australians education providers. This is a layer of interference in in the nation. university management that the government has pub- I am aware from discussions with the shadow minis- licly committed to removing, and today we are stand- ter for education that the opposition will not oppose ing by that commitment to release our higher education this bill at the second reading. I am also aware that the providers from restrictive and unnecessary bureaucratic opposition intends to pursue an amendment to this leg- requirements. We trust universities to manage their islation to keep the national governance protocols on own workplace relations and we trust them to develop foot. The government will oppose this amendment for the approach to governance that best fits their circum- a number of reasons. The first is that the government

CHAMBER 92 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 does not believe the opposition’s stated view that, in shapes and sizes which are world class in what they amending and possibly delaying indefinitely the pas- seek to do. sage of this legislation, it does not have a weather eye Secondly, we do not accept from the opposition that on the industrial relations consequences of that. national governance protocols are about accountability. This, of course, is the Liberal Party that brought this We of course are going to have accountability mecha- country the industrial relations extremism of Work nisms for government expenditure. But, when one Choices, which forced it on to the higher education looks at the national governance protocols, they deal sector through funding threats and which still supports with procedural matters and with process matters, not Work Choices today. I am suspicious that the game with outcomes. That was the hallmark of the last gov- playing with the other part of this piece of legislation, ernment’s approach to funding right across education. the national governance protocols, is really a ruse to They loved to fiddle and micromanage, but they lacked distract us from the opposition’s attraction to the higher a strategic vision. So the national governance proto- education workplace relations requirements. That is, cols, when studied in detail, really do not add to the we know that this is an opposition that is staggering debate about accountability. Before I move from that around unsure as to how frank it should be about its point, on the question of accountability we would also continued support for Work Choices. Its inconsistency say to the opposition that we do not believe that they in this area means that, on one day, the current Leader can stand before the higher education sector and say of the Opposition, Dr Nelson, will say, ‘Work Choices that they, the Liberal Party, have the reputation to is dead,’ and then on another day he will say, ‘John preach in this area, given things like the regional rorts Howard had it right when it comes to industrial rela- slush fund and the sorts of breaches of public trust and tions,’ meaning, of course, that Work Choices was basic standards of accountability, which, if they hap- right. pened in any university, would get utter condemnation So we have a Leader of the Opposition who obvi- from members of the opposition. The standard of ac- ously believes in Work Choices. He certainly did as a countability that they have applied to themselves is an cabinet minister and he defended it every day in this unacceptable one. It therefore really is hypocritical to House. He no longer wants to be frank about his sup- stand on that platform of poor accountability, of cyni- port for it. That is true of the opposition generally but, cism, of political manipulation and of money for pro- given we know that the opposition still supports Work jects that never came to fruition and to lecture others Choices and would reintroduce it in a flash if ever re- that somehow they know all about accountability and elected, we are deeply suspicious that game playing others do not. with this legislation is all about Work Choices and Thirdly, in interfering in higher education institu- AWAs and not truly about national governance proto- tions in this way, the opposition continues to demon- cols at all. strate distrust towards the higher education sector and Even if the opposition were to be taken at face value it continues to demonstrate its arrogance—indeed, its and we accepted, for the purposes of debate, the propo- paranoia. We believe that higher education institutions, sition that they are genuinely interested in national universities, can be trusted to get on with the business governance protocols as opposed to industrial relations of management without a government minister pur- extremism then we would say the following to the op- porting to sit on their shoulder ready to wield a funding position. We do not believe that a one size fits all ap- penalty stick. We believe that we should be celebrating proach is appropriate for the higher education sector of and valuing the contribution of our academics and our the 21st century. universities, but not through this structure that basically sends a message to all the world that somehow We believe that the next fundamental reform for this these people are not to be trusted. This government is sector is to allow diversity and to recognise the diver- prepared to trust our universities; we are prepared to sity that is there in institutions today. Charles Sturt trust our vice-chancellors, our chancellors and the uni- University is a very different creature from the Univer- versity system. We do not believe it is appropriate for sity of Melbourne—we know that. Government, as a the opposition to come to this parliament and say that matter of policy, has to recognise that and government somehow these people are to be distrusted. If the oppo- has to allow those two very different, very distinct but sition was really being honest about this, it would say both very valuable institutions to forge their own way that its motivation is really a sort of institutional para- and define their own paths. A blunt instrument like na- noia in the Liberal Party about universities because, in tional governance protocols will squash that diversity. the Liberal Party’s mind, the history of universities It will hold back what should be the next fundamental somehow stopped in the 1960s and 1970s. I suspect the reform to this sector: recognising and celebrating that shadow minister for education may not have even been diversity and recognising and celebrating that this na- born in the 1960s, but I believe he— tion can, if we properly resource and value higher education, have universities in the system of very different Mr Anthony Smith—1967.

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 93

Ms GILLARD—1967—he is older than he looks. these amendments and will support the legislation. I To look young is a good thing, so he should be pleased suspect that we will hear more of this in the days to with that! He made it into the 1960s by a few years. I come as the matter goes to the Senate, but the govern- am sure that he was a very smart child, but he may not ment will oppose these amendments. We believe that have a highly developed active recollection of those we should just let universities get on with the job. years. But of course— Question agreed to. Mr Anthony Smith—Carlton won the ‘68 grand fi- Bill read a second time. nal! Message from the Governor-General recommending Ms GILLARD—He was obviously a very good appropriation announced. football watcher at the age of one and has a very good Consideration in Detail recollection. So we have finally found the shadow minister for education’s strength—football. If the AFL is Bill—by leave—taken as a whole. looking for a future participant in its governance struc- Mr ANTHONY SMITH (Casey) (6.22 pm)—by ture, it might look to him. He might well be better at leave—I move opposition amendments (1) and (2) to- that job than he is at his current one. gether: Within the institutional past of the Liberal Party, (1) Schedule 1, item 6, page 3 (line 28) to page 4 (line 1), within its corporate knowledge—and this runs deep in omit the item, substitute: its veins—is the belief that universities are associated 6 Section 33-17 with radicalism, that universities are somehow associ- Repeal the section, substitute: ated with the Left, that universities are somehow asso- 33-17 Reduction in assistance for higher educa- ciated with unacceptable people and, consequently, it is tion providers failing to meet certain require- the job of conservative politicians to come in and to ments manage them. It is a long time since the Berlin Wall (1) A higher education provider’s *basic grant amount came down, it is a long time since the 1960s and 1970s for a year is reduced if the Minister is satisfied that and it is time that the Liberal Party got over it and rec- the provider does not meet the requirements ognised that the higher education institutions of today known as the National Governance Protocols that are managed by people who understand their job, who were specified in the Commonwealth Grant understand how hard it is to compete on the world Scheme Guidelines, as in force on 27 February stage, who do not want to play partisan politics but 2008, as at 31 August, in the year preceding the who do want to manage their institutions so they can year. forge their way in a competitive world where it is (2) The reduction under subsection (1) is an amount tough to be a university, it is tough to maintain your equal to the amount that would have been the in- share of research, it is tough to maintain your interna- crease under repealed section 33-15 if: tional education market and it is tough to maintain (a) the provider had been entitled to an increase of quality for undergraduates. It requires smart, sophisti- 7.5% under that section as in force immediately before the commencement of Schedule 2 to the cated management and governance, and that is what Higher Education Legislation Amendment our institutions are doing. They do not require a politi- (2007 Budget Measures) Act 2007; and cian sitting on their shoulder to do that. (b) the *funding clusters were the funding clusters If I can conclude with this: it does strike me as pass- that existed immediately before the coming strange that here we are in the parliament of this mencement of Schedule 2 to the Higher Educa- nation and the Liberal Party, with its supposed belief tion Legislation Amendment (2007 Budget system—when it had one—that was supposed to be Measures) Act 2007; and about liberalism, supposed to be about allowing people (c) the *Commonwealth contribution amount for to get on with the job and be their best and supposed to each of those funding clusters was the amount be opposed to unnecessary government regulation and that would have been the Commonwealth con- big government, is arguing for the maintenance of mi- tribution amount for the funding cluster for the croregulation and red tape. It does seem to me passing year if the amounts in the table in section 33-10 had not been amended by the Higher Education strange, and I think it will be recorded as another chap- Legislation Amendment (2007 Budget Meas- ter, another piece of evidence, about how the Liberal ures) Act 2007 or any later Act. Party of today has lost its way, lost its understanding of (2) Schedule 1, item 7, page 4 (lines 2 to 5), omit the item, its position in Australian politics, lost its value system substitute: and lost any intuitive sense of what it ever stood for. 7 Application—section 33-17 This is one small example, but the response to the budget is a much bigger one. This is an example with Section 33-17 as in force immediately after the significance, though, and it is what is being displayed commencement of item 6 of this Schedule has no effect in relation to a higher education provider’s by the opposition today. The government will oppose *basic grant amount for the grant year 2008.

CHAMBER 94 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

In the brief time available I will describe the substance HEWRRs do not exist. So the notion that somehow at of the amendments, which I also did earlier today dur- the end of the day they could be offered to me is passing the second reading debate, and address some of the ing strange. But, in any event, the amendments deal issues raised by the Deputy Prime Minister. As I said just with the maintenance of funding conditionality earlier today, the amendments moved in my name seek with respect to the protocols. These protocols were not to amend the bill that is now being considered to main- invented by the government; they were the result of a tain funding conditionality with respect to the national series of extensive reviews over many years and most governance protocols only. That has been our public recently a review, I understand, by the minister’s own position for two months. I articulated that clearly ear- department. The government did not sit down and lier today in the House. Our amendments, therefore, dream up protocols. Reviews recommended them and omit item 6 of the government’s bill and substitute a the reason they were recommended was that university section that first repeals the whole section 33-17 of the governance was failing—that is, without protocols and Higher Education Support Act and then substitutes in the funding conditionality attached to them, we had its place funding conditionality only with respect to the substandard governance in some campuses. national governance protocols. I know that Universities Australia has made a state- The national governance protocols conditionality ment. I am well aware of that. I am also well aware of requirements within the opposition’s amendments have what chancellors tell me in private and I am well aware exactly the same operation and effect on universities of the history. This is our firm view. The intention of and higher education providers that they used to. I our amendments is just to maintain these national gov- might add that, as I said earlier today, it was confirmed ernance protocols. That is the purpose of the amend- in Senate estimates that all of the universities were ments that have now been circulated. (Time expired) compliant with the protocols in the preceding year. The Ms GILLARD (Lalor—Minister for Education, coalition’s amendments will also reinstate the minister Minister for Employment and Workplace Relations and with exactly the same authority to withdraw the pre- Minister for Social Inclusion) (6.28 pm)—I indicate scribed amount of funding for universities or higher that the government will be opposing these amend- education providers that are not compliant with the ments for the reasons I put in my summation on the national governance protocols, as is currently the case. second reading. This is the very essence of the coalition’s amendments Question put: to the government’s bill—to restore the tried and tested relationship of funding conditionality with respect to That the amendments (Mr Anthony Smith’s) be agreed the national governance protocols. The amendments to. also omit item 7 of the government’s bill and substi- The House divided. [6.33 pm] tutes it as a minor consequence of amendments in item (The Deputy Speaker—Hon. Peter Slipper) 6. Ayes………… 62 I would like to address a couple of issues that arose Noes………… 77 with respect to these amendments. Firstly, they wholly Majority……… 15 and solely deal only with conditionality of funding with respect to the national governance protocols. That AYES is our only difference of opinion on this bill and that is Abbott, A.J. Andrews, K.J. all our amendments seek to do. Suspicion by the minis- Bailey, F.E. Baldwin, R.C. ter is no substitute for the substance of our amend- Billson, B.F. Bishop, B.K. ments, which just deal with the national governance Bishop, J.I. Broadbent, R. protocols. I have heard many speeches today talking Ciobo, S.M. Cobb, J.K. about the HEWRRs. As I said, our amendments do not Costello, P.H. Coulton, M. Downer, A.J.G. Dutton, P.C. deal with funding conditionality for the HEWRRs; we Farmer, P.F. Forrest, J.A. are just dealing with maintaining funding condition- Gash, J. Georgiou, P. ality was respect to the protocols. Haase, B.W. Hartsuyker, L. The Minister for Education well knows that one of Hawke, A. Hawker, D.P.M. her first acts in the new parliament—I think in the first Hockey, J.B. Hull, K.E. * Hunt, G.A. Irons, S.J. week—was to introduce Labor’s industrial relations Jensen, D. Johnson, M.A. * changes. She said in this place that Australian work- Keenan, M. Laming, A. place agreements were abolished. We did not oppose Ley, S.P. Lindsay, P.J. that. That has occurred. They do not exist. It is hard to Macfarlane, I.E. Marino, N.B. offer something that does not exist. That is the sub- Markus, L.E. May, M.A. stance of the law. The minister knows that. I think most Mirabella, S. Morrison, S.J. of the speakers know that. AWAs as described in the Moylan, J.E. Neville, P.C. Pearce, C.J. Pyne, C.

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 95

Ramsey, R. Randall, D.J. (The Deputy Speaker—Hon. Peter Slipper) Robb, A. Robert, S.R. Ayes………… 77 Ruddock, P.M. Schultz, A. Scott, B.C. Secker, P.D. Noes………… 62 Simpkins, L. Smith, A.D.H. Majority……… 15 Somlyay, A.M. Southcott, A.J. Stone, S.N. Truss, W.E. AYES Tuckey, C.W. Turnbull, M. Adams, D.G.H. Albanese, A.N. Vaile, M.A.J. Vale, D.S. Bevis, A.R. Bidgood, J. Washer, M.J. Wood, J. Bird, S. Bowen, C. NOES Bradbury, D.J. Burke, A.E. Adams, D.G.H. Albanese, A.N. Burke, A.S. Butler, M.C. Bevis, A.R. Bidgood, J. Byrne, A.M. Campbell, J. Bird, S. Bowen, C. Champion, N. Cheeseman, D.L. Bradbury, D.J. Burke, A.E. Clare, J.D. Collins, J.M. Burke, A.S. Butler, M.C. Combet, G. Crean, S.F. Byrne, A.M. Campbell, J. D’Ath, Y.M. Danby, M. Champion, N. Cheeseman, D.L. Debus, B. Dreyfus, M.A. Clare, J.D. Collins, J.M. Elliot, J. Ellis, A.L. Combet, G. Crean, S.F. Emerson, C.A. Ferguson, L.D.T. D’Ath, Y.M. Danby, M. Ferguson, M.J. Fitzgibbon, J.A. Debus, B. Dreyfus, M.A. Garrett, P. Georganas, S. Elliot, J. Ellis, A.L. George, J. Gibbons, S.W. Emerson, C.A. Ferguson, L.D.T. Gillard, J.E. Gray, G. Ferguson, M.J. Fitzgibbon, J.A. Grierson, S.J. Griffin, A.P. Garrett, P. Georganas, S. Hale, D.F. Hall, J.G. * George, J. Gibbons, S.W. Hayes, C.P. * Irwin, J. Gillard, J.E. Gray, G. Jackson, S.M. Kelly, M.J. Grierson, S.J. Griffin, A.P. Kerr, D.J.C. King, C.F. Hale, D.F. Hall, J.G. * Livermore, K.F. Marles, R.D. Hayes, C.P. * Irwin, J. McClelland, R.B. McKew, M. Jackson, S.M. Kelly, M.J. Melham, D. Murphy, J. Kerr, D.J.C. King, C.F. Neal, B.J. Neumann, S.K. Livermore, K.F. Marles, R.D. O’Connor, B.P. Owens, J. McClelland, R.B. McKew, M. Parke, M. Perrett, G.D. Melham, D. Murphy, J. Plibersek, T. Price, L.R.S. Neal, B.J. Neumann, S.K. Raguse, B.B. Rea, K.M. O’Connor, B.P. Owens, J. Ripoll, B.F. Rishworth, A.L. Parke, M. Perrett, G.D. Roxon, N.L. Saffin, J.A. Plibersek, T. Price, L.R.S. Shorten, W.R. Sidebottom, S. Raguse, B.B. Rea, K.M. Smith, S.F. Sullivan, J. Ripoll, B.F. Rishworth, A.L. Swan, W.M. Symon, M. Roxon, N.L. Saffin, J.A. Tanner, L. Thomson, C. Shorten, W.R. Sidebottom, S. Thomson, K.J. Trevor, C. Smith, S.F. Sullivan, J. Turnour, J.P. Vamvakinou, M. Swan, W.M. Symon, M. Zappia, A. Tanner, L. Thomson, C. N OES Thomson, K.J. Trevor, C. Abbott, A.J. Andrews, K.J. Turnour, J.P. Vamvakinou, M. Bailey, F.E. Baldwin, R.C. Zappia, A. Billson, B.F. Bishop, B.K. * denotes teller Bishop, J.I. Broadbent, R. Question negatived. Ciobo, S.M. Cobb, J.K. Question put: Costello, P.H. Coulton, M. Downer, A.J.G. Dutton, P.C. That the bill be agreed to. Farmer, P.F. Forrest, J.A. The House divided. [6.42 pm] Gash, J. Georgiou, P. Haase, B.W. Hartsuyker, L. Hawke, A. Hawker, D.P.M. Hockey, J.B. Hull, K.E. * Hunt, G.A. Irons, S.J. Jensen, D. Johnson, M.A. * Keenan, M. Laming, A. Ley, S.P. Lindsay, P.J. Macfarlane, I.E. Marino, N.B. Markus, L.E. May, M.A.

CHAMBER 96 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

Mirabella, S. Morrison, S.J. Smith, S.F. Sullivan, J. Moylan, J.E. Neville, P.C. Swan, W.M. Symon, M. Pearce, C.J. Pyne, C. Tanner, L. Thomson, C. Ramsey, R. Randall, D.J. Thomson, K.J. Trevor, C. Robb, A. Robert, S.R. Turnour, J.P. Vamvakinou, M. Ruddock, P.M. Schultz, A. Zappia, A. Scott, B.C. Secker, P.D. NOES Simpkins, L. Smith, A.D.H. Somlyay, A.M. Southcott, A.J. Abbott, A.J. Andrews, K.J. Stone, S.N. Truss, W.E. Bailey, F.E. Billson, B.F. Tuckey, C.W. Turnbull, M. Bishop, B.K. Bishop, J.I. Vaile, M.A.J. Vale, D.S. Broadbent, R. Ciobo, S.M. Washer, M.J. Wood, J. Cobb, J.K. Costello, P.H. * denotes teller Coulton, M. Downer, A.J.G. Dutton, P.C. Farmer, P.F. Question agreed to. Forrest, J.A. Gash, J. Third Reading Georgiou, P. Haase, B.W. Hartsuyker, L. Hawke, A. Ms GILLARD (Lalor—Minister for Education, Hawker, D.P.M. Hockey, J.B. Minister for Employment and Workplace Relations and Hull, K.E. * Hunt, G.A. Minister for Social Inclusion) (6.45 pm)—by leave—I Irons, S.J. Jensen, D. move: Johnson, M.A. * Keenan, M. That this bill be now read a third time. Laming, A. Ley, S.P. Lindsay, P.J. Macfarlane, I.E. Question put. Marino, N.B. Markus, L.E. The House divided. [6.47 pm] May, M.A. Mirabella, S. Morrison, S.J. Moylan, J.E. (The Deputy Speaker—Hon. Peter Slipper) Neville, P.C. Pearce, C.J. Ayes………… 75 Pyne, C. Ramsey, R. Randall, D.J. Robb, A. Noes………… 61 Robert, S.R. Ruddock, P.M. Majority……… 14 Schultz, A. Scott, B.C. Secker, P.D. Simpkins, L. AYES Smith, A.D.H. Somlyay, A.M. Adams, D.G.H. Albanese, A.N. Southcott, A.J. Stone, S.N. Bevis, A.R. Bidgood, J. Truss, W.E. Tuckey, C.W. Bird, S. Bowen, C. Turnbull, M. Vaile, M.A.J. Bradbury, D.J. Burke, A.E. Vale, D.S. Washer, M.J. Burke, A.S. Butler, M.C. Wood, J. Byrne, A.M. Campbell, J. * denotes teller Champion, N. Cheeseman, D.L. Question agreed to. Clare, J.D. Collins, J.M. Combet, G. Crean, S.F. RESERVE BANK AMENDMENT (ENHANCED D’Ath, Y.M. Danby, M. INDEPENDENCE) BILL 2008 Debus, B. Dreyfus, M.A. Second Reading Elliot, J. Ellis, A.L. Emerson, C.A. Ferguson, L.D.T. Debate resumed from 20 March, on motion by Mr Ferguson, M.J. Fitzgibbon, J.A. Swan: Georganas, S. George, J. That this bill be now read a second time. Gibbons, S.W. Gillard, J.E. Gray, G. Grierson, S.J. Mr TURNBULL (Wentworth) (6.54 pm)—This Griffin, A.P. Hale, D.F. Reserve Bank Amendment (Enhanced Independence) Hall, J.G. * Hayes, C.P. * Bill 2008 is one of the most sloppy and misconceived Irwin, J. Jackson, S.M. pieces of legislation I have ever seen. It was the result Kelly, M.J. Kerr, D.J.C. of a statement by the Treasurer in December 2007 King, C.F. Livermore, K.F. when he said: Marles, R.D. McClelland, R.B. McKew, M. Melham, D. To enhance the independence of the Reserve Bank, the posi- Neal, B.J. Neumann, S.K. tions of Governor and Deputy Governor will be raised to the O’Connor, B.P. Owens, J. same level of statutory independence as the Commissioner of Parke, M. Perrett, G.D. Taxation and the Australian Statistician. Plibersek, T. Price, L.R.S. What this bill seeks to do is effectively create a bizarre Raguse, B.B. Rea, K.M. parliamentary farce associated with circumstances for Ripoll, B.F. Rishworth, A.L. Roxon, N.L. Saffin, J.A. the termination of the Reserve Bank governor’s or Shorten, W.R. Sidebottom, S. deputy governor’s role which, at the moment, are

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 97 automatic grounds for termination. Section 25 of the pointment should be terminated, and the sooner the Reserve Bank Act at present states: better for the sake of the institution and the country. If the Governor or the Deputy Governor: What the Treasurer, this very inexperienced Treas- (a) becomes permanently incapable of performing his or her urer, is presenting to us is a bill that would then take duties; or those three facts—which are not contentious facts: (b) engages in any paid employment outside the duties of his somebody is either incapable or they are not, or they or her office; or are bankrupt or they are not, or they have got an out- (c) becomes bankrupt side job or they have not—and make them the subject … … … of what could be a highly contentious and political debate before both houses of parliament, which could the Treasurer shall terminate his appointment. take some considerable time. And in the event of one It is mandatory. There are positions where a statute house of parliament not voting to support the removal states that a condition like that results in the automatic of the governor, a bankrupt governor or a governor vacation of the office. But one can readily understand with an outside job or a governor who is mentally or when the Reserve Bank Act was drafted in 1959 it was physically incapable would remain in office. It is an obvious that it was important to know the precise time absurd amendment, and it is being presented as an ef- at which a governor, faced with those unpleasant cir- fort to improve the independence of the Reserve Bank. cumstances, ceased to be the governor and so it was That is an unfortunate, misconceived, sloppy piece better from a drafting point of view to state that the of drafting. But it actually gets worse—much worse. termination was mandatory, but because the Treasurer Where the Treasurer has a discretion in the appoint- would be obliged to do it, we would know at what day ment of the governor or the deputy governor, the and what hour the governor, whether he or she was amending bill replaces the term ‘Treasurer’ with ‘Gov- incapable or bankrupt or had an outside job, had actu- ernor-General’. That in itself is just a reversion to what ally ceased to hold that office. the law had been some time before, and of course the The 1959 Reserve Bank Act also states in section Governor-General would act on the advice of the gov- 24: ernment of the day, which would no doubt be guided (1) The Governor and the Deputy Governor: by the opinions of the Treasurer. So one could say it is (a) are to be appointed by the Treasurer; and a distinction without a very great difference. But be- (b) shall be appointed for such period, not exceeding 7 cause of the way in which the amending section 25 has years ... and been introduced, it is very arguable that the only (c) hold office subject to good behaviour. grounds for terminating the governor or the deputy governor are those three I have mentioned—incapacity, Although that is a term that is not used with respect to bankruptcy, outside employment; all of which are un- any other public office under the Commonwealth, so I arguable automatic grounds for termination—and that understand, that gives the Treasurer under the existing in fact the consequence of this amending bill is that the legislation the ability, almost a reserve power you Treasurer or, indeed, the government—the Governor- could say, to remove the governor or the deputy gover- General acting on the advice of the government—has nor if they cease to conduct themselves with what lost the right to terminate a governor or a deputy gov- could be called ‘good behaviour’, in other words, if ernor for bad behaviour. I refer the House to the li- they misbehave. brary’s Bills Digest on the Reserve Bank Amendment What the government is seeking to do in the (Enhanced Independence) Bill 2008 and I will read the amendment bill is quite extraordinary. It takes in a new relevant section: section 25 the three circumstances which currently give New subsection 25(9) provides that the termination of the rise to automatic termination and makes them the only Governor or the Deputy Governor can only be terminated on grounds upon which a governor or deputy governor a specified ground and by the means specified by new sec- may be dismissed. Furthermore, it requires that for that tion 25. This limits termination to the grounds specified and dismissal or termination to take place, both houses of in a manner specified by the section. As noted earlier, the parliament must meet, each of them resolve that the Governor and Deputy Governor hold office ‘subject of good governor should be dismissed because of incapacity, behaviour’, which is an on-going requirement and a prereq- perhaps, or bankruptcy, and then request the Governor- uisite for holding office. The Reserve Bank Act is the only General to effect that dismissal. We can imagine the Commonwealth Act which has this particular expression. completely absurd situation where a governor or a Under the changes proposed by the Bill, in the event the position holder is not of good behaviour there is no mechanism deputy governor is, perhaps due to an unfortunate acci- for termination as this requirement is not specified as a dent, physically incapable of doing their job or has be- ground under new subsection 25(8). come bankrupt or has an outside job. In any of those So if this piece of drafting by the Treasurer were to be three cases there would be no question that the ap- adopted as an act of parliament, what scenario would

CHAMBER 98 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 have been created in the event of the governor engag- The Treasurer was not able to do that which he said ing in dishonest or corrupt conduct or acting in a way he would do in December—in other words, to change which undermined public confidence in the securities the Reserve Bank Act so that the ability to remove the markets or acting in a disgraceful way? Sure, that is governor or deputy governor was vested in the parlia- only a theoretical situation, but there have been inci- ment. We have the authority of the Library’s analysis dents of this kind in other countries where central bank that, if these amendments are carried into law, we will governors have acted in an improper way, and I can have a situation where we have a Reserve Bank gover- come to that in a moment. But what we would have, nor that is effectively unsackable. The governor would courtesy of this amendment bill, would be the appall- be unsackable on any ground other than incapacity— ing scenario that there would be no power to sack the comatose after a car accident or some unfortunate governor. There would be no accountability. The par- medical incident—bankruptcy or having an outside liament could not act, the Treasurer could not act, the job. All three are factual conditions which are either Governor-General could not act—all courtesy of this right or wrong, which either exist or not. They would shocking drafting. not be contentious—it is hard to imagine them being The government may well take on board these ob- contentious—and they would in many other circum- servations and the observations of the library in the stances be in and of themselves a ground for automatic Bills Digest and make some appropriate amendments vacation of the office. of its own. But, pointing to the incompetence that has In the event of the Reserve Bank governor acting in been shown by the Treasury here, honourable members a way which is corrupt, dishonest or reckless or which will recall that I noted that back in December the brings the bank into disrepute or which brings our Treasurer had said that he wanted to put the governor whole financial system into disrepute, there is no in the same position as the Commissioner of Taxation power under the amendments proposed to remove that or the Australian Statistician. Well, did he know what governor or deputy governor, and there is certainly no he was talking about? The Australian Commissioner of power for the parliament to do so. One could well Taxation falls under the Treasury portfolio, so one imagine that the Treasurer might have replicated sub- would assume that he did. Indeed, the Commissioner stantially the provisions with respect to the Commis- of Taxation and a Second Commissioner of Taxation sioner of Taxation and said, ‘We will give the parlia- may be removed by the Governor-General under the ment the power to remove the governor or the deputy Taxation Administration Act 1953, section 6C, if there governor on the grounds of misbehaviour, but the other has been a vote of each house of parliament calling for three grounds’—the factual qualifications, if you the removal of either the commissioner or the second like—’will remain where they are as mandatory commissioner ‘on the ground of proved misbehaviour grounds for termination.’ That would have been per- or physical or mental incapacity’. Of course, honour- fectly reasonable and a change that would have been able members will be familiar with that language be- consistent with other legislation and consistent with his cause it has a counterpart, in relation to federal judges, public remarks. in the Constitution itself, where section 72 states that There is a very pertinent international example of a they: difficulty with removing a governor and the resultant Shall not be removed except by the Governor-General in damage to reputation. Antonio Fazio was the Governor Council, on an address from both Houses on Parliament in of the Bank of Italy when a scandal broke in July 2005 the same session, praying to such removal on the ground of over the sale of Banca Antonveneta, which involved proved misbehaviour or incapacity ... allegations of corruption, nepotism and very poor pol- The Taxation Administration Act section 6C provides icy by the Bank of Italy. He was called upon to resign, that if the commissioner or a second commissioner of but no-one could sack him except his hand-picked taxation becomes bankrupt or engages in paid em- board. He was called on to resign by the Prime Minis- ployment outside the duties of his or her office or is ter, by the press and by most market economists. He absent from duty, except on leave of absence, for 14 ignored them and held onto his position. The affair consecutive days or 28 days in any 12 months then the dominated the media in Europe for months. Finally, in Governor-General shall remove the commissioner or December 2005, he resigned after six months of highly second commissioner. So those circumstances— publicised damage to the reputation of the Bank of It- dereliction of office, outside paid employment, bank- aly. There was at least a means of removing Governor ruptcy—are automatic grounds for termination. Where Fazio by his board, but he had the numbers on his own a discretion is given to the parliament to sack the board to stop that. Commissioner of Taxation it is limited to physical or We would never expect that to happen, but if we mental incapacity and, most importantly, proved mis- were to have a governor who was in a similar situation behaviour. The provisions for the Australian Statisti- and these amendments were passed into law there cian are very similar. would be no means of removing that governor, not by

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 99 the parliament, the board, the Treasurer or the Gover- a year, which would doubtless be after the publication nor-General. I cannot believe that the Treasurer seri- of the quarterly statements on monetary policy. ously intended this outcome. I can only believe that The most important element in the independence of this is sloppiness and I ask him to come into the House public office holders is accountability. The greatest and explain how on earth this extraordinary set of protection for the independence of the judiciary is the amendments could be justified. If parliament is to have fact that they have to be accountable for all of their a role, then it should have a role to determine whether decisions. They have to publish their decisions. They the governor has engaged in misbehaviour. That is the are accountable for them. It is all out there in the public precedent with High Court judges, with the Australian domain. All of the rest of the protections that we have Statistician and with the Commissioner of Taxation. for the judiciary are vitally important, too. But ac- That is the model that the Treasurer said he was going countability and transparency are the keys to this. to undertake, but he has done nothing of the sort. The Reserve Bank publishes a great deal of material. On the other hand, if he feels that, contrary to the in- Many people would say that it is the finest—or at least terpretation that the Library has proffered and other one of the finest—central banks in the world. We are lawyers have suggested and notwithstanding the very fortunate to have such a strong central bank here changes to section 25, there remains a discretion on the in Australia. But when the Governor of the Reserve part of the Governor-General to remove the governor Bank and his deputy governor and the rest of his senior or the deputy governor of the bank for misbehaviour, team come before the House of Representatives Stand- what possible justification is there in leaving that very ing Committee on Economics, they are being account- subjective issue in the hands of the executive govern- able to the people of Australia. The important eco- ment but then giving to the parliament the ability to nomic and financial issues of the day are discussed and terminate the governor or the deputy governor only in debated and the governor and his colleagues have to circumstances where three non-contentious factual bi- take questions from the House economics committee, nary circumstances have arisen? Is the governor bank- which is composed of members of this House, each rupt? Look at the order of the court. Is the governor and every one of them directly elected by the people of physically incapable? Look to the medical certificate. Australia. Does the governor have an outside job? Look to the We would seek to enhance the accountability of the contract of employment. These are matters which quite Reserve Bank. That will genuinely improve its inde- properly in the legislation are extant at the moment and pendence. That will enhance its already considerable are grounds for automatic dismissal. To put them into independence in a way that is transparent and account- the hands of the parliament is, frankly, absurd. able to the people. It is not spin; it is not this sloppy, This bill is just an exercise in Labor spin. Back in misconceived nonsense proposed by the Treasurer. It 1996 when Peter Costello made the Reserve Bank truly will mean that the people and the parliament of Austra- independent, he was threatened with legal action from lia will see more of the Reserve Bank and understand the then Leader of the Opposition, Kim Beazley. Mr more about their work. The Reserve Bank will know Beazley thought it was appalling and harked back to that it is accountable four times a year. That increase in those days when Paul Keating as Treasurer could say, frequency will underline and emphasise the independ- ‘I’ve got the Reserve Bank in my pocket.’ Keating was ence of that institution. proud of it. To his great credit, Peter Costello said, ‘No, We all have to suffer from the spin of the Labor we should have an independent Reserve Bank, an in- Party. It is a constant outpouring from the government dependent central bank.’ He set that up and the Reserve benches nowadays. We heard today about this budget, Bank is thoroughly independent. This bill adds nothing which the Treasurer thinks cuts spending but which in to the independence of the Reserve Bank but creates an fact increases spending. The spin is endless. But what extraordinary situation where, in the extreme circum- we have here is not only the spin of Labor claiming to stances in which one may want to be able to consider be interested in or seeking to enhance the independ- the termination of the Governor of the Reserve Bank, ence of the Reserve Bank but a level of incompetence he is completely immune from termination. which is frankly breathtaking. I do not know whether I will foreshadow an amendment that I will move to the Treasurer in this context is a fool or a knave. To put the Reserve Bank Act 1959 in due course which speaks this up seriously is a truly misguided, malign exercise. to what is really at the heart of independence. What we To seriously believe that those three factual disqualify- will move is an amendment that requires the Governor ing circumstances should be the subject of lengthy par- of the Reserve Bank to present himself or herself up to liamentary debate but, in the event of the governor en- four times a year before the House of Representatives gaging in conduct such as that by Governor Fazio in Standing Committee on Economics. In other words, the— instead of attending twice a year, which is the current Mr Combet—I rise on a point of order, Madam arrangement, they will be required to attend four times Deputy Speaker, under standing order 90. The member

CHAMBER 100 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 for Wentworth, I believe, imputed an improper motive This bill is a key component of the Rudd govern- to the Treasurer when he used the term ‘knave’. ment’s commitment to enhance the independence of ‘Knave’ has a very clear meaning in the English lan- the Reserve Bank of Australia, and it demonstrates the guage. I would seek your guidance, because I do not government’s commitment to putting downward pres- think that personal reflections are appropriate. While I sure on inflation. The bill seeks to enhance the inde- understand that the member for Wentworth has been in pendence of the governor and deputy governor of the this place longer than I have, I expect a better standard bank, and through them, the independence of the Re- of argument from him. serve Bank of Australia. The bill will achieve this by Mr TURNBULL—A knave is defined in the Mac- raising the positions of governor and deputy governor quarie Dictionary as ‘an unprincipled or dishonest fel- to the same level of statutory independence as the low’. What I am saying is that the Treasurer has be- Commissioner of Taxation and the Australian Statisti- haved in an unprincipled fashion. cian. The DEPUTY SPEAKER (Ms AE Burke)—The Under the existing legislation, the Treasurer has the member for Wentworth has probably taken his point authority to appoint and terminate the Governor and too far. I probably would have allowed ‘knave’ to the Deputy Governor of the Reserve Bank of Australia. stand, because it has on previous occasions. But, if you The Rudd government is committed to improving the are going to impute that meaning, then you must with- transparency of future Reserve Bank appointments and draw. to removing overt political considerations from appointments and terminations. The current arrangement Mr TURNBULL—Madam Deputy Speaker, I will could be said to potentially undermine the principle of withdraw ‘knave’. Thank you for that instruction. Re- an independent Reserve Bank. It is paramount to pro- stating it, the question then is: is the Treasurer a fool tect this principle to ensure that the Reserve Bank can or—in line with the dictionary—an unprincipled or be guided by what it believes is in the best interests of misguided fellow? If he intended the consequences of the operation of monetary policy. this amendment, he is seeking to put this country in a position in which if the Governor of the Reserve Bank As former US President John F Kennedy once said: engaged in corrupt or dishonest conduct he or she ‘In politics, perception is reality.’ Changes to the legis- would be immune from dismissal. It is difficult to be- lative status quo will improve perceptions in the public lieve that any responsible or competent Treasurer arena. The existing system gives the Treasurer the would seriously suggest that was an appropriate out- power to appoint partisan political candidates or those come. On the other hand, if that is not the case—if the who have serious questions hanging over their charac- Treasurer is not behaving in a deliberately unprincipled ters, if the Treasurer so wishes. This position has the fashion—then one can only say that this is incompe- potential to seriously jeopardise the standing of the tence of a very high order. What it does is add nothing Reserve Bank and reduce its effectiveness, thereby to the independence of the Reserve Bank. What it does lowering Australia’s long-term economic prospects. is discredit the integrity of the Reserve Bank and dem- This is not something that the Rudd government will onstrate the extraordinary ineptitude of the Treasurer of allow to happen. That is why we are introducing this the Commonwealth of Australia. bill. Mr NEUMANN (Blair) (7.22 pm)—Unlike the I strongly support this bill because it is only by in- member for Wentworth I rise today to speak in support creasing the independence of the governor and the of the Reserve Bank Amendment (Enhanced Independ- deputy governor that the Reserve Bank’s independence ence) Bill 2008, which deals with the Reserve Bank will be enhanced and we will have sound monetary and monetary policy. Monetary policy, and the goals of policy in this country. This bill has at its core reform to it, are set out in the Reserve Bank Act 1959, which bring Australia’s central bank governance arrange- requires the Reserve Bank to conduct monetary policy ments in line with international best practice. in a way which, in its opinion, best contributes to the The Rudd government believes monetary policy stability of the currency of Australia, the maintenance must be conducted in an open and forward-looking of full employment in Australia and the economic way. It is critical that there be transparency and ac- prosperity and welfare of the people of Australia. countability in arrangements in the Reserve Bank so Both the Reserve Bank and the Rudd government that the bank can continue to report on how it sees cur- agree on the importance of low inflation and low infla- rent and future developments in the economy affecting tion expectations. In pursuing the goal of medium-term expected inflation outcomes. price stability, both the Reserve Bank and the Rudd The reforms outlined in this bill will enhance the ef- government agree on the objective of keeping con- fectiveness of monetary policy, but the Rudd govern- sumer price inflation between two and three per cent ment will not leave the burden of fighting inflation and on average over the cycle. higher interest rates to the Reserve Bank alone. The Rudd government is committed to relieving the finan-

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 101 cial pressure on Australian working families and indi- Building Australia Fund, the Health and Hospitals viduals, and to keeping inflation in check. We went to Fund and the Education Investment Fund. We are en- the election with that commitment and we intend to couraging workforce participation through initiatives in honour it fully. We are determined to beat inflation and child care, such as the childcare rebate and tax reform. give Australians a helping hand. Inflation pushes up And we have the most comprehensive tax review in interest rates, eats away at family budgets, affects fam- Australia’s history since World War II. ily domestic arrangements and threatens future pros- Inflation has taken a long time to build up in our perity. That is why we intend to tackle this problem economy, as the Australian public knows. It has not head on. This legislative change is part of that whole emerged overnight, but it will take a considerable process. amount of time to deal with it. That is why we are go- Currently we are tackling the skills shortages and ing about it prudently, starting from day 1 to tackle this capacity constraints in the economy. We are boosting problem, in contrast to our opponents. The Leader of capacity to allow the economy to grow further and the Opposition told families in this country, who are support jobs growth without fuelling inflation. Fighting facing the highest inflation in 16 years and 12 consecu- inflation is part of monetary policy. We are taking the tive rate rises, that the economy was first rate. responsibility for modernising our economy so we can Debate interrupted. sustain growth, create jobs and get inflation back in ADJOURNMENT check. The SPEAKER—Order! It being 7.30 pm, I pro- My electorate office is in a shopping centre in Bras- pose the question: sall in Ipswich. People come in my door all the time to talk to me. I often go into the Woolworths supermarket That the House do now adjourn. and have a chat with people and they tell me all the Second Sydney Airport time about the rising cost of living. This government is Mr FARMER (Macarthur) (7.30 pm)—I rise to- committed to easing the burden on the Australian peo- night to highlight an ongoing problem that has affected ple. Inflation erodes the value of people’s savings and people in my electorate for many years. Way back in incomes and creates uncertainty for business and other 1964 the Labor Party said that Sydney (Kingsford investors. We are determined to help working families Smith) Airport would reach its capacity by 1980. to ease the burden. Forty-four years later we are still debating whether The coalition government failed to deal with infla- there is a need for a second airport in the Sydney basin. tionary pressures in the economy before they gathered Many people would know that the previous member pace. Instead they just ignored the problem and failed for Lindsay, the Hon. Jackie Kelly, the previous mem- to invest in our productive capacity and left the Re- ber for Macquarie, Kerry Bartlett, the former member serve Bank of Australia to shoulder the entire burden. for Mitchell, the Hon. Alan Cadman, and I, together Australian families are the victims of the coalition with many others on this side of politics— government’s policy failures, because of their reckless- Mrs Markus interjecting— ness. Because of that we inherited underlying inflation Mr FARMER—and, of course, Louise Markus— at a 16-year high, and 12 interest rises on the trot have have been lobbying for nearly a decade to resolve this been experienced by the Australian population. Ele- debate. People on our side of politics believe that there vated inflation is the Liberal Party’s parting gift to Aus- should not be a second airport built at Badgerys Creek. tralian families. We will not let it go. I am pleased to be It warmed my heart when the minister for transport, the part of a government that takes the fight against infla- Hon. Anthony Albanese, said on the 7 May 2008 on the tion seriously. This legislation is part of that fight. Steve Price program on 2UE that there would not be a The five-point plan that the Treasurer revealed last second airport built on the Badgerys Creek site. He night is important. It includes disciplined financial re- mentioned that the government may be looking for straint. We will deliver a surplus of more than 1.5 per another site but that that site had not been determined cent of GDP in 2008-09; we will deliver 1.8 per cent of as yet. GDP. We are encouraging private savings through ini- Many people who live in the planning zone around tiatives like first home saver accounts, which were de- the proposed airport site at Badgerys Creek have had livered as part of our $2.2 billion affordable housing their lives on hold for more than two generations. All package. We are tackling the chronic skills shortages the things we take for granted that we can do with our with measures that include 450,000 new training own homes—including realising the value of our places. In fact we have delivered more than that; there homes and borrowing against them for things like holi- are 630,000 additional training places for tackling the days, motor vehicles, boats and education for our skills shortage. We are showing national leadership to kids—these people have been denied. Local council tackle infrastructure issues, including broadband and and state planning regulations relating to airport sites Infrastructure Australia. And we have created the have meant that they have not been able to realise the

CHAMBER 102 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 value of their homes, develop their properties or build meets the challenges of the future. It fights inflation a garage, a pergola or a granny flat—or even an outside and delivers to working families. It is a budget that is a dunny, for that matter. They have not been able to erect true reflection of the issues and priorities that the Labor a water tank or even pave a driveway. They have lived Party campaigned on during 2007. Importantly, it fol- in a home that is not their castle. They own it, they pay lows the principle of keeping faith with the Australian for it and they pay the rates and yet they have no rights people—that is, we are committed to following relating to their own property, all because of the pro- through on what we promised in opposition. I think it crastination of various governments that have been in is tremendously important. All politics are local, and power for the past 30 years. this budget delivers on Labor’s local election commit- I simply ask that, if the transport minister, the Hon. ments in Wakefield. In particular, it provides funding Anthony Albanese, who happens to be the minister not for a GP superclinic in the area now called Playford only for transport but for infrastructure, regional de- North, which takes in the suburbs of Smithfield Plains velopment and local government, has stated that they and Davoren Park, which is the old Elizabeth Field. are not building a second airport at Badgerys Creek, This will be an important primary healthcare resource then can he please direct the local councils of Camp- for this area, which has significant social disadvantage belltown, Liverpool, Camden and Penrith and the state affecting it. I think it will complement the Playford government and counterpart agencies to cancel the North redevelopment project, which is about urban zoning restrictions placed around property in the region renewal in the area, and become an important symbol so that these people can simply do the same things with of the national government’s commitment to the local their properties that you or I—or anybody else in the area. state of New South Wales—take for granted with our I know the Peachey Belt Residents Association, one own homes. of the local groups which takes a great interest in the The government needs a plan for the site and a vi- area, is interested in the provision of mental health fa- sion for the future. In the absence of a vision from the cilities because that is a particularly big issue. That is government, I would like to outline my vision for the held up by both statistical evidence and anecdotal evi- Commonwealth owned land at Badgerys Creek, as we dence. Labor’s Better Regions program will also de- now have the opportunity to change the face of West- liver on our election commitments in the area. The pro- ern Sydney for the future and lift the quality of hous- jects that we are committed to delivering include ing, jobs and opportunities. Major issues in Western $100,000 for a cultural centre for the Vietnamese Sydney are housing affordability, lack of infrastructure Farmers Association in Virginia. Most of the Vietnam- and too few local jobs. This region is also one of the ese farmers in the area are veterans of the conflict in fastest growing economies: it produces $54 billion in Vietnam or their descendants are. They came over here economic output annually, it houses 30 per cent of with very little and have remained a remarkably hearty small businesses in New South Wales and it is in close and hard-working community. They have weathered all proximity to the M7, the M5, the M4 and the proposed sorts of challenges, being small business people, and southern Sydney freight line. were also subject to floods some two years ago. The 1,700-hectare property at Badgerys Creek pre- The program also provides $200,000 for playground sents the federal government with an ideal opportunity equipment in Playford North and that is likely to be in to provide for all of the above by developing the site the Stebonheath Flow Control Park, which will be one into a business park and releasing land for housing. If of the largest aquifer storage recharge projects in the the federal government were to sell the Badgerys world by the time it is finished. There is $3 million for Creek site for such a project, it could also fund the in- a multi-use recreation and community facility in Angle frastructure around the site in order to attract business Va le—a significant community that is growing at a investors to the region and reverse traffic flows in very great rate with many young families moving Western Sydney. As the federal government owns this there. At the moment, there is a very limited or non- land, it provides a unique opportunity to realise not existent sport, recreation and community facility there. only the monetary value for the Australian taxpayer but That will be a tremendous project that will be done in the social value of producing an area—(Time expired) partnership with Playford council. Wakefield Electorate: Budget 2008-09 We will also be funding $3 million to build the Gawler River Junction project, an important project Mr CHAMPION (Wakefield) (7.35 pm)—I rise to which has huge community support and a strong and congratulate the Treasurer on an excellent budget and active volunteer base already in place. Finally, there is comment about its effects on the electorate of Wake- $2 million for the City of Playford’s Building Healthy field. Interestingly, the headline in the Advertiser today Communities project, which will rebuild the Elizabeth was ‘Working class man’ and it showed a picture of the Aquadome—a project which was promised by the pre- Treasurer. So the budget has certainly been well received in South Australia. It is an important budget and

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 103 vious government but that will be delivered by the It doesn’t matter whether I am male or female, rich or poor, Rudd Labor government. black or white, migrant or Australian; but there is a strong chance that I may have my innocence stolen from me. There are community safety grants which cover the Elizabeth, Gawler and Salisbury train stations. The I will feel guilty and perhaps decide that suicide is my only Australian government will make a contribution to bet- solution. ter TV reception in the northern suburbs in areas on the I may grow in the troubled belief that there is no difference Para Escarpment, which runs from Ingle Farm in the between right or wrong. member for Makin’s electorate to Craigmore in my Or I may lose my way and steal the innocence from my own electorate—an area which has had very poor TV recep- children. tion for a decade or more. We have an allocation of These are strong sentiments indeed. There is obviously money to assist in getting better TV reception but we a high social cost to the community in addition to the know we need the commercial TV stations to come on emotional cost to all involved. It affects not only the board. That is a particularly big issue because people in families, relatives and friends but also police, social Craigmore often cannot get the tennis or the cricket on workers, courts, DOCS and even casual bystanders. their free-to-air TVs. I think it is a right of every Aus- Bravehearts was created as a response to the pattern tralian family to be able to watch the tennis or the of child abuse confronted in society every day. It was a cricket. creature of Mrs Hetty Johnson, who established the Roads have also been an area where there has been organisation in 1997, and I commend her highly for her great support in Wakefield. The Northern Expressway courageous initiative. Bravehearts is all about helping and the Port Wakefield roads will receive $118 million children tell trusted adults if they are feeling compro- in 2008-09. I live right next door to both these projects mised or abused. It is a process of information and em- and drive on Port Wakefield Road on most days, so powerment. that is particularly important. The Sturt Highway will There is a character that accompanies the education get $15 million. The Bowman’s intermodal expansion and counselling team called ‘Ditto’, a brave cuddly out at Balaclava will receive $600,000. It is a particu- lion helping children disclose, if that is required. The larly important project. (Time expired) aim is to help all children in the Illawarra and Shoal- Bravehearts haven but there is of course a cost to this approach. Mrs GASH (Gilmore) (7.40 pm)—In the middle of There is always a cost, monetary or otherwise. The March this year, I was invited to attend a ‘fundraiser estimated budget is $250,000 and this will help to edu- with a difference’—no political bias here—in support cate children and reduce the incidence of child abuse. of children who have suffered abuse. It was held at the It will help fund counsellors who help those already Kembla Grange Racecourse near Wollongong. Natu- suffering the effects of being abused. rally, there were horses, a great lunch and the usual Already a local business has donated a vehicle to raffles. The people invited were all from the Illawarra help take Ditto and the team around the area to visit and the Shoalhaven. I was proud to note that the schools and other groups who may support the work of Shoalhaven participants outnumbered the Illawarra Bravehearts. Spreading the message is the crux of the participants significantly. approach. On 9 April a small group of about 20 indi- It was there that we were introduced to an organisa- viduals gathered at the Bomaderry Bowling Club to tion by the name of Bravehearts through the showing form a steering fundraising committee for our local of a heart-wrenching DVD. This DVD outlined the Bravehearts work. This group will be functioning un- incidence of child sexual abuse and the possible life der the stewardship of Roger and Wendy Woodward changes that take place for many of the victims. Vic- and Chris Benning, who is recently retired from the tims of child abuse are often suicide victims in their National Australia Bank. Frenchie, our local news- later years. They suffer family breakdowns, mental reader from 2ST in Nowra, has pledged his support and illness and some even end up in jail. According to the a number of others already working in the area of help- Australian Institute of Criminology, it is estimated that ing victims have also joined the team. one in three girls and one in six boys are sexually as- We have a dedicated and focused executive for our saulted before they reach legal adulthood at 18 years of local Bravehearts and I encourage as many as possible age. Many carry those scars into later life and some to contact them, even if it is only to give contact details never get over the experience. Others are so affected for their email list in case something special comes they actually go on and become perpetrators of abuse along that interested persons would like to attend. My themselves. contribution will be to sell DVDs to other members of I came across the following words that encapsulate parliament so that they too can get fully behind the the undercurrent of Bravehearts: Bravehearts initiative. In this way, we can all learn from the experience and help build a more appropriate I am a small child and I have the innocence of my future that rolls out before me.

CHAMBER 104 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 response to a social and moral curse from the dark side the Dinmore to Gailes section will commence and sur- of humanity. veying is being done at the moment, with community I think it is beholden on us all to contribute as a so- consultation. ciety to strategies that discourage the perpetuation of We have also delivered what we said we would do child abuse, even in the smallest of ways. By turning a when I first met with the Amberley action group. We blind eye, we are inadvertently giving our tacit ap- have provided in this budget $26.83 million for a re- proval to this practice. I commend all those involved in placement to the Amberley State School. In March Bravehearts. It is my hope that their example will mo- 2008, the Minister for Defence, Joel Fitzgibbon, in- tivate the creation of chapters in other regions. If my structed Defence to undertake a full review of all op- colleagues are interested, I would be more than happy tions for the future of this school, currently located to provide all necessary details about Bravehearts. near the Amberley defence base. As a result of the Blair Electorate: Budget 2008-09 growth of the Amberley base, which is about the biggest base in Australia, the school could not remain Mr NEUMANN (Blair) (7.45 pm)—The Rudd La- there. There will be increased traffic movement and the bor government has delivered in spades to the people construction of new living accommodation and mess of Blair. During the election campaign we made some facilities to cater for over 500 defence personnel. The significant commitments to the people of Blair. We current school site will just not be appropriate in the worked hard to deal with the local community and circumstances. So we have delivered what we said we there are many aged-care and health related initiatives would. We are giving the Queensland government which I will talk about another day. We have delivered $26.83 million, and the Queensland government will the election commitments that we made before the last now decide where that school will be located. I have election and we take seriously those promises. Among spoken to representatives of the local action group to- the announcements in the budget, Blair will benefit day and they have warmly welcomed the funding. locally from $525,000 towards the George Alder Ten- They recognise that we have honoured what we said nis Centre in Ipswich—and I look forward to working we would do. with Ipswich City Council to deliver that project—and $10 million for the Ipswich CBD redevelopment. This There is a further $1 million for the relocation of the is about the first serious money that a federal govern- creche and kindergarten for the Amberley Preschool. ment has delivered to Ipswich CBD since the Whitlam This will be co-located with the new school on the Labor government helped fund and create the Ipswich south side of Ipswich. I welcome the money and I civic centre. I know that Mayor Paul Pisasale is de- know my community will, and I recognise that the lighted about the funding. This funding will go towards Treasurer has honoured what he has said in delivering seed money for the Ipswich lagoon pool project, the this money. I will be particularly interested in taking performing arts centre and what we hope to be a Par- him back to the George Alder Tennis Centre—but I ramatta style stadium on the north side of the Ipswich must say to this House that his service is not quite as River. good as some of the professionals I have seen on the circuit. So thank you very much, Mr Swan. You have There will be $600,000 towards the upgrade of Ips- delivered for the people of Ipswich and Blair. I com- wich Basketball Stadium, and members of his House mend the budget and I warmly welcome the funding. might be a bit surprised to know that I played for Ips- wich in basketball—all 175 centimetres of me—for Ryan Electorate: Budget 2008-09 many years. Obviously I was not a centre; I was a Mr JOHNSON (Ryan) (7.50 pm)—I am pleased to guard. This $600,000 will help in the refurbishment speak in the parliament today about the budget that the and upgrade of the Ipswich Basketball Stadium. Road Treasurer delivered yesterday. As the representative of infrastructure will get a boost. Ipswich City Council the people of Ryan, I want to put on record my great will get $1.368 million, the Lockyer Valley region $1.3 disappointment. Today, many constituents have con- million and the Boonah part of the Scenic Rim Re- tacted me to express their great concern as well as their gional Council will also get funding under the Roads to great disappointment about a range of the measures Recovery program. that were mentioned in the budget last night. In par- The Strategic Regional Program will see the Cun- ticular, I want to draw the House’s attention to a very ningham Highway to Swanbank Enterprise Park Link important aspect of the Howard government’s policies of $6.3 million be delivered. The McGraths Bridge on that has now been completely cancelled and which will the Mulgowie School Road will also be replaced at a be of deep disappointment to the parents of children cost of $365,000. There is also some money for the living in the Ryan electorate. At the outset, let me say project that is near and dear to my heart, which is the that the budget delivered by the Rudd Labor govern- upgrade of the Ipswich Motorway. Ipswich Motorway ment really does let down the people of Ryan. It is very construction will start in January-February next year, much a Labor budget of the old-fashioned style—of and there is money in this budget for it. The upgrade of increased taxes and of massively increased spending. It

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 105 really also goes to the politics of envy, which I know Epidermolysis Bullosa that the people of Ryan want to have no part of. This Mr ZAPPIA (Makin) (7.55 pm)—I take this oppor- budget will do nothing to meet Labor’s very strong tunity to draw the House’s attention to and raise promises to keep down grocery prices, to keep down awareness of the work of the Dystrophic Epidermolysis petrol prices and to tackle interest rates. Of course, we Bullosa Research Association of Australia, otherwise know that at the last election the Prime Minister, Mr known as DebRA Australia. DebRA Australia is a vol- Rudd, gave a very strong inference, if not a commit- untary organisation that supports individuals with epi- ment, that he would be the best placed person to make dermolysis bullosa—otherwise known as EB—their an impact on grocery prices, on petrol prices and on families and health professionals. DebRA Australia interest rates. Today, in May 2008, many months after was founded in 2005 and state organisations make up the election, the opposite is happening—prices for pet- the membership of the national body. DebRA organisa- rol and groceries are certainly not going down; if any- tions are currently in Queensland, New South Wales, thing, they are going up. Australians will take no com- Victoria and South Australia. No government funding fort whatsoever from the decision by this very novel is provided to any of the DebRA groups, including the government and this very novel Treasurer to raise taxes national body. It is only through community awareness on cars, alcohol, energy, computer software, fringe and support, as well as funding from corporate Austra- benefits, passenger movements, passports and visa ap- lia and other charitable organisations, that DebRA can plications and to increase the cost of private health in- make a difference. DebRA plays a major role in pro- surance. viding free dressings for EB sufferers right across Aus- As I said at the outset, it is the parents, the mums tralia. Last year alone over $50,000 was spent on sup- and dads of Ryan, that I have great concern for in the plying essential daily dressings to people with EB. If context of the quality of the education their children people had access to free dressings through the public will receive, particularly at the schools in my elector- health system, the money raised by DebRA could oth- ate, which will no longer have access to the wonderful erwise be spent on research to find a cure. Among initiative of the Howard government, the Investing in other things, DebRA also supports a new EB research Our Schools Program. That was something that really database at St George Hospital in Sydney, which aims earned the admiration and support of school principals, to collect more extensive statistical data—a first in parents and students. Schools right across the country Australia. benefited from that billion-dollar investment by the EB is a rare and distressing incurable genetic skin previous government. condition that affects all parts of the body, both inter- What has driven me to raise this in parliament to- nally and externally. There are approximately 1,000 night is a letter addressed to parents which came across people in Australia with EB of some type. EB at its my desk from Payne Road State School, a local school worst can be fatal, but even in its mildest form it in the Ryan electorate. Vicki Richards, the acting prin- causes a life of pain and physical challenges. Some cipal, writes to parents imploring them to make a con- people spend hours every day dealing with blisters, tribution of $50 additionally per child to ICT because wounds and destructive scarring. the school does not have funds. In a letter of 3 April People with EB require a multidisciplinary team of she says that, whilst parents will be receiving a volun- specialists to ensure adequate ongoing care. To put tary technology contribution letter and indeed invoice these requirements into perspective, burns victims re- for $50, it is of course not mandatory. She, as the act- quire dressings for months until they heal. People suf- ing principal, implores parents to contribute because fering from EB have similar dressing requirements for the school needs to raise some $7,000 for computer their entire life. Dressings are to EB people what insu- related programs and projects. lin and needles are to diabetics. In some types of EB, Schools across Australia benefited enormously from for those fortunate to make it to early adulthood there the $1.2 billion Investing in Our Schools Program of is the added risk of skin cancers that can cruelly cut the Howard government. In my electorate, Kenmore their life short—not to mention the years of wounds State School received $57,000 for new play equipment, and scarring which can rob them of the use of their Middle Park State School received $149,000 for the hands and feet, leading to permanent disabilities and upgrade of an assembly area and Indooroopilly State reduced mobility. High School received $128,000 for a library extension. In Australia, in most cases, the only carers available The Investing in Our Schools Program was delivered are the parents. Children and adults require large very effectively but, most regrettably, the new govern- amounts of support to bathe and do dressing changes ment has decided that those kinds of funding projects that can take up to four hours a day. After all this is will no longer be delivered to schools around the coun- taken into account, many families still need to buy top- try. (Time expired) of-the-line silicone dressings that are expensive and not generally available through the various health systems.

CHAMBER 106 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008

For people with this condition, dressings are an essential part of life, not an option or a luxury. However, only a minority of people with EB can access free dressings from our public health system. Adequate dressings reduce the rate of infection and subsequent use of antibiotics and lengthy hospital stays. There is no national scheme to access dressings for people with EB. Members have stated that they have to beg for dressings via the local hospital and, if unsuccessful, have to settle for less suitable, cheaper products or even go without. For those who do have access to dressings, there are different processes in each state, area and even within hospitals, which also causes confusion to the families. I have written to the Minister for Health and Ageing, Nicola Roxon, drawing her attention to this issue. It is my view the cost of subsidised bandages would be more than offset by the savings in medical costs incurred in treating the injuries and infections caused by inappropriate bandaging. Regardless of the cost, the quality of life of sufferers and their families should be considered by us all as a caring and compassionate society. The SPEAKER—Order! It being 8 pm, the debate is interrupted. House adjourned at 8.00 pm NOTICES The following notices were given: Ms Roxon to present a bill for an act to amend the Health Care (Appropriation) Act 1998, and for related purposes. Ms Roxon to present a bill for an act to amend the law in relation private health insurance, and for related purposes. Mr Albanese to move: That the Member for New England, Mr Windsor, be appointed to the Standing Committee on Infrastructure, Trans- port, Regional Development and Local Government as a supplementary member for the Committee’s inquiry into the funding of regional programs. Mrs Irwin to move: That the House: (1) notes the 60th anniversary of the Nakba or “Catastro- phe” which followed the partition of Palestine in 1948, resulting in the deaths of hundreds of Palestinians and the expulsion of 700,000 Palestinian refugees; (2) notes that 60 years later, more than 7 million Palestinian people suffer as a result of their dispossession, displacement, exile and occupation; and (3) recognises that the consequences of the Nakba continue to this day and must be taken into account in any peace settlement. Mr Billson to present a bill for an act to amend the Interactive Gambling Act 2001.

CHAMBER Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 107

Wednesday, 14 May 2008 ————— The DEPUTY SPEAKER (Ms AE Burke) took the chair at 9.30 am. STATEMENTS BY MEMBERS Mitchell Electorate: Wrights Road Reserve Mr HAWKE (Mitchell) (9.31 am)—Last Saturday, I met with Ilia Gill, Barbara Ferrero, Terry Walker, West Ward Councillor Mike Thomas and many concerned local Kellyville residents from the Wrights Road Reserve Action Group over the failure of our local council to develop the Wrights Road Reserve for the benefit of residents of Castle Hill and Kellyville. Wrights Road Reserve is a longstanding issue and highlights one of the failures of Baulkham Hills Shire Council. It also highlights failures of the state government in planning policy. Plan- ning issues and infrastructure shortages are amongst the more important issues facing my electorate of Mitchell and the urban fringes of Sydney. In fact, planning represents perhaps the single biggest challenge for the future of the urban growth areas of metropolitan cities across Australia, leading to issues around housing affordability for young families and the availability of open spaces. The area surrounding the reserve was first opened up to new housing development in 2001. In August 2005, Baulkham Hills Shire Council sent all residents within West Ward a letter detailing the draft master plan for the Wrights Road Reserve and community centre. The plan included sporting, community and recreational facilities designed on approximately three hectares of land bordering Wrights Road, Green Road and Harrington Avenue. The reserve’s development is designated under the council’s section 94 works contribution program. Therefore, developers’ contributions have already been collected for the purpose of building this much needed community facility. On 19 August 2005, Baulkham Hills Shire Council’s manager for human services confirmed that ‘funds have been set aside to undertake major sportsground and community centre construction works in Wrights Road Reserve’. The project was supposed to commence in early 2006 and become operational during the summer of 2006 and 2007. To this day, not one sod of dirt has been turned to develop this reserve. On 6 November 2007, Baulkham Hills Shire Council’s landscape projects officer advised: Currently, no funds have been identified in the 2007/08 Capital Works Program for work to commence on Wrights Road Re- serve. The officer also advised that ‘due to a deficiency in the section 94 contribution plan’ the council has not provided any timeline for or update on the future development of this reserve other than allocating a deadline of 2010. On behalf of the Wrights Road Reserve Action Group and other concerned residents, I would like to ask the council and the mayor exactly where the funds that were set aside for the development of this wonderful community facility have gone. If the funds were set aside back in 2005, where else were they spent and for what reason? Why have the residents of Castle Hill, Kellyville and Beaumont Hills been ignored? Why do these residents miss out on a much needed community facility while others within Baulkham Hills Shire Council do not? Castle Hill, Kelly- ville and Beaumont Hills are some of the fastest growing areas of my electorate and Sydney. This really needs to be seen to be believed. They have built thousands of houses right next door to each other, with scant regard for open space and lifestyle. Thousands of families have moved in. Yet in the middle of all this housing and growth there is a huge amount of land, which was supposed to be their park, covered in waste material and fenced off so that the public cannot access it. I commend this community group on their wonderful action in fighting for this important community facility for families in my electorate. (Time expired) Middle East Mrs IRWIN (Fowler) (9.34 am)—Eight years ago I visited Israel and the occupied territories. The experience changed my views of the Middle East situation, and one experience in particular had a lasting effect on me. While visiting the Jabalya refugee camp in Gaza, I met an elderly man. He invited me into his small, two-room residence in the camp where he had lived since 1948, but he explained to me in broken English that this was not his home. On the wall behind the door was a large set of iron keys. He explained that they were the keys to the home he had fled from in 1948. That home was 20 kilometres away, across the border in the state of Israel. Those keys were his most treasured possession. They were a constant reminder to him, to his four children, to his 23 grandchildren and to his 28 great-grandchildren of their home—the village where countless generations of his family had lived before him. Those keys were more than just a symbol of his dispossession; they were a symbol of hope that one day he or his descendants would return to their rightful home. Today we remember what Palestinians call al-Nakba, the catastrophe. Sixty years ago Palestinians fled from their homes to escape massacres, such as those that occurred at Deir Yassin, where over 100 people—mainly women, children and the elderly—were slaughtered. Can those of us in Western nations who have expressed congratulations to the state of Israel on its 60th anniversary not spare a moment to remember the suffering of the Pal-

MAIN COMMITTEE 108 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 estinian people of 60 years ago and the daily consequences of their dispossession, displacement, exile and occupation? Today those 700,000 Palestinian refugees have grown to seven million. Four million live under illegal Israeli occupation in the West Bank and Gaza. Three million live as noncitizens in Lebanon, Egypt, Jordan and other countries. Many of those live in the 58 registered refugee camps. For each Palestinian, the al-Nakba is not just a historical event; they are reminded each day of this ongoing human tragedy. While the United Nations, which created Israel, together with major world powers continues with processes and road maps, the tragedy of al-Nakba lives on. Palestine was never a land without people, but today it is a people without a land. For seven million Pal- estinians, this symbol of hope is a latchkey. The destiny of nations is not written in ancient text; demography is destiny. Only by understanding the attachment of Palestinians to their land can we begin to frame a just peace in the Middle East. Indi Electorate: Nagambie Bypass Mrs MIRABELLA (Indi) (9.37 am)—I rise to speak about a major project in my electorate which has received passing mention in the budget papers, the Nagambie Bypass. In the recent election campaign, the coalition allocated $288 million to the construction of the Nagambie Bypass. The project was of the highest priority for the coalition and work was to begin as soon as possible. Unfortunately, federal Labor have committed only $5 million to ‘progress planning and reconstruction activities’ this financial year. That is a massive disappointment to the people of Nagambie, who have waited so patiently for this project to finally get underway. That $5 million is an absolute joke and only the most blatant Labor apologist could excuse it. The importance of this project should mean it is above party divides. The Labor Party at the last election took a ‘me too’ approach to this policy, and I only hope they will come to their senses and invest more seriously in this important infrastructure project for the benefit not just of local lives but of the local and broader economies. The Nagambie Bypass will provide the Nagambie community with the opportunity to revitalise the town, remove very dangerous hazards to the current traffic flow and open the door to future economic development of the wider Nagambie, Goulburn Valley and north-central Victorian regions. The project is ready to proceed now and does not need to be delayed because of Labor’s inaction and inability to balance the budget and allocate the funds they promised to get the Nagambie Bypass going. The Victorian Minister for Planning has approved the preferred route to the east of Nagambie. This is the outermost alignment, which would start from the end of the existing dual carriageway at Mitchellstown Road, just south of Nagambie, and rejoin the highway at Kirwans Bridge, Longwood Road, just north of Nagambie. This alignment and the project generally have strong community support. The Nagambie Bypass project is 17.4 kilometres in length and 21 per cent of traffic on this section of the highway is very heavy vehicles. The project is the missing link in the current 60-kilometre duplicated corridor between Seymour and Sheppar- ton. The coalition has long been committed to substantial investment in the upgrade and duplication of the Goul- burn Valley Highway, delivering the Arcadia Duplication and the Murchison East deviation. The Goulburn Valley Highway is a critical connection between Melbourne and the Goulburn Valley agricultural area, known as the food bowl of our nation. The project needs to get started sooner rather than later. When the coalition announced funding for this project, the money was on the table ready to be brought forward. The Labor Party need to stop playing political games and waiting to allocate infrastructure funding in an election year. They need to allocate funding now, as they promised they would. I will ensure that the needs of the Nagambie people are heard and I will continue to pressure the government to honour its promises. (Time expired) Pastor Rod Denton Mr ZAPPIA (Makin) (9.40 am)—I take this opportunity to recognise the work of Pastor Rod Denton, who for the past 15 years was the senior pastor at the Clovercrest Baptist Church in the electorate of Makin. Pastor Rod Denton completed his term at the Clovercrest Baptist Church earlier this year after serving not only his parishion- ers at the church but the broader Makin community. That service has indeed been extensive because today the Clovercrest Baptist Church provides a wide range of much needed services to people who are disadvantaged or are suffering family problems or general social problems. Those services include spiritual counselling, a young mothers group, food parcels, clothing and a range of community care programs. Those services are provided, in some cases, on the Clovercrest Baptist Church site. The church has had to expand its physical presence to the point where it has purchased additional property so that it can house the staff and services it currently provides. In other cases, the work of the church extends into country South Australia and overseas. I want to mention one particular example of the work the church is doing in a remote community in South Aus- tralia. I refer to the Nepabunna community, which is located in the Gammon Ranges, some 350 kilometres north of Port Augusta. It is a community with a high Indigenous population. For some time now, a team of volunteers from the Clovercrest Baptist Church has been regularly travelling to Nepabunna and working with the locals in

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 109 rebuilding the buildings of the community, including community buildings and private homes, and also building the spirit of the community. The team from the Clovercrest Baptist Church also provides food parcels to many of the families living in that remote location. It is a wonderful example of the many initiatives of Pastor Rod Denton and an example of the services that he initiated, which today reach out to people in the local area of Makin, right across South Australia and, as I said earlier, in some cases overseas. I take this opportunity to thank Pastor Rod Denton for his personal commitment to the local community in Makin and, equally, his commitment to people outside that area, for whom his services could not in any way be seen to be for any self-benefit of the church he represents. I thank him especially for the services provided, through his leadership, to families and communities in South-East Asia who truly are disadvantaged. I thank him for all of that and I wish him and his family well in whatever future endeavour he pursues, because I know he will continue to serve people wherever he goes. Vietnam Mr KEENAN (Stirling) (9.43 am)—I have spoken in this place on a number of occasions on behalf of the Vietnamese people who have settled in Australia and call my electorate of Stirling home. The majority of these people fled the oppressive and undemocratic regime in Vietnam. In particular, today I want to speak about the plight of people who, although they are not citizens of Australia, have been held by the Vietnamese government since their arrest on 17 November 2007 and who were tried on charges of terrorism yesterday. They were arrested as they were preparing to distribute leaflets promoting democracy through non-violent means. Those arrested were American citizens Nguyen Quoc Quan and Leon Truong, French citizen Nguyen Thi Thanh Van, Thai resident Somsak Khunmi and Vietnamese citizen Nguyen The Vu. They are all supporters of the Viet Tan, which is the Vietnam Reform Party. On 20 November 2007 police arrested another supporter of the Viet Tan, Vietnamese citizen Nguyen Viet Trung. It was not until five days after the Viet Tan released a media statement regarding the plight of their members and supporters that the Vietnamese communist authorities publicly acknowledged the arrest of these six people. In the days following the arrests there were a number of incidents, including security police allegedly finding a gun in the checked baggage of two Vietnamese American tourists at the Saigon airport and announcing that they were also supporters of the Viet Tan. At the same time, official state media accused those arrested of being terrorists. These arrests resulted in the governments of the United States, France, Norway and Switzerland, as well as our own government in Australia, issuing strong protests to the Vietnamese government against the arrests of these pro-democracy supporters. On 11 December, after mounting international pressure not only from foreign governments but also from a number of international human rights groups, the government in Hanoi released Leon Truong and the couple who were allegedly found with a gun in their luggage. Four months after the initial arrests, on 4 April this year, one of the other detainees was also released. This brings us to today. After six months of detention and restrictions of visits by family members and their respective consulates, the remaining three detainees will stand trial in closed-door proceedings on charges of terrorism. This morning we have found out that, not surprisingly, all of the accused were found guilty. Nguyen Quoc Quan was sentenced to six months jail but will be deported from Vietnam on the weekend as he has already served his time. The regime in Vietnam need to recognise that protesting peacefully in support of democracy is not a terrorist offence. I urge them to treat these people humanely and with respect for their human rights. AHS Centaur Mr SULLIVAN (Longman) (9.46 am)—Today marks the 65th anniversary of the torpedoing and sinking during World War II of the Australian Hospital Ship Centaur, with a terrible loss of life. At 4.10 am on 14 May 1943, Centaur was struck by a single torpedo fired by an enemy submarine. The location of the torpedo strike could not have been more calamitous. Within seconds, diesel oil bunkers had vaporised and exploded and the Centaur was doomed. She sank within three minutes—the time taken, as one commentator pointed out, to boil an egg. Two hundred and sixty people lost their lives in horrible circumstances: doctors, nurses, medical staff, civilian Red Cross representatives, field ambulance and attached personnel, and merchant marines—all of them noncombat- ants; all of them supposedly protected by the conventions rendering hospital ships immune from attack. Sixty-four survivors—including one nurse, Sister Ellen Savage—then endured 34 hours adrift on rafts and makeshift flota- tion before they were discovered and rescued and the loss of the Centaur became known to authorities. We may never know the reasons for the attack on the Centaur. She was properly marked; her status had been acknowledged by the Axis powers; she was steaming north to Port Moresby fully lit, as was required. There was of course a great deal of speculation—reprisal for the machine-gun attacks by American forces on Japanese who had survived their ship sinking; rumours at the time that the Centaur was carrying arms and munitions in breach

MAIN COMMITTEE 110 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 of the convention; an overzealous submarine commander ignoring the immunity of hospital ships; the existence of an order to Japanese submarine fleet commanders implicitly including hospital ships as fair targets; or a simple failure to properly identify the ship before firing the torpedo. Whatever the reason, the families of those whose lives were lost are owed the same considerations given to the families of those gallant men who died aboard HMAS Sydney. When giving the Anzac Day address at Toorbul in my electorate this year, I called for the government to undertake to locate the Centaur—a task I noted would be easier than the search for the Sydney. Today I repeat that call. I know that the 2nd/3rd AHS Centaur Association Inc. has written to the Prime Minister, as I have done. I will shortly meet with Heritage Minister Garrett, whose department makes the initial assessment and recommendation to cabinet on these matters, in order to progress an official application for a search to be undertaken. It is time this chapter in our wartime history is brought to a proper conclusion. Budget 2008-09 Mr HUNT (Flinders) (9.48 am)—I wish today to raise two issues which will affect constituents not just within my electorate but within all electorates in relation to the budget delivered last night. The first is the loss of community water grants. What will happen now is that sports clubs and environment groups will effectively lose their access to up to $50,000 to achieve water savings and water quality outcomes for the people within not just the electorate of Flinders but electorates all around Australia. I refer specifically to examples from Flinders. Firstly, the $32,000 for water tanks for the Crib Point Community Garden will not be repeatable elsewhere around Austra- lia. The funding for the Dromana Country Club, the Balnarring Bowls Club and the Somerville Bowling Club to make enormous savings in terms of water quality will not be achievable and it will affect the capacity of seniors to go about recreation, as well as water saving. These are important issues for Flinders; they are important issues for seniors all around Australia. In addition to that, the $47,000 which was allocated to rehabilitate the Candowie Reservoir catchment is not the sort of thing which will henceforth happen. Catchments in need of significant riparian work will lose that funding. Firstly, environment groups and sports clubs will lose their capacity to make water savings, which is important of and in itself, and, secondly, the demonstration effect for young kids who are members of football and netball clubs and for people who are part of sports clubs will be gone for ever. I think this is a very dangerous move. Communi- ties will suffer as a result, and, importantly, water will be lost and children will lose that inspirational example. A second grievance is the likely death of any federal funding for a Rosebud aquatic centre and the Phillip Island aquatic centre. Both were well advanced under the Regional Partnerships program and each was enormously valuable to seniors, families and low-income earners within their respective parts of the electorate—in Rosebud, in the southern peninsula, and on Phillip Island. The Rosebud program had been approved by the area consultation committee and sent through to Canberra; it was awaiting final approval. It has been axed. That is a real loss to the peninsula. I hope these programs can proceed, but I see now that there is a cloud hanging over them. (Time expired) Budget 2008-09 Mr TURNOUR (Leichhardt) (9.51 am)—Last night the Rudd government delivered a responsible budget that will not only help tackle inflation but also help working families—those that really need a helping hand in the present economic climate. Very importantly, the government has honoured its election commitments. I have been working for over 12 months to ensure the tropical north receives the attention and investment it requires to meet future needs and challenges. I am proud to be part of a government that does what it promises, looks past the short term and quick fixes, and plans for future generations. In the lead-up to the election last year I campaigned strongly for new health services for the region. I am proud to say that we are delivering. Last night we delivered on all our commitments in full, but I am particularly proud of our health commitments: $45.9 million for a new dental school for James Cook University, providing 60 training places over four years and including a clinical outreach service; a GP superclinic to tackle the growing problem of chronic disease, particularly diabetes and heart disease; and $8.3 million towards radiation oncology facilities for Cairns, in the tropical north. I will continue to work with COUCH and the state government to deliver this commitment as soon as possible. We are already delivering $7.5 million for a new MRI machine for Cairns Base Hospital, which will reduce the need for patients to transfer to Townsville. These local commitments are part of a national plan to fix our health and hospital system. The community is tired of the buck-passing and the blame game on health and just wants the system fixed. These are all specific funding commitments within this budget that start to fix the health system. Last night the Treasurer also set out a national plan, including $3.2 billion for health and hospital reform to revitalise the public health system; $600 million to cut elective surgery waiting lists; $491 million to help families

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 111 meet the cost of dental check-ups for teenage children; and $290 million to help state governments reduce public dental waiting lists. We need to tackle workforce issues, and we have announced new funding to bring nurses back into the workforce. These are all specific spending commitments within the budget, but we need to plan beyond the short term. The $10 billion health and hospital fund was a very important announcement last night. This fund will allow us to look beyond this budget cycle and well into the future. I am pleased that the Queensland government recently committed $450 million to expand the Cairns Base Hospital, including cardiology and new oncology services, but we need to ensure that we have a new hospital into the future and we need to start planning for that now. This $10 billion fund will ensure that we have the funds available to invest in this sort of infrastructure into the future. Small Business Field Officers Program Ms MARINO (Forrest) (9.54 am)—I rise to voice my concerns about the government’s announcement that the Small Business Field Officers Program will be scrapped and funding will cease on 30 June 2008. Australia’s 65 small business field officers operating out of the area consultative committees have proven to be a lifeline for many small businesses struggling to find their feet. They have helped businesses right across the country, and now regional Australia will lose this important network of experienced men and women, withdrawing yet another service from the ACCs. Small business field officers offer a crucial support network, providing free business advice, referrals and tips on how to expand and even how to export goods. They provide a vital resource for the many small businesses who want to know where and how to access relevant information and support. Small businesses make a huge contribution to our nation’s economy. In my electorate of Forrest there are over 13,000 local small businesses. At a time when small business confidence has plummeted to a 15-year low, the government has scrapped this vital free service and advice and has, instead, pledged funding to the existing state run business enterprise centres. As it happens, Bunbury has its own Bunbury-Wellington Business Enterprise Cen- tre. Therefore, this centre will be the only point of call for many small businesses throughout the south-west to seek advice. The previous federal government’s Small Business Field Officers Program was a free service offered to small businesses. Now, the federal government will fund local stat-run business enterprise centres. I note that its pre- election promise was to fund the Bunbury-Wellington Small Business Centre to the amount of $250,000 per an- num. What commitment will there be from the state government to continue to contribute their funding and their own share of operations to assist small business in the region? Will federal Labor in fact be taking over the operations of the business enterprise centres, as it will eventually be left with funding 100 per cent of the activities once the state government withdraw their funding? Will the business enterprise centres offer free advice, which was previously available under the Small Business Field Officers Program? The state business enterprise centres have to be self-sustaining and have to pay their own way. Therefore, there is a fee for service. Regional small business operators will be justified in their belief that federal Labor does not value their contribution. The cancellation of the Commercial Ready grants for small businesses to turn ideas into products further impacts on regional small businesses. This is a huge issue for my electorate and certainly a major issue for all small business throughout Australia. Back to Booktown 2008 Ballarat Electorate: St Brendan’s Primary School Ms KING (Ballarat) (9.57 am)—Last month I was lucky to attend a significant cultural event in my electorate that deserves the attention of the House. Clunes’ Back to Booktown is an event in its second year where the town of Clunes becomes a hub for booksellers and writers from all over Australia. The event attracted some 10,000-plus visitors to the very small township of Clunes. It really was a fantastic event and well worth attending. Great Australian writers such as John Marsden, Melissa Lucaschenko, Anthony Lawrence, Alexis Wright and Nigel Krauth all made appearances at the event. There were over 50 booksellers in the town over the weekend. The event included all the delights that Clunes has to offer, including fantastic food and wine, beautiful architec- ture and a friendly and welcoming atmosphere. I particularly want to congratulate the new owners of the Clunes Hotel, who have done an amazing job renovating a historic building in the town. I wish them very well in their new venture. Clunes is one of Victoria’s oldest and most intact gold rush towns, with many beautiful, old, original buildings giving it great character. I greatly enjoyed my time at the event. I hope that the initiative continues for yet another year, having been such an overwhelming success. The Clunes Tourism and Development Association, Hepburn Shire Council and the Victorian government all deserve great credit for providing the funding and organising the event, as do the people of Clunes. They deserve congratulations for the work that they did in making the event such a large success

MAIN COMMITTEE 112 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 and in enabling many of the smaller community organisations within the township to raise much needed funds during a period of two days, as opposed to having to do that over the course of a year. I would also like to take the opportunity to recognise the achievements of St Brendan’s Primary School in Dunnstown, which participated with a number of other schools around the country in a world record attempt for the Jump Rope for Heart program, coordinated by the National Heart Foundation. The attempt was coordinated around Australia in an effort to promote exercise and healthy living. At St Brendan’s, 34 children and parents participated in the event, and they were just superb. The kids of St Brendan’s held up their part of the bargain by skipping continuously for three minutes—something I could not do at the moment—along with 50,000 other kids across the country. It was a pleasure to be an official witness at such a large and worthy event, and I would like to take the opportunity to congratulate St Brendan’s on their great efforts last Friday. Not only were they part of a successful world record team, an honour I and perhaps everyone else in this place cannot claim; they helped to get the message well and truly out there about the importance of exercise and good health habits for children right the way across the country. Congratulations, St Brendan’s, for your participation in the world record attempt for the Jump Rope for Heart program. The DEPUTY SPEAKER (Ms AE Burke)—In accordance with standing order 193, the time for members’ statements has concluded. VETERANS’ ENTITLEMENTS LEGISLATION AMENDMENT (2007 ELECTION COMMITMENTS) BILL 2008 Second Reading Debate resumed from 13 March, on motion by Mr Griffin: That this bill be now read a second time. Mrs BRONWYN BISHOP (Mackellar) (10.01 am)—The opposition is supporting the Veterans’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008. It does so because it believes that additional benefits to veterans are always an important thing to be looking at, that veterans are people with whom this country has made a contract and that, because of their service and the sacrifice that they make for this nation, they should always be considered a special case, in the sense that they are not welfare recipients but people who receive compensation and other payments because of that contract between a grateful nation and veterans who serve the nation. The bill, very simply, does three things. It extends the automatic grant of certain pensions. In other words, it amends the Veterans’ Entitlements Act to extend the automatic grant of a pension payable under part II or part IV to the eligible dependant of a veteran or member, where the veteran or member immediately before his or her death was in receipt of an intermediate rate disability pension or temporary special rate disability pension. The second thing it does is extend the income support supplement to all war widows or war widowers and amends, again, the Veterans’ Entitlements Act to extend eligibility for the income support supplement to a person who is a war widow or war widower who is under qualifying age and has no dependent children, is not permanently incapacitated for work and is not the partner of a person receiving an income support pension, which were previously requirements to receive that supplement. Thirdly, there is the extension of disability pension bereavement payments. Schedule 3 makes amendments again to the Veterans’ Entitlements Act to extend the 12-week bereavement payment to the estate of a single veteran or members in receipt of a special rate or extreme disability adjustment disability pension who die in indigent circumstances. You can say that the extension of the automatic qualification for the war widows pension for surviving partners of intermediate rate and T&PI rate disability pensioners is a logical step. Currently, the automatic qualification for the surviving partner only applies to some intermediate rate disability pensions, where the disability involves the loss of one or more limbs. This is probably an old-fashioned way to be looking at things, and this is a good thing to be doing. However, in the light of those good things which the government has decided to do and which the opposition is very pleased to support, I think in the light of the budget you can look at the government as perhaps giving with one hand and taking away with another for different sections of the veterans community. Indeed, the word ‘veteran’ did not appear in any of the budget statements. Presumably veterans, who are very largely retired and do not fit the category of ‘working family’, are left out in the cold. In fact, we are seeing much more that, if you are an aspirational family or if you are a retired person, you do not fit the mould of a working family and therefore you are going to be left out in the cold.

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If we look at what the budget does for veterans—what it takes away from them—we see that, while there was an entitlement for partners of eligible service pensioners to take a pension at the age of 50 if they were women, that is now going to be pushed up to 58.5 years of age. Think about it. This is not the gradual increment that we saw when we increased eligibility for the age pension for women from 60 to 65, being the same age as for men; this is a sudden, one-off hit. If you are part of a veteran family which has been planning on that entitlement to come into place, you are suddenly going to be penalised—no warning, just sudden implementation. There has been no consideration of and no concern about how these families may have been planning—just simply a savings measure of $35 million. We have heard a lot in the rhetoric about how this government is focusing on inflation, that this budget is all about delivering on promises, that it is a fiscally responsible budget and that they are really fiscally conservative people. The three core promises made by the current government before the election were that it would come in and it would reduce interest rates, reduce the cost of food and reduce petrol prices. There is nothing in this budget that will do anything to reduce any of those things and therefore it does not deliver at all on core promises. The DEPUTY SPEAKER (Ms AE Burke)—I would draw the member back to the bill before her at this time, which is in respect of veterans. Mrs BRONWYN BISHOP—Thank you for your comments, Madam Deputy Speaker. I hear them, and I would point out once again that veterans are part of our community. Veterans are affected by the budget strategy. Veterans were affected by the rhetoric that was out in the debate before the election when the government said that it was going to be for veterans and it would always have veterans in mind when it made decisions about the way in which taxpayers’ money was to be spent. I am simply pointing out that this did not happen. The bill before us, in fact, is one that does do three good things—small things; small adjustments, you can say, in the overall scheme of things—but the government has given with one hand and has taken away with the other. If we go back and look at the background against which this bill has been introduced and the sorts of policies that the Howard government introduced to make veterans recognised in a way in which they had not been before, probably the most significant thing that the Howard government did was in 1999 to make the gold card available to all Australian veterans over the age of 70 or with qualifying service in World War II. In 2002, this was extended to veterans over 70 with qualifying service from any conflict. In 2001, we extended the orange card, which provides access to subsidised pharmaceuticals, to British, Commonwealth and allied veterans over 70 with qualifying service from World War II. The most important thing about the gold card is that it gave veterans the equivalent of private health insurance without having to, in fact, pay a premium. Partners of veterans who received the gold card, on the other hand, are not covered unless, when they become widows or widowers, they meet the necessary criterion and can be covered by the gold card. There are many, many carers who take out private health insurance so that they are covered for the sort of medical care that they require and regard as essential. And yet, from this budget’s changing of the criteria for those who must take out private health insurance, it is estimated that something like 800,000 people are likely to leave private health insurance, which means premiums are going to go up, which is going to affect carers of veterans in particular, and there are going to be probably 800,000 people thrust onto the public health system. So, whilst we are pleased that this legislation gives an extension of the automatic grant of pension entitlements, and whilst we are pleased to see that the income support supplement is going to be extended in the way it is paid, and whilst we are very pleased about the bereavement payments being extended, when you look at the impact of other government policy upon our veterans community—and we must look at it as a veterans community—we see that they are in fact being penalised. A further piece of legislation came into the House today—it was introduced this morning by the Minister for Families, Housing, Community Services and Indigenous Affairs—which is going to implement the carers payment. We certainly have agreed to facilitate that bill coming through so it can be paid expeditiously. But, after all the debate we had about the impact and the importance of the carers bonus payment, in this budget there is no provision for it in the forward estimates; it is a one-off grant. We paid it for four years. The government was prepared to scrap it; after pressure from us it was reinstated. But it is a one-off payment, only for this year. Again, when you couple that with the impact of the anticipated rises in private health insurance premiums—and many of them use this bonus payment to contribute to their private health insurance premiums—there is no guarantee for anything past this year. So, in the overall assessment of the policy being pursued with regard to veterans benefits, we see this piece of legislation, which was introduced prior to the budget coming down, as needing to be viewed in the budget context to see what its real benefit is for the veterans community. I would simply say that, whilst we are supporting the Vet er a ns’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008 without hesitation, the

MAIN COMMITTEE 114 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 rest of the budget strategy is not one where veterans are being considered at all—and, indeed, it is to their detriment, as we see when we start to read the fine print in the budget. So I simply say that we welcome these initiatives but, in the overall debate, and looking at the way in which veterans are being treated in the overall picture, the government is found wanting. Mr HAYES (Werriwa) (10.13 am)—I am proud to support the Ve ter a ns’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008, which will boost the allowances paid to many of our veterans. This government and the Australian community are justly proud of our veterans, our ex-service men and women, and the measures contained in this bill will go some way towards improving the wellbeing of Australia’s veterans and the wider ex-service community. Unlike the Howard government—which over 11 years made many promises to the ex-servicemen’s community, promises which by and large were received with a great deal of cynicism out there—this government will provide a fresh approach to veterans affairs. The government considers that the provision of robust services and support for the ex-service community is a sincere way to demonstrate our genuine gratitude for and recognition of the bravery and sacrifice that many of Australia’s men and women of the armed services have made on our behalf over many years. They are people who deserve the highest respect and it is only proper that, as a consequence, that be reflected in the way we as a society treat these men and women who have served this community. This is something that should stay very much in the minds of government, particularly when we sit down and make laws affecting the lives of those who have represented this country. It is something that should always stay with us. When we make decisions, and despite all the parameters that are made in respect of decision making, we should at least be conscious of the fact that the decisions we make are being made on behalf of those who have represented this country, in many cases in very adverse circumstances. This bill contains three measures that were part of Labor’s pre-election commitment: extension of the income support supplement to war widows and widowers who are under the qualifying age and without dependants; extension of the disability pension bereavement payment to single veterans or members who are in receipt of the special rate or extreme disablement adjustment disability pension or who died without sufficient assets to pay for their own funerals; and the automatic grant of war widows or widowers pensions to widows or widowers of veterans or members who were in receipt of the temporary special rate or the intermediate rate disability pension immediately prior to their death. Before I talk a little more about each of these matters, which are contained in the bill, it is also appropriate to reflect that it is not just ex-military members who will be affected by this legislation. As you are aware, Madam Deputy Speaker, for some time in my past I represented many of the police officers in this country, and through the Police Federation of Australia efforts were made to ensure that those police officers who have served in overseas areas, particularly in respect of Cyprus and East Timor, are similarly treated, firstly with respect but also in terms of the veterans entitlements provisions. Therefore, those persons who have represented this country as law enforcement officers overseas will also be beneficiaries of the decisions which have been made as a consequence of this piece of legislation. As I say, these people were seconded police officers from various states and territories and indeed from the Commonwealth, the AFP. They will now be covered by the Veterans’ Entitlements Act in respect of these provisions. So it is not just the military but also law enforcement officers who, in exercising their duties under the command and control of their senior officers and representing the interests of Australia overseas, in hostile theatres, will be accorded the appropriate respect by this government and the Australian people. I have had many discussions in my electorate on these issues, whether it be with the Ingleburn RSL president, Don Keefe, and its secretary, Bernard Connell—both of whom are returned servicemen—or with Max Chin, from the Dredges Cottage, Campbelltown, which does a sensational job in looking after the interests of veterans, or with Ken Foster, from the veterans affairs association. All of these people are very passionate about the issues of their colleagues, the ex-servicemen, whom they continue to represent. I can appreciate that in some quarters these fellows might actually be seen as whingers. Let me tell you there are no finer advocates of the interests of ex-servicemen. They make sure the entitlements of ex-servicemen are not only recognised but also addressed. I very much respect their forthright attitude, their commitment and, quite frankly, the compassion that they show to their fellow colleagues. Only this week we had the opportunity to witness in the Great Hall a ceremony to commemorate Coral and Balmoral. I think it is fair to say that just about all members of parliament were there. What particularly struck me was that a number of ex-servicemen, obviously very proud of their medals, left that room in tears. It was a time to celebrate and commemorate their activities, but obviously there is continuing pain. It is worth while recognising that. Simply being a returned serviceman and being valued—and rightly so—in our community does not necessarily remove the pain and the anguish that many of these people and their families have carried for a lengthy period. Therefore, I do not see the advocates of our veterans as insatiable whingers. I think they are very much the heroes out there. They are keeping all of us focused

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 115 on the real issues for ex-servicemen, on how those issues change from time to time and quite frankly on ensuring that the men and women who have served this country in difficult circumstances are treated properly and with the respect that they deserve. I will now return to the issues of the bill. The first measure will extend income support to war widows and war widowers under the qualifying age without dependants. Under the existing legislation, a person is eligible for income support if they are a war widow or widower and have reached the qualifying age—for men, that is 60 and, for women, that is the age of 58½—or have a dependent child or are permanently incapacitated for work in accordance with the determination under section 45AA of the Veterans’ Entitlements Act 1986 or are partnered and the person’s partner is receiving a service pension income support supplement or social security pension. Labor believes that situation is unfair. Labor made a commitment in respect of that in the lead-up to the last election. As a consequence, this bill removes the requirement for war widows and widowers to be over the pension age, to have a dependent child, to be permanently incapacitated or to have a partner in receipt of income support. This measure, I am reliably informed, will extend the eligibility for income support to approximately 1,400 war widows and widowers immediately and will provide additional support to help them meet their costs of living. Payment of an income support supplement on the grounds of permanent incapacity will be retained in order for incapacitated war widows and widowers and wholly dependent partners who are under pension age to continue to access their income support supplement as a tax-free payment. The Rudd Labor government is committed to providing care and support to ex-service families following the death of veterans. That is why the government will extend the disability pension bereavement payment in respect of a single veteran or a member in receipt of a special rate or extreme disablement adjustment disability pension who dies without sufficient funds to pay for their funeral. Currently, only the widow or widower of a veteran or member on certain rates of the disability pension receives the bereavement payment, which is 12 weeks of the disability pension upon the death of a veteran or member. Whilst this payment is effective and is designed to assist a person in the gradual adjustment of their financial situation and to defray costs at a time of bereavement, it at present only applies to the member— Mrs Bronwyn Bishop—Madam Deputy Speaker, I seek to intervene. Under the relevant standing order that operates in the second chamber, I wonder whether I could ask a question of the member opposite. My question is that— The DEPUTY SPEAKER (Ms AE Burke)—Is the member for Werriwa willing to give way? Mr HAYES—No. Mrs Bronwyn Bishop—He is required to hear the question first. The DEPUTY SPEAKER—No, he is not. I have to ask first before you put the question. That is the rule. Mrs Bronwyn Bishop—Thank you. Mr HAYES—This measure will extend the bereavement payment to the estate of single veterans or to members who are in receipt of the special rate pensions. This will be of some significance, particularly where people die in indigent circumstances—that is, where they do not have sufficient moneys to cover the funeral costs. The assistance to veterans and their widows is being extended to provide sufficient financial assistance to families to properly recognise the death of veterans in that respect. This measure, as I say, is very much directed to families in helping them defray those costs at a particularly emotional time in their lives and also ensuring that a member can be farewelled with decency. This bereavement payment will be made to the estate of the deceased veteran and will be matched by those currently paid to the partners. So it will be at the same rate and, as is provided presently, it will have the tax-free status of the payment of the 12 weeks of disability pension. Finally, Labor will extend the automatic granting of pensions to include partners of temporary totally incapacitated and intermediate rate pensioners to provide some peace of mind to those veterans and their families. This bill will extend the automatic grant of war widows or widowers pensions to widows and widowers of veterans or to members in receipt of the total special rate or intermediate rate disability pension immediately prior to the death. Currently, if a veteran is in receipt of the totally permanently incapacitated and extreme disablement adjustment pension and dies, the partner will receive an automatic grant of the war widows pension. This clearly forms an anomaly in respect of the Veterans’ Entitlements Act 1986, which treats temporary totally incapacitated and intermediate rate pensioners less equitably than other, similar pension recipients. With this bill, the Rudd Labor government will extend the automatic granting of the pension to include partners of temporary totally incapacitated and intermediate rate pensioners, to provide some relief and assurances to those veterans and their families.

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Under this government, the veterans community can expect that this plan for action will be delivered. This is the first step in a concentrated effort to address a range of issues around veterans entitlements, services and wellbeing and recognition of our veterans. This government will ensure that veterans do get what they deserve—that is, a fair go. The government believes that the provision of robust service and support for the ex-service community is a sincere way to show our gratitude for and recognition of the bravery and sacrifice of those Australian men and women. As the Prime Minister said on 13 August 2007: There is perhaps no greater duty that we as a nation and as a parliament have than to honour, remember and express our gratitude to those Australians who have served in the defence of our nation in times of war, because our security and liberty have not come without a price. The measures in this bill clearly demonstrate that this is a government that is serious about its pre-election commitments to look after those in our defence communities and our veterans communities and their families, and this bill is the first down payment. I commend the bill to the House. Mr ROBERT (Fadden) (10.30 am)—I rise to support the minor changes the government is making to the Vet- erans’ Entitlements Act. While supporting these changes, I remain disappointed that the government is simultaneously hurting veterans through the deeming arrangements from last March, in a time of global and local stock market financial turmoil. Furthermore, I am outraged at the changes to veterans entitlements from yesterday’s La- bor budget. Until I saw yesterday’s Labor budget, I thought all sides of politics were committed to supporting our service men and women and their families—committed to supporting those who have served in difficult, dangerous and demanding circumstances. I now know that this is simply not the case. I now know that the Labor government is happy to sacrifice veterans on the altar of left-wing ideology, as if veterans have not sacrificed enough. As a fellow veteran, I joined many former uniformed men and women last month as we as a nation acknowledged the contribution of our veterans, with reverence and with deep appreciation, through Anzac Day commemoration services. I applaud those who put together those services that I attended—people like Denis Trott, from the Runaway Bay RSL Sub-Branch; Father Len, Ann Harrop and Norm Kelly, from Oxenford-Coomera sub-branch; and Ted Hudson and Richard Muller, from the Paradise Point Bowls Club. They not only served this nation in the time of its greatest need; they continue to serve this nation by keeping the flame alive—indeed, lest we forget. These are just some of the people I am thinking about today as I speak on this bill. The Veterans’ Entitlements Act, which impacts upon so many veterans, currently provides for the automatic grant of pension to an eligible dependant of a veteran or member where the veteran or member was in receipt of an extreme disablement adjustment disability pension, a special rate disability pension, a general rate disability pension or an intermediate rate or temporary special rate disability pension or where the veteran was a former prisoner of war. Schedule 1 to the Vet er a ns’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008 will extend the automatic grant of pension to the eligible dependant of a veteran or member where the veteran or member was in receipt of an intermediate rate disability pension or temporary special rate disability pension. A pension will also be granted to an eligible dependant automatically where the intermediate rate or temporary special rate pension is granted after the death of a veteran or member but from a date before their death. For the purposes of this amendment bill, an eligible dependant of a veteran or member is a non-illness-separated spouse, a widow or widower or a child or children of a deceased veteran or member. This measure will apply in respect of a veteran or member whose death occurs on or after 1 July 2008. Schedule 2 to this amendment bill will extend eligibility for the income support supplement to a person who is a war widow or war widower who is under qualifying age and has no dependent child or children, is not permanently incapacitated for work and is not the partner of a person receiving an income support pension. It is understood that this will benefit approximately 1,400 war widows and widowers who are under qualifying age and therefore currently not entitled to income support. Schedule 3 will extend the 12-week bereavement payment to the estates of single veterans or members in receipt of special rate or extreme disability adjustment disability pensions who die in indigent circumstances. Cur- rently this payment is only provided for partnered disability pension payments. This one-off bereavement payment, equivalent to 12 weeks of the special rate of disability pension, is designed to help families of veterans to meet the costs associated with a funeral. All of these measures are positive. The Labor Party giveth. Yet, as day follows night and as yesterday’s budget demonstrates, the Labor Party, truly, taketh away. Two changes—insipid, underhanded changes, not read out within the main budget speech but hidden within the pages of the detail; two significant changes—have occurred to veterans entitlements. This high-taxing, high-spending, high-unemployment budget will see the service pension age for partners of veterans increase, as of 1 July, from 50 years to a staggering 58½ years—saving the Rudd gov-

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 117 ernment a measly $35.1 million over four years, or less than $10 million a year. This government—on the back of a boom in mining put in place because of the flexible workplace and industrial relations amendments to law under the previous government—is expecting almost $22 billion in surplus next financial year, on top of the $18 billion surplus the previous, successful Howard government left. This government is expecting this year and next to reap $40 billion, and it is looking to save less than $10 million a year by increasing the service pension age from 50 to 58.5 years for partners—$10 million it is saving as a cost, compared to the cost that is borne by the partners of veterans. I suspect that, if this Prime Minister or this Treasurer ever had the courage to put on a uniform themselves, they would appreciate how miserly and indeed how pathetic this adjustment is. The Labor government does not seem to understand the sacrifice made by the families of veterans. When I spent five months operationally overseas, my wife, 21 years old, was given four-days notice—four days our family was given before I was deployed overseas. And what is the thanks a grateful nation would give to wives such as these? ‘We are going to increase your pension age from 50 to 58½ years.’ While one partner may be serving operationally on a battlefield or in an operational area, the partners of our service men and women are also making significant sacrifices here at home. Veterans families are asked to move regularly and begin all over again, in places they have never even visited before and certainly away from extended family, friends and all support groups. When service men and women are asked to serve overseas, they go willingly, knowing the great dangers and perils they walk into. Yet their partners allow them to serve, for the greater good of our nation. This cannot be forgotten. It cannot be taken for granted. But this change to the service pension age for partners of veterans is an absolute slap in the face and an acknowledgement by the Labor government that it does not understand nor appreciate the sacrifices of the partners of veterans—those left behind, those who keep the campfires burning. Last week in Darwin I sat down with an army partners group to hear their concerns. Many of these wives had endured up to six months with their husbands overseas in harm’s way, and with themselves left to raise young families, many of them in a cyclone season in the north without their spouses by their sides. This is a sacrifice. And to raise the pension age for partners is not only callous; it is harsh, it is cruel and it is downright unjust. Veteran couples would have already taken the current pension age of 50 years into account when planning their futures, thinking—but clearly, from this appalling Labor budget, doing so unjustifiably—that no side of politics would dare fiddle with or change their futures because, in the grand scheme of things, where you have a $40 billion surplus over two consecutive years, saving 10 million measly dollars would not be worth the fiddle. There are couples right now in living rooms all over Australia looking to re-evaluate their futures because this Prime Minis- ter and this Treasurer and that frontbench, who have never put on a uniform to serve their country, think that taking away $10 million will somehow be for the greater Australian good. They should be ashamed, as I am ashamed of them. To add to the uncertain future of veteran couples and families, access to the service pension will cease 12 months after the separation of a veteran from his or her partner, regardless of whether they are still married— again, proof that the Labor government does not understand the contribution of partners of veterans. You waited for your partner to return home. You waited for maybe six months or, in times of previous conflicts, you may have waited for five years. You waited while spouses served in dangerous and hostile parts of the world. And while you waited you were the sole head of the household. In many cases you were unsure if your partner was coming home—the current death toll on modern battlefields demonstrates that this is still the case. I am sure you as a partner hoped and prayed that your partner would return. Every few years you may have been asked to move from one location to another to serve the greater good of the country. In most cases, and I am speaking as a former fellow serving officer, you had little or zero choice as to where you were posted. And you did it all to support your partner and your country. But what you did not count on, what you did not think would happen, was that a government would take little of that into consideration, would increase the service age for pensions and would take pensions away in the event of separation after 12 months. It is a disgraceful position and an indictment of Labor’s attitude towards those people who have contributed so much. They deserve to be supported—they deserve more support. I challenge this farcical government and its leaders to go up north to the various locations where our bases are, sit down with partners groups, look them in the eye and explain to them why this move was necessary when, over two years, there will be a $40 billion surplus. This attitude is evidence of a government that does not care about its veterans. Compare that to the Howard government achievements. The coalition government provided funding of $21 million over four years to ensure that veterans with a gold or white repatriation healthcare card can access appropriate health care and support services on discharge, benefiting 3½ thousand veterans and war widows. In 2006 the coalition government provided more than $600 million to ensure veterans with a gold or white card could continue to enjoy access to high-quality health care. In 2006 the coalition government provided cancer related health

MAIN COMMITTEE 118 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 care to all Australians who took part in the British nuclear testing program. On and on the Howard government’s achievements go. Truly, through these amendments to the Veterans’ Entitlements Act that I rise to support, with one hand the government giveth while with the other hand they taketh away. It is an attitude that is further evidenced by what the government has done to deeming rates, which affect veterans as well as elderly Australians. I am disappointed that the government in March sought to increase both the lower and the higher deeming rates without any adjustments to the thresholds, as this impacts upon veterans. It is no good providing benefits with one hand and simultaneously taking them away with the other. For the majority in this government, who perhaps do not quite understand deeming, the deeming rules are an essential part of the social security income test. The rules are used to assess income from financial investments for determining the amount of social security and veterans affairs pensions. This is based on the premise that the higher the personal investments of an individual, excluding assets such as a family home, super, annuities et cetera, the higher the assessable income and the lower the pension they receive. The premise behind deeming is that financial investments held by pension holders are deemed to earn a certain rate of income regardless of the actual amount earned. If pension holders earn income above the deemed rate, the higher amount is not used to assess income. Thus deeming is generally a simple and fair way to assess income, providing an incentive to invest and earn and encouraging people to choose investments based on their merit. To calculate assessable income, deeming rates are applied to the total market value of a pensioner’s—in this case, a veteran’s—investments. The actual returns in capital growth dividends or interest are not used. Deeming thresholds are generally indexed in line with inflation and occur generally in March and September in line with pension indexation increases. The previous deeming rate was 3½ per cent on the first $39,400 for a single pension recipient and $65,400 for a double. A deeming rate of 5½ per cent then applied to all investments above these amounts, the first $2,000 being exempt. The government has sought to increase these by 0.5 per cent, which in reality is an increase affecting veterans of the lower rate of 12.5 per cent and an increase to the higher rate of eight per cent. What this means for a veteran is as follows. A veteran on a maximum single rate of pension would earn $546.80 a fortnight, excluding a range of allowances. If they own shares worth $100,000, the deemed income amount was $4,712. With the government increase, it is now $5,212, an increase of $500. This means that a pension holder, a veteran, may lose up to $104 of their pension because of an increase to the deeming rate. If the pension holder’s investments are in shares, they may not be providing a dividend stream, and the current share performance has seen values decrease by as much as 25 per cent. Yet the pension holder may receive a drop in their pension if they hold investments in some stocks and related financial products. Minister Macklin, in her media release of 14 March, stated: Secure, low-risk bank accounts can currently achieve returns above six per cent. This morning I looked at the NAB indicator rate as published on their website, and the NAB retirement account is paying six per cent for funds under deposit over $38,400. This is well short of the minister’s statement of achieving returns above six per cent. The changes to the deeming rates by increasing them by 0.5 per cent to four per cent for the lower rate and six per cent will disadvantage veterans. Considering the turbulent world financial markets, the dramatic drop in the local stock market, potentially poor super returns for the next period and continuing global concerns, the deeming rate should not have been increased. The government should have deferred the deeming increase until at least September this year, when more will be known about the global credit squeeze and particularly the state of the US economy. Increasing the deeming rate in March has simply hit the most vulnerable citizens again—pension holders, including specifically many veterans. Whilst this is in line with the Labor government’s true nature, as shown in their original attempt to scrap carers and veterans allowances and their inability to put these into forward estimates, increasing the deeming rate in March was economically negligent. I call on the government and especially the Peter-principle Treasurer to review this decision in September. Thus, while I support the minor changes that the government are making to the Veterans’ Entitlements Act, I am bitterly disappointed in the underhanded way that the government have given to veterans on one hand and then, with impunity and with callousness, have taken away with the other. Mr MELHAM (Banks) (10.48 am)—Madam Deputy Speaker Vale, the member for Fadden might have had more credibility in his contribution if he had given a bit of the history, which you more than most would be aware of, of what happened with the former government and their dealing with veterans affairs and how you yourself had to go and defend the indefensible to your caucus and got savaged badly by your caucus, which resulted in a reappraisal of the submission that your cabinet required you to put before your caucus to do with the Clarke review. Oh, yes, the former minister knows. No-one on either side can take the sanctimonious view in relation to

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 119 this area. Of course veterans deserve more, and it is a hard battle getting anything out of any expenditure review committee of either political persuasion. Generally, the way we achieve it is over time, in a gradualist approach, and people do the best they can. Do not come in here and rail against the Labor Party, which has only been in office for a short while. It would be quite easy to rail against the former minister, who did the best she could in the climate she encountered. I know the former Minister for Defence Science and Personnel. These are not portfolios that have the luxury of other portfolios. You have to fight tooth and nail—generally to Treasury boffins. Ministers of either political persuasion deserve support—and there is a lot of bipartisanship. So do not come in here and make out as if one side is more evil than the other. Mrs Bronwyn Bishop—Madam Deputy Speaker, I seek to intervene. The DEPUTY SPEAKER (Hon. DS Vale)—Is the member for Banks willing to give way? Mr MELHAM—I am always prepared to take a question from the member for Mackellar. I know that it is always without notice. Mrs Bronwyn Bishop—Thank you. The question I would like to put to him is this: could the member opposite explain why the government, of which he is a part, is in this bill expending a total over four years of $7.5 million to extend benefits and is taking away benefits to veterans worth $35 million over the same period? Is that just and equitable in his view? Mr MELHAM—As a former minister you know that savings have to be found within various portfolios in relation to expenditure. As a former minister you know about the dividends that have to be produced in various portfolios— Mrs Bronwyn Bishop—Not with a surplus of $22 billion. Mr MELHAM—and you know that if you want to put forward new proposals you have to find funding within your own department. It then becomes an issue of priorities. Priorities over time are examined and sometimes they are changed. But I tell you one thing I am confident about it: I am confident about this Minister for Veterans’ Af- fairs. Alan Griffin over time will prove to be one of the best ministers this portfolio has seen. He ran your policy towards the end of your government. Your policy was dictated, in effect, by the shadow minister. That is recognised within the veterans community and in relation to his achievements in this bill and in terms of the budget process. I know what happens on the email system and I know what happens in the veterans community in relation to this minister. They like him, they now he goes in to bat for them, he is across the issues, and he visits them. Senior members of the veterans community are very happy with this bloke and they have good reason to be, because they have one of the best in the pack. The former minister should know this: there will be no better defender of veterans in the Labor Party than Alan Griffin, the current Minister for Veterans’ Affairs. He has a lot of credibility in the community. I have a large veterans community. My electorate was settled after the war, so it has housing commission and war service homes. I have committed to veterans issues for the 18 years I have been in this parliament. The veterans kit that my office produced— Mr Hunt—That means you are a veteran yourself! Mr MELHAM—No, you do not have to be a veteran. This argument that you have to be a veteran to be able to advocate on behalf of veterans is complete garbage. The DEPUTY SPEAKER—Member for Banks! Member for Mackellar, do you have a point of order? Mrs Bronwyn Bishop—Yes. I asked a question, which the member opposite elected to take and then did not answer. I asked him did he think saving $35 million to spend $7.5 million was justified. He has not answered the question. Now he is deviating from the substance of the bill. I would ask him to answer my question and then return to the substance of the bill. Mr MELHAM—What I say in relation to all these thing is that they have to be viewed on their merits. It is not just a mathematical argument as to what you are spending and what you are saving. You look at the nature and quality of the benefits that people are receiving, you make an assessment in relation to that, and sometimes you have got to make some decisions. Sometimes you take some short-term pain for long-term gain. Some of the benefits that we are offering now over time will come to be more substantial benefits to the broader veterans community. I think the only numbers that the former minister has been worried about are leadership numbers that always evaporated when it came to her. I do not need to be lectured by her about numbers. As for this argument that you necessarily have to have a uniform—you do not. There are good people on both sides of this House that have the

MAIN COMMITTEE 120 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 interests of veterans at heart, because they have listened to them and they have sat down with them. Anzac Day is a wonderful experience. We are all sympathetic. The point I make to you is that you can take cheap shots at whatever minister you have of whatever political persuasion, but they have to go into battle in their budget process—and, yes, they do get done over, because sacrifices are made, and there are some decisions that are hard to defend, because that is how they end up at the end of the process. I am sure the former minister did not win her battles. She might have won the battles to create a few medals so she could pin some medals on some veterans, but when it comes to funding it is a harder process. I say to the chamber that the veterans entitlements legislation bill that is before the House today deserves to be supported and that for too long veterans have not been treated with the respect or, indeed, given the financial support they deserve. I do not say that what they have at the moment is sufficient; they are entitled to more. Of course they are entitled to more. Anyone who puts on a uniform in this country deserves to be looked after and so does their family. The other day I represented the Minister for Defence in welcoming home six members of the forces who were serving in the Sudan and I listened to their stories. Before that I represented the Minister for Veterans’ Affairs in farewelling the veterans who were going to Beersheba to serve with the light-horse and I listened to their stories— and, if it were up to me, I would give them everything they asked for. But it is not my decision, nor is it the opposition member’s, nor is it the former minister’s and nor is it the former Minister for Defence Science and Person- nel’s. You have to go in there and fight for a pool of money against people who basically do not want to give you money. So that is how in the end we try and come together from the back bench, with our point of view and our experiences, to drag them kicking and screaming. I want to pay tribute to the current minister, because I know the work that he did as shadow minister and is now doing as minister. Veterans are getting benefits because he is smart, he knows how to argue his case and he does not take no for an answer. He is backed up by a deputy and by Public Service officials who are very hardworking and genuine in their commitment to the veterans community but who themselves are restrained by the policies that past governments have delivered. So you have to look at the work he has done in the short time he has been in the job. He has credibility—and that is not coming from me. Go and ask your veteran organisations. Read the emails you receive from particular veterans who love emails and send them around to the community. Forget the political stuff; you are here running a political case. If you want to run your politics, that is fine. If that is how you think you are going to get your agenda up, you have another thing coming. As someone said, I have been a veteran here for 18 years. Run the merits of the argument; do not play the man. Mrs Bronwyn Bishop—Madam Deputy Speaker, I raise a point of order. Before you took the chair, when the Deputy Speaker was in attendance, she did take the trouble to remind me when I was speaking that I should return to the nature of the bill, and I did. This is the second time I ask the member opposite to return to the nature of the bill. I think we all accept there is room for wide-ranging debate, but I really do think he has gone beyond the pale. Mr MELHAM—I am happy to return to the bill, but, Madam Deputy Speaker, let me tell you, if the member opposite thinks that I am going to remain silent when I cop garbage interjections and interjections that are aimed at demeaning a minister and what this government is trying to do for veterans, she is kidding. I will respond to every single one of your questions and every single one of your interjections. In relation to the bill before the chamber, what did the previous speaker, after he railed against the Labor Party, say at the end of his speech? Limp-wristed, he supported the bill, because when you come to the merits of it this bill deserves supporting. When you look at the merits of this bill and debate the matter, this is a bill that deserves support. So let us get back to the bill—I am quite happy to. The DEPUTY SPEAKER (Hon. DS Vale)—Thank you, Member for Banks. Mr MELHAM—But do not use the bill as an excuse to belt up the Labor Party and then limp-wristedly say, ‘Oh, yeah, and by the way, we support the bill before the House.’ I did not hear one thing in the short time I was in the chamber against the bill itself. The bill was used as an excuse to rail and to make political diatribes. I do not want a lecture from the member opposite about my ability to respond to what I heard in this chamber. That is what got me riled up. Yes, I came here with a prepared speech, which my staff worked on. But what worked me up was the garbage I heard from the previous speaker and I was not going to allow it to go unremarked. The minister did visit my electorate prior to the election and 80 veterans and people with an interest in veterans affairs came along. They took questions and he spent considerable time with them and the feedback was overwhelmingly positive. The thing I liked about him was that he did not mislead them. Where he would not be able to deliver, he did not mislead them. He basically said, ‘That’s going to be a hard one.’ I think part of the problem at times is that we tend not to give the honest responses to some of the questions that we are asked and people are misled into thinking there is a chance for some of the benefits they are seeking.

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I have enormous confidence in the minister. Today we are debating a bill that to some extent came from those community consultations. The issues in this bill were raised in the community consultations. As I said earlier, it is not all that needs to be done; it is just a start. This is the first instalment. Labor has already delivered on its promise that resulted in the amendment of the social security law, the Veterans’ Entitlement Act 1986 and the Military Rehabilitation and Compensation Act 2004, to give increased and more timely financial support to older Austra- lians and to people with a disability, to carers and to veterans. The Minister for Families, Housing, Community Services and Indigenous Affairs introduced this legislation on 14 February this year, and eligible pensioners will have been receiving those payments from 20 March. For the first time, veterans and their partners receiving the invalidity service pension, partner service pension or an income support supplement will also receive the allowance. In addition, an increased rate of telephone allowance from $88 a year to $132 a year will be available to around one million veterans. In increasing the annual utilities allowance from $107.20 to $500, to be paid in quarterly payments, to match the utilities bill cycle, Labor is ensuring that people will have funds to assist them in payment of those regular bills. This bill includes several measures that were part of Labor’s 2007 election commitments. Labor have always had a genuine commitment to our veterans and that will continue. As I said, Labor is fulfilling its election promises and this bill is part of that process. There are three key measures the bill introduces, and these will make life a little easier for some of our veterans and their families. First, the bill will extend the income support supplement to war widows and widowers under qualifying age. In the past, this was available when a veteran reached qualifying age—for men it was 60 years and for women it was 58½—or if they had a dependent child or if they were permanently incapacitated and prevented from working. Under this legislation, the eligibility for the income support supplement will extend to a person who is a war widow or widower, who has not reached qualifying age and who has no dependent children. In effect, the current eligibility criteria will become redundant. The net effect of the measure will directly impact on approximately 1,400 war widows or war widowers. I repeat: 1,400. Second, the bill extends disability pension bereavement payments. Cur- rently a widow or widower on certain disability rates receives a bereavement payment equal to 12 weeks of disability pension on the death of a veteran. The new measure will extend the 12 weeks disability pension bereavement payment to the estate of single veterans or members in receipt of a special rate disability pension or the extreme disablement adjustment disability pension if they have died in reduced circumstances. With the extension of this measure, the veteran’s estate will have time to adjust to his or her changed financial circumstances and to defray any costs associated with the death of a veteran. This payment is in addition to a funeral benefit, which is also payable to indigent veterans or members and is a contribution towards funeral costs. The third measure contained in the bill extends the automatic grant of war widow or war widower pensions. Under the current act, this was granted under circumstances where the veteran was in receipt of specific pension entitlements. The grant of a war widow or war widower pension will now be extended to include those partners of a veteran or member who immediately before his or her death was in receipt of intermediate late disability or temporary special rate disability pension. These measures will go toward fulfilling our obligation as a government and as a community to our veterans. I know that those opposite acknowledge that these are benefits. That is what is actually before us, and that is what riled me a little bit earlier. I did not appreciate coming in and just hearing a political diatribe. Let us deal with each bill on its merits. If it is beneficial, so be it. If there is detriment then, yes, get up and have a go at the bill. Madam Deputy Speaker Vale, you of all people would know how difficult this area is from when you were in government. It is difficult for whoever is in office, but at the end of the day what I have always been about and what my office has always been about, because of the nature of my community, is to do whatever we can for our veterans community. The veterans kit that we produced has been without peer for the last 15 to 18 years in parliament. Indeed, it was picked up by organisations and used as the model. As I said, I know that there is genuine support on the other side. It seems to me that what whoever is in government should be doing is marshalling those resources in a bipartisan fashion to try to change government policy to the benefit of our veterans. I am not standing up here trying to claim a moral superiority in this regard; I do not. But I know about advocacy and I know how to get results. As I said earlier, history will end up showing this minister to be one of the best veterans’ affairs ministers. He has not taken a backward step in the short time he has been there, nor did he as shadow minister. He has tried to work out every way he can to advance veterans causes in an honest way, in a compassionate way, and he has tried to do it in a bipartisan way. I know that the shadow minister who is his opposite is also genuine in that regard. As indicated in the Bills Digest for this bill prepared by the library, in the past the automatic granting of the war widows pension was considered appropriate only for what was effectively a significant physical disability. This has tended to exclude those who suffer from psychiatric disability or other types of physical disabilities. The Bills Digest commented that this is an old-fashioned idea. This initiative of the Australian government means that many

MAIN COMMITTEE 122 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 widows or widowers will not have to apply for the benefit in a protracted manner. In the past, the process has often been contentious and lengthy. This is a very positive move forward in recognising the care and support provided by those who were the partners of veterans with significant disabilities. In my electorate there were 3,236 net beneficiaries of Department of Veterans’ Affairs pensions and treatment cardholders as at 28 September 2007. Sadly, this number dropped over the previous three months to 3,165 total net beneficiaries as at 6 July 2007. This bill is just one in a long line of Labor legislation that will be introducing social security advances in Australia. It is a benchmark of Labor governments that care and support is provided to those who need it. In 1901 the Constitution gave power to the Commonwealth to legislate for invalid and old age pensioners. A review was conducted during 1905 and 1906 and legislation for both was passed in 1908. Finetuning was then provided by the Fisher Labor government during 1909-10, and this ensured that the old age pension was payable to people who were aged 65 and over or who were aged 60 years and over and were permanently incapacitated for work, and it extended to women over 60 years of age. Subsequent refinements and innovations were provided to age pensions, disability pensions and carers by the Scullin, Curtin, Chifley, Whitlam, Hawke and Keating governments and, in all fairness, I should mention the updates under the Lyons, Menzies, Holt, Gorton, Fraser and Howard governments. So, in the area of veterans entitlements, Labor has a proud record since Federation and that is why I took exception to the attacks on the Labor Party from those opposite. At the end of the day—(Time expired) Mr HUNT (Flinders) (11.08 am)—I wish to rise in support of the Veterans’ Entitlements Legislation Amend- ment (2007 Election Commitments) Bill 2008. However, I wish to do so against the background of what I believe is a unique, unparalleled and unjustifiable attack on the spouses of veterans which was brought down in last night’s budget. Let me start with this attack in last night’s budget—and there are two measures which, by all accounts and under all circumstances, are utterly unjustifiable. The first point is this: whilst this bill brings forward welcome additional support in line with the sorts of things which we brought in in government of about $20.7 million over four years rising to $7.1 million in the fourth year, all of these benefits are effectively taken away with a $35 million attack on the spouses of veterans, as was introduced in last night’s budget. This is one of those hidden measures with a practical human cost. Who are the people who suffer that result? As of 1 July 2008, the Rudd government will launch an attack on veterans’ spouses by increasing the pension age eligibility for partners of veterans from 50 to 58½ years. In one stroke of the pen, with virtually no warning, the age of eligibility to receive the appropriate benefits for the wives of our long-serving veterans will increase 8½ years. The impact that will have on families will be real and dramatic and will be seen in the terms of a $35 million slug to veterans’ wives over the next four years. I repeat: for the wives of veterans in Rosebud, Rye, Dromana, Hastings, Kooweerup, Baxter, Cowes and San Remo this real money will come from that which they would otherwise have received. It will have a real and profound impact on their ability to operate and also on their standing and sense of worth. They will feel that they have been gypped by a government that is giving with one hand but taking away a lot more with the other, hurting spouses of veterans who have served their country with honour and dignity and had just the slightest expectation that their families would be cared for in the years to come. The second of the measures from last night’s budget which undercuts the measures in this bill is that, as of 1 January 2009, access to the service pension will cease 12 months after separation or from the beginning of a new marriage for the former spouse of a veteran. In other words, if the spouse of a veteran is separated from the veteran but they are still married, and they are not certain whether they can reconcile—in any event, there is no recognition of that lifetime service given by a spouse—the spouse will lose that entitlement. This is a cruel measure which, I believe, utterly undervalues the support given to our service men and women by their spouses. They might have been a partner and spouse for 20 years, but if they then separate for 12 months they lose all recognition of the service they have given indirectly by supporting the men and women who are part of our armed forces. This government should be condemned for taking away the security of our veterans’ spouses now and in cases where they may face the real human challenge which is inevitable in relationships. That is what I want to say as to why this bill ultimately fatally undercuts benefits. We think the measures are good. They recognise the magnificent service of our veterans on the Mornington Peninsula. The measures, which amount to about $20.7 million, do things entirely in line with the path set down under previous veterans’ affairs ministers such as the member for Mackellar and the member for Dunkley. What I do not accept is that these measures are completely undercut by what I think is a quite draconian, dramatic, unfair and ultimately disrespectful movement overnight in the age at which veterans’ spouses can qualify for their pensions and the disregard for a lifetime’s marriage and support of our veterans, which is now about to be made Holy Writ through legislation denying spouses of veterans benefits if they happen to separate for a period of 12 months or more. That I think is unfair, unreasonable, unjustifiable and ultimately disrespectful. So, whilst I support the bill, I utterly condemn these attacks upon veterans’ spouses, which were handed down in the budget last night. It

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 123 is disrespectful to our veterans, it is disrespectful to the spouses and I believe it undercuts the magnificent work that veterans groups in areas such as the Mornington Peninsula, Westernport and the Bass Coast area give to our people. Ms NEAL (Robertson) (11.15 am)—It is with pleasure that I rise to speak on the Vet er a ns’ Entitlements Legis- lation Amendment (2007 Election Commitments) Bill 2008, because of course this government, unlike many former governments, is delivering on its commitments. The bill makes three changes to the veterans entitlements legislation and delivers on promises, as I have said, by the Labor government in last year’s election. These have been dealt with by the Minister for Veterans’ Affairs, the Hon. Alan Griffin, and other honourable members in this House. The first change is the automatic grant of the war widows or widowers pension to the partners of deceased veterans who at that time were in receipt of totally and temporarily incapacitated disability pension. Previously, this pension was generally granted to the widow or widower on application, but this amendment makes it automatic. It removes an element of uncertainty and therefore stress at the time when that person is already facing the stress of losing a loved partner. The second amendment to the veterans entitlements legislation contained in the bill is to extend the income support supplement to all war widows without their having to satisfy a range of additional provisions. This change will benefit 1,400 war widows and widowers. The final change is the extension of the bereavement payment to the estates of single disabled veterans who pass away in poor financial circumstances. This bill is of particular interest to me as the member for Robertson. I understand that the Central Coast, of which my electorate forms a major part, has one of the highest percentages of veterans in Australia. In Robertson, my office is a regular contact for approximately 20 ex-service organisations, and in fact we print a number of their newsletters. According to the Department of Veterans’ Affairs website, at September 2007 the Gosford local government area had approximately 5,745 DVA pensioners. My electorate office makes regular representations for our veteran community, and I have recently spoken to the Pensioners and Welfare Officers Network about the Rudd Labor government’s new suite of policy initiatives, including veterans entitlements. A very short time ago, I was very proud to present the new Australian Defence Medal to 18 ex-service personnel at an official function at Gosford RSL club. This was certainly a wonderful occasion. I have to say that on every occasion where I meet with veterans and talk to them, both at my office and at functions outside, the veterans community is extremely happy with the direction of this government and very happy that, in a large number of areas where they had difficulties and where they had been ignored for very many years, this Labor minister has very quickly remedied those problems and has been very responsive to their needs. I feel great pride in being part of a government that acknowledges the contribution of our veteran community and is able to go out on a very personal level and meet with them and respond to their requirements. I would like to talk a little about the recipients that I presented ADMs to at that function at the Gosford RSL, because I think they are representative of the type of person who receives these medals. It is worth while noting on the public record some of their contributions. I would particularly like to mention Bronwyn Scully, who presently lives at Woy Woy, who joined the Australian Defence Force in the 1970s, when women’s involvement in military life was fairly novel and a pioneering career choice. Brownyn Scully rose to the rank of lance corporal. By sheer chance, she joined the same unit, the Royal Australian Corps of Signals, as her father, Kenrick Scully—a journalist with the old Gosford Star, which is now obsolete but which I can still recall. He wrote a book called Every Man for Himself about the evacuation of New Guinea in the face of the Japanese invasion during World War II. In that book, Kenrick Scully says: My time in the Corps gave me the work ethic that set me up for the rest of my life. Bronwyn was very pleased about receiving her medal, and she said: This medal is a nice way for the nation to say thanks. I really think that is what is important about not only the presentation of those medals but also the policy of this government over all: our veterans policy is very much guided by the principle that we do acknowledge the contribution of our veterans and we are saying at every stage ‘thank you for that contribution’ and the sacrifices they made. Another person presented with a medal on that occasion was 80-year-old Edwin ‘Ted’ Meyer, of Point Clare. He was a young article clerk when he tried to enlist in the final months of World War II. He served three years in the Citizens Military Force during the Korean War, rising to the rank of lance corporal. His father was an interpreter for the French army in World War I, and he never collected his medals, so Tuesday’s ceremony had special meaning for Ted. He was wearing his father’s interpreter corps badge when he received his own medal. He was very thrilled to be there and to be acknowledged in that way. He is actively involved in the association of the 17th Battalion, and Ted values the skills he learned during his military service. He said on receiving his medal that he

MAIN COMMITTEE 124 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 did not expect the honour, but that the Australian Defence Medal is a record of his service to his country and he very much appreciated it. I am particularly pleased that the veterans’ entitlement bill proposes a number of significant changes, as I have said. It really does acknowledge the contribution of our veterans. I understand from listening in to some of the earlier contributions, particularly those from the other side, that there seems to be some complaint or a suggestion that somehow this government is not appropriately acknowledging the contribution of our veterans in the way they should be. I completely reject that assertion. I find it quite extraordinary that after 11 years the now opposition—the previous government—can come along and start complaining about what has been done in one budget and claiming that things should be done in that budget that they failed to do for 11 years. It is quite extraordinary, but not uncommon, not only in this particular portfolio but in virtually every portfolio in this government, that the opposition now claims that things they did not do for 11 years we should miraculously do in one budget. Frankly, that smacks of an incredible hypocrisy. In the 2008-09 budget the Prime Minister, the Treasurer and the Minister for Veterans’ Affairs, Alan Griffin, provide additional funding for the Australian veterans community of $11.59 billion. That is not something to sneeze at; it is not a small, paltry amount. It is a huge contribution and it acknowledges our veterans contributions. I am thrilled to see it and I am certain the veterans in my electorate, and I assume Australia wide, will be very ex- cited about it as well. This includes $6.34 billion for compensation income support pensions and $4.87 billion for health and health services. Also, ex-service organisations will be able to access additional funding, namely $14.9 billion over four years, including in 2007-08, through the Building Excellence in Support and Training—known as BEST—and the Training Information Program. This includes $6.9 million over three years to restore lapsed funding. These funding arrangements introduced by the Rudd Labor government—not any previous coalition government—a total of $11.59 billion, represent record spending in the veterans’ affairs portfolio. As I said, I am absolutely thrilled to be part of a government that is putting forward those sorts of priorities in terms of our veteran community. This is the strongest possible commitment yet to the veteran community of this nation. The contribution of carers has also been recognised, with bonuses of $600 being paid to anyone in receipt of carer allowance, $1,000 for those who receive carer payment or carer service pension and $1,600 in bonuses to those who receive both carer allowance and partner service pension or carer service pension. In addition, service pensioners and gold card holders who are over veteran pension age on 13 May 2008 will receive a $500 senior Australians bonus in recognition of the costs they face and the contribution they have made to building Australia. I am proud to be part of this government. I congratulate the Minister for Veterans’ Affairs on a great budget and I am thrilled that this is the acknowledgement we are giving our veteran community. Mrs GASH (Gilmore) (11.26 am)—As the once chair of the coalition government’s defence and veteran affairs committee, I am always an enthusiastic supporter of any initiative that appropriately rewards the contribution of our returned service men and women. It is important that we do so and to be seen to be doing so, because any intending recruit into our defence forces would be gauging how much their government is prepared to underwrite the risks they will be asked to take. But, before I go any further, I am tempted to make a passing comment on the title of this bill, the Ve ter a ns’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008, and on the part in brackets especially. I mean, is there that much uncertainty over Labor’s defence credentials that a bill needs to have incorporated in it the words ‘2007 Election Commitments’ bill? It either demonstrates smugness or a very prickly sensitivity to past failures. I wonder whether this will be a feature of other government bills incorporated as a standard format for each bill. That aside, I did want to raise another associated issue, and that is the government’s position on the claims of the Korean veterans who are seeking recognition for those who died on service after the armistice in Korea. I do recall that a deputation of Korean vets called on the then shadow minister last year and certain commitments were made in relation to post-armistice service. As far as I am concerned, that was an election commitment and should have been incorporated in this bill, if it is honestly titled. On 9 October 2006 in the House, the present Minister for Veterans’ Affairs seconded a motion that called on the government to award medals for Korean post-armistice service. My question is: when will that promise be fulfilled? There is no provision anywhere in this bill, so can it be assumed that the promise made to the Korean vets by the then shadow veterans’ affairs minister was a non-core promise? The minister spoke about proper recognition, which ostensibly suggests that post-armistice service should be viewed as war like and therefore attracting entitlements under the act. At least that is the impression the veterans gained after their meeting. The member for Barton, who moved the motion, described the review committee’s recommendation for the awarding of an Australian general service medal and a return from active service badge as very sensible. This seems to imply that a Labor government would grant full entitlement under the act for post-armistice service. That

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 125 is exactly what the Korean vets are asking for now. The member for Barton said at the time: ‘If the coalition government is serious about taking care of our soldiers, it has to put its money where its mouth is’—a fair statement. Now, will this government do the same? Will you honour the commitment you made to these vets and will you do it now? In the minister’s second reading speech to this bill, he said in his opening remarks: ‘I am pleased to present legislation that demonstrates this government’s commitment to Australia’s veteran community.’ The Korean vets and I will also be pleased when the minister introduces legislation giving life to his government’s commitment to them. Let me quote what the Labor Party policy says. It says: Implement Post Armistice Korean Service Review recommendations The post-armistice Korean service review was established to examine the level of recognition that service in Korea from 1953 to 1956 should be given. The review made six recommendations, but the Howard Government chose to ignore four of them. Under a Rudd Labor Government, Defence will implement all of the recommendations of this review. This will fully support the efforts of the Korean War Veterans Recognition Committee to gain the recognition they deserve. But the few provisions contained in this bill I do support, because it builds on the many initiatives introduced by the previous government—achievements such as increasing the amount of combat ready troops from the 45 per cent we inherited to the 66 per cent we left in November. We increased funding to veterans from $6.2 billion in 1995-96 to over $11 billion in 2007-08—an increase in real terms of 25 per cent. For the first time ever, we linked service to the war widows pension by legislation to a fixed and measurable benchmark: 25 per cent of male total average weekly earnings. We restored the pension rights of thousands of war widows that were cancelled by Labor. We recognised the suffering of POWs with the payment of a bounty to each POW. We instigated a review of the act to ensure that needs were being properly addressed by contemporary standards. And we initiated many more reforms to ensure our veteran community were, arguably, the best looked after in the world. I applaud the fact that the government has adopted this philosophy and continued to support our veterans with these measures. I am delighted that the war widows and war widowers have their extended income support supplements, because it will certainly be of some assistance in what is shaping up to be stormy times ahead as far as the global economy is concerned. One of the things we did for widows and widowers of veterans in 2001 was to establish a program to enable these worthy people to stay in their homes longer by providing home care. The other measures introduced by this bill are also welcomed, but there is still much to do and I welcome the minister’s undertaking to better look after those in the veteran community. The minister can rest assured that we on this side of the House will be making sure that there is no slippage of that undertaking because there is no disagreement on the fact that this country owes its veterans are very large debt that should transcend any political campaign promise. George Washington had the wisdom to recognise that you are judged by your deeds when he wrote: The willingness of future generations to serve in our military will be directly dependent upon how we have treated those who have served in the past. It is most laudable for a government to fully support its defence community, some of whom become veterans following war service. We did this through the Clarke review of veterans’ entitlements, and just a few weeks ago another review panel also set up by the Howard government made recommendations for valour awards for some of those who participated in the Battle of Long Tan. I hope this government recognises the wisdom of George Wash- ington’s words and upholds the recommendation to award Major Harry Smith, Lieutenant Kendall and Lieutenant Sabben retrospective awards for gallantry in the field. Every day delayed signifies a grudging reluctance to do the right thing, and I would strongly urge the government to authorise these awards without delay. As always, there is much to be done. If this government adopts the policies for veterans that we took into the election last year, they will have no argument from either me or the veteran community. But let us just have a quick look at what this Rudd Labor government offered veterans—or should I say did not offer veterans—in the budget that was announced last night. The Rudd government budget has left veterans out in the cold with two very significant changes which were announced. One of them was that the Rudd Labor government from July 2008 will increase the service pension age eligibility for partners to 58.5 years for women, which is up from the previous 50 years. This measure is estimated to save the Rudd government $35.1 million over four years. Veterans are one part of our community who must be exempt from budgetary cuts as we are eternally indebted to them for the sacrifices they have made for our nation. By raising the eligibility age, the Rudd government is condemning our veterans’ families to financial stress and hardship. Veterans and their families who have planned their future budgets based on this entitlement will be worse off under the Rudd government. This measure demonstrates the total

MAIN COMMITTEE 126 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 disregard the Rudd government has for the contribution that our veterans have made to our country. With a surplus of $21.7 billion there is no need to punish veterans’ families. In addition to the above measure, the Rudd Labor government has announced that it will no longer provide a service pension for partners who are separated from, but still legally married to, a veteran. And commencing on 1 January 2009, access to the service pension will cease 12 months after separation or from the beginning of a new marriage-like relationship of either the veteran or the partner, whichever comes first. They could still be married at this point in time. It is well known that veterans have problems. We should be assisting reconciliation, not penalis- ing. Mr PERRETT (Moreton) (11.34 am)—I am proud to speak in favour of the Ve ter a ns’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008, which delivers on several commitments made by the Rudd government during the 2007 election campaign. This bill addresses a number of longstanding concerns of veterans that the Howard government failed to act upon. Australia’s ex-service community have given their best for our country and obviously they deserve our best in return. I think the Prime Minister, Kevin Rudd, has said it best. As opposition leader in August last year, he said: There is perhaps no greater duty that we as a nation and as a parliament have than to honour, remember and express our gratitude to those Australians who have served in the defence of our nation in times of war, because our security and liberty have not come without a price. I think the Prime Minister, with a Vietnam veteran brother, would know as well as any family the impact that serving can have on a family back home in Australia. The Rudd Labor government promised a fresh approach to veterans’ affairs and committed to work in partnership with the ex-service community on the issues that concerned them. I well remember the current Minister for Vet er a ns’ Affairs, Minister Griffin, coming to Moreton, to a pub in Moorooka, and meeting with the veterans community during the election campaign. The veterans community and the RSL representatives that were there had respect for him, because he told them straight, ‘These are the things that we can have some progress on and these are the things that are much more difficult.’ There was no political speak; it was just plain, hard truth. The best thing about that is that he has since delivered for the community, because this bill obviously delivers on that commitment and those promises and on our commitment to support veterans and their families. One of the most significant measures contained in this bill is to extend the income support supplement to war widows and widowers under qualifying age without dependants. War widow pension recipients must currently meet a number of conditions before they can receive the additional income support supplement. To qualify they must be of qualifying age—60 or more for males and over 58½ for females—be permanently blind or permanently incapacitated and unable to work, have a dependent child or children and be the partner of a person who is receiving an income support pension from either the Department of Veterans’ Affairs or Centrelink. This bill amends the Veterans’ Entitlements Act to remove all eligibility criteria for the income support supplement if the person is a war widow or widower. I understand the war widows pension is currently paid at $582.40 per fortnight. There are currently about 110,000 recipients, of which 83,000 receive the income and asset tested income support supplement. This bill will allow all recipients of the WWP to access the income support supplement as long as their income or assets do not exceed the limits. This will potentially help an additional 1,400 war widows and widowers. By removing the age limits, the income support supplement will now be available to help younger war widows and widowers and wholly dependent partners. This bill also extends disability pension bereavement payments. A widow or widower of a veteran currently receives a bereavement payment of 12 weeks of disability pension upon the death of the veteran or member. This payment helps to assist the person adjust to his or her financial situation, given that the pension of the deceased person obviously will stop. This payment will be extended to the estate of single veterans or members in receipt of the special rate disability pension or extreme disablement adjustment disability pension who die in indigent circumstances. It is sad to think that we live in a society where that is the case, but obviously there are many people who come back with troubled lives and unfortunately do not necessarily kick on and become successful in business et cetera. So this payment will help cover liabilities, including funeral expenses, so that the nation does its best to honour its service people. This payment is in addition to a funeral benefit, which is also payable to indigent veterans or members and is a contribution towards funeral costs. Finally, this bill also extends the automatic grant of war widow and war widower pensions. These are currently only granted automatically to some intermediate rate disability pensioners, where the disability involves the loss of one or more limbs. In line with the Rudd government’s election commitment, and in line with the commitments the now Minister Griffin made throughout the election campaign and in his meetings with the veterans commu-

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 127 nity, this bill will ensure the automatic grant of the war widows pension to the surviving partners of certain classes of disability pensioners from 1 July 2008. This includes totally and permanently incapacitated and extreme disablement adjustment pensioners. As well as the war widows pension, surviving partners will receive the income support supplement and the gold card for treatment. This is expected to benefit more than 20 new war widows and widowers each year. Disability is not always as obvious as an amputated limb. I think we are all aware of the other conditions that can result but that are not as obvious as amputated limbs. Other physical disabilities—for example, a heart condition—as well as psychiatric disabilities connected to war or armed service can be just as debilitating. It was interesting just this week to meet so many of the veterans from the Coral and Balmoral battles in Vietnam and to talk to some of them about how they had adjusted to war. It was a very proud night—40 years too late, in a way—and it was great that they felt that they and their contributions were being recognised. I had the honour of meeting some of those veterans at the reception organised by the Prime Minister and the opposition leader. It was great to hear how many of them had coped and adjusted but also very sad to hear of how some of their comrades and friends from the military had not adjusted and had brought home baggage. Whilst it was a wonderful evening and a great honour for me to meet many of those veterans, it brought home how this legislation will benefit people who are suffering from psychiatric disabilities and the like. This bill introduces a much fairer system. It will also provide some peace of mind to veterans and their families during a vulnerable and difficult time. In my time as a candidate in the 2004 election and in just being a member of the Moreton community, I have met an incredible number of returned servicemen. In fact, I was fortunate enough to have a returned serviceman on my campaign team. David Forde was fantastic as a campaign person but he also gave me insights into the veteran community. I am going to mention some of the RSLs and veterans communities in my electorate to acknowledge the great work that they do. I especially mention Fred Dempsey from the Salisbury RSL Sub Branch, who runs some of the tightest Anzac Day and Remembrance Day ceremonies I have ever experienced. I do have to occasionally remind him that I am not in the military, but he ignores that and treats everyone like they are in the military and gives them orders accordingly. The Sherwood-Indooroopilly RSL Sub Branch do great work throughout the north-western part of Moreton. The Stephens RSL Sub Branch have made many representations to me, do great work in the northern part of my electorate and run a fantastic Anzac Day ceremony. The Yeronga- Dutton Park RSL Sub Branch also run some great Anzac Day ceremonies. In fact, I was fortunate enough to speak at their most recent one. It was actually in the Prime Minister’s electorate but only across the road from mine, so I felt I was justified in going into that electorate. I would especially mention the Sunnybank RSL Sub Branch and their president, Robert Lippiatt, who leads a magnificent team that have done many significant projects in the Sunnybank area. They are particularly active in the schools, running great Anzac Day ceremonies and engaging with young people. There were about 2,500 to 3,000 people at the recent Sunnybank Anzac Day ceremony, which was just incredible, with people being bussed in from everywhere. They do great work in the schools to educate the young people, but they also reach out to the veterans community. They are setting up a men’s shed. They are really a forward-thinking RSL sub-branch and a great asset to our community. I especially commend Robert Lippiatt and his team. There are also other groups that are not so much bolted to the one area such as the Defence Services Nurses RSL Sub Branch; the Diggers Asso- ciation; the RSL ex-RAAF—I mention particularly Les Watts, one of my constituents, who chews my ear every single time I see him about the role of the RAF; the War Widows Guild of Australia; and, lastly, Brisbane Legacy, who do an incredible job as well. I will mention one particular other organisation, because I have a letter in front of me from Laurie Woods, who is part of the 460 Squadron (RAAF) Association, Queensland Branch. He recently took off to Holland to present a painting of the Manna drop that they had commissioned. I will not go into the details of that—it is not appropriate whilst talking to this legislation—but it was certainly an interesting time in Australian military history. On behalf of the Australian 460 Lancaster Squadron, he presented this painting to the Dutch nation. I have seen the painting and it is a fantastic painting. It is about looking after, caring for and honouring the Australian airmen who lost their lives over Europe. Of the 3,486, approximately 2,000 are buried in Holland. So it was certainly a perilous existence and it was great that Laurie Woods was able to go there to present that painting. This legislation is obviously all about making a much fairer system. Anything we can do that will give peace of mind to veterans and their families during a vulnerable and difficult time is to be commended. Making the grant automatically available should make the difficult time when someone passes away a little more tolerable. The legislation removes the requirements for a surviving partner to make a claim for a war widows pension and then satisfy the various requirements. I thank Minister Alan Griffin for bringing this important legislation before the House. It continues his history of listening to the veterans community and then delivering on as many of their aspirations, wishes and needs as pos-

MAIN COMMITTEE 128 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 sible. I am proud to stand up here for the Australian ex-service community and support this bill. Although I am obviously not from the ex-service community, it is an honour to represent them and I look forward to continuing to do so for a long time. Once again, I thank Minister Alan Griffin for bringing in this legislation. Mrs VALE (Hughes) (11.48 am)—Like all legislation relating to veterans and their families, the Vet er a ns’ Enti- tlements Legislation Amendment (2007 Election Commitments) Bill 2008 is of particular interest to the electorate of Hughes. Like so many other electorates across the country, I have many constituents who are part of the significant ex-service community. This bill is about looking after those in the veterans community and their families; hence, I am pleased to be able to speak on this bill and overall I do support it. The purpose of the Veterans’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008 is to extend the income support supplement to war widows or widowers who are under the qualifying age. While I do support this bill, I must say that I am confused about some of the measures in last night’s budget because, strangely, the government has actually raised the age of service pension eligibility for veterans service partners from 50 years to 58 years. This is for female partners. This is a confusing initiative, given that the purpose of this particular bill is to actually be of assistance to families of veterans. But I would like to say a little more about that later. This bill provides measures that remove the requirements for war widows and widowers under the qualifying age to have a dependent child, be permanently incapacitated or be the partner of a person receiving an income support pension, before they can receive the income support supplement. The bill will also extend to certain single disability pension recipients the disability pension bereavement payment. Under this measure, the bereavement payment will be extended to cover single recipients of the special rate and extreme disablement adjustment disability pension who die in impoverished circumstances. This bill will also extend the automatic grant of war widow or war widower or orphaned pensions to the widows, widowers and eligible children of veterans and members who immediately before the death of their veteran relative were in receipt of the temporary special rate or intermediate rate disability pension. To make this legislation as effective as possible on a national level, I respectfully suggest that the federal government give favourable consideration to the following points. The Minister for Veterans’ Affairs issued a media release in recent months describing the veterans’ entitlements legislation amendment bill as a fairer indexation system that would result in a range of additional payments delivering up to $1,045 more per year for Department of Veterans’ Affairs war widows, widowers and disability pensioners. The minister said that these payments and new indexation methods maintain and improve the value of veterans and war widows pensions and protect them from future erosion. Only in the last days had the previous government acted. They failed to recognise the erosion of veterans’ pensions until they were forced to do so. He said that the Rudd government is committed to providing increased and fairer financial support for members of the veteran community and this package delivers a key election promise. However, the general rate disability pensions will for the first time be indexed with reference to both the consumer price index and the male total average weekly earnings, which is fair enough. Alongside the improved indexation calculations, the base rate of all pensions on the general rate will increase by five per cent. For example, 100 per cent general rate recipients will receive an extra $22 a fortnight, which will be very welcome. Extreme disability adjustment pensioners will receive an extra $15 to their base rate on top of the indexation increase, resulting in an additional $40.20 a fortnight. The war widows pension will increase by $19.70 to $582.40 a fortnight; the single service pension by $9.10 to $546.80 a fortnight; and the married couples rate by $7.70 to $456.80 per person per fortnight. The wholly dependent partners death benefit and special rate disability pension under the Military Rehabilitation and Compensation Act 2004 have also increased in line with the latest increases under the Veterans’ Entitlements Act. The new pension rates come into effect on 20 March and were first payed on 27 March 2008. These increases are in addition to the increased utilities and telephone allowances paid to eligible veterans and war widows. The coalition during the last federal election committed to increasing the utilities allowance and seniors conces- sional allowance to $500 for those people receiving the age pension, mature age allowance, partner allowance, widow allowance, service pension, veterans income support supplement, carers payment, disability support pension or DVA invalidity service pension, and for holders of the Commonwealth seniors health card, through the More Support for Pensioners, Self-Funded Retirees and People with Disabilities and their Carers policy. This was announced by the coalition on 23 October 2007. This announcement was followed by Labor announcing on 1 November 2007 their copycat policy, Making Ends Meet: Federal Labor Plans for Older Australians and People with Disabilities and Carers, which largely mirrored the coalition policy. Having said that, Mr Deputy Speaker, I do acknowledge that generally speaking there has been bipartisan support for this very venerable and venerated policy area of our government. If the coalition

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 129 had not announced this policy during the last election campaign, would Australian veterans be worse off? Labor would not have brought this legislation into the parliament. One must say that this is another example of Labor me-tooing coalition policy, as was often done in the last election campaign. However, this is one that I will not, and the veterans certainly would not, complain about. What the coalition did not do was refuse to give the veterans community certainty by leaving them in limbo regarding the carers bonus. The Rudd Labor government were elected on the basis of protecting working families and Australia’s most vulnerable, yet they appear ambivalent to carers and their families. This bill continues to show ambivalence to veterans by the Labor government, as it appears that, while they have given with one hand, they actually have taken away with the other. The Minister for Veterans’ Affairs used the introduction of this bill to detract from the carers bonus and the deeming issues that were relevant to a large number of veterans. This bill is totally silent on the carers bonus. It fails to reassure the veterans community of the continuation of the bonus, which the coalition implemented. Deeming is the other issue about which the minister continues to remain silent. The deeming rate increased on 20 March 2008 by 0.5 per cent. While this portfolio has always been marked by bipartisan support on most measures in the past, the Whitlam and the Hawke and Keating governments made insensitive cuts into the Department of Veterans’ Affairs budget. Between the years 1996 and 2007, the coalition government delivered for veterans in many and various meaningful ways. Initiatives included the gold card. The government announced on 27 April 1998 the extension of eligibility for the veterans gold card to all World War II veterans, being those who had run the risk of being exposed to danger from hostile fire and who were then aged 70 or more. The initiative commenced on 1 January 1999, 54 years after the end of World War II. The government estimated that this initiative would provide a gold card to an initial 50,000 veterans at a cost of $508 million over four years. The veterans home care was another initiative established by the coalition government in 2001 to provide widows and widowers with low-care needs to maintain their homes and to be able to remain in their homes longer. This program provided for services, domestic assistance, personal care, safety related home and garden maintenance and respite care. Services are allocated on a needs basis to holders of the gold and the white cards. The accreditation of aged care facilities was introduced also by the coalition in support of our veterans who had to use that particular service. The first accreditation had been undertaken and been successful by 1 January 2001. In 2007-08, the coalition government provided funding of $21 million over four years to ensure that veterans with a gold or white repatriation healthcare card could access appropriate healthcare and support services on discharge from hospital, benefiting some 3,500 veterans and war widows a year. In 2001-02, we reinstated the war widows pension to those widows who lost their pensions prior to 1984 on remarriage. War widows and widowers now have an additional three months to claim their war widows pension after the death of a spouse. In 2007, we provided funding of $57.2 million to make ex gratia payments of $25,000 each to Australians held as prisoners of war in Europe or their surviving spouses. The coalition provided a similar payment in 2001 for those held by the Japanese and in 2003 for those held by North Korean forces. The coalition government has in the past been and will continue in the future to be committed to putting our veterans and their families and their needs first, and committed to supporting veterans and families who have dedicated their lives to serving our nation and thus ensuring the freedoms that we enjoy today. Yet on the eve of Anzac Day, just weeks ago, the Rudd government displayed an insensitivity to the needs of Australian diggers and their families. The announcement by the Minister for Veterans’ Affairs of negotiations to place care and support needs of younger ex-service men and women with a disability into the Commonwealth state/territory disability agreement was a positive move, but it shows how out of touch and insensitive to the needs of the veteran community the government can be, because Labor do need to explain why they are moving some young veterans with a disability—ex-service men and women—to a state government system where one size fits all. The coalition recognises that individual care plans are needed for any veteran who has a clinical condition. One size does not fit all and veterans need to be dealt with on a case-by-case basis. Our veterans have fought under our national flag and it is the nation’s responsibility to care for them, not the state. The federal Labor government needs to listen and consult widely with the veteran community before making any such decisions so relevant to their personal care. The opposition remains committed to ensuring that veterans needs are tailored to veterans and are delivered through the veteran’s affairs program and not delivered as part of a general social security and welfare system by state governments. This bill, while it is a positive step in the right direction, is overshadowed by last night’s announcement that the Rudd government is increasing the age of service pension eligibility for veteran service partners from 50 to 58.5 years for women. As I have said, it seems to be in total conflict with the objectives of this particular bill in making available greater eligibility for people in that position. By suddenly raising the eligibility age, the government is

MAIN COMMITTEE 130 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 condemning our veterans families to financial stress and hardship and great uncertainty. The Rudd government is giving to veterans on one hand, through the introduction of this important bill, and taking away with the other by lifting the eligibility age for veteran service partners. As I said, given the objectives of this bill, it is confusing and difficult to understand why such a measure was made and provided for in the current budget. And when one also looks at the fact that there is a $21.7 billion surplus, one wonders why there is a need to put such an imposition upon veterans families. We can afford to care well for our veterans and we can support their partners and we must be very mindful that the partners of veterans have served and supported our country just like they have supported their veterans. Many of them have raised families while their husbands or partners have been sent overseas, sometimes on short notice, for months on end. Indeed, in previous conflicts many of those service partners were alone for years on end. They have indeed served our country. With a $21.7 billion surplus, it seems mean-spirited to me that we have taken away that kind of support. To raise the age of eligibility for veteran service partners from 50 to 58.5 years for women seems to be mean-spirited in the context of the wealth of this nation. We can do better for veterans and their families and, with these caveats, I do support the bill. However, before I finish, I would like to acknowledge the veterans across Australia who participated recently in the 40th anniversary of the battle of Fire Support Base Coral and Balmoral, as well as acknowledge all those who took part in that very significant battle in the Vietnam War. I particularly acknowledge 1RAR and 3RAR. The 3rd Royal Australian Regiment are in my electorate, at Holsworthy. They are a known as ‘Old Faithful’, which is a wonderful name they have gained due to their reputation for delivering the impossible. I am very proud to have met many of them at the function that was held by the government in the main hall on Monday evening. I wish to commend and thank them all for the service they have given to their country. Even while we have a very significant and generous budget that provides for veterans and their families, I think the very best that we can do for them is to try to be the very best Australian citizens we can be in their honour and in reflection of their personal sacrifice. I commend this bill to the House. Ms ANNETTE ELLIS (Canberra) (12.04 pm)—It is my pleasure to rise in this place today to speak to the Vet- erans’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008. The bill contains three measures, which were key policy initiatives in the area of veterans’ affairs for the Labor Party at the election late last year. Among other things, the bill will extend the income support supplement to war widows and widowers under the qualifying age without dependants, extend disability pension bereavement payments in respect of single veterans or members in receipt of special rate or extreme disablement adjustment disability pension who die without sufficient assets to pay for a funeral and automatically grant a war widows or widowers pension to widows or widowers of veterans or members in receipt of temporary special rate or intermediate rate disability pension immediately before their death. Extending the income support supplement to all war widows and widowers will effectively remove the qualifying age for the income support supplement for war widows or widowers without dependants. Currently the qualifying age is 60 years for men and 58.5 for women. This change will result in existing and future war widows and widowers under these qualifying ages becoming eligible for the income support supplement on and from 1 July 2008. I understand this change will assist approximately 1,400 war widows or widowers and wholly dependent partners who are under pension age and not currently entitled to income support. This measure is particularly relevant given that we have brave men and women from Australia’s defence forces deployed in Iraq and Afghanistan and in recent times have sadly seen the loss of life of members of the defence forces. The partners of defence personnel killed in action should not have to wait until pension age to receive this payment, and now I am very proud to say they will not have to wait. Payment of the income support supplement on the grounds of permanent incapacity will be retained so that incapacitated war widows or widowers and wholly dependent partners who are under the pension age continue to receive their income support supplement as a tax-free payment. The current maximum rate for the income support supplement is $163.20 per fortnight, and I am sure that the extension of this benefit will be welcomed by war widows and widowers and the veterans community as a whole. The extension of the disability pension bereavement payments to the estates of single veterans who have died in indigent circumstances is a great step forward, providing dignity for deceased veterans. Our veterans have served their country with honour and dignity in life, and this measure will ensure that we treat them accordingly after their passing. This measure will apply to the estate of single recipients of the special rate and extreme disablement adjustment rate of disability pension. A person will be considered to have died in indigent circumstances if the value of the person’s estate is not sufficient to cover all liabilities, including funeral costs. This one-off payment will provide 12 weeks disability pension payment to the estate of the deceased veteran or Defence Force member. This payment is in addition to a funeral benefit, which is also payable to indigent veterans or members and is a contribution towards funeral costs and will be payable in respect of deaths that occur on or after 1 July 2008. As

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 131 well as assisting the families of veterans, this measure will also take some financial pressure off ex-service organisations and their members, who often put their hands in their pockets to ensure that one of their members has a dignified burial. Currently this payment is only available to the widow or widower of the deceased veteran or defence member. The extension of the automatic grant of war widow or war widower pension is another initiative that we took to the last election. This measure will automatically grant the war widow or widower pension to the partner of a veteran or member where that veteran or member was in receipt of the intermediate rate or temporary special rate disability pension. This measure will commence on 1 July 2008. All of these measures were fully funded in last night’s budget. It is another example of the Rudd government delivering on every single one of its election commitments. Unlike those opposite, we do not have ‘non-core promises’ as part of our language—things to be quickly forgotten after the writs have been returned, as has been the case in the past. The veterans affairs budget from the Rudd government provides a record $11.59 billion spend on veterans and their families. This record spend is occurring against a quite rapidly declining population in the veteran community. For veterans and their families, as well as the rest of the Australian community, this budget provides certainty in relation to the range of payments to older veterans and particularly those with caring responsibilities. These changes are long overdue. Our veterans community deserves the very best service and care government can offer. These fine men and women have served our nation in times of war and in times of peace, putting their bodies and their lives on the line in the name of service to their country. As a Labor member of this place, I am very proud of the policies that we took to the last election, particularly in relation to our veterans. There is no-one more deserving of our support and the support of government generally. No matter where they have served, in war or in peace, our veterans have made great sacrifices to build and protect the nation that we have today. Veterans’ families have also had to make sacrifices: having a member of their family away for long periods of time, and helping that family member readjust to life after deployment and, often, later to civilian life. The families of our veterans are unsung heroes and they give support and care 24 hours a day, seven days a week. It is correct for me to reflect on words that the Prime Minister used in the House of Represen- tatives yesterday. He said, ‘Sadly, sometimes it is the families that are actually making the greatest contribution when there is a loss of life.’ It is quite appropriate and long overdue, in my opinion, that we extend better entitlements to veterans and their families, as this bill does. Labor promised these improved benefits during the election campaign and here we are delivering on our promise early in the term of this new parliament. We could reflect on the 12 years that we have had in the past to move the sorts of actions contained in this bill; I am just glad that we have them in hand and are doing them. The Rudd Labor government have acted quickly to implement these much needed initiatives to improve the support that we provide to our veterans, our ADF members and their families. It is indeed a pleasure to commend the bill to the House. Ms HALL (Shortland) (12.11 pm)—At the outset of my contribution to this debate, I would like to acknowledge the contribution that veterans have made to our community, to our country and to our nation over the years. Without their contribution Australia would not be the country it is today and we would not enjoy the quality of life or the lifestyle that we do in this country. Each and every member on this side of the House acknowledges that contribution and the sacrifices that veterans have made for our nation over the years. It is because we are so aware of the contribution that veterans have made to Australia over such a very, very long time that this government has provided a record amount of spending on veterans in this year’s budget. In fact that record amount of spending is $11.5 billion. I know it makes all members of the Rudd government proud to stand up in this place and say: ‘We have delivered to the veterans. We have delivered to the veterans community. We haven’t ignored them because they are old and frail. We’ve acknowledged the fact that their contribution is worthy of our recognition by financially supporting them.’ This bill contains three measures that were part of our 2007 election commitments. Once again I would like to emphasise to the House that the Rudd government is about delivering on our election commitments. We do not make a commitment and then turn our back on it. We deliver. We said that we would deliver to veterans and that is exactly what we are doing. This bill extends the income support supplement to war widows and widowers under the qualifying age without dependants. It extends the disability pension bereavement payments with respect to single veterans or members in receipt of the special rate or extreme disablement adjustment pension who die without sufficient assets to pay for a funeral. There is an automatic grant of war widows or widowers pensions to widows or widowers of veterans or members in receipt of the temporary special rate or intermediate rate disability

MAIN COMMITTEE 132 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 pension immediately before their death. As I have said, these were commitments to the veteran community, and they are commitments we have delivered on. The extension of the income support supplement to war widows and war widowers under the qualifying age without dependants is very important. It will benefit approximately 1,400 widows or widowers under the VEA and wholly dependent partners under the Military Rehabilitation and Compensation Act 2004 who are under that pension age and currently are not entitled to income support. We recognise that this is a vital change, something that will really help those widows and widowers. The measure removes the requirement for war widows or widowers to be over the pension age, have a dependent child, be permanently incapacitated or be the partner of a person receiving an income support pension. Payment of the income support supplement on the grounds of permanent incapacity will be retained in order for incapacitated war widows or widowers and wholly dependent partners who are under the pension age to continue to access their income support supplement as a tax-free payment. This provides additional support for younger war widows or widowers and wholly dependent partners during that postbe- reavement period. Members of this parliament would be very aware of just how hard it is for a younger widow or widower to come to terms with the loss of their partner, and we are recognising this in this legislation. Mr Hunt—Mr Deputy Speaker, I seek to intervene. The DEPUTY SPEAKER (Mr S Georganas)—Is the honourable member seeking to ask a question? Mr Hunt—I am indeed. The DEPUTY SPEAKER—Will the Government Whip accept the question? Ms HALL—Most definitely; I welcome it. Mr Hunt—In the light of the member’s concerns about younger spouses of veterans, does she support the proposal which will extract $35 million in payments to veterans’ spouses by increasing the qualifying age announced last night from 50 to 58.5 years of age? Ms HALL—The member asks a very good question. In answering this, I would have to point out to the member that this is a responsible budget. This is a budget that is attacking the problems that have been created by the Howard government. It is making some hard decisions. The Howard government did not deliver in any shape or form to veterans, and this is a financially responsible budget. In this budget, as the member identified, there is a reduction in eligibility for the partner service pension, and the change will take effect in July 2008. This change was made in response to broader community expectations that people should be participating in paid employment. That is something that the previous Howard government championed, to the extent that I had coming to my office on a regular basis women with disabled children who had to jump through hoops in order to get a Newstart payment. It was something that the Howard government pursued mercilessly during their time in government. That proposal is only expected to affect around 400 people; the legislation we are debating here today will benefit 1,400 people. It is interesting that the member jumps up and becomes a champion for these people now, when the Howard government constantly attacked the most vulnerable people in the community on a regular basis. I must say I have not seen the member championing disadvantaged people in this parliament; rather, I saw him and his colleagues standing up in the House when they were in government and introducing and speaking to the most draconian legislation, which had the most enormous impact on vulnerable people in our community. I would say to the member, in answer to his question, that I find it the height of hypocrisy that he would stand up here today and try to fault a budget that provides record spending on veterans of $11.59 billion. I thought that the member would be celebrating the increase in money to the veterans community rather than picking up on one small area where there has been a reduction, which is in line with the overall community expectation that people participate in the paid workforce wherever possible rather than call on taxpayer funded income support. This is a member who has time and time again voted for legislation that has attacked the most vulnerable people in our community. I think he should hang his head in shame. Whilst I am talking about this budget, I would like, for the benefit of the member opposite, to go through a little bit of what is in it. I feel he needs to be enlightened. He needs to learn about the enormous respect for and contribution to the veteran community of the Rudd government. At the same time as we are delivering to the veterans community we are dealing with the inflation and the problems that have been created by the previous government, so we have had a pretty hard job to do. We have had to look after those people in the community that look to government for support but at the same time to clean up the mess that was left behind. This $11.5 billion budget for veterans affairs includes $6.34 billion in compensation for income support pensions and $4.87 billion in funding for health and health services. That is very important when you have an ageing population, and our veteran population is an ageing population. It is particularly vulnerable and needs to be able to rely on health and health ser-

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 133 vices. Under the previous government there were enormous problems with accessing health services for veterans. At one stage, because of the underfunding by the previous government, many doctors refused to accept the gold card because the government of the day had eroded the value of it. I am sure that the member opposite welcomes that $4.87 billion in funding for health and health services. The Rudd government is also delivering on its election promise to restore the value of veterans compensation. It is very important for veterans that are relying on that compensation. It is very important for the member opposite and for all of us to remember that the bulk of veterans and war widows live on fixed incomes and therefore have a greater appreciation of the need to manage Australia’s inflation. As members would know, when you are on a fixed income and you have to pay more for food and more for fuel, it gets harder and harder each day. The challenges are enormous. You have to make decisions about whether to put petrol in the car to drive to the doctor or to put food on the table or about whether or not you can afford to pay for medicines, to visit your grandchildren and your great-grandchildren or to buy any luxuries at all. We understand how vitally important it is to our veteran community to get rid of the inflationary pressures that are a legacy of the previous government. This budget includes $3 million over three years to help ensure all veterans have access to the support available through Operation Life regardless of where they live in Australia. The budget also includes $20.2 million to carry through the government’s commitment to secure the future of the historic Graythwaite estate in North Sydney and for the provision of aged care services through New South Wales RSL. The provision of aged care services and the commitments made in the budget in relation to aged care services are vital for our veterans community. I am sure all members, particularly those on this side of the House, recognise just how important they are to the veterans community. Ex-service organisations across Australia will now have access to additional financial assistance for their work supporting the veterans community. Without that support by those RSL welfare officers, those working in the RSL assisting veterans—and I thank them enormously for the work they do—the veterans community would be a lot poorer and would be gravely disadvantaged. Those organisations will also be able to access additional funds through the BEST and TIP programs. These are vital programs. Total additional funding of $14.9 million is being made available over four years, and that includes in 2007-08. There is $6.9 million over three years. That is for those programs. The Rudd government has recognised the role that many veterans play in caring for sick and elderly partners. That is why we have allocated the carers payment, the carers budget bonus, for people on carers allowance and people who are carers who receive a service pension. Some of those people will be receiving up to $1,600. That is in recognition of their contribution. There has also been the change to the utility allowance earlier this year. I think what all this really demonstrates is the commitment of the Rudd government to veterans. This legislation also provides for an extension of the disability pension bereavement payments. The bereavement payment will be extended under the VEA to the estate of a single recipient—that is, a person who is single; who is in receipt of a special rate, an extreme disability adjustment rate of the disability pension; who dies in indigent circumstances. What that really means is that, if you are a veteran in receipt of one of those benefits and the value of your estate is not sufficient to cover all your liabilities, including your funeral expenses, then that will be taken care of. I think that is very important. These measures are intended to support families of veterans towards meeting the cost of funerals where the deceased dies without sufficient assets to pay for the funeral. I do not think there would be a person in this place who would like to see one of our veterans unable to be buried and put to rest in the manner in which they deserve. Those veterans have been out there, have fought for our country and have contributed to our nation. As I said at the commencement of my contribution to this debate, their contribution has been enormous. The least that we can do is give them a good send-off. The payment will be made to the estate of the deceased veteran. This measure is expected to commence on 1 July 2008. The bereavement payment consists of a one-off payment of 12 weeks worth of the special rate of the EDA rate of disability pension. It is estimated that the measure will benefit around eight special rate and 15 EDA single pension families per year. That, I think, is worth while. The legislation also extends the automatic grant of war widow or war widower pensions. The VEA provides for the automatic granting of war widow or widower pensions to the widows or widowers of certain classes of disability pensioners, such as those receiving the TPI or the EDA. The measure extends the automatic grant to partners of deceased veterans or members who were receiving the temporary special rate or the disability pension under the VEA. The aim of this measure is to provide some peace of mind to these veterans and their families. The measure will commence on 1 July. These measures provide war widows and widowers access to the support supplement and the gold card for treatment. It is expected to benefit approximately 23 war widows or widowers per year. Once again, it is something that is going to improve circumstances for our veterans.

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In conclusion, I would like to suggest to the member opposite that he should really think carefully before he raises issues about the Rudd government’s treatment of our veterans. The Rudd government has increased the commitment to our veterans enormously. He should hang his head in shame when he thinks about the way the government he was part of attacked the most vulnerable people in our community. (Time expired) Mr MARLES (Corio) (12.31 pm)—I rise to support the Vet er a ns’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008. This bill is about extending three entitlements which currently exist for the veterans community. First and foremost, this is a bill which is about honouring the commitments that Rudd Labor made in the lead-up to the 2007 election. This represents the mantra of this government: what we took to the election, the promises we made in that election, will be what we ultimately do when we are in government—and what we are doing in government. There is no distinction on this side of the House between a promise which is described as a core promise, and a non-core promise. If it is a promise that has been taken to the election, if it is a promise upon which people voted at that election, then that forms part of the mandate of the government and that mandate will be fulfilled. This stands in stark contrast to the manner in which the previous government operated in the implementation of the Work Choices legislation. It was the single biggest piece of legislation in the last term of that government and yet not a word about it was breathed in the 2004 election, which gave rise to that term of government. What we now see with the Rudd government is a very different way of operating. It will act upon the promises it takes to an election and make sure that they form the heart of the program the government then implements. In this bill we have two entitlements that it is estimated will apply to only about 23 families each. Despite that, it was a promise that we took to the election and it is a promise that we now fulfil. One of the extensions to the entitlements contained in this bill is estimated to cost only about $100,000. But it was a promise we took to the last election and it is a promise that we will fulfil in government. Turning to the bill, there are three extensions to the entitlements which currently exist in the veterans community. The most significant of those in terms of the number of people that will be affected is contained in schedule 2 of the bill. This represents an extension of the income support supplement which is paid to war widows and war widowers. Right now, war widows and war widowers receive the income support supplement if they have attained the qualifying age of 60 for men or 58½ for women and if they have a dependent child, if they are permanently incapacitated as defined under section 45AA of the Veterans’ Entitlements Act 1986 or if they are the partner of a person in receipt of certain pensions. This list of criteria, which is the basis for receiving the income support supplement at the moment, is both outdated and unfair. It is creating a level of injustice within the veterans community. This bill and this particular extension to the existing entitlement will extend the income support supplement to those widows and widowers who are under the current entitlement age and who have no dependants. Effectively what that does is remove these outdated and unfair criteria which exist at present. This will therefore have the effect of making all war widows and all war widowers eligible for the income support supplement. This will particularly help younger war widows and widowers, and it will obviously help them deal with their bereavement as a result of the death of their loved one and adjust to what will then become a very different life. It is estimated that this extension to the entitlement will apply to 1,400 new families in the veterans community—1,400 families who are currently not receiving that income support supplement. It is a fairer way of applying that entitlement and it is a far more modern way of applying that entitlement. There are two other extensions to existing entitlements which are smaller in the number of people that will be affected but which are just as significant in terms of the impact that they will have upon those people. The first is contained in schedule 3 of the bill and it involves extending the current bereavement payment. At present there is currently a bereavement payment paid to widows and widowers of veterans which is equivalent to 12 weeks of the disability pension. This is obviously paid with a view to helping defray the costs of funeral expenses and, indeed, with the immediate adjustment to life after the death of their partner. What this extension will do is provide the bereavement payment to the estates of veterans who die in indigent circumstances—that is, veterans who die in circumstances where their estate is unable to cover their costs. In such circumstances at the moment, often the funeral expenses for such veterans are being covered by extended family. By extending this entitlement to veterans who die in indigent circumstances, it will provide significant relief to the extended families of those veterans. It is important to note that that will be a tax-free payment. The final extension of an entitlement which currently exists is the extension of the automatic grant of the war widow and war widower pension. At present, war widows and war widowers whose partner was in receipt of certain pensions immediately prior to their death are automatically granted the war widow or war widower pension. What this extension will do is add to that list of pensions—which is the basis of that criteria—two additional pen-

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 135 sions, which therefore extends the criteria. We will then have a situation under this bill where war widows or war widowers will automatically be granted that pension if their partner was a veteran who, immediately prior to their death, was in receipt of the temporary special rate disability pension and the intermediate rate disability pension— again, an important extension for those families. Each of these entitlements will become available from 1 July 2008—that is, this year. Taken as a whole, this represents a package which will significantly improve the amount that is paid to the veteran community. It represents the high esteem in which the veteran community is held by the Rudd Labor government. There is no place where that esteem is held higher than in my electorate in the city of Geelong. There is a resur- gent interest in Geelong, as indeed there is I think around Australia, in Australia’s military history, in those who have served in Australia’s military and in honouring our veteran community. Geelong’s military history is perhaps best exemplified in the person of Albert Jacka. Albert Jacka, of course, is famous for being Australia’s first Victo- ria Cross winner in the First World War. Albert Jacka was born in Winchelsea in the Geelong region and was raised there. He was born in 1893. He enlisted in the Australian Imperial Force, the AIF, on 8 September 1914 and was then assigned to the 14th Battalion 4th Brigade of the 1st Division of the AIF. He arrived in Egypt on 31 January 1915, along with thousands of other Australians who for the first time were seeing a much wider world and who were engaging in what they thought was to be their great life adventure— and, of course, for many, that is what occurred. Albert Jacka went on to fight at Gallipoli and, in an extraordinary confrontation with two of his comrades, he was involved in an engagement with the enemy in open ground where he reclaimed a position which is known as Courtney’s Post. For that he won the Victoria Cross—as I said, the first Victoria Cross that was won by an Australian in the great war. His citation read: On 19/20 May 1915, at “Courtney’s Post”, Gallipoli, Turkey, Lance Corporal Jacka, while holding a portion of our trench with four other men, was heavily attacked. When all except himself were killed or wounded, and the trench was rushed and occupied by seven Turks, Lance Corporal Jacka most gallantly attacked them single handed, killing the whole party, five by rifle and two with the bayonet. It is said that when Albert Jacka’s commanding officer came to the trench shortly after that engagement he found Albert Jacka sitting there calmly amongst the dead with a cigarette in his mouth and he simply said, ‘I managed to get the beggars, Sir,’ which, in a sense, is a very laconic statement of the Australian character—an Australian character which has very much been defined by the actions of our servicemen in conflict. From there, Albert Jacka went on to serve in Europe throughout the First World War. In May 1918 he was injured. He suffered a gassing and an injury to his trachea. It was felt at the time that he would not survive but he did, and he returned to Australia in September 1919. Albert Jacka went on to become the mayor of St Kilda. He died in 1931 because, it is thought, of his war wounds, and he was buried in the St Kilda Cemetery. I take you through that story partly because it is the description of Geelong’s greatest military hero, but it is also worth remembering that in the person of Albert Jacka, a person who died very prematurely, really, at the age of 38, of war wounds, we had somebody who, even with such a short life, spent most of his life as a veteran. Albert Jacka won his Victoria Cross at the age of 22. He came back to Australia at the age of 26, but he spent most of his adult life as a veteran—a veteran suffering a wound that he had incurred in the service of his nation. It speaks volumes about the life that those who have served our country experience and how important it is that we provide for veterans in our community and honour their legacy and the service they have given. Of course, this bill is very much aimed at doing that. In Geelong we have a significant veteran’s community. It was my great privilege earlier this year, on 4 March, to participate in a local flag-raising ceremony. The flag that previously existed at this particular place had become tatty and they wanted a new Australian flag, so it was a great honour for me to participate in a flag-raising ceremony with Rodney meek, the President of the Geelong RSL, at the RSL Village Geelong in Bell Park. It was a wonderful occasion. The RSL Village Geelong in Bell Park is a very significant institution for providing support to veterans. There are veterans who live there who have fought in a number of conflicts in Australia’s history dating back to World War II. At the RSL Village Geelong in Bell Park I had the real honour of meeting Ed Patterson, a veteran of the Kokoda campaign. As I stood in his kitchen, I listened enthralled as he told stories of the conflict that occurred on the Kokoda track and his experiences there, and I felt incredibly honoured that a person of his service—a person who had participated in such an important moment in our country’s history, at such an important moment in defining both the identity and the independence of our country—was living amongst us. I think that the sense of honour that I felt in being in the presence of Ed Patterson is reflected, I believe, in the renewed sense that we see across Australia in commemorating the service that our veterans have given but also celebrating them within our community now. I think we have seen that in the resurgence in the number of people who have participated in Anzac Day ceremonies, and that of course occurred in Geelong last Anzac. Lots of veterans—and not only veterans but people

MAIN COMMITTEE 136 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 from the whole community in Geelong—participated in the various Anzac Day ceremonies that occurred last month. In the pre-dawn service at Johnson Park, which is the main park in the centre of Geelong, it was estimated that the attendance was up by 25 per cent on the previous year, and indeed that previous year had had a record attendance. At the mid-morning service at 11.30 am in Johnson Park, which is the service that attracts the largest number of people in Geelong, there were 7½ thousand people participating in that event, an incredible number really. I had the honour of being at that event and sitting on the stage and being able to see that whole crowd in front of us. Again it was estimated that that represented a 15 per cent increase on the previous best turnout. There is a really significant phenomenon that is going on in Geelong, and of course going on across Australia, in terms of the people who are participating in these events. I think what it says is that people are searching for an identity in the events that have occurred in our military history, and that is rightly so because our military history has gone a long way to defining the character of our country. It is therefore very important to understand the role that our veterans have played in contributing to the character and the identity of our nation. Of course, that is a character and an identity which we in the Rudd Labor government, and I am sure the other side, are very much keen to celebrate and honour. What this bill represents is an attempt at doing that—at making sure that the package of this suite of entitlements is improved for veterans—and in doing that we honour the legacy of their service and we place the veterans in an appropriate position of respect within our community. Mr RAGUSE (Forde) (12.47 pm)—Today I would like to talk about the Veterans’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008 but more about those within our community who do a lot of work and support veterans and others. Just as a little bit of a run-through of the bill itself, this is an election promise that has been delivered, providing more money for veterans and their families. In addition to the $6.34 billion this government will spend on compensation and income support pensions, this record veterans affairs budget provides $4 million for veteran mental health, focusing on the vital area of suicide prevention; $14.9 million over four years to ex-service organisations to boost their capacity to support the veteran community; and $20 million to secure the future of the historic Graythwaite estate in North Sydney and the provision of aged services provided by the RSL. This is in contrast to the previous government, who never funded their promises. Veterans did not have to wait for this budget to benefit from the change of government. Effective from 20 March, the veteran community received increased pensions for war widows, widowers and disability pensioners via fairer indexation—indexation of up to $1,045 each per year—increased carers payments of between $600 and $1,600 per carer and increased telephone and utilities allowance. The federal budget overall is a financially responsible budget. The bulk of veterans and war widows live on fixed incomes and therefore have a greater appreciation of the need to manage Australia’s inflationary pressures. Mr Hunt—I have a question for the member, if that would be acceptable. The DEPUTY SPEAKER—Will the member allow a question? Mr RAGUSE—I am happy to take a question. Mr Hunt—In light of the member’s concerns about price rises and impacts on veterans’ families, does the member for Forde support the increase in the age for the receipt of pensions for veterans’ partners from 50 years to 58½, an 8½-year increase overnight in the complying age? The DEPUTY SPEAKER—The member’s question must be brief. Thank you. Mr RAGUSE—Madam Deputy Speaker, I would prefer to take that on notice and maybe provide more information. I am happy to have a discussion outside this session, and I will certainly take that on notice. I am happy to respond. I would certainly talk about some of your colleagues in opposition who were not in attendance at particular important events. I am going to talk about that a little bit and then we can talk about some of the financial concerns that you may have. This is a Rudd government initiative and we have delivered on our election commitment as we promised, and detail has been provided by the other speakers. I really want to pay tribute today to those who have supported the veterans—not only their spouses, who finally have received some benefit for their sacrifices, but many of the community groups like the RSL and other veterans’ associations who have worked in the background. Without their support and representation, we would not have been able to direct the best benefits to those veterans and their families. In the electorate of Forde—and that is probably my major concern—we have a large number of returned service men and women. Of course, the measures in our record budget—currently the measures benefit only 400 people—will provide a benefit to 1,400 veterans of campaigns and their families. The electorate of Forde, as I have said, has a large number of people and a large number of community organisations that support those veterans. I was privileged to represent the Prime Minister at a function on the Gold Coast on the weekend to commemorate the Battle of the Coral Sea. It was well attended. The American consul general was there representing

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 137 the American President and he spoke on behalf of the President. I delivered the Prime Minister’s address and we also had a response from the captain of the USS Cleveland, which is currently in Brisbane. Interestingly enough, while I am not the member for that area, the members of the three Gold Coast seats were invited but none of them saw fit to actually attend the ceremony. Yes, they may have had other pressing engagements, but it was a little bit obvious and concerning to those who had organised the event and who have had a very good relationship with both sides of government that, as a representative of the government, I was the only one there, when the function was not in my electorate. Putting that aside, I would like to comment on those in the community of Forde who have supported veterans for a long time. A lot of these changes have been made not simply because we understood overnight that there was concern but because of those within the community organisations—the RSL and veterans’ groups. I particularly mention a number of people: from the Beenleigh RSL, Tom Childs and Richard Hetherington; Joe Mulders from the Tambourine RSL; and from another community organisation, RSL veterans’ affairs, Bill Meiers and Gaven Thurlow, who works with the Vietnam vets. These are people who have shown a lot of concern and have been frustrated for many years that government was not listening to them. During the election campaign we found, as our election commitments have proved, that there was a huge need. As I said earlier, as early as March this year we provided changes that led into this budget round. I would also like to reflect on my own personal experiences. My grandfather, who died in the early seventies, was a Gallipoli veteran. Of course, the government of the day did not see fit to provide the sorts of benefits that we are providing now. I know that it was very, very difficult for my family. My grandfather was highly decorated, but that came at a huge personal sacrifice to his family and he was never given any recognition. Likewise, my other grandfather, who was a veteran of the Somme, was tragically killed in the 1960s in a motor car accident that left my grandmother quite devastated financially and otherwise. It is clear that we can send people off to war—and the other side of government seems to have more of a pen- chant for that than we do—but on their return it is about looking after our veterans and their families. As the Prime Minister said in parliament yesterday, it is the families that make a lot of the sacrifices. Not only do they lose a family member to a campaign but also on their return they confront other issues. As I said, I have been involved with members of our local RSLs for some time and it is quite terrible to see people who have served their countries not getting the sort of support that we are now providing in our budget. To hark back to the commemoration of the Battle of the Coral Sea that I attended on the weekend, that battle has a particular interest for me. I grew up in a family in which, while I had no military service myself, both my mother and my father had served in the Second World War. My mother in fact was in the Women’s Air Force and was stationed in Townsville. She was actually landside when the Battle of the Coral Sea was occurring. She was a spotter and a plotter of enemy aircraft. Up until about five years ago, the government would not recognise her service or the service of other females who served landside in those battles. They had to declare, finally, that Townsville was a battle zone. She is now 87 and doing very well, but in her early 80s she was told that she could not have benefits that other veterans may have had. It was the RSL that came on board and supported the changes that we have made in this legislation, which will certainly go a long way to resolving those issues. In terms of the advocacy that the RSL and other organisations provide, I would certainly like to pay special tribute to Noel Payne, who works in my electorate. Noel Payne served in the Royal Navy from 1965 to 1975. With all that previous service, Noel has been an advocate for people who have issues with government pensions and entitlements. I suspect that, after our legislative changes, Noel may not have as much work to do in that advocacy process because a lot of the issues he was fighting for are now looked at and considered in our bill. Noel was awarded an OAM for his services because, as I said, he has given a lot of time and commitment to this. Being a returned service person himself, and with legal training, he understands the issues and is able to advocate for people who have not been considered within previous legislation and payments. As I said, my family were involved in the military for a number of generations. So it is good for me to be part of this government and the consideration of this bill and its changes in the House. I would like to close by saying that it is an issue that we have considered long and hard. Community organisations within the seat of Forde will be applauding this particular change. For those reasons, I commend the bill to the House. Debate (on motion by Dr Kelly) adjourned. Sitting suspended from 12.58 pm to 4.00 pm

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VETERANS’ ENTITLEMENTS LEGISLATION AMENDMENT (2007 ELECTION COMMITMENTS) BILL 2008 Second Reading Debate resumed. Dr KELLY (Eden-Monaro—Parliamentary Secretary for Defence Support) (3.59 pm)—It is a great pleasure to rise in support of the Veterans’ Entitlements Legislation Amendment (2007 Election Commitments) Bill 2008. I flagged in my first speech that I would be an advocate for our veteran community during my time in parliament, and it is inspiring to see that we are delivering on one of our fundamental election commitments. It will be reas- suring to the community that this is the case, as it sends a clear signal and is proof that the Rudd Labor government will deliver on its election commitments. While we often talk of the need to ensure the welfare of our veterans, as a society we have waxed and waned in meeting this obligation in the past. There is one side to the veterans’ story in particular that has not been well appreciated or adequately addressed. That story is the hidden toll upon and sacrifice made by the families of veterans. It is important that this story be told and that we take the necessary action that awareness must bring. It is certainly important because of what we owe to the veterans and their families. It is also important for the peace of mind and the effectiveness of our current service men and women and their families. We cannot expect that the ADF will function at its best unless its members engage in service and in operations in the knowledge that their families will be looked after. Abraham Lincoln understood this only too well when he spoke the immortal words of his second inaugural speech in 1865, only a few months before he himself was to become a casualty of the long civil war that was coming to a close at that time. He finished that speech by exhorting the nation to care for those who had borne the battle and their widows and orphans as the first among tasks in the healing that must follow conflict. It is my view that keeping faith with this sacred obligation is one of the measures by which we judge the worth of our society. In my own electorate of Eden Monaro, I am privileged to represent many thousands of veterans and their families. Altogether there are 3,336 Department of Veterans’ Affairs beneficiaries, including 838 war widow pensioners. It was one of the factors that weighed with me in making the decision to stand for the seat. As I travelled around during the campaign, I was to encounter many of these special members of our community and to hear their concerns. Among them were veterans of the Kokoda Track, the air war over Germany and service on the perilous seas of the Indian and Pacific oceans during World War II. There were proud veterans of Vietnam and other post World War II conflicts and peace operations to which we have sent soldiers, sailors and airmen. They talked to me in particular about the situation regarding the indexation mechanism for their superannuation pensions and their struggles to keep pace with the real cost of living. They spoke of some improvements they would like to see in the medical support they are provided and of their hopes that the Rudd Labor government will maintain the security of this country and properly support the new generation of veterans. In this respect, we have tragically experienced recent additions to those who have lost loved ones in action. The funeral of Lance Corporal Jason Marks was a poignant reminder of this, and my heart goes out to his family. I was pleased to pass the concerns and views of my veteran community on to our team, and they have been and are being taken seriously. Beyond these issues, though, I also came across the stories of the families of veterans. I understood these stories, as I had witnessed aspects of them in my own experiences and family history. My grandfather Ben Kelly was a sergeant in the 2nd/3rd Machine Gun Battalion in World War II and saw service in the Middle East and Java before being captured by the Japanese, along with the rest of his unit, and being sent to work on the Burma-Thai railway. The experiences he endured were only fully revealed to me on reading the diaries of ‘Weary’ Dunlop, whose movements and locations mirrored my grandfather’s. There were only a handful of searing events that my grandfather was prepared to recount, such as having to watch the beheading of his best friend. The sheer brutality and sadistic cruelty that he and his comrades endured can never be fully comprehended, but we should never cease to appreciate what we were spared by their fight against fascism. To this day, pride of place in my possessions is reserved for the loin cloth he wore and his PW badge from that time. When he was evacuated from Thailand to Australia, he was taken to the hospital at Heidelberg, in Victoria, where he slowly recovered, and he eventually rejoined the family after many months. I have a wonderful photo from April 1946 which celebrates this reunion. I was able to trace the information flow that came back to Australia through his service record. It is difficult to appreciate the mental anguish that his wife must have endured through the war. At first the only information she had was that he was missing. This was followed by advice that he was missing, believed a PW. Finally confirmation came through that he was alive and a PW. By this time, though, there were already reports of the brutality with which captives were treated, and this must have weighed heavily on my grandmother’s mind.

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In looking at my grandfather’s service record, the other thing that strikes you is the fact that he, along with so many others of the first wave of volunteers in the 2nd AIF, was on active service for 2,043 days and most of this time was spent overseas. It is hard to imagine today the special endurance of a spouse and a relationship under the strain of almost six years of absence, wondering whether or in what condition a loved one would return. What feelings and sensations would my grandmother have had when she first saw her emaciated and traumatised husband on his return from captivity? It was a great privilege for me to march on this year’s Anzac Day in Bega, my first since leaving the Regular Army, wearing his medals—as he was a proud born and bred Bega boy. Coinciden- tally, I found myself marching next to a World War II veteran who was also a survivor of the railway, which made the day all the more poignant. Of course, during those post World War II years it was a given that to give any indication of mental anguish from the war was a shameful sign of weakness in an Australian male and it was considered bad form to talk about your experiences to your loved ones and regale them with the horror you had endured. Added to this for the PW was the perception that somehow they had let the side down by being captured. There were no real outlets for these veterans, so they internalised and suffered with no help. This in turn led to the development of severe pa- thologies. The manifestation of this would often be nightmares, alcohol abuse and domestic violence. This was often compounded by the inevitable physical ailments and disabilities that resulted from the sadistic brutality and deprivation they suffered. It was the families that also bore the brunt of this. What special courage and endurance did it require to live through many years of this experience with no recognition or acknowledgement and little help? One such woman, a constituent from Queanbeyan, Thelma Walters, came to me for help. Her story represents those of so many in my electorate and across the land. Thelma dearly loved her husband, Carl, and there is no doubt that Carl felt the same about her and their children. On his return to Australia, and due to his experience in World War II as a prisoner of war of the Japanese, he was not the same man she married or farewelled to the war. For 20 years she lived through all I have described and so much more. Often was the night when Thelma would wake in shock and fright with her husband’s hands wrapped around her throat in a struggle with his demons. He suffered from constant blackouts and spent long months in Concord Repatriation General Hospital. He sought sol- ace in the bottle, which in turn would lead to violence towards Thelma. Often he would disappear for periods of time. This culminated in Thelma surviving an attempted murder, for which her husband in his deteriorating state of mind was unfortunately charged. Finally, for her own self-preservation, Thelma had no other choice but to suc- cumb to the urgings of all who cared about her to separate from her husband. This solution, while removing the immediate physical threat, led to its own burdens of guilt, mental anguish and loss after so many long years of marriage with someone she had never stopped loving. It also meant that Thelma suffered financially, as her di- vorce led to the loss of war widow entitlements when Carl passed away. I had been pursuing an ex gratia payment on Thelma’s behalf, as I believed that was the least we could do for someone whose private war went on for 20 long years. Thelma’s own health had suffered over the years, and she recently went into hospital for a hip replacement. In her vulnerable state, however, complications subsequently set in and Thelma passed away on 7 May without returning home from hospital. She was laid to rest yesterday. For Thelma, now all the pain and struggle is over and she is finally at peace. Her passing for those who loved her is eased by knowing that this is so and that in accordance with her deep faith she has gone to something better. The world has been a better place for her having been among us, as despite her own problems Thelma was always there for countless others in her family and community—as was evidenced by the more than 100 people who attended her funeral. She lives on in her wonderful children, Barry, Narelle and Jackie, her grandchildren and her great-grandchildren, in the contribution she made to our community and in our thoughts. Thelma Walters is a tribute to the great generation to whom we owe so much. When I think of this legislation, I will think of Thelma and of the sacrifice of all the families of veterans. As the Minister for Veterans’ Affairs stated when introducing this measure, it is a significant step towards fulfilling our commitment to deliver better services to our veterans and their dependants. It will extend the income support supplement to war widows and war widowers who are under qualifying age and remove a number of other impediments to this support, immediately benefiting around 1,400 people. The bill retains payment of income support so that incapacitated war widows or widowers who are under age pension age will continue to receive their income support supplement as a tax-free payment. There will also be additional support for war widows and widowers to help them meet the cost of living. The bill will extend entitlements to disability pension bereavement payments to help the families of veterans to meet funeral costs. The bill will also extend the automatic grant of war widow, widower or orphan pensions to the widows, widowers and eligible children of veterans and members who immediately before their death were in receipt of a temporary special rate or immediate rate disability pension.

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As I have said, this is a significant step, and the other measures announced in the budget demonstrate our commitment to veterans and their families. This budget represents record spending for veterans’ affairs—$11.59 billion—not just because of inflation but in real terms. In addition to the $6.34 billion this government will spend on compensation and income support pensions, this record veterans affairs budget provides $4 million for veteran mental health, focusing on the vital area of suicide prevention; $14.9 million over four years to ex-service organisations to boost their capacity to support the veteran community; and $20 million to secure the future of the historic Graythwaite Estate in North Sydney and for the provision of aged care services provided by the RSL. This is in contrast to the previous government, which never funded their promises. Veterans did not have to wait for this budget to benefit from the change of government. Effective from 20 March, the veteran community received increased pensions for war widows, widowers and disability pensioners via fairer indexation—up to $1,045 each per year; increased carer payments of between $600 and $1,600 per carer; and increased telephone and utilities allowances. The federal budget overall is a financially responsible budget. The bulk of veterans and war widows live on fixed incomes and therefore have a greater appreciation of the need to contain and manage Australia’s inflationary pressures. The member for Gilmore in her contribution drew to the chamber’s attention the issue of the Korean post- armistice review. I thank the member for her interest in the issue and the plight of the Korean veterans, of which we are fully apprised. The Rudd Labor government has committed to implementing the review. Defence and DVA will shortly be providing advice on the implementation of the review, and the government will then move to fulfil its commitment. Notwithstanding all of these measures and what I have said, I fully acknowledge that we have more miles to travel before we rest on veterans issues. Mr GRIFFIN (Bruce—Minister for Veterans’ Affairs) (4.12 pm)—in reply—I would like to thank all members who have contributed to the debate on the Vet er a ns’ Entitlements Legislation Amendment (2007 Election Com- mitments) Bill 2008. Later on I will say a bit more on what was said by a number of speakers. This bill delivers a number of election commitments to the ex-service community and is a significant step in meeting this government’s undertaking to deliver better services to Australia’s veterans and their dependants. Firstly, the bill extends the automatic grant of war widow, widower or orphan pension to the widows, widowers and eligible children of veterans and members who, immediately before their death, were in receipt of the temporary special rate or intermediate rate disability pension. This measure also extends gold card eligibility to the dependants of these veterans and members. The dependants will become entitled to free health care for all conditions. Secondly, the bill extends eligibility for the income support supplement to all war widows and widowers. The measure removes the previous requirements that a war widow or widower be over qualifying age and have a dependent child, be permanently incapacitated or be the partner of a person receiving an income support pension. From 1 July 2008 all war widows and widowers will, subject to the means test, have access to additional income support in the form of the income support supplement. To ensure that no war widow or widower is disadvantaged by this change, the payment of the income support supplement on the grounds of permanent incapacity will be retained. This will mean that, for those war widows or widowers who are incapacitated and who are under the age pension age, the income support supplement will continue to be a tax-free payment. Finally, the bill extends in respect of certain single disability pension recipients the disability pension bereavement payment. Currently this payment is only payable in respect of partnered disability pension recipients. Under this measure, disability pension bereavement payments will be payable in respect of single recipients of the special rate and extreme disablement adjustment rate of disability pensions who die in indigent circumstances. The bereavement payment is a one-off payment equivalent to 12 weeks of the special rate or extreme disablement adjustment rate of the disability pension. The bereavement payment will help the families of veterans and members to meet the cost of the funeral. The measures in this bill clearly demonstrate that the government is serious about its pre-election commitments to better look after the veteran community and their families. I note that this bill has been supported by all speakers. It is interesting, though, to note that, while the bill has been supported by each member of the opposition who has spoken, the opposition had nearly 12 years in government to act on these particular issues and they chose not to. That is interesting. I applaud and welcome the fact that now, when they are no longer in government, they have actually agreed to, and support the fact that we are taking, these actions. But I would add that these are not matters which were raised during the death knell before the last election. They were matters which were on the public record as a matter of public concern for years be- forehand, and the previous government at that time chose to do nothing about it. It is also interesting to note the member for Gilmore’s comments regarding the report with respect to post- armistice Korean veterans. As the member for Eden Monaro has said, we are currently in the process of dealing between departments to ensure that the recommendations from that review are supported. But the member for

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Gilmore was part of a government which rejected most of the recommendations of that review. She was part of a government that had the opportunity to act on these matters and actually refused to do so. I want to assure her that we are in discussions with the post-armistice Korean veterans. We have met with them since the election, we are in the process of working through these issues and we will act with respect to this matter—unlike the government of which she was part. Many members took the opportunity as part of this debate, as is not unusual with amending legislation, to raise a number of issues with respect to the budget or various aspects of what they believe to be the impact of the budget. I will not spend much time on those issues now because I know there will be other occasions in this place where we will have the opportunity to debate them in more detail. I will welcome those opportunities to discuss some of the measures in the budget and any concerns people might have with respect to their operation and impact on members of the veterans community. But what I will say very briefly is this: this is a record budget with respect to expenditure on veterans affairs. The principal reason for that is, frankly, the implementation of changes which were passed by the previous government, with the support of the then opposition, but came about as a result of pressure put by the ex-service community and by the opposition in the period leading up to the last election. There are many members here—and I note the member for Fadden is not one of them—who know that before the last election the then opposition, the Labor Party, campaigned long and hard on the issue of indexation, particularly in relation to special rate pensioners. And there were many members—and, I might add, a number of them are not here anymore—who were very belated in terms of their support for that position and who went out publicly and opposed it over quite a period of time. The previous government, who had had this issue raised with them over a 10-year period, did on numerous occasions take a position to not support those calls for a fairer indexation system. I give credit where credit is due: to the previous Minister for Veterans’ Affairs for being able to convince his government to finally act on this issue late last year. I give him credit for doing that. But I note once again that it took 10 years for the government of the day to move, and then only in the context of an election being called and only in a situation where they were fully aware of the fact that they were in grave danger of defeat. And, as we know, that is exactly what the Australian people meted out to them. The bottom line for members of the opposition is that it is all very well to come along here and be critical of this government implementing its election commitments, as it has done with this legislation or with respect to the budget, when in fact they are glossing over what their record was in this area when they were in government. There was 10 years of basic neglect, only acted upon in the last 18 months. And, in those circumstances, the veterans community of this country were aware of that, understood it and many of them, at the ballot box, acted accordingly. Question agreed to. Bill read a second time. Message from the Governor-General recommending appropriation announced. Ordered that the bill be reported to the House without amendment. GOVERNOR-GENERAL’S SPEECH Address-in-Reply Debate resumed from 20 March, on motion by Mr Hale: That the address be agreed to. Mr LAMING (Bowman) (4.20 pm)—I would like to take this opportunity in the debate on the address-in-reply to the Governor-General’s speech on the legislative agenda for this term to highlight a unique part of Australian political history—in fact, the nexus of two very important events, one well known in Queensland and one completely unknown, I think, until my address today. Of course, with all fascinating stories about political history there is a plot, a character and a context. In this context, it is Cape York, one of the most remote parts of this country, a place of extraordinary natural beauty but also isolation, colourful characters and a fascinating potential for ecotourism and, in the areas around Cape Tribulation, the home of the Kuku Yalanji people. The context was that I was visiting a new establishment, the finest restaurant between Cairns and Hong Kong, some have argued— apologies to Port Douglas: Whet Restaurant, which is run by two young and extraordinary individuals, Michelle and Matt Wenden, at 1 Cape Tribulation Road, Cape Tribulation. It was there that I had a chance meeting with Mr Patrick Shears, a man who many in Queensland will know was part of the foxtail palm controversy back in 1994. It was the topic of a Four Corners episode in April of that year. He was the lead character, an unwitting parks ranger for the Cape York region who stumbled upon four- wheel drives and armed individuals allegedly harvesting foxtail palm seeds worth between $5 and $6 each on the black market. Very cleverly, as a former Vietnam veteran, he waited until they were away from their cars and ac-

MAIN COMMITTEE 142 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 tually drove away with their four-wheel drives, leaving them completely stranded with their foxtail palms and no way of getting out. Later, when asked how exactly he stole their cars, he said, ‘The keys were in the ignition’—so little did they expect to find a Vietnam vet and barefooted park ranger who would manage to leave them completely stranded. Of course, Pat’s fate from that event was sealed and the subject of a documentary. What is lesser known from that Cape Melville affair is that Pat Shears to this day remains in Cape Tribulation helping out tourists, offering hospitality and looking after stations and other areas when requested or required by locals who need a break in some of the most remote parts of Australia. Typically, when Mr Shears is there, he will say, ‘What else can I check out for you? What’s going on? Is there anything suspicious or unusual?’ Among his stories is that one of the caves has the remnants of Portuguese explorers from the 17th century, including body armour—remnants deep in a cave which have been found and to this date remain in a secret location known only to a few Indigenous elders. There is hope that this important part of Australian history can one day be revealed. But the other fascinating part of history that I would like to elaborate upon today is known as Communist Cave. This is like some sort of mystery novel—a place out the back of Townsville, the other side of Hidden Valley. The story begins in 1939, when there was a non-aggression pact signed between then Nazi Germany and Russia. That neutrality treaty resulted in the federal minister for information in Australia in 1940 announcing a total ban on a range of communist publications—the Tribune, the Communist Review, the Militant and the Red Star, among others. On 5 June 1940, after the fall of Paris, the Communist Party of Australia was declared illegal under the Na- tional Security (Subversive Associations) Regulations. As a consequence of this, clandestine printing operations were set up all around Australia. One of these was outside Townsville—no easy matter to do in those days. Print- ing presses were large and cumbersome items and these were carried on donkey right up deep into ravines, with them often having to backtrack to conceal their location. Sure enough, in 1940 a printing press was in operation in Thunderbolt Creek, just to the west of Mount Zero Station. It was used to print communist propaganda that was distributed around Townsville and to the tin miners, who numbered many hundreds in those days. There was a community of 200 Communist Party members in Hidden Valley at the time. The newspaper was actually titled the Spark, and of course it was a two-hour horse ride to bring these hand-printed newsletter and newspapers back to Townsville and secretly distribute them. History, as it often does, turned again and, with the invasion of the Soviet Union by Germany in 1941 and Sta- lin turning to the West for help, the relationship with the communists changed somewhat and the ban on the Aus- tralian Communist Party was lifted; hence all printing ceased. All that activity stopped for nearly nine years until again, under Prime Minister Menzies, the communist dissolution bill was introduced. Again the printing started and, once again, when the referendum was defeated, printing stopped again. Far be it from me to suggest that Communist Cave could be a great place for the Labor Party to do some branch building. If you do go back there you will be greeted not so much by hospitality or even a printing press, which appears to have disappeared, but by a hammer and sickle painted on the roof of the cave, as well as beds, mat- tresses, personal possessions, lamps, cooking utensils and rusting cans and bottles. It really is a faded reminder of turbulent years past and of Australia’s just as turbulent relationship with the Communist Party. This cave was found by Mr Patrick Shears after the recommendations of locals. It probably would have remained nothing more than rumour had it not been for his extraordinary determination to locate it. He even had—which he had hoped to keep secret—the locations written out by hand, and I have that here. I will be giving that to the Australian Mu- seum. There is a lesson. We have some extraordinary Australians who are doing incredible things. Parts of history just like this—and there are rumours around Cape York of many other fabulous and fantastic things yet to be uncov- ered—deserve to be remembered, recalled and recorded, as should the great work of Patrick Shears in that part of the world. Mr BEVIS (Brisbane) (4.26 pm)—The debate on the address-in-reply is normally one we have in the weeks immediately after the parliament opens. It seems somewhat strange to have the debate during the budget session, but I guess that is a product of the sitting pattern and the legislative program. I do want to go back to the first days of the parliament after the election, to the Governor-General’s speech and to the circumstances that we all observed and participated in in that first week. In doing so, I want to again comment upon the very worthwhile welcome to country that Indigenous Australians provided for the opening of the parliament and upon the historic day that followed, when the parliament and the nation said sorry to the Indigenous peoples of Australia. One of my constituents and an active person within the Aboriginal community and Reconciliation Australia, Jackie Huggins, was there that day. I am happy to say that, on my parliamentary office wall, in the entry, is a wonderful photo of

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Jackie and my wife, Cathy, and me celebrating the events of that day. I truly believe it was a significant moment in the history of our nation. I was surprised that evening when I watched the news to discover that so many people around the country had stopped what they were doing—whether it was at work or at school—and turned on the television set to listen to the debates here. In the weeks that followed, when we were back in our electorates, I was surprised at the number of people who had done just that and who spoke to me about it and at the number of schools who wanted to share their thoughts and their support and to be part of that sentiment. It was a historic event and a very important occasion for all of us. The Governor-General’s address set out the broadbrush plans of the new Rudd Labor government. It is normal in these things to reflect on the events of the election, on what transpired and on the plans that the government and, I guess, the opposition may have for the years ahead. I have no doubt—thinking back over the last two or three years—that the issue more than any other that affected the people of Brisbane was their concern about their livelihoods, about their conditions of employment and about what Work Choices was doing to all of that. There was no doubt at all that, more than any other issue, that was in the minds of people. I have to say that that was not because in my electorate the trade unions conducted a high-profile campaign. They did not. I would have been more than happy for them to do so if they wished. It certainly was an issue that I campaigned on. It was something that touched virtually every family. I will mention just two examples. I can remember conducting Saturday mobile offices, as we all do. We had a petition there against Work Choices. Most of us who have been in politics for a while have been out on the stump trying to get people to sign petitions for all manner of things. Usually you accost folk walking past and if you are lucky they are polite, but normally they do not want to stop. I had people literally queuing to sign this petition. I do not think I have ever before, in the years of my active political life, seen that sort of response. The other example I want to mention was when I was conducting an activity focused on returned service men and women. I was welcoming people to a function and as a gentleman came through the door he sort of grabbed me and said, ‘What are you people doing to stop those terrible industrial relations laws? What are you doing about Work Choices?’ The gathering had absolutely nothing to do with Work Choices. This fellow chewed my ear for a while and I said, ‘Well, we’re actually trying to do what we can to get rid of the laws. They are going to be a big issue at the election.’ At the end of the night, he came up to me and apologised for abusing me and tackling me about it. He then said he was a serving naval officer. He said, ‘This doesn’t affect me, but I’m worried about my kids.’ That drove home very strongly to me just how deeply on the minds of ordinary Australian men and women the issues surrounding Work Choices had become. I am pleased that in the early days of this parliament the new government has already put in place legislation to remove some of the more offensive aspects of that legislation— or at least aspects which were offensive in the eyes of a goodly number of my constituents and myself. One of the issues that is growing in significance across the country and in my inner-city electorate—with a higher socioeconomic level than many others in the country—is that of climate change. Again unlike most occasions when there are elections, there were local community groups organising public meetings and organising meet-the-candidate days. They were not organised by me or my party apparatus; they were not organised by any of the candidates. They were organised by people who were concerned about climate change and wanted to take the opportunity of a federal election to ask all of those people standing to come along and say what they thought about it. Predictably, most of the crowd had a pretty clear view themselves of what they thought about it. I am not too sure that anyone changed their mind as a result of any of those gatherings. But it was an indication of a genuine concern in the minds of many. There is no doubt that the question of climate change is one of the greatest challenges confronting not just our parliament but also parliaments of the world—and not just governments of the world but also industries and individuals. This is an issue that we need to take action on sooner rather than later. We have already wasted far too much time. This is not the occasion to have a debate about the ins and outs of climate change, but all of the serious projections indicate that, even if we were to do all of the things that scientists would want us to do tomorrow, we would still confront a worsening situation for somewhere between the next 30 and 50 years. That is a real worry. For many of us in this parliament, it probably will not worry us too much in 50 years time; but it will worry our children and it will worry our grandchildren, and that should worry us even more. I was very pleased that the first formal act of the new government and of the Prime Minister after becoming Prime Minister was to ratify the Kyoto protocol. There is much that needs to be done. I would like to think on an issue like this, frankly, that we can work more closely together across the political divide. It is desirable that this issue be addressed in the broad interests of all of us. There are economic consequences; there are economic consequences of doing nothing. But we need to confront that issue head-on.

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I do not think it was an accident that, when I look at the final results in the last election in the seat of Brisbane, the Labor Party primary vote went up about 2½ to three per cent. The only other party to really increase their vote were the Greens, who also went up by about 2½ per cent. I do not think that was an accident. I think that was very much the will of the people saying: ‘We are concerned about climate change. We actually do think that ratifying Kyoto is an important thing to do and we want our government to take a lead on this not just here at home but around the world.’ I have certainly listened to that concern of the people of Brisbane. Indeed, I have campaigned on it quite extensively for some years. The third issue which is particularly important to me, and I know to many people in Brisbane, is the educational opportunities that are made available for people in the electorate of Brisbane and across the country. Education and health care are two of the policy areas that first caused me to get involved in politics at all. I do think it is incumbent on the government to ensure that all people in this country have access to high-quality education so that they can reach their full potential irrespective of where they might live or how big their parents’ bank account is. We failed, I think, in the last decade to properly address that, and it was a concern that people raised with me in local schools. Labor’s commitment, which we saw pursued in the budget just last night, to invest heavily in trades training facilities in all secondary schools across Australia was warmly received. The commitment to provide funds to ensure that all year 9, 10, 11 and 12 students are able to get access to computers was also warmly received in the electorate. Before the election I had schools contacting me about it; I can tell you that since the election I have had plenty of schools asking me to come along and talk to them about what they presently have available, what they currently do and what they hope this new Labor government program may be able to provide for them in their community. It is an exciting opportunity. Over the years, Commonwealth governments on both sides, Labor and Liberal, have instituted major investments in our schools. Indeed, those Commonwealth injections have been critical at different points in our history. It was Commonwealth funds that established the science laboratories in most secondary schools in this country. It was a Commonwealth investment in libraries that saw many secondary schools get decent library and resource centres. I think these projects that Labor is embarking upon now will in time be seen in the same light. They will be a new plateau from which I hope all secondary schools will benefit. Health care is important in every election. In an electorate like Brisbane, which is going through a major reju- venation—the demographics of inner-city suburbs not just in Brisbane but in other capital cities are changing— you have the full range of healthcare requirements. So you have those people like my parents’ generation who built their homes after World War II in the late forties and brought their children up and now need specialist care as aged citizens. Overwhelmingly they want to stay in the home they built, where they raised their family. They need support and assistance to do that. They need the health care and the opportunity to get ready access to doctors and medical procedures. But, as that generation moves on, I am now seeing those old schools, like the school I attended as a young lad in my electorate, now growing again as young families move into that suburb. They have a different set of health needs, but all of them are important. Health care is not cheap; we all know that—it is an expensive business—but it is one of the most vital services we have, if not the most vital. The old story that, if you do not have good health, the rest does not matter is only too true. I think our commitment to end the blame game and to substantially increase the funding of public health and hospitals will be well received by the people. It was certainly an issue in the minds of those in Brisbane during the last election. I want to make special mention in the health debate of one subgroup: diabetes sufferers and, in particular, type 1 diabetes sufferers. I have made quite a number of speeches in this parliament about type 1 diabetes. Most of us were involved when the children suffering from type 1 diabetes came to the House. I do not know about any other member, but, as I have said on a few occasions, the most powerful lobbying I have ever had to endure was those young kids telling me their story. One of those young kids who came to see me about 10 years ago is now a young man, Gareth Eldershaw. I am very pleased to say we have kept in regular contact. Just the other day he wrote to me. He is now a youth ambassador for the Juvenile Diabetes Research Foundation and he wrote: May is a special month for JDRF as we try to make the community more aware of Type 1. As you know the jelly baby is a sort of motto that represents a vital aid to help us recover from a “hypo” when our glucose levels are too low. There’s a little blue guy in the envelope that I’d like to give you and ask you to wear in May and especially on Budget night. I can tell Gareth that I am wearing his little blue guy on my lapel, as I did last night during the budget. Gareth went on: We talked about the grant to fund the reimbursement of insulin pumps for kids under the age of 18. 3000 pumps for all these kids (over a 5-year period) would cost $35m. It’s a lot of money I know, but you know how much it will save the government in the future? Of course it will make life a bit more bearable (and safe too) if kids can use insulin pumps.

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I was very pleased to have been able to ring Gareth up today and say that in last night’s budget we made a step in that direction. I do not pretend that we have gone as far as we need to. I want to see the opportunity to benefit from an insulin pump—and not everybody with diabetes is suited to an insulin pump—be made available to all. But I do applaud the Minister for Health and Ageing, Nicola Roxon, for her efforts in recent times in ensuring that the budget includes a provision that will see about 700 young Australians gain access to an insulin pump. I look forward to continuing to work inside government now rather than from the opposition benches to try to have that program extended. The other issue that I want to mention is broadband. When I have raised this in the past, people have said: ‘Hang on, you’ve got the inner city electorate in Brisbane—10 or 12 kilometres from the GPO is about the bound- ary of your electorate. What’s the problem?’ Even in inner city Brisbane there are pockets where broadband is not available, and that is a foolish and unacceptable position for a country to place itself in in the 21st century. I will continue to pursue the rollout of broadband particularly to suburbs in my electorate like Upper Kedron and Ferny Grove on a regular basis. Ensuring that high-quality, ultra fast broadband is available for all Australians is something that we need to pursue as a major investment in the future of our people and the industries of the future. This is not just some social welfare activity, this is the income-generating tool of the future and the present, and we are behind many other countries that we would compare ourselves with in the OECD. It is time we caught up. In the couple of minutes remaining to me, I want to make a few comments and thank yous. This is actually—I had to sit down and count it up—the seventh election that I have contested for the federal seat of Brisbane on behalf of the Labor Party and it is for all of us— Mr Georgiou—And you survived. Mr BEVIS—And I survived. The miraculous one I survived was the 1996 election. After seven elections, it is a humbling experience every time, I have to say. It does not matter how often you confront the people, it is a humbling experience to know that they place their trust in you to do the right thing and to represent them, and it is an enormous honour that we all have the privilege of shouldering here. I am sure none of us in this room at the moment forgets that. Sometimes you wonder when you see some of the goings-on in parliament, but the truth is that, for all of us, it is a great honour. I want to thank my campaign team. For those of us who are incumbents, sitting members, I think first and foremost you should acknowledge your staff. For those of us who are incumbents, this is not an election campaign you conduct in the last three or four weeks; it is a three-year activity. The people are judging you on what you do every day. As federal members, we spend half of our lives in Canberra and another four or five weeks roaming the country with committees or as ministers or as shadow ministers, and we rely very heavily on our staff. I have been blessed with high-quality staff. Rod Kendall has been the glue that has held things together in my campaigns and in my office and is a good friend. Shirley Fallows has worked with me now for 17 years of the 18 years I have been a member of parliament. I also thank Lynda Fraser and Alison Donohue. I pay special thanks to my campaign director, Terry Evans, an old mate of mine from teaching days, who continues to give many, many hours of his free time to a cause that he believes in fervently, which is the Labor Party and the trade union movement. Whatever our politics, we are all blessed with individuals like Terry, without whom we would find it extraordinar- ily difficult to get elected in the first place. Above all, though, I want to thank my family. They end up suffering more than anybody else. It is always hard on the family, and if you have a partner and you have children then the partner has that added burden of trying to do all of the things that both parents would normally be doing in a con- ventional setting. I do not know about anyone else, but when I am a thousand kilometres away trying over the phone to discipline kids or get them to do homework I have found it a fairly daunting task. I owe my wife, Cathy, more than I can ever say or repay. She has put up with far more than I would have in her shoes. My three kids who are now adults and our young teenage son have had to deal with a lot of ups and downs in having a politician for a father. There are the good days when they think their dad is a good bloke and the other days when they want to have a go at him. It is not all jam and biscuits for them. We owe a great debt to our families, and I want to take this opportunity to thank my family in that context. Mr NEVILLE (Hinkler) (4.46 pm)—I heartily endorse the comments of the member for Brisbane. In many re- spects, parts of my speech follow his. I am sure Cathy is a saint, and you can tell her I said that. It gives me a tremendous amount of gratification to stand in the chamber today, symbolically at the start of my sixth term—because we have been going for six months—and give this address-in-reply to the Governor Gen- eral’s speech. Like those of many members, my electorate underwent a radical change of electoral boundaries in the recent redistribution in Queensland. Hinkler shed the industrial city of Gladstone and many of its outlying rural communities, and I was allocated the busy city of Hervey Bay to the south as well as the satellite townships to

MAIN COMMITTEE 146 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 its west. This represented a 44 per cent change to my old electorate—that is almost a new electorate. Fortunately, I was under the same TV umbrella, so people knew who I was. That was to some extent helpful. But it was a big alteration to the electorate of Hinkler and probably the most significant since its inception in 1983-84. I was sad to lose Gladstone. That might sound strange—I suppose the member for Brisbane would say it sounds a bit strange—and I am not afraid to say I was a little apprehensive when I first took on Gladstone. It had a reputation as a robust industrial town, but I found quite a different dynamic when I got there: well-trained young techno- crats and highly focused process workers who were not going to be pushed around by union officials and shop stewards. They had minds of their own, as was demonstrated in one of the very early EBAs—I do not think we even called them that in those days—when they had a referendum in the plant and, as I remember it, the workers voted 83 per cent to 17 per cent in favour of going into the EBA. That was significant, and obviously they were thinking of their futures when they did that. Most workers were prepared to give me a go, and local families appreciated the stability and security afforded by the coalition government. Over time, I built my vote in Gladstone to 48.6 per cent because the region was getting what it needed from the coalition government in infrastructure and social programs. The coalition funded the Port Access Road to the tune of $7½ million, Calliope River Road and Landing Road to $4.1 million, Callemon- dah Overpass to $3 million and Kirkwood Road to $12.7 million. The coalition recognised the special needs of young, working Gladstone families and invested $3 million in developing an early childhood project for Glad- stone under the Communities for Children program. It was significant there because it is a young community and it is also a transient community. The coalition delivered economic security to all Gladstone families by investing in major industries and companies like Comalco. At one plant alone, even after the construction phase, 600 jobs were created. These investments in turn created other jobs that kept the boom going in Gladstone, and it is still going today. As well as Gladstone and Calliope, the coastal communities of Agnes Water and the town of Seventeen Seventy, along with the hinterland towns of Miriam Vale and Rosedale, moved out of my electorate and into Flynn. Again the rapid population growth in these areas gave them special needs in terms of infrastructure and I was proud to have helped deliver millions for safer roads, mobile coverage for the region and a healthcare centre. They had absolutely no healthcare facilities there at all. The environment is particularly important to local residents because of the region’s natural scenic beauty and emerging tourism industry, so various programs like Green Corps, Envirofund and Regional Partnerships were put to good use in maintaining the region’s pristine environment. The Hinkler electorate also lost the thriving rural towns of Monto, Eidsvold, Gayndah, Mundubbera, Mount Perry, Gin Gin, which also moved into the new seat of Flynn. These smaller centres were the true blue heartland of the old Hinkler—some would say true National Party country—relying primarily on agriculture and small business for the health of their local economies, with tourism becoming a more prominent feature. It was difficult to say goodbye to each of these communities and I urge the new member for Flynn to do everything in his power to keep delivering for them, because a small project in one of those towns has quite a significant effect on the whole community. Turning from the old Hinkler to the new, the seat remains one of the most diverse electorates in the country, in- corporating the sugar and small crop city of Bundaberg in the north, the grains city of Hervey Bay in the south— with its emerging tourist industry—and the coastal communities and rural centres in between, as well as Big- genden and Woocoo. Each community has its own distinct character. They have pressing needs and unique challenges—the City of Hervey Bay, particularly so. A generation ago, Hervey Bay was a group of small coastal communities with a total population of about 7,000 or 8,000. It was a little bit like the Gold Coast. In the past 30 years, those villages have grown together and today the city has a population of upwards of 50,000 people, many of them young families and, at the other end, many retirees. Its natural growth pattern, a long and narrow corridor hugging the coastline, has created unique transport problems. It is a bit like the Gold Coast except that it goes east-west, and that means you have these long thin corridors. I think the urbanised part is about 14 to 15 kilometres wide, which means you have long thin corridors, and we do not have enough of them. There is an urgent need for big-ticket road projects to ease traffic congestion and cut down on travelling time from one end of the town to the other. And there is an equivalent need for social and civic infrastructure. Because the town has expanded so quickly, councils have not been able to keep up with the demands of infrastructure, and there is a need for government intervention. The coalition recognised and responded to that clear need, pledging $9.3 million for three separate road projects: $5.6 million to realign Urraween Road, $2.8 million to complete River Heads Road and $900,000 to complete Old Toogoom Road. These were three of the arterial roads I was describing before. I cannot say how disappointed I was that the Labor candidate neglected to commit to these urgent projects. These projects are vital for

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 147 the future development of the Hervey Bay region, given the increasing popularity of the area with families, retirees and tourists. The city also badly needs a new community centre. It does not have anything like a community centre. It has a neighbourhood centre, which was a home that was donated some 20 or more years ago and its capacity to provide services such as limited hours of childcare, counselling, youth mentoring programs and quasi-medical activities is being outstripped by the area’s growth rate. The coalition was prepared to back the construction of a new centre with $1½ million of a $5 million anticipated outlay. Again, the Labor government has left this project high and dry. I cannot say what a huge disappointment this is for the families of Hervey Bay. I promise you, I will keep fighting for this funding even from the opposition benches. It really has to be done. To leave 30 community groups and quasi medical organisations without a home is unacceptable. The people of Hervey Bay gave me their strong endorsement on 24 November 2007 and for that I thank them profusely. Hinkler resisted Queensland’s ALP swing of 8.5 per cent, especially Wide Bay, but my margin was stripped to 1.7 per cent. Hinkler has always been a tough seat, although I did not expect it would be quite so tough in the recent election. In three close elections, my margins have been as little as 0.4 per cent and 0.3 per cent, and on one occasion was less than 0.1 per cent. Other than the Keating election, 1996, I have never had the luxury of a ‘safe’ seat. Hinkler has always come down to the wire. This was perhaps the sweetest victory of all—to paraphrase Paul Keating. Mr Georgiou interjecting— Mr NEVILLE—Yes. Many people played a role in helping me to hold Hinkler. First and foremost was my wife Margaret, who has been my strongest supporter throughout my political career. She is politically alert. She listens to things, to radio bulletins, she types letters and doorknocks with me. She is a very keen political observer. My campaign director, Rod Wilson, has now seen me through six elections and his guidance and counsel have always been the mainstay of our Hinkler campaigns. He worked closely with my deputy campaign directors, Dick Bitcon, Alf Bonanno and Lin Powell, who were dedicated in their duties in the three areas of the electorate, and also Betty Reddacliffe, who was a wonderful campaign treasurer. She watched every cent and the campaign came in on the positive side. I have—as the member for Brisbane said of his staff—been singularly blessed with excellent and experienced staff. Led by Lesley Smith, my staff of Heather Hawkins, Leanne Ruge, Kate Barwick, Ros- ina Johnson and Janelle Geddes worked tirelessly on the campaign, doing everything behind the scenes to make sure we got the right result on the day. As the member for Brisbane said, it is really a three-year campaign. Sadly, both Lesley and Leanne have left my employ—Lesley, because of the new government staffing outcomes which have deprived the National Party of a whip’s clerk, and Leanne because due to the redistribution, I am not entitled to a second office in the new seat. Lesley has been my office manager and sounding board ever since I first won the seat in 1993. She is a lady of great humour, great patience and great skill. I cannot speak highly enough of her contribution to my political and constituent successes. Our entire office misses her greatly. The same can be said of Leanne Ruge, who single-handedly ran my Gladstone office and gave quality contact to the entire Gladstone region. There are many other people to thank—too numerous to mention by name. I thank each and every one of those who assisted me, especially those who spent countless hours putting up the corflutes when they were knocked over, and the like, planning functions and especially manning the polling booths. ‘Team Hinkler’ put in a tireless effort for the months before the campaign proper commenced and continued to work nonstop up to the victory. I must admit that my Labor opponent’s campaign never recovered from an early gaffe in Hervey Bay, calling the Australian-resident mother of a British soldier serving in Afghanistan a ‘Pommy warmonger’. That was an unforgivable statement that quite understandably upset Rosemary Arthurs and her husband Tom. I do not care what your view is on these particular issues or policies; there is never any excuse for name-calling or personal insult, much less to those whose children serve our country or its allies. I would like now to talk about what lies ahead for the people of Hinkler. Last night’s budget was a huge disappointment for my electorate. Not one significant road project received funding and no helping hand was extended to local communities. Surf clubs will receive a water tank while the partly completed Elliot Heads Surf Life Sav- ing Club, which needs more money for completion, rusts away. In fact, much-needed funding for two community building projects under Regional Partnerships is at risk. Bear in mind that both the projects I am about to talk about are not flash in the pan ones that were confected for the election campaign; they are longstanding campaigns that have been well assessed but have been under a cloud of indecision for some time. The first Bundaberg project in the firing line is the expansion of the excellent Austchilli operation. This is the biggest chilli operation in Australia both in terms of fresh product and processed product. It is a tribute to the hard

MAIN COMMITTEE 148 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 work of David de Paoli; his general manager, Ian Gaffel, and their staff. Austchilli was to receive $650,000 to help stage 2 of its development of an innovative food processing activity. This was a high-pressure sterilising method. What it does is add considerable shelf life to products. That particular process would have been the first in Austra- lia. It was the first time that the technology was available to us and it would have opened up opportunities for small crop growers, technical service providers, job seekers and so on. In fact, it would have created 26 full-time equivalent jobs in the Bundaberg area. A full six months after the funding had been approved, Austchilli’s hopes sank—they sank last night in fact— when it appeared that this was one of the projects to be axed. Uncertainty has caused the company to shed six staff positions and it has missed out on lucrative contracts, including one which would have seen the company provide avocado product to all the restaurants in the Subway chain. A more insidious effect, which has just been brought to my attention, is the fact that Australia now will have to import this avocado product from Mexico. Interestingly, Queensland’s Minister for Tourism, Regional Develop- ment and Industry, a Labor minister I might add, implored her federal colleague to resolve the situation in Aust- chilli’s favour. In a letter, state minister Desley Boyle says, ‘This project has significant commercial outcomes for the region, both for domestic retail and food service growth and the export advantages this project would have for the region. I am keen to have this matter resolved as quickly as possible.’ The second Bundaberg based project is different in nature but no less important. The Lake Ellen heritage hub is a playground, bicycle safety training course, bicycle skills course and a heritage hub. It brings the community together in a multitude of playground and learning experiences. It celebrates multicultural diversity in Bundaberg and is quite significant to the sugar industry. It had a grant of $236,500 approved under Regional Partnerships program to help purchase playground equipment but has been left in limbo again because of last night’s decision. In fact, it has the Commonwealth’s badging on the fence—actually on the fence. So the Commonwealth does not mind taking credit for it, but is not going to come up with the dough. Bundaberg City Council committed $150,000 for the project, the Queensland government $215,000 and local community organisations $125,000. But the Commonwealth’s component—as I said, $236,500—is up in the air. The biggest concern for the local community is that the playground equipment has already been purchased and most of it installed. What happens now if the approved Commonwealth funding—I use ‘approved’ in inverted commas—disappears? The project has already received strong corporate in-kind support and the local community will now be put in a position where the same benefactors may have to pick up some of the government’s slack. There is an enormous amount of anxiety about these two projects in the Bundaberg area. The local media has ral- lied to the cause and many families are pinning their hopes on the new Labor government living up to its mantra about caring for working families. Not so long ago, on 16 November last year, the then Labor spokesman for regional services, Simon Crean, said on the 2 pm news on radio 4BC: ‘If they’—meaning the Regional Partnerships projects—’have merit, if they have been approved, we will tick them off.’ Six months on, for heaven’s sake, when will the government confirm its promises? We already know of one project in Hervey Bay which has been axed—the fishermen’s hall of fame, which would have incorporated the Fraser Coast heritage centre and the Hervey Bay Experience. The centre would have been an iconic attraction for the Fraser Coast and its environment, with links to migrating whales, Fraser Island and the Great Sandy Strait. It is ironic that the state Labor government has forced the Traveston dam on these people while the federal Labor government has taken an iconic attraction away. These are important projects to the people in my community and I implore the government to reconsider its position. Mr DANBY (Melbourne Ports) (5.06 pm)—It has been said by those in the know that if you change the government you change the country. I think the events of the last few months show that to be an incontrovertible fact. Since the people of Australia entrusted Kevin Rudd and his team with government, totemic changes have taken place, not least in this place. From the first essential step on the road to recovering Australia’s environmental credibility—ratification of the Kyoto protocol—to the apology to the stolen generations, the first 100 days of this government, chalked up during the previous sitting period, were remarkably significant. We have just had the budget announcements, including two matters that are very dear to my heart and very dear to my electorate: the increase to the childcare tax rebate and the 38 childcare centres that are to be built with federal government support. These measures address the ra- tional economic need to get highly skilled women back into the workforce and the needs of children and families in our area. These are two wonderful developments as far as the people of Melbourne Ports are concerned. It is wonderful to show that with a democratic system we can change the country when we change the government. It is now up to us on this side of the House to implement the policies we fought so long and hard for—to simply be in the position to give effect to policies for ordinary Australians which were emphatically endorsed on 24 No-

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 149 vember. I want to thank all of the people who worked on my campaign in Melbourne Ports: my campaign director, Garth Head; the campaign office manager, Rami Stiglic; my staff—Tony Williams, Tonya Stevens, Sima Kotliar, Donna Walsh, Andrew Porter, Desmond Ko, Constantina Dertimanis, Jonathan Curtis, Sylvia Freeman, Morry Ross—and all of the other wonderful people who helped me achieve a seven per cent margin, which is the highest margin Melbourne Ports has had for the Labor Party since it was redistributed on the current boundaries in 1990. Given the fact that Melbourne Ports is now one of the wealthiest by per capita income seats in the country, that is a remarkable demographic and psephological achievement. Ms Neal—It must be the member. Mr DANBY—Whatever it is, I am pleased. As you know, Madam Deputy Speaker, this job has its ups and downs. We are all privileged to represent the areas we know and love. It warms my heart to see new colleagues from far and wide sitting in this chamber with me, including the member for Dobell, who has returned to this place. I am particularly honoured to be joined by the new members for Eden-Monaro, Corio, Maribyrnong and Isaacs. Equally, I welcome other new members to this place, and I welcome the return of my good friend Senator Jacinta Collins to the Senate yesterday and the imminent addition of my longstanding friend David Feeney, who won the third place in the Victorian Senate vote. Mike Kelly, the new member for Eden-Monaro, is a former head of army legal and a full colonel and holds a PhD in international law. As he has already demonstrated, he will be an adornment to this place as parliamentary secretary to the honourable member for Hunter. Richard Marles, the former assistant secretary of the ACTU—an institution that has campaigned tirelessly against laws that until so recently those opposite seemed to be doing an hourly volte-face on—is as bright and decent a person as you will meet and the people of Geelong are very lucky to have him as their representative. I am sure he will go on to great things in this place. Bill Shorten, the President of the Victorian Branch of the ALP and formerly state and national secretary of this country’s oldest union, the AWU, is known by many not just for his years of standing up for workers all over Aus- tralia but particularly for his role and that of his union amidst the Beaconsfield mining disaster. Bill’s incredible role during that disaster was a surprise to some people. It was no surprise to me as someone who has known him since he was at university. He is currently in the role of Parliamentary Secretary for Disabilities and Children’s Services and I am sure that great future roles await him. Mark Dreyfus not only is a brilliant Queen’s Counsel but a more capable person I do not think you could meet, particularly to chair the House Standing Committee on Legal and Constitutional Affairs. He will also have an extremely bright future in this place. Senator Jacinta Collins, who served in the Senate from 1995 to 2005, has returned once more to ably serve the people of Victoria. Jacinta is the former national industrial officer of the union whose members I proudly serve, the great Shop, Distributive and Allied Employee’s Union, or SDA for short, and was most recently in her Senate term the shadow minister for children and youth. David Feeney, the Assistant National Secretary of the ALP and former Victorian stare secretary, enters the Sen- ate on 1 July also as a senator for Victoria. David is a tremendously talented individual and will no doubt contribute to debate in the other place with his trademark wit and encyclopaedic knowledge. Like all of those I have mentioned, David is a measure of the wealth of talent we have in the Labor Party, not least in Victoria. We were blessed at the election with a wonderful team of people contesting seats in both the House and the Senate. Just as this house is enriched by the addition of such talented and passionate parliamentarians, it is poorer for the loss of my good friend the member for Swan, Kim Wilkie. A tireless servant of the people of Swan, Kim could be seen most mornings here after a bike ride effortlessly carting his bike around the corridors of this house. He was one of the finest and hardest working individuals I have known in this place and he served with distinction on parliamentary committees, including the Joint Standing Committee on Treaties. I wish him well for the future. It is the nature of politics, particularly with respect to legislative elections, that someone wins them and unfortunately someone does not. Many good people from all sides of politics are no longer in this place or will soon leave. I thank them, whatever their affiliation, for their contributions to this great institution and service to this country. On an unambiguously happy note, I have recently notched up my own special achievement, which coinciden- tally took place in the first 100 days of the government. I married my partner of more than a decade, the delightful Amanda Mendes Da Costa, several hundred metres from where I stand on Sunday, 24 February. This gave Amanda and me the tremendous joy of not just formally recognising our union but doing so in a traditional Jewish ceremony in the hallowed halls of our parliament. This happy event served as a powerful reminder, if I ever needed one, that this nation has given me and my forebears so much. Think of the immeasurably stark contrast between a state that actively persecutes you because of your family and because of who you are and what you believe in, and a state that welcomes and encourages diversity, a state whose parliament you proudly serve and

MAIN COMMITTEE 150 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 where the Prime Minister and the Deputy Prime Minister, cabinet ministers, colleagues, friends and family can celebrate your union and identity in parliament. This is one of the many reasons why I can say without a shadow of a doubt that I will never be short of reasons why I am proud to be an Australian. I was first elected to this place a decade ago. The expression is, ‘Time flies when you are having fun.’ I can only say that I have relished the challenges and opportunities of representing such a diverse, rewarding and engaging electorate over this period. In my maiden speech, I spoke of Melbourne Ports being an electorate where some people struggled to find their next meal while others almost next door struggled to make their next million. It remains much the same today, with probably even stronger contrasts. I, for one, welcomed the Prime Minister’s injunction, incumbent upon Labor MPs upon the election of this government, that they should visit the less fortunate in their communities, particularly homeless centres. Around the corner from my office, in Grey Street, is the Sacred Heart Mission, an organisation that I have had a great deal of involvement with during my time as the member for Melbourne Ports. The mission and its saintly staff—I would describe them that way—tirelessly cater for an ever-increasing number of needy locals while a street away you will find cavernous, beautiful Victorian mansions reflective of this disparity. The mission itself caters, on Boxing Day, for some 600 people in their dining room so that people who are in less fortunate circumstances eat something healthy—in fact, have something to eat at all—on that day. Most of us have thankfully moved on from the old era of class warfare; however, I firmly believe that we should not allow entire sections of the community to fall by the wayside in a time of ever-increasing, visible prosperity. We should not punish those amongst us who have been blessed with opportunity and those of us who have worked hard to attain a lifestyle of our choosing. We should, however, ensure that this remains an egalitarian society—a land of opportunity whose shores have become renowned for that egalitarianism. I commend the Prime Minister for his timely focus on this issue, after many years of coalition indifference. It is not always the case that there are opportunities in our society, with a growing gap between rich and poor. Housing affordability is a growing concern to millions of Australians, whether they are in a nuclear family or not. Anyone who is working hard to pay off their own home and own their slice of the increasingly expensive Austra- lian dream knows full well that the ‘she’ll be right’ mentality of the Howard government—they were the greatest friends of inflation, as the Treasurer said today—which derided inflation and the growing pressure on interest rates as a mere fantasy, affects most of us in one way or another. Most of us in this place—indeed, many people of the average age of most parliamentarians—have been hit less hard than some. But all of us know someone who has been affected by the dramatic increases in the average price of houses, not to mention the Peter Pan-like Never-Never Land low interest rate promises of the former Prime Minister. I do not need to be told of the political value of flying the flag on this issue; I have two children who will be faced with this issue in the not-too-distant future, as will countless young Australians. Many of the things that we do in this place have little impact on the world at large, but thankfully many do. I hope in this 42nd parliament we will be able to do our best to improve the affordability of housing. I am confident that the first budget of the Rudd government brought down yesterday will help achieve that aim. To be able to continue in government in this role of advancing the interests of all your constituents is of particular satisfaction, especially for those of us who have only known opposition during our elected lives. In the long years of opposition we adhered to the core values of our party and protected the interests of working families, something we will strive to do in government. The coalition, by contrast, seem determined to eat their young and their middle-aged. If the member for Wentworth succeeds in his preparation of his Nelson hors d’oeuvres— accompanied by a fine glass of Henschke, no doubt—it will be a doubly auspicious 2008. Let them continue to abandon their policies that they claim to be essential to this nation. Not only did they spend hundreds of millions of dollars of taxpayers’ hard-earned money on their own misguided social experiments, they disowned a core belief the moment it was tested, re-embraced it and then disowned it once more. One wonders what other conservative fixtures will become non-core—not least the Leader of the Opposition, particularly after the member for Wentworth recently repeatedly ruled out ruling out a leadership challenge—quite a mouthful! While those opposite continue to bicker, and the figures who used to ridicule the Labor Party for its own soul searching at times treat the parliament with contempt, it is time that we wondered about the future of the member for Higgins. It is a shame that his genuine desire to lead did not lead him, first, to have the guts to challenge for the leadership of his own party, then face an election and put his cards on the table—something both the member for Bennelong and the member for Griffith had the character and determination to do. Instead, as he and his colleagues busy themselves with anything from reading job ads to playing golf, we will get on with the business of delivering better and greater opportunities for ordinary Australians.

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 151

On the issue of the most expensive and short-lived social experiment in the history of the Commonwealth, the Frankenstein-like Work Choices legislation: anecdotes about this legislation are too familiar for any fan of Ye s, Prime Minister to make use of. We could do a lot of point-scoring on this issue but, despite the views of the current Deputy Leader of the Opposition, I am sure the plans for such legislation will not rise from the dead. Those opposite failed in their scare campaign targeting unions and many of my parliamentary colleagues as something akin to ‘Reds under the beds’. It is very funny to think of Richard Marles and Bill Shorten in that context. The Liberal Party spent obscene amounts of this nation’s treasure on advertising, pushed by their national secretariat and road-tested by Crosby Textor. They did this, in itself a repugnant thing. The money that all of us gave to government as part of the social contract to which we all subscribe they spent on flogging a dead horse— plainly scandalous. The Work Choices legislation tore fairness and flexibility from workers, ensured bargaining power was not remotely even but was vested predominantly in employers and, strangely for an item on a Tory to- do list, created an army of bureaucrats, agencies and regulators. This was the towering Everest of legislative farce. Had it been more farcical, it would have deserved a place in Monty Python’s repertoire alongside the dead parrot sketch. As we move forward with fairness and consign AWAs to the dustbin of history, we take great satisfaction knowing that ordinary people will be all the more secure in planning their working futures. One of the enduring challenges of this country and indeed of all countries in the years ahead is the threat of climate change. In his first official act as Prime Minister, the member for Griffith demonstrated the commitment of this government to take decisive action and show leadership in combating climate change. Ratification of the Kyoto protocol was an essential first step in bringing Australia into line with the scientific consensus, as well as that of the broader international community, that this is something that needs to be seriously combated. Australia may well have been meeting its Kyoto commitments but these were uniquely generous targets negotiated by the previous government as a kind of sovereign equivalent of a get-out-of-jail card—apologies to Parker Brothers, Madam Deputy Speaker, but that is the way it was. Yes, we got a good deal, but at what price? We obtained a short-term benefit by squandering the opportunity to use our resources and our good offices to deal with this problem at the earliest opportunity, making it all the harder for our children to tackle the problem. There must be no more environmental window-dressing in place of real action to tackle climate change. I have no doubt that it will be difficult for us to do our part—this time, to genuinely carry our weight in reducing emissions. President Kennedy said, speaking of the space program, ‘We do these things not because they are easy; we do these things because they are hard.’ Essentially, things which are easy to do would have been done, and many things which are tough are all the more worth while for being so. There would be no debate if there had always been a broad consensus in the political and diplomatic arenas on the clear problems in this area and a clear solution. This has also forced Australia to show leadership in this area. Australia enjoys close ties with nations which, like the Howard government, eschewed the Kyoto framework, as well as with developing countries who understandably have qualms over the impact that dramatic cuts in emissions would have on their expanding, energy- hungry economies. The former have concerns over the cost of emission cuts and insist that the latter, not least in consideration of the current size of emissions and projected increases thereof, should not be exempt. The latter type of countries maintain, understandably, that it is unfair that they should forgo the essential elixirs of the Indus- trial Revolution and fossil fuels, and they look askance at agreements that do not include several of the world’s richest and most polluting countries. This is understandable but, at the same time, is a potential catch 22 that affects us all. Agreement must be reached and soon. It is simply not feasible to continue along an exponentially increasing emissions path. Whatever gratitude we have to the inventor of the internal combustion engine, we cannot continue down this path. There needs to be a balance struck between the environment and economic enfranchisement of the billions of the world’s poor. If you live in the Ganges Delta and have been lifted out of poverty, no amount of money is going to be of any use to you if you and several millions of your neighbours find yourselves up the pro- verbial creek without a paddle. Climate change and the issues that surround it are the most common issues that my constituents express concerns over. I receive emails and letters on a daily basis demonstrating the degree of concern within the community. I have spoken on this issue of climate change repeatedly during my parliamentary career, including before it was fashionable to do so. If I am ever fashionable, it is usually fashionably late. We will continue to show leadership at home on this issue and we will continue to work at building a consensus abroad. Again in my view it is a no-brainer. We can stick our heads in the sand, hope the issue will go away and pretend it will not affect us. We will probably be long gone by the time the 2050 emission targets are realised, but my children will be around, as will many of our younger constituents and the children and grandchildren of others. We have no choice other than

MAIN COMMITTEE 152 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 to confront this issue head on if we want our country and our planet to remain as livable as we would have them be. It is a moral, political and economic imperative and one the Australian Labor Party is fully seized of. I commend this government to the House and I am especially proud of some of the challenges that I outlined at the beginning of my remarks that were outlined in the budget, particularly as they affect the good citizens of Mel- bourne Ports. Mr KERR (Denison—Parliamentary Secretary for Pacific Island Affairs) (5.26 pm)—This gives me an opportunity in this free-ranging debate to reflect on the good fortune I have had to be appointed by the Prime Minister to the position of Parliamentary Secretary for Pacific Island Affairs. In our long period of opposition, the former Howard government did not follow the practice of its predecessor of having a designated minister or parliamentary secretary responsible for Pacific island relationships. In that, they cut themselves aside from the practice that had been put into place when Gareth Evans was foreign minister and who worked with his counterpart, the minister for Pacific island affairs, Gordon Bilney. As events happen and coincidence permits, I have just come from a discussion with Gordon Bilney, who is attending the parliament as one of the former members returning to take part in the ceremonial events that are occurring this evening. But it did give me an opportunity to reflect on the 11 years where we rather lost track of our best interests in terms of our relationships with the Pacific. Indeed, by the time the Rudd government took office, we had difficult relationships not only with Fiji, where that is quite understandable, given that there has been a coup and Fiji is governed by an interim regime with a military characteristic, which we are seeking to encourage in its commitment to return to civilian rule by March 2009. I think all members of the House and the parliament as a whole and the community would wish well all those of goodwill who would come together towards that objective and to assist in facilitating the good health of the people of Fiji under a form of government that can be sustained, that removes itself from the cycle of coups that has benighted that country and where we can resume the full measure of goodwill and enthusiasm in terms of our relationship that many Australians would undoubtedly wish to see. Many Australians have good experiences of travelling to Fiji, they have experienced the hospitality of the Fijian people and they would share the concern and regret of the Australian government that, as matters currently stand, it is difficult for us to return to circumstances where the people of Fiji could have the same changed opportunities that will flow to the rest of the Pacific as a result of the approach of the Rudd government, so exemplified by the Port Moresby declaration announced early in the term of this government by the Prime Minister. Not only were our relationships with Fiji difficult when we came to government but also we had very strained relationships with the Solomon Islands, Papua New Guinea and a number of other Pacific island neighbours. It was obvious that quite a deal of work needed to be undertaken to reconcile our strategic interests, and our regional interests as a good neighbour, with our election commitment to improve Australia’s standing and to increase our commitment to good governance across the whole of the Pacific. A very good start could be made because of two circumstances: firstly, the early initiative of our Prime Minister to take aside Grand Chief Sir Michael Somare on the edge of the Bali negotiations on climate change and to re-establish respectful and serious discussion with Grand Chief Sir Michael Somare about the need to restore effective relationships between our two countries; and, secondly, a change of government in the Solomon Islands, which we responded to very promptly when the new Prime Minister of the Solomon Islands visited Australia, determined to turn a new leaf in that relationship and make a fresh start. Those events were followed by a visit to Papua New Guinea by Prime Minister Kevin Rudd. He took the occasion to announce—with the full agreement and, I think, enthusiastic support of the government of Papua New Guinea—our new approach to the Pacific, which is exemplified in the partnership arrangements that we are proposing to enter into. For those who are interested in more detail, the announcement and the terms of the Port Mo- resby Declaration are publicly available, and they are a very useful summary of the way in which the new government intends to approach its relationships with the Pacific. Those initiatives, and the visit of the Prime Minister to the Solomon Islands following them, have been com- plemented by visits by my colleague the Parliamentary Secretary for International Development Assistance, Bob McMullan, in travels with me throughout the region and to a number of Pacific island countries and, of course, by the very important delegations which have been led by the Minister for Foreign Affairs, Stephen Smith. The Min- ister for Foreign Affairs, most significantly, led two Australian delegations: one to a meeting of Pacific Islands Forum foreign ministers in Auckland about Fiji and one to the groundbreaking Madang ministerial forum, where Australian and Papua New Guinean ministers sat down together to re-establish what had been effectively a broken relationship after a long period of difficulty. This budget, which was announced just yesterday, gives us the opportunity to consolidate the steps forward that have been made. There is no doubt that, right throughout the Pacific, people are really reflecting on the changed

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 153 approach of Australia. They are seeing Australia in a different light. They have welcomed the initiative of the Prime Minister in the Port Moresby Declaration, and we are already moving to serious discussions and negotiations on the first of what we hope will be partnership agreements with each of the Pacific island countries, beginning with two: Papua New Guinea and Samoa. Of course, simple resources do not permit parallel negotiations with each of the Pacific island countries at the same time, but we would like to move as promptly as possible to complete a schedule of negotiations across the whole of the Pacific, because what we would wish to do is to engage with our Pacific neighbours in a respectful dialogue which enables them and us to identify issues of common interest, to work through any areas where we have difficulty and then to agree a framework which has mutual responsibilities and obligations—where we will provide substantially increased funding over the course of the coming years—and to support initiatives that are agreed by the countries that we are entering into partnership relationships with. The aim of the exercise, of course, is to move closer to the Millennium Development Goals that all countries have signed up to and, where countries have the capacity to achieve those goals or to exceed them, to move them further in directions that enhance their development opportunities. But, as most members of this House would know, many countries of the Pacific have been falling behind rather than going ahead in their attempts to achieve the MDGs and there is a lot of work to be done. It is no easy thing to suggest that we will be able to reach the MDGs in the time frames required, but we will certainly be doing all we can to move as effectively as we can towards that objective. The budget this year lays the foundation for implementing the government’s long-term commitments to increase Australia’s official development assistance to 0.5 per cent of gross national income by 2015-16. Australia will provide an estimated $3.7 billion in ODA in 2008-09, increasing our ratio from 0.30 per cent in 2007-08 to 0.32 per cent in 2008-09. We expect to increase Australia’s ODA levels equivalent to 0.35 per cent of GNI in 2009-10, 0.37 per cent of GNI in 2010-11 and 0.38 per cent of GNI in 2011-12—and, of course, on to the 0.5 target that we have set. These figures represent very substantial increases in our opportunity to provide practical assistance. If we look just at the budget in PNG and the Pacific, the 2008-09 budget substantially increases funding as a first step in implementing the new partnerships for development, which I have referred to. Estimated Australian official development assistance to Papua New Guinea and the Pacific will total just under $1 billion in 2008-09, an increase of $123.4 million or 14 per cent over the 2007-08 expected outcome. That will enable increased assistance with key development challenges in the region, including basic health, education and improved governance. I will return to three specific measures that are focused on Papua New Guinea and the Pacific but mention before I do so three other funding areas that will be increased in our overseas direct assistance which will also have direct consequences in benefits to the Pacific. There is a program designed to address clean water and sanitation. This program is not unique to the Pacific but of course can be drawn down within the Pacific. It will include an urban water and sanitation component, a rural water and sanitation component and a water security component which will extend successful partnerships in Asia and the Pacific region to better protect and manage freshwater resources. It is a crucial issue and it links of course to the climate change issue that the member for Melbourne Ports mentioned. We are acutely aware of the concerns in our region about the impacts that it will face as a result of the most recent projections of sea level change and ocean acidification and the consequences that may flow from that. There is also a broader program to fight avoidable blindness in the region. Australia of course, through the work and leadership of Fred Hollows, has a properly deserved reputation as being willing to give generous support for dealing with avoidable blindness. In line with its pre-election commitments, the government will be investing $45 million over two years to eliminate avoidable blindness in the region. The third area that I might mention by way of general commitments is adaptation to climate change. We will be investing $150 million over three years, with $35 million in 2008-09, to meet the high-priority climate adaptation needs of vulnerable countries in our region. So these are very big initiatives, with substantial dollars behind them, which can link into the discussions we are having on partnerships. They will certainly be extremely welcome. I will turn briefly to three areas specific to the Pacific region that all of my colleagues, from the Prime Minister to the Minister for Foreign Affairs and the Parliamentary Secretary for International Development Assistance, have been extremely concerned about. There will be an infrastructure facility fund. A new Pacific regional infrastructure facility will invest $127 million over four years, with $5.5 million in 2008-09, which will enable improvements in basic infrastructure services in the Pacific. The facility is intended to provide performance-linked

MAIN COMMITTEE 154 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 support for basic infrastructure services in Pacific island countries, in combination with multilateral development banks and potentially other donor partners. We are aware from our discussions at Madang that countries of the region identify infrastructure weaknesses as one of the key areas that they wish to put on the table as part of any partnership agreement. Of course, the elements that each country might advance for our consideration under a partnership arrangement will differ from country to country. One of the clear indications we have given in negotiations and discussions with the region is that we are not seeking to impose a one-size-fits-all partnership. The nature of a partnership means dialogue; it means listening to and respecting the views of the country when we are discussing their future with them and it means shaping our partnerships to respect, deal with and integrate the aspirations of those countries. But it does seem very clear, at least in the case of Papua New Guinea—and I would be very surprised if it were not the case in many of the other Pacific islands; certainly, it is true for the Solomon Islands and a number of other Pacific countries, from the preliminary discussions that I have had with them—that infrastructure is seen as one of the keys to economic development. That infrastructure fund and its capacity to integrate other donors and multilateral lending institutions seems to be a very important initiative which could build very strong outcomes. Secondly, in relation to specific commitments, I might mention the Pacific public sector capacity program. There will be $107 million invested as part of a four-year initiative, Investing in Pacific Public Sector Capacity, with $6 million in 2008-09 to strengthen public sector administration in the Pacific. That will address a key impediment to poverty reduction by helping to improve service delivery and enable growth. The Australian government have become very aware that we need to have partners with an effective capacity to deliver—that means effective governance—and that improving public sector performance will require long-term coordinated responses to tackle institutional causes of poor performance while also providing immediate assistance to improve individual and institutional capacity in priority areas. Working alongside partner governments, the initiative will establish strong and enduring partnerships between Australia and the region, particularly between governments and tertiary institutions. It will also systematically address public workforce development needs across the region, providing workforce development assistance to address priority organisational and individual capacity needs, especially in leadership and core skills such as administrative competencies, planning, budgetary and financial management. It will provide support for the planning and implementation of public sector reforms. I very much welcome the commitment of the government of Papua New Guinea at Madang and under the re-badged Strong in Government program a commitment to working closely with the Australian government in some arrangements at the highest level where Australian assistance will continue to be provided in strengthening government institutions’ governance in PNG. Finally, I mention the Pacific Land Mobilisation Program which would involve $54 million invested over four years with $6.5 million in the coming year to protect customary land rights, promote economic and social development, and reduce potential for instability from land related conflicts. Everybody knows land title issues are complex and we would hope to assist in finding some effective solution that allows economic development with the least detriment and disruption possible, and that program is designed in that regard. (Time expired) Ms BIRD (Cunningham) (5.46 pm)—It is a great pleasure to finally be able to deliver the comments that I wanted to make on the address-in-reply to the Governor-General’s speech. The last time I stood in this Main Committee it was to provide my own comments on the extension of the apology to the stolen generations and so it seems quite a while since I gave consideration to the Governor-General’s speech. Reviewing the notes that I had prepared at the time, I must say that given last night’s budget it is probably even more pleasurable to deliver my local perspective on the election results in my seat and the expectations of the local community on the new government forming the 42nd Parliament. In light of that, I would like to take the opportunity to place on the record my appreciation to the electors in the division of Cunningham for re-electing me to be their representative in this place for another three years. As members would appreciate, the Labor Party lost the seat of Cunningham in a by-election to the Greens and I took it very seriously that we had to rebuild faith with the local population. So, for me, being re-elected by them and with a significantly increased margin is a great privilege, and I appreciate the faith that they have exhibited in me to continue doing that job in this place. It was very strong support across the Illawarra region. I and my colleague Jennie George had swings in double- digit figures on our primary votes and I think that it reflected the fact that we took a suite of policies to the election that people felt were addressing the issues that were a concern for them and their families. We very much appreciate that they are putting a lot of trust in us to deliver on those for them. There is indeed no greater honour than to be able to represent your local community and region in this place. At the last election I made the observation—and I repeat it here—that it is quite astounding when you look at the

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 155 number of people who seek to sit in this place as a representative of the community. I think that something like 10 for every one of us that get elected have actually stood at the election. I still get that little thrill of anticipation when I come back after an election and realise that I have been given that great responsibility and I think that we should never forget as we come into this place that it is not only an enormous privilege but an enormous responsibility. I have listened to many of the first speeches that were delivered over the initial sitting weeks by colleagues on both our side of the House and on the opposition side. I would like to put on record my congratulations to all of the new members. I thought that their speeches were quite inspiring. They were extremely varied. These are people from a wide variety of walks of life and experiences with all sorts of local perspectives and challenges that they were here to take up. I thought it was a particularly impressive group of new people coming into the parliament and I am sure they will make outstanding contributions over future years. I look forward to working with all of them. The Governor-General’s speech at the opening of the 42nd Parliament outlined the new agenda for Australia’s future, and that agenda has already seen the passage through this place of a more balanced and fair industrial relations bill. In addressing that bill when it was before the parliament, I said that Australians know the differences very clearly between the industrial relations policies of the former government and this Labor government. There was certainly no mistake in my electorate, in the Illawarra region, about what that choice was. People were very profoundly committed to putting the fairness back into the industrial relations system. I have no doubt—and I am sure many of my colleagues on this side of the House would agree—that that was one of the most significant factors for them in deciding how they were going to place their vote. Many people in areas like ours have large mortgages. We are a very popular, wonderful part of the world. If nobody has been there, I would encourage you to come down to the Illawarra. Despite recent media commentary, it is a beautiful and wonderful place to be. Many people who live in the area had certainly been struggling with increasing mortgage payments and costs of living and quite clearly they were very fearful that their capacity to earn income was going to be affected. Additional incomes like overtime and penalty rates in particular were very important to them. So they gave us a very strong message that that was an important part of their decision on how to vote at the election. There was also no mistake that Labor offered a better way forward on education policy. It is an issue that is very close to my own heart, having spent three years teaching high school and seven years in TAFE. A digital revolution was needed in our secondary schools. I have two sons who went through high school carrying those ubiquitous backpacks full of massive textbooks. I was very conscious of the fact that that experience was unlikely to be repeated at any point in their future life, because so much of what we do in the work world is now computer based. To be carrying a textbook, for example, that was supposed to be the holder and font of all knowledge that they would need on science was just outdated and was no longer a relevant approach to their education and their future. So the promise to provide computers for secondary students from years 9 to 12 I think was a really important commitment. I know it has its challenges, as any significant change like this does, but there is no doubt in my mind that it is a critical part of revolutionising our secondary education. We also place an emphasis on skills and training. Over recent weeks, the government have already encouraged Australia’s secondary schools to apply for funding to establish new trade training centres. I am pleased to see that, for example, those centres can also include multimedia type centres, because we have a growing industry in multimedia, web design, film animation and those areas. Many young people need technical skills in those areas as well. I think that is an excellent initiative. Not taking the skills shortage issue seriously had obviously contributed to inflationary build-ups and particularly to capacity constraints. That was brought home to me by the local mining industry, where apprentices had not been put on for many years. Some of the senior tradespeople were saying to me, ‘Well, they’d better start putting them on soon because I’m about to retire. Who’s going to train them?’ The other area that was important to local people was infrastructure. The Rudd government’s commitment to establish Infrastructure Australia was very well received. I was a member of the House of Representatives Stand- ing Committee on Transport and Regional Services in the previous parliament, and we did a substantive report called The great freight task: is Australia’s transport network up to the challenge? Sadly, the answer was no. We identified that there needed to be significant investment in freight movement, particularly if we were going to have some of that massive growth in the task moved from roads to rail. Given the issues around port access and competing demands on roads—increasingly, for people in cars as opposed to trucks—the committee believed that there was a great need to move much more of the freight on to rail. So that was a really important report, and I think it made some significant points. But the consistent message from many of those key players was that they wanted to see an independent national infrastructure planning body. I think that the Infrastructure Australia proposal will meet with a great deal of support.

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In my own area in particular, Port Kembla has been expanding from a small port mainly used by BlueScope Steel and coal users—and including a dedicated facility for grain users—into a transformed facility to unload vehicles. It is soon to have some cargo container capacity as well. That expansion was funded by the New South Wales government. Around $140 million was invested. Sadly, the previous federal government did not put a great deal of money into that port expansion or the feeder avenues into it, either road or rail. I travelled with the chair of the transport committee at the time, Paul Neville, up to his electorate. I remember saying to him, ‘I am going to choke you,’ when he kept pointing out to me all the federally funded roads and loops and things that he had in his electorate. But in the spirit of bipartisanship I have to say that he certainly did not hesitate to recommend that the port of Port Kembla needed some investment as well. So I was very pleased last night that the budget confirmed the initial funding that this government has committed in order to get a rail link from the Maldon-Dombarton line underway again—to have a look at the feasibility study and get it moving. It is a really good initiative. I am very pleased to acknowledge that, from the beginning of this month, we have had an operating Medicare licence for the MRI machine at Wollongong Hospital. It is something that I have been banging on about, as the member for Gilmore would know, for quite a while. Mrs Gash—You got it through us. Ms BIRD—I will acknowledge that five minutes before the election was called the previous government did announce the allocation of a licence. It was achieved not so much from my own efforts but from the fact that there were 17,000 local people who had been lobbying and signing petitions to say that they thought that that service was critically important. The medical arguments for it outweighed any of the political posturing, as we knew they would eventually. It is a good initiative and I am pleased that it is now operating at the hospital. The other big issue that is critically important to me and that I am focused on working on over the term of this government is youth unemployment. We get into a bit of a debate sometimes about the actual figures. As we know, with statistics people can argue one way or the other as to which ones should or should not be used. But there is no doubt that if you look at the highest youth unemployment areas they tend to be coastal areas. It is probably for a whole lot of reasons but particularly to do with teenagers finding it much more difficult to travel for work. In our area we have an unsustainably high teenage unemployment rate. There has been very good work done on that by a local task force. I understand that they are to put a report out very soon. That particular task force report is going to provide us with some solid, well-researched background on where we might make a significant difference on teenage unemployment over the next three years. I want to acknowledge the financial contribution of BlueScope Steel and the University of Wollongong in making that research possible. I think we will all find it very valuable in policy formation. I thank the House for the opportunity to reply to the address of the Governor-General. Ms KING (Ballarat) (5.58 pm)—As I rise to reply to the address of the Governor-General, I would like to start by thanking the people of Ballarat for again re-electing me as their representative to this place. Ballarat is a large and diverse electorate. I am absolutely delighted to be elected to represent such a wonderful community. I really do want to thank the people of Ballarat for again putting their faith in me. Running a campaign in a regional electorate poses a number of challenges. I would also like to thank my campaign team, my staff, ALP members and the many supporters for their hard work during that period. There were a number of important commitments and promises that the Rudd Labor government made to our electorate that are vital for our future economic and social growth. These have now been well and truly delivered in our first budget last night. During the campaign, we committed to fund Anthony’s Cutting under the AusLink 2 funding agreement. This is a significant road project which will cut transport times, ease infrastructure bottlenecks and, most importantly, greatly increase the safety of the many people who use this road. Upgrading that part of the highway will have tangible benefits for the region. These include a projected saving in transport costs of $186 million, increased tourist traffic estimated at up to $7.5 million annually and a reduction in the number of acci- dents, injuries and fatalities along this section of road. The state government have also in the recent state budget reiterated their financial commitment to the project. This comes on the back of our long-term support for the Deer Park bypass, a project which is well and truly ahead of schedule and is nearing completion. The funding for Aus- Link 2 is provided to commence in the 2009-10 year and I certainly look forward to seeing that in the budget next year. Another important infrastructure project that we committed to was the goldfields superpipe which, in a responsible and sustainable way, will help to provide the Ballarat region with a steady and reliable source of water. The Rudd Labor government, prior to the budget, already provided the $90 million in funding to actually complete this very important project. Unfortunately, it was attacked during the election campaign by the former Liberal gov-

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 157 ernment, yet it is a very, very crucial step in ensuring the availability of water in my electorate—and I do not just mean continuing water supply or that we are topping up our water supply; our water supply is currently at around eight per cent. The availability of water in the entire goldfields region is extremely important. I am pleased to report to the House that the laying of the actual pipeline has been completed—Senator Penny Wong came and laid the final pipe herself; it was her first time on a piece of heavy equipment, which was good fun—and that we are a long way towards the goal of water security in Ballarat, with the testing of the pumps about to get underway. Water really is the life blood of any community and, with our commitment to the goldfields superpipe, we have acted to secure the water supply for Ballarat. In the area of community infrastructure, we committed to a number of important projects. We committed $400,000 to the Bacchus Marsh Community Learning Centre, which will include within it a state-of-the-art library, an IT lounge and a community meeting place. The centre will give the Bacchus Marsh community better access to information and digital technology, and it will become a hub for community activity within Bacchus Marsh. Also in the area of adult education, we committed $200,000 to the Trentham Neighbourhood Centre, which provides fantastic courses for adults in areas like computers, languages and cooking. The funding will go towards a much needed expansion and modernisation of the centre. Trentham Neighbourhood Centre and places like this are important and often overlooked aspects of the education system which will drive the essential acquisition of new skills by our local communities. As well as these important roles, the learning centre in Bacchus Marsh and the Trentham Neighbourhood Centre will become hubs for community activity in Bacchus Marsh and Trentham, allowing people from all around the community to come together not just to learn but to meet and to socialise. Also in Bacchus Marsh, we committed the $500,000 needed to maintain the Bacchus Marsh Avenue of Honour, an important project honouring the sacrifice and service of the community’s First World War soldiers. The avenue, if anyone has not seen it, is one of the finest and most magnificent elm tree lined avenues in the world, and it is a unique and important part of the town of Bacchus Marsh. The avenue is one of Bacchus Marsh’s most recognis- able attractions, but it has been under pressure recently due to the ageing of the trees and obviously also because of the drought. We have acted to ensure that the avenue is maintained and will be restored to its magnificent best. The Rudd Labor government also has made the commitment to funding the Bacchus Marsh and Melton Re- gional Hospital, an important cog in the regional healthcare strategy and one in which I am very proud to be involved. Our government is committed to properly funding our hospitals and ending the blame game between the states and Commonwealth and improving healthcare delivery to rural and regional Australians. The $2 million we have provided will go towards providing much needed improvements to its facilities and to upgrade the facilities and the standard of care. The government has also committed $1 million for the establishment of a GP superclinic in the township of Ballan, which will form a significant plank in the healthcare plan for the region. This funding is on top of the $400,000 regional medical infrastructure fund previously committed. Regional health care is a challenging policy area, and it requires a multifaceted approach. Distance, isolation and population dictate that a single hospital, however well resourced, is not enough to service a rural district. There needs to be a concerted effort from government to provide the full range, particularly of allied health services, that rural and regional areas require. The Rudd government has recognised this. Through initiatives such as the funding of the Ballan GP superclinic, we are acting to make sure that the people of rural and regional Australia have a good standard of health care, comparable to that received in the cities. They expect nothing more, and they deserve nothing less. The Creswick visitor interpretive centre is an innovative initiative which we are also contributing $450,000 towards. Creswick is becoming more of a tourist attraction, with the advent of people moving to areas like Creswick for the lifestyle and its natural beauty. Just recently, we have had the opening of the Forest Resort, which is a five- star convention centre, hotel and resort in the township of Creswick. With new businesses such as these opening up, all from private investment, places like Creswick are becoming major tourist attractions in my district, and there is a need to focus and guide this tourist activity. Tourism is a very important part of the economy, and this information centre will help to facilitate expanded tourism in Creswick. Also, the facility will make sure that other businesses are getting a share of that tourism dollar. We also committed $1.5 million towards the Ballarat Aquatic Centre. Health and physical fitness have become pressing concerns for both adults and children. Facilities like the aquatic centre are important places where the community can exercise in a safe, clean and well-managed environment. Exercise is not only a personal issue; it is a major public health imperative. We need to help build a society that places exercise and physical activity at the forefront of our health regime. The funding will expand a much-utilised facility in Ballarat and provide greater opportunities for participation in physical activity, particularly amongst our older residents.

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We have also committed $100,000 to Ballarat Group Training, an important organisation addressing the skills shortages which have affected Ballarat as they have many other regions. Ballarat Group Training are providing a much-needed space and forum for apprentices in Ballarat to come together and advise government and industry on issues specifically affecting them. We have also delivered $300,000 to the Ballarat business incubator, an organisation that will help small businesses in Ballarat grow and prosper. Small business is really the lifeblood of a town such as Ballarat, and this funding will go a long way to make sure that small to medium enterprises, particularly those newly starting up in Ballarat, will have the help and the support they need to be established and to thrive. There is a common thread that runs throughout all of these election commitments. These election commitments are all targeted to boosting the economic and social activity of our region, whether it be supporting tourism, securing our water supply, ensuring our freight and commuter task has access to improved infrastructure or increasing participation in physical activity. They are all about regional economic and social development. These are projects which have been supported by the people of our district, championed by them, and I am proud to be part of a government that is actively delivering on them. These projects are about improving the life of regional communities— Mr Adams—Hear, hear! Ms KING—something that my colleague well and truly supports. The Rudd Labor government has come to office with a strong understanding of the pressure that working families and those on low incomes are under. There are significant pressures facing Australian families today, and the Rudd Labor government takes the task of relieving these pressures very seriously. In opposition, I chaired a task force which examined the challenges and problems of families in Australia. It was called Family Watch. In the process of producing the report, we spoke to over 5,000 families from all across the country. We heard numerous accounts of how Australian families were not always seeing the prosperity the Howard government claimed. We heard that inflation and interest rates were biting hard on working families and about concerns about housing affordability and the cost of providing health and particularly dental care for their children. We heard how the general rises in prices of things like petrol and groceries were squeezing the household budget more and more every month. When we handed down that report, it was widely published. I was really interested at the time to hear the How- ard government’s reaction. We did not hold hearings. Basically, I took the members of the committee into shopping centres right the way around the country and we conducted surveys. I thought the Howard government may actually be interested in what the 5,000 families from across mostly outer metropolitan and regional areas had to say. But the Howard government’s response to the Family Watch report and the concerns that were expressed in it was for John Howard to say in parliament—and the quote has now become famous: Working families in Australia have never been better off. We were all pretty amazed at that statement, particularly those who participated in the Family Watch task force. The Leader of the Opposition’s concern for working families is, in my view, an absolute farce. When these issues were raised with them in government, they just brushed them off. Now that they have been voted out, they realise that they actually misread what was happening for families and they are now trying to play political catch-up. The Rudd Labor government is not playing catch-up; it is actually out there, delivering for working families. I was very pleased to hear in the budget last night of part of the $55 billion Working Families Support Package, a very, very important commitment to honouring our promise to help families through these difficult times. One of the first measures introduced in the budget last night was the $47 billion in tax cuts. These tax cuts are aimed squarely at low- and middle-income earners, people who may be struggling to balance the family budget. These are the people who need the help that these tax cuts provide to manage their growing grocery, petrol and mortgage bills. Child care is another large cost for families, and I am very pleased to support the government’s increase in the childcare rebate from 30 to 50 per cent. I understand how important affordable child care is to ensuring that the workplace retains some of its most valued members. Increasing workplace participation is good policy for the economy and it is also good for working families. Child care plays a very important role in ensuring that working parents can continue to be engaged in paid employment. The economy is also facing a skills crisis. Many of those skills can be found amongst those parents who are currently not able to participate in the workforce because of the lack of availability of and a lack of access to child care. By providing more affordable child care, the Rudd Labor government has given parents back the choice to re-enter the workforce when they want to, on their terms—a real choice, not one that is imposed upon them. An- other cost that families were concerned about when we went and spoke to them in the supermarkets and shopping centres around the country was the cost of education. I am very pleased to be part of a government which takes seriously the challenge of education in a digital world. For this reason, I am glad to support the new education tax

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 159 refund, which will allow parents to recoup some of the inevitable costs of educating a child for today’s world. Education today requires great knowledge of computers, and children who do not have access to these resources lag badly behind their counterparts who do. Access to information and communications technology must become a fundamental right for every Australian student and, with the education tax refund as well as the National Secon- dary School Computer Fund, the Rudd government is moving to make that right a reality. Some of the more pressing concerns that families had also, as I found when I toured around the country with Family Watch, were the prices of groceries and petrol, and the Rudd government are acting here as well. We have given powers to the ACCC to enforce the Trade Practices Act, and the ACCC is monitoring grocery prices to ensure that they are as fair and as competitive as possible. We have also introduced, which was funded in the budget last night, the National FuelWatch Scheme, which will help consumers find the best price for petrol, enhancing competitiveness and providing the best information for consumers on which to base their decisions when purchasing petrol. These actions will help to alleviate some of the cost-of-living pressures. We are tackling housing affordability as well. The First Home Saver Account is a key initiative that will help first home buyers save more effectively and work towards that all-important deposit for a new home. We are also working to ease the crisis in rental accommodation by encouraging the building of 50,000 rental properties. These are real initiatives to help families who are suffering housing stress—and I absolutely encourage any property developers who are looking at developing new housing estates to look very seriously at the programs that the Rudd government has put in place to ensure that new developments actually incorporate affordable housing within their parameters. The dream of owning your own home should not be unattainable. Young people leaving school and entering the workforce should be able to see a clear pathway to financial security. We must strive to create a society that opens up the path to owning a home, a society where, with hard work, anybody can own their own home. That, unfortunately, is not the case today. There are serious pockets of disadvantage and even middle-class people cannot aspire to home ownership, certainly in some of our capital cities. We must build a society where anybody can afford a home. In a broader sense than those specific initiatives, working families also need a return to fiscal responsibility. They need a return to responsible government which will manage the fiscal policy of the government to help maximise downward pressure on inflation and maximise downward pressure on interest rates, and that is what we delivered in the budget last night. I am very proud to be part of a Labor government that will act to protect working families in these tough economic times and that will make sure that families in Australia have the best possible chance to raise their children in a prosperous and fair society. That is the Labor way, and we saw that in the budget last night. I would again like to thank the people of Ballarat, who have given me the honour of representing them here in this place in the 42nd Parliament. Thank you. Mr ADAMS (Lyons) (6.16 pm)—It is a great pleasure to take this opportunity to speak in the address-in-reply debate and to thank the people of Lyons for re-electing me for the sixth time and again putting their trust in me. It is always an honour and a humbling feeling each time you are re-elected. I feel that they have renewed my contract again and I am very grateful to be here and to be a part of a government. I started my political career here as part of the Keating government and I am pleased to be back now. There is a great deal that I want to do and that I was able to get pledged from the party during the last election campaign. I look forward to that. I will address some of those things later in this address. We needed a fresh start, and the Labor government, with Kevin Rudd at the helm, will give us the opportunity to build back Australia’s reputation as a lucky and also a tolerant country. The opening of parliament this time actually meant something. I am pleased that we are at last recognising the rightful place of the Indigenous people of Australia. It is not going to be easy, with the economies around us suffering pretty turbulent times at this period in history. We are looking at how we can ease the pressure on mortgages and on those people that are affected by rising bank interest rates. We are considering other models of housing tenures and housing design to deal with one of the big issues facing us at the moment. I believe there are many opportunities to refigure how we think about housing. We can certainly help people much more, and technology has helped us to some degree. We need to help our states in that task with innovation and ideas. I am sure we can do that. The big issue of climate change is one that we need to deal with, and that is firmly on the agenda. There was an exciting development the other day in my electorate with drying coal—not that I have that much coal in my electorate. There is a small coalmine with about 100 employees, the only coalmine in Tasmania. At the Beaconsfield goldmine, which is also in my electorate, which people will remember from the tragedy we had and the long rescue of two miners, there is a shaft being used for a technique to dry Victorian brown coal,

MAIN COMMITTEE 160 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 which is a very damp coal. They believe that they can take 30 to 40 per cent of the moisture out of that, which changes the whole emission trading argument and helps in that area enormously. I understand that the Victorian coal is very similar to the coal in India, so there are opportunities to use this technology and in exporting coal from Victoria, which I think has never happened before. So those opportunities exist, along with lots more on climate change. I am looking forward to the debate on the forest industry, which I believe will come into its own in that regard. Dealing with the ever-increasing petrol prices is difficult, but we now have the Petrol Commissioner on the deck and I understand that the price watch will be in place towards the end of this year. Health is another area that desperately needs an overhaul. There is a perception that we are tied to old ways of dealing with sickness, but I believe that new technologies can take us in new directions. We need to take some responsibility for our own health and we need to make sure that that message goes out. We need to sell prevention and wellness, and we need to put some money into that area. We saw the minister answering questions today about binge drinking and how that is a health issue and that we need to make changes in taxes in that area. I feel technology means that we should be having people’s medical histories on a memory stick and carry it around our neck or on our car keys. The fact that we have not solved that one is a bit of an indictment of the industry and the professions involved. If somebody gets taken into hospital and there is no access to the history from the GP’s computer, it is really a problem that all the tests and scans have to be done straightaway again rather than using electronic records. We are a long way behind where we should be in that sort of thinking. We are moving that way and we need to move away from the simplistic stuff of going to the doctor and getting a handful of pills, and we need to get away from some of the queues in our hospitals. We have to be brave enough to do that and we have to be brave enough to take on something new and something different. There are many choices these days and we have to open our minds and make some choices and opt for directions about the future. I think we are going to do that and some of us will endeavour to help push in that direction. In the past few years we have dedicated time to finding some of the answers on drought and helping develop better and more sustainable water systems. I have done some work on our committees, and it has been pretty frus- trating effort in some regards. I would like to pay tribute to Professor Peter Cullen, a founding member of the Wentworth Group. Peter came to the parliament on many occasions and I met him at committee hearings giving evidence to us and also during meetings on water in different parts of the country. As we all do, with people moving around this country at airports, we would exchange half an hour of discussion about relevant topics, especially water. I believe Peter understood the land in Australia very well and he knew and was concerned for farming communities, and knew that their concerns do not have to be in conflict with ecological concerns. I was very sorry to hear that he passed away recently. He will be sorely missed in the debates and discussions, as will his input. Despite his science background, he had the knack of being able to get his message across very simply and succinctly to people with non-science backgrounds. I think he understood the relationships between the land and water—water storage and the problems of preserving water, recycling water—and how to come up with new ideas to help our very dry continent, especially in times of drought. He also believed in keeping farming communities sustainable in Australia by working hard to find new ways and new directions. I send my condo- lences to his family. He will be remembered very fondly by all of us here in parliament who knew him. My agenda in Tasmania will include some of these water issues, such as trying to ensure that our water is used efficiently and sensibly and also that many of the small towns in my electorate finally receive good supplies of drinking water. In this day and age, access to drinking water should be a priority, and I believe that the state government in Tasmania is now moving towards providing that. To have a well-managed supply, it recently set up through legislation three bodies to take control of water and sewerage in our regions. That will of course also help people to develop skills and keep skilled people in the water industry, and possibly we have been lacking the level of professionalism and skills to keep up that infrastructure. Of course, the people making decisions to spend money on infrastructure in local government areas want to make sure that infrastructure can meet the current needs and the future needs of those areas. In my electorate, where we have finally got private investment, we do not have the infrastructure and that delays things by two or three years, which means that you could possibly lose some of that tourism investment money that comes along. We need to ensure that irrigation and water management in other areas is affordable and sustainable so that we can be more innovative in land management and farming production. In the area in which I grew up, the Cressy area, we hope to run a pipeline from Poatina as far as Oaklands. This, I am sure, is going to open up the area to much more production and more opportunities. With the pressure on the Murray-Darling region, which produces over 55 per cent of the fruit and vegetables of Australia, I think other areas of Australia have a great opportunity to take over some of that role, because I do not believe that that region will be able to continue to do what it has done

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 161 in the past. And the state government is on board with that. We have about $240 million from the state and federal governments to put in this infrastructure, which will give us great opportunities. Another pledge from the Hobart region, coming out into the electorate of Lyons— A division having been called in the House of Representatives— Sitting suspended from 6.28 pm to 6.56 pm Mr ADAMS (Lyons) (6.56 pm)—As I was saying, there will be great opportunities in my electorate if we can get right some of the water and irrigation programs and make sure we use water and land in a very sustainable way. I pointed out some grey water initiatives coming out of the bottom end of my electorate from the city of Cla- rence, which is part of the city of Greater Hobart, and from the Coal River Valley, where we have grey water going to seed production and irrigation dripped onto the stone fruit orchards. That is a great way of utilising that grey water, and it is a more productive use of it than if it were put into the Derwent River. But using water better means that we have to look at farming practices in a whole new way. We have to help farmers who want to make the changes and want to continue on the land with research and funding so that we can continue to provide the food and fibre for our country. Australia has always been innovative, and we have some of the best farmers in the world. But, when one gets hit by the sorts of cyclical changes that prevent people from carrying out their traditional land use, we need to help them change and go in different directions. A lot of them want to do that and they need help to do it. We have to look for solutions and new ways to solve these old problems. There are a lot of opportunities. A lot of people have done some work, and I am sure we in the good electorate of Lyons are going to do more. It will be a part of our role in government to make sure that these people have the tools and the resources to make those changes. I am sure the new Minister for Agriculture, Fisheries and Forestry, Minister Burke, is going to assist and lead us in that way. I think Jeff Kennett had the right approach—and it is not often that I would quote him or agree with him. I see him occasionally in Tasmania now that he is President of the Hawthorn Football Club, and they play a lot of their AFL games in Launceston. In commenting on Ticki Fullerton’s book Watershed, on the politics in the history of water and what we should really be concentrating on, he said: It’s not just about making sure you have water flows down rivers that have to be changed. It’s all embracing. It’s about rain- fall, it’s about collection, its about storage, it’s about distribution, it’s about pricing, it’s about recycling, it’s about avoiding waste, evaporation, seepage. It’s about money, capital investment. But as much as about capital investments, it’s about people’s understanding to better utilize what we’ve already got. I cannot think of a better way of putting it. We have to take on board that there is not just one simple answer— there is not a silver bullet that can solve all these problems. There are a lot of fundamental changes to our land use and our water practices that we have to get into. I would also like to thank a lot of people involved in my campaign who helped me enormously: my campaign manager, Peter Kearney, and his wife Di; my good friend Tom Greenwood, who came down from Queensland for the duration of the campaign and whose only thanks was to get a speeding ticket; John Pym from Sydney, who became quite an expert at reading the betting tips—and, of course, I was always in front on the bookies so I knew I was okay. There is no better reader of the numbers than the bookmakers. I want to thank Richard Bolst and his wife Sheryl for putting up with some very difficult requests at times; Jock Chalmers for continuing to renew my image in the advertising stakes and working through all those issues; and my staff, who had to get on with all the other work while I was out shaking hands—in the north, Ian Gabites, Eve Lewis and Leeann Loosmore and, in the south, Deb Carnes, Jess Dallas and Lauren Browning. All of them kept the office functioning as the constituents’ queries continued. Those queries did not go away just because there was an election. People still needed to be dealt with. Without these friends and work colleagues life would be very much harder. To my stepson J.J. (John James) who was not around to drive me around this election as he was in other parts of the world: I missed you, mate. To my partner, Dee, who I could not operate without: thank you very much. To my daughter, Kellie: thank you for your support and love. My grand-daughter Esther, who had not long had a birthday, was able to turn ‘Happy Birthday’ into ‘happy election day’. That was by waving a Kevin 07 flag most of the night. That was a lovely occasion. I congratulate my new parliamentary colleagues, and I wish them all the best: Julie Collins and Jodie Campbell and Catryna Bilyk in the Senate and, of course, my good friend Sid Sidebottom is back where he belongs, in the seat of Braddon. I am sure that they will be here for the long haul. Ms VAMVAKINOU (Calwell) (7.03 pm)—It is indeed a privilege and a relief to finally be given the opportunity to give my speech in the address-in -reply debate. I want to begin by thanking the people of Calwell for their generous support and endorsement in last year’s federal election. It is, in fact, a very great honour to be re-elected

MAIN COMMITTEE 162 HOUSE OF REPRESENTATIVES Wednesday, 14 May 2008 as the federal member for Calwell, and I want to note once again that it is a responsibility that I personally take very seriously. What makes this particular election all the more special is having the opportunity, under a Rudd Labor government, to represent, as always, the needs and the interests of Calwell. Overall, Labor achieved a swing of 11.3 per cent in Calwell—more than double the national average. It is a result of which I am very proud and one that reflects just how strongly issues such as fair workplace laws, healthcare reforms, investment in education and more support for working families resonate in my electorate. Such a result would not have been possible without the hard work and dedication of many individuals who selflessly volunteered their time and energy to my campaign. They are too numerous to name and, in fear of forgetting anybody, I simply want to record my sincere gratitude and thanks to all those people. Labor has a long, strong and proud heritage, one that is firmly anchored in the history of working Australia and in the values of fairness, equality and social justice. As Labor continues to grow and evolve alongside the changing landscape of modern Australia, this heritage serves as a reference point against which to measure both specific policies and our country’s progress. It is a heritage that we on the Labor side must never forget. In Calwell, the values of fairness, family and opportunity matter. They form the bedrock on which local demands and community expectations are built. For me, fairness, family, and opportunity remain the key fundamentals when it comes to determining good policy in this place. They include an obligation to ensure fairness in the workplace, to ensure that basic services and essential infrastructure are able to meet local demand in my electorate of Calwell and to ensure that all Australians have access to opportunities. One of the key themes in the lead-up to last year’s federal election was federal Labor’s commitment to scrapping the Howard government’s extreme and unfair Work Choices laws and to restore fairness and balance in the Australian workplace. We have done this through the introduction of the Workplace Relations Amendment (Tran- sition to Forward with Fairness) Bill 2008. It has seen an end to Australian workplace agreements. Australian workplace agreements, or AWAs, became shorthand for driving down wages and conditions and stripping back protections from Australian workers. This was an issue never far from the minds of many local residents in Cal- well. In a climate where the cost of living continues to rise, protecting wages and job security is absolutely vital, especially when it comes to working parents for whom job security is a prerequisite in meeting their everyday financial commitments. Labor and a Rudd Labor government are committed to making sure that our workplace relations system never strays from the core idea of a fair day’s pay for a fair day’s work. Over the last decade, my electorate of Calwell, which is located in Melbourne’s north-west, has undergone many significant changes. An influx of young families moving to the area in search of more affordable housing and a more family friendly environment has seen strong growth in local residential development. At the same time, statistics for the area show that Calwell’s ageing population is also growing at an equally significant rate. These changes to Calwell’s core demographics pose a number of significant challenges, not least in the area of infrastructure and service delivery, which I would like to address. Strong population growth also means a corre- sponding demand for stronger business investment, industry growth and job creation. Calwell has long been a centre for local manufacturing and industry and boasts a large pool of existing skilled workers employed in the manufacturing sector. This is a foundation on which we need to build to meet the difficulties Australian manufacturers face as a result of increased global competition. That combined with a decade of dwindling government interest and short-sighted industry policies has had a significant impact on my electorate. Many of our local industries are struggling to survive and local jobs continue to be lost as companies downsize their operations. Protecting and expanding local manufacturing is crucial to Calwell’s long-term future. One of our key priorities in government is and will be to turn around the lacklustre fortunes of manufacturing in Australia. In today’s knowledge economy, the focus of our approach to industry policy in Australia needs to be on innovation and measures aimed at fostering a culture of innovation in Australia. We need to deepen Australia’s investment in research and development and we also need to do a lot more when it comes to identifying and cultivating new overseas markets and export opportunities for quality Australian made products. What I would like to see in Calwell is local industry becoming a magnet for innovation, product development and the expansion of Australia’s technical and productive capabilities. Adding to my electorate’s competitive advantage is the close proximity of Melbourne Airport. In addition to being a major source of local employment, Melbourne Airport is a huge asset for local business and industry looking to interstate and overseas export markets to expand their operations. It is an asset that we need to promote and support in Calwell. Working towards a more integrated regional approach when it comes to enhancing the north’s social and economic potential, strengthening local employment opportunities for residents in Calwell to ensure that our local economy remains strong and vi- brant and striving towards closer coordination between all levels of government and various stakeholders, such as

MAIN COMMITTEE Wednesday, 14 May 2008 HOUSE OF REPRESENTATIVES 163 local community groups and community service providers, industry associations, local businesses and local education and training institutions are all equally crucial. There are many challenges. One of these particular to Melbourne’s northern and north-western regions is image. As a 2003 Northern Area Consultative Committee report titled Growing Melbourne’s north: developing an integrated economy identified, current misconceptions about Melbourne’s north-west often see us overlooked by the business community as a potential locus for investment. Changing the image of Melbourne’s northern and north-western regions to make them more attractive to business and investment is another crucial challenge that we need to meet on the road to securing our long-term economic growth. My federal and state colleagues in the region and I have an important role to play in this. I want to now turn to some of the Rudd Labor government’s election commitments announced in the lead-up to the 2007 federal election—commitments that will have a positive impact, I am absolutely certain, on the lives of the people who live in my electorate. As highlighted by the Governor-General in his address to the opening of the parliament, the Rudd Labor government has identified education and the need to invest in education as a key national priority. Investing in education is both an investment in our children’s future and an investment in Austra- lia’s future prosperity. At an individual level, education is one of the most important pathways through which Aus- tralians have an opportunity to start life on an equal footing and to strive for self-betterment. At the national level, investing in skills and education is about making sure that we are able to meet future challenges. Federal Labor’s education revolution is premised on the belief that investing in education, skills and training— that is, investing in your own people—is the best way to lift Australia’s flagging productivity growth, strengthen Australia’s international competitiveness and secure Australia’s long-term economic future. In a global economy, where the competition for skills and expertise becomes fiercer by the day, lifting Australia’s education standards, skilling up tomorrow’s workforce and making sure that we hold on to our best and brightest are absolutely crucial. That is why this government, the Rudd Labor government, is committed to making sure that all four-year-olds have access to 15 hours of quality preschool early learning each week for a minimum of 40 weeks per year at no extra cost to their parents. Research tells us that those children who have access to some form of preschool learning are more likely to do better at school later on in life. Preschool is about building a strong foundation for success later on in life. This commitment includes, of course, funding an extra 1,500 new university places in early childhood education, scrapping TAFE fees for childcare diplomas and halving HECS repayments for early childhood graduates working in areas of need. The Rudd Labor government has already moved quickly to implement one of its key election commitments, the National Secondary School Computer Fund, under which all secondary schools in my electorate can apply for up to $1 million in funding to buy new computers for students through years 9 to 12, as well as to upgrade the school’s information and communication technology. Of course, applications for the first round of funding under the program are now being accepted, with the second round soon to open in July this year. Over the next four years, this program will see significant infrastructure upgrades undertaken in every Australian government, independent and Catholic secondary school in my electorate. In an age where e-education has become all but indispen- sable and given the reality that not all parents can afford to buy their children a computer, this is an important initiative, one that promises to pay strong dividends in my electorate. Equally important is the Rudd Labor government’s Trade Training Centres in Schools plan. This $2.5 billion commitment to build or upgrade trade training centres in Australian secondary schools is all about tackling Austra- lia’s worsening skills crisis by providing local students with the skills they need to pursue a future career in the trades. It is also about encouraging students to stay in school longer by broadening the range of subjects available to them and by making school more relevant to students who otherwise would not see the relevance as schooling. In Calwell, this policy provides us with a unique opportunity to establish trade training centres in strategic locations across the electorate and to align these centres with the skills base sought by local industries in areas such as manufacturing, engineering, construction and the automotive sector. Building stronger partnerships between local industries and our local schools, especially when it comes to making sure that students who undertake trade training courses are armed with the skills needed by local industries, is crucial to the long-term viability and success of trade training centres. The benefits of such an approach include boosting local employment opportunities for school leavers and making sure that local industries have access to the sort of skilled workforce that they will need in order to grow and develop. The Trade Training Centres in Schools plan is in addition to the federal government’s plan to create an additional 450,000 training places over four years, including an extra 65,000 apprenticeships. The Rudd Labor government has also put forward a number of higher education policies, including halving HECS fees and repayments to encourage more students to study maths and science, increasing the number of

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Commonwealth funded university places across a number of disciplines, scrapping full fee paying places at university and expanding the Commonwealth Scholarship program for both undergraduates and postgraduates. In- vesting in education is about investing in people—in human capital—and ensuring that the fundamentals of our economy are geared towards long-term growth and prosperity. One of the most important priorities in my electorate of Calwell over the next three years concerns access to affordable services in areas such as health care, aged care and child care. Access to these and other essential services plays a defining role in shaping the quality of life a family enjoys. Ensuring access to affordable services and investing in essential infrastructure to meet the demands of a growing population is particularly important in Cal- well. Significant pockets of my electorate remain mired in intergenerational poverty and disadvantage, whilst elsewhere rapid population growth has created a situation where demand continues to outstrip supply when it comes to the delivery of essential services. For example, access to affordable health care is an ongoing concern in my electorate. The rising cost of health care and basic medicines, coupled with a shortage of local GP services and a lack of adequate after-hours medical services are all areas in desperate need of serious attention. For those on the ground, the road map for Calwell’s future is clear. Alongside healthcare reform, there is a need for more childcare centres, so that working parents do not have to drive long distances in the morning to drop their children off before work, as well as youth services and youth venues to cater for our local youth who do not enjoy the mobility or ease of access to suitable venues and outlets that their counterparts living in the inner city do. We also need to radically rethink Calwell’s future infrastructure needs, in line with recent residential development, changes in our population demographic and strong population growth, and this needs to include additional public transport, better roads, more sports facilities and a host of additional social and civic amenities and services. Rather than problems that can be fixed overnight, these are all long-term challenges that demand closer cooperation between federal, state and local governments as well as sustained community involvement. In relation to infrastructure, I strongly welcome the establishment of Infrastructure Australia, which is an independent Com- monwealth statutory authority set up by the Rudd Labor government to develop a strategic blueprint for our nation’s infrastructure needs, as well as the advent of a major cities program that will focus on the infrastructure needs of Australia’s towns and cities. My electorate of Calwell is a testament to the reality that Australia’s infrastructure needs do not stop once the country becomes the city. When it comes to basic services, there is a lot of work to do in this area, but as a start Calwell has already benefited from three new federal Labor government grants. In January, I was pleased to announce Commonwealth funding for a new headspace Communities of Youth Services hub to be established in Broadmeadows. Headspace is Australia’s national youth mental health foundation, funded by the Australian government to provide people aged between 12 and 25 with mental health support as well as help for drug and alcohol problems. The centre will offer a range of support and counselling services geared towards prevention and early intervention. This investment in new services is part of the Rudd Labor government’s focus on the importance of preventative and early intervention health care, and this new centre will play a significant role in lifting the quality of life of those young people that it helps in my electorate. Calwell has also received federal government funding for a new family relationships centre to be established in Broadmeadows. Family plays an important role in the social fabric of Calwell’s local community. The new centre is designed to provide assistance and advice to local families in areas like strengthening family relationships and resolving relationship difficulties after separation, including mediation services and of course some three hours of free counselling. These new initiatives begin to fill the current gap in basic support services in Calwell, and their promise of significant personal, social and economic benefits helps contribute to the long-term wellbeing of our local community. In the lead-up to last year’s November election, I also announced that a Rudd Labor government would provide capital works funding to build two new childcare centres in Calwell. The first childcare centre will be located in Tullamarine, where childcare shortages under the previous government became particularly severe, and the second will be built in Craigieburn, where Calwell is experiencing one of its strongest population growths. In another area to do with our ageing population, aged care, the Minister for Ageing has already announced substantial changes to current funding arrangements for the allocation of Australian government care subsidies. The aged-care funding instrument took effect on 20 March 2008, with more than $380 million in additional funding to be provided over the next four years. Changes are also being made to accommodation payments and income-tested care fees, with the amount the Australian government contributes in subsidies towards accommodation and care costs increasing. For the first time, self-funded retirees will be treated the same as pensioners with respect to their income and assets.

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Since taking office, the federal government has also committed $34.2 million to Victoria to fund an additional 5,908 elective surgery procedures, in order to reduce elective surgery waiting times in the state of Victoria. We have also begun work on boosting the number of nurses in Australia’s health and aged-care system by more than 10,000 over the next five years through a combination of cash bonuses to encourage back into the profession nurses who have been out of the health workforce for more than a year and contributions to assist hospitals with the cost of retraining and reskilling these nurses. The Rudd Labor government has started to introduce measures to help tackle today’s housing affordability, a huge problem in my electorate. It is a problem that I imagine would be right across the country, but, in particular, in my electorate, housing affordability is becoming more of an issue. Debate (on motion by Mr Dreyfus) adjourned. Main Committee adjourned at 7.25 pm

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QUESTIONS IN WRITING

Immigration and Citizenship: Staffing (Question No. 8) Mr Pearce asked the Minister representing the Minister for Immigration and Citizenship, in writing, on 11 March 2008: How many departmental staff (including permanent, temporary and casual staff) work in the Minister’s Parliament House office, and that of any other Minister and Parliamentary Secretary associated with the Minister’s portfolio; and what is their length of service in the office. Mr McClelland—The Minister for Immigration and Citizenship has provided the following answer to the honourable member’s question: Currently, there are two departmental staff working as Departmental Liaison Officers in my Canberra office. They joined my office on 3 December 2007. Similarly, there is one Departmental Liaison Officer currently working in the Office of the Parliamentary Secretary for Multi- cultural Affairs and Settlement Services, Mr Laurie Ferguson MP. The officer joined the office on 12 December 2007. Attorney-General’s: Staffing (Question No. 21) Mr Pearce asked the Attorney-General, in writing, on 11 March 2008: How many departmental staff (including permanent, temporary and casual staff) work in the Minister’s Parliament House office, and that of any other Minister and Parliamentary Secretary associated with the Minister’s portfolio; and what is their length of service in the office. Mr McClelland—The answer to the honourable member’s question is as follows: As at 11 March 2008, four departmental staff and two agency staff were working in the offices of the Attorney-General and the Minister for Home Affairs. Length of service in these offices ranges from 12 weeks to 31 weeks. Resources, Energy and Tourism: Tourist Complaints (Question No. 76) Mr Ciobo asked the Minister for Tourism, in writing, on 13 March 2008: (1) How many complaints has his department received through its national online tourist complaint form; how many of these complaints were in English; and how many of these complaints have led to prosecutions. (2) How many complaints has the department referred to the State and Territory government fair trading agencies through the national telephone complaints hotline; and what information about these referrals have the agencies provided back to the department. (3) For the 2007-08 financial year, what amount of funding has the department provided for advertising the national online tourist complaint form and the national telephone complaints hotline. Mr Martin Ferguson—The answer to the honourable member’s question is as follows: (1) From 28 November 2007 up and including 30 April 2008, 53 complaints were lodged to State and Territory fair trading agencies through the national online tourist complaint form hosted on the web site of the Department. The number of complaints in English was 33. Prosecutions are pursued by the relevant state and territory authority. (2) 83 calls have been forwarded to State and Territory fair trading agencies through the national telephone tourist complaints hotline facilitated by the Department, over the latest 12 month reporting period (ending April 2008). The Department co- ordinates national monitoring of online tourist complaint activity and outcomes, for reporting to the Australian Standing Committee on Tourism. State and Territory activities in response to complaints received are further discussed in various tourism forums involving the Department. (3) Advertising the national online tourist complaint form and the national telephone complaints hotline is part of the De- partment’s broader on-going work to market and strengthen tourist protection measures. Ongoing, baseline promotion is achieved via links to the online tourist consumer protection resources from www.australia.com, Tourism Australia’s information site for travellers to Australia as well as industry websites.

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