COMMONWEALTH OF AUSTRALIA

PARLIAMENTARY DEBATES

Senate Official Hansard No. 3, 2004 TUESDAY, 7 DECEMBER 2004

FORTY-FIRST PARLIAMENT FIRST SESSION—FIRST PERIOD

BY AUTHORITY OF THE SENATE

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FORTY-FIRST PARLIAMENT FIRST SESSION—FIRST PERIOD

Governor-General

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

Senate Officeholders

President—Senator the Hon. Paul Henry Calvert Deputy President and Chairman of Committees—Senator John Joseph Hogg Temporary Chairmen of Committees—Senators the Hon. Nick Bolkus, George Henry Bran- dis, Hedley Grant Pearson Chapman, John Clifford Cherry, Patricia Margaret Crossin, Alan Baird Ferguson, Stephen Patrick Hutchins, Linda Jean Kirk, Susan Christine Knowles, Philip Ross Lightfoot, John Alexander Lindsay (Sandy) Macdonald, Gavin Mark Marshall, Claire Mary Moore and John Odin Wentworth Watson Leader of the Government in the Senate—Senator the Hon. Robert Murray Hill Deputy Leader of the Government in the Senate—Senator the Hon. Nicholas Hugh Minchin Leader of the Opposition in the Senate—Senator Christopher Vaughan Evans Deputy Leader of the Opposition in the Senate—Senator Stephen Michael Conroy Manager of Government Business in the Senate—Senator the Hon. Christopher Mar- tin Ellison Manager of Opposition Business in the Senate—Senator Joseph William Ludwig

Senate Party Leaders

Leader of the Liberal Party of Australia—Senator the Hon. Robert Murray Hill Deputy Leader of the Liberal Party of Australia—Senator the Hon. Nicholas Hugh Minchin Leader of the National Party of Australia—Senator the Hon. Ronald Leslie Doyle Boswell Deputy Leader of the National Party of Australia—Senator John Alexander Lindsay (Sandy) Macdonald Leader of the Australian Labor Party—Senator Christopher Vaughan Evans Deputy Leader of the Australian Labor Party—Senator Stephen Michael Conroy Leader of the Australian Democrats—Senator Andrew John Julian Bartlett

Printed by authority of the Senate

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Members of the Senate State or Terri- Senator tory Term expires Party Abetz, Hon. Eric Tas 30.6.2005 LP Allison, Lynette Fay Vic 30.6.2008 AD Barnett, Guy (5) Tas 30.6.2005 LP Bartlett, Andrew John Julian Qld 30.6.2008 AD Bishop, Thomas Mark WA 30.6.2008 ALP Bolkus, Hon. Nick SA 30.6.2005 ALP Boswell, Hon. Ronald Leslie Doyle Qld 30.6.2008 NATS Brandis, George Henry (2) Qld 30.6.2005 LP Brown, Robert James Tas 30.6.2008 AG Buckland, Geoffrey Frederick (4) SA 30.6.2005 ALP Calvert, Hon. Paul Henry Tas 30.6.2008 LP Campbell, George NSW 30.6.2008 ALP Campbell, Hon. Ian Gordon WA 30.6.2005 LP Carr, Kim John Vic 30.6.2005 ALP Chapman, Hedley Grant Pearson SA 30.6.2008 LP Cherry, John Clifford (3) Qld 30.6.2005 AD Colbeck, Richard Mansell Tas 30.6.2008 LP Collins, Jacinta Mary Ann Vic 30.6.2005 ALP Conroy, Stephen Michael Vic 30.6.2005 ALP Cook, Hon. Peter Francis Salmon WA 30.6.2005 ALP Coonan, Hon. Helen Lloyd NSW 30.6.2008 LP Crossin, Patricia Margaret (1) NT ALP Denman, Kay Janet Tas 30.6.2005 ALP Eggleston, Alan WA 30.6.2008 LP Ellison, Hon. Christopher Martin WA 30.6.2005 LP Evans, Christopher Vaughan WA 30.6.2005 ALP Faulkner, Hon. John Philip NSW 30.6.2005 ALP Ferguson, Alan Baird SA 30.6.2005 LP Ferris, Jeannie Margaret SA 30.6.2008 LP Fifield, Mitchell Peter(7) Vic 30.6.2008 LP Forshaw, Michael George NSW 30.6.2005 ALP Greig, Brian Andrew WA 30.6.2005 AD Harradine, Brian Tas 30.6.2005 Ind Harris, Leonard William QLD 30.6.2005 PHON Heffernan, Hon. William Daniel NSW 30.6.2005 LP Hill, Hon. Robert Murray SA 30.6.2008 LP Hogg, John Joseph QLD 30.6.2008 ALP Humphries, Gary John Joseph (1) ACT LP Hutchins, Stephen Patrick NSW 30.6.2005 ALP Johnston, David Albert Lloyd WA 30.6.2008 LP Kemp, Hon. Charles Roderick VIC 30.6.2008 LP Kirk, Linda Jean SA 30.6.2008 ALP Knowles, Susan Christine WA 30.6.2005 LP Lees, Meg Heather SA 30.6.2005 APA Lightfoot, Philip Ross WA 30.6.2008 LP Ludwig, Joseph William QLD 30.6.2005 ALP Lundy, Kate Alexandra (1) ACT ALP Macdonald, Hon. Ian Douglas QLD 30.6.2008 LP ii

State or Terri- Senator tory Term expires Party Macdonald, John Alexander Lindsay (Sandy) NSW 30.6.2008 NATS McGauran, Julian John James VIC 30.6.2005 NATS Mackay, Susan Mary TAS 30.6.2008 ALP McLucas, Jan Elizabeth QLD 30.6.2005 ALP Marshall, Gavin Mark VIC 30.6.2008 ALP Mason, Brett John QLD 30.6.2005 LP Minchin, Hon. Nicholas Hugh SA 30.6.2005 LP Moore, Claire Mary QLD 30.6.2008 ALP Murphy, Shayne Michael TAS 30.6.2005 Ind Murray, Andrew James Marshall WA 30.6.2008 AD Nettle, Kerry Michelle NSW 30.6.2008 AG O’Brien, Kerry Williams Kelso TAS 30.6.2005 ALP Patterson, Hon. Kay Christine Lesley VIC 30.6.2008 LP Payne, Marise Ann NSW 30.6.2008 LP Ray, Hon. Robert Francis VIC 30.6.2008 ALP Ridgeway, Aden Derek NSW 30.6.2005 AD Santoro, Santo (6) QLD 30.6.2008 LP Scullion, Nigel Gregory (1) NT CLP Sherry, Hon. Nicholas John TAS 30.6.2008 ALP Stephens, Ursula Mary NSW 30.6.2008 ALP Stott Despoja, Natasha Jessica SA 30.6.2008 AD Tchen, Tsebin VIC 30.6.2005 LP Tierney, John William NSW 30.6.2005 LP Troeth, Hon. Judith Mary VIC 30.6.2005 LP Vanstone, Hon. Amanda Eloise SA 30.6.2005 LP Watson, John Odin Wentworth TAS 30.6.2008 LP Webber, Ruth Stephanie WA 30.6.2008 ALP Wong, Penelope Ying Yen SA 30.6.2008 ALP (1) Term expires at close of day next preceding the polling day for the general election of members of the House of Representatives. (2) Chosen by the Parliament of Queensland to fill a casual vacancy vice Hon. Warwick Raymond Parer, resigned. (3) Chosen by the Parliament of Queensland to fill a casual vacancy vice John Woodley, resigned. (4) Chosen by the Parliament of South Australia to fill a casual vacancy vice John Andrew Quirke, resigned. (5) Appointed by the Governor of Tasmania to fill a casual vacancy vice Hon. Brian Francis Gibson AM, resigned. (6) Chosen by the Parliament of Queensland to fill a casual vacancy vice Hon. John Joseph Herron, resigned. (7) Chosen by the Parliament of Victoria to fill a casual vacancy vice Hon. Richard Kenneth Robert Alston, resigned. PARTY ABBREVIATIONS AD—Australian Democrats; AG—Australian Greens; ALP—Australian Labor Party; APA—Australian Progressive Alliance; CLP—Country Labor Party; Ind—Independent; LP—Liberal Party of Australia; NATS—The Nationals; PHON—Pauline Hanson’s One Nation Heads of Parliamentary Departments Clerk of the Senate—H. Evans Clerk of the House of Representatives—I.C. Harris Secretary, Department of Parliamentary Services—H.R. Penfold QC

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HOWARD MINISTRY

Prime Minister The Hon. John Winston Howard MP Minister for Transport and Regional Services and The Hon. John Duncan Anderson MP Deputy Prime Minister Treasurer The Hon. Peter Howard Costello MP Minister for Trade The Hon. Mark Anthony James Vaile MP Minister for Defence and Leader of the Govern- Senator the Hon. Robert Murray Hill ment in the Senate Minister for Foreign Affairs The Hon. Alexander John Gosse Downer MP Minister for Health and Ageing and Leader of the The Hon. Anthony John Abbott MP House Attorney-General The Hon. Philip Maxwell Ruddock MP Minister for Finance and Administration, Deputy Senator the Hon. Nicholas Hugh Minchin Leader of the Government in the Senate and Vice-President of the Executive Council Minister for Agriculture, Fisheries and Forestry The Hon. Warren Errol Truss MP Minister for Immigration and Multicultural and Senator the Hon. Amanda Eloise Vanstone Indigenous Affairs and Minister Assisting the Prime Minister for Indigenous Affairs Minister for Education, Science and Training The Hon. Dr Brendan John Nelson MP Minister for Family and Community Services and Senator the Hon. Kay Christine Lesley Patterson Minister Assisting the Prime Minister for Women’s Issues Minister for Industry, Tourism and Resources The Hon. Ian Elgin Macfarlane MP Minister for Employment and Workplace Rela- The Hon. Kevin James Andrews MP tions and Minister Assisting the Prime Minister for the Public Service Minister for Communications, Information Tech- Senator the Hon. Helen Lloyd Coonan nology and the Arts Minister for the Environment and Heritage Senator the Hon. Ian Gordon Campbell

(The above ministers constitute the cabinet)

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HOWARD MINISTRY—continued

Minister for Justice and Customs and Manager of Senator the Hon. Christopher Martin Ellison Government Busines in the Senate Minister for Fisheries, Forestry and Conservation Senator the Hon. Ian Douglas Macdonald Minister for the Arts and Sport Senator the Hon. Charles Roderick Kemp Minister for Human Services The Hon. Joseph Benedict Hockey MP Minister for Citizenship and Multicultural Affairs The Hon. Peter John McGauran MP and Deputy Leader of the House Minister for Revenue and Assistant Treasurer The Hon. Malcolm Thomas Brough MP Special Minister of State Senator the Hon. Eric Abetz Minister for Vocational and Technical Education The Hon. Gary Douglas Hardgrave MP and Minister Assisting the Prime Minister Minister for Ageing The Hon. Julie Isabel Bishop MP Minister for Small Business and Tourism The Hon. Frances Esther Bailey MP Minister for Local Government, Territories and The Hon. James Eric Lloyd MP Roads Minister for Veterans’ Affairs and Minister As- The Hon. De-Anne Margaret Kelly MP sisting the Minister for Defence Minister for Workforce Participation The Hon. Peter Craig Dutton MP Parliamentary Secretary to the Minister for Fi- The Hon. Dr Sharman Nancy Stone MP nance and Administration Parliamentary Secretary to the Minister for Indus- The Hon. Warren George Entsch MP try, Tourism and Resources Parliamentary Secretary to the Minister for Health The Hon. Christopher Maurice Pyne MP and Ageing Parliamentary Secretary to the Minister for De- The Hon. Teresa Gambaro MP fence Parliamentary Secretary (Foreign Affairs and The Hon. Bruce Fredrick Billson MP Trade) Parliamentary Secretary to the Prime Minister The Hon. Gary Roy Nairn MP Parliamentary Secretary to the Treasurer The Hon. Christopher John Pearce MP Parliamentary Secretary to the Minister for Trans- The Hon. John Kenneth Cobb MP port and Regional Services Parliamentary Secretary to the Minister for the The Hon. Gregory Andrew Hunt MP Environment and Heritage Parliamentary Secretary (Children and Youth Af- The Hon. Sussan Penelope Ley MP fairs) Parliamentary Secretary to the Minister for Educa- The Hon. Patrick Francis Farmer MP tion, Science and Training Parliamentary Secretary to the Minister for Agri- Senator the Hon. Richard Mansell Colbeck culture, Fisheries and Forestry

v

SHADOW MINISTRY

Leader of the Opposition Mark William Latham MP Deputy Leader of the Opposition and Shadow Jennifer Louise Macklin MP Minister for Education, Training, Science and Research Leader of the Opposition in the Senate and Senator Christopher Vaughan Evans Shadow Minister for Social Security Deputy Leader of the Opposition in the Senate and Senator Stephen Michael Conroy Shadow Minister for Communications and In- formation Technology Shadow Minister for Health and Manager of Op- Julia Eileen Gillard MP position Business in the House Shadow Treasurer Wayne Maxwell Swan MP Shadow Minister for Industry, Infrastructure and Stephen Francis Smith MP Industrial Relations Shadow Minister for Foreign Affairs and Interna- Kevin Michael Rudd MP tional Security Shadow Minister for Defence and Homeland Se- Robert Bruce McClelland MP curity Shadow Minister for Trade The Hon. Simon Findlay Crean MP Shadow Minister for Primary Industries, Re- Martin John Ferguson MP sources and Tourism Shadow Minister for Environment and Heritage Anthony Norman Albanese MP and Deputy Manager of Opposition Business in the House Shadow Minister for Public Administration and Senator Kim John Carr Open Government, Shadow Minister for Indige- nous Affairs and Reconciliation and Shadow Minister for the Arts Shadow Minister for Regional Development and Kelvin John Thomson MP Roads and Shadow Minister for Housing and Urban Development Shadow Minister for Finance and Superannuation Senator the Hon. Nicholas John Sherry Shadow Minister for Work, Family and Commu- Tanya Joan Plibersek MP nity, Shadow Minister for Youth and Early Childhood Education and Shadow Minister As- sisting the Leader on the Status of Women Shadow Minister for Employment and Workplace Senator Penelope Ying Yen Wong Participation and Shadow Minister for Corporate Governance and Responsibility

(The above are shadow cabinet ministers)

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SHADOW MINISTRY—continued Shadow Minister for Immigration Laurence Donald Thomas Ferguson MP Shadow Minister for Agriculture and Fisheries Gavan Michael O’Connor MP Shadow Assistant Treasurer, Shadow Minister for Joel Andrew Fitzgibbon MP Revenue and Shadow Minister for Banking and Financial Services Shadow Attorney-General Nicola Louise Roxon MP Shadow Minister for Regional Services, Local Senator Kerry Williams Kelso O’Brien Government and Territories Shadow Minister for Manufacturing and Shadow Senator Kate Alexandra Lundy Minister for Consumer Affairs Shadow Minister for Defence Planning and Per- The Hon. Archibald Ronald Bevis MP sonnel and Shadow Minister Assisting the Shadow Minister for Industrial Relations Shadow Minister for Sport and Recreation Alan Peter Griffin MP Shadow Minister for Veterans’ Affairs Senator Thomas Mark Bishop Shadow Minister for Small Business Tony Burke MP Shadow Minister for Ageing and Disabilities Senator Jan Elizabeth McLucas Shadow Minister for Justice and Customs, Senator Joseph William Ludwig Shadow Minister for Citizenship and Multicul- tural Affairs and Manager of Opposition Busi- ness in the Senate Shadow Minister for Pacific Islands Robert Charles Grant Sercombe MP Shadow Parliamentary Secretary to the Leader of John Paul Murphy MP the Opposition Shadow Parliamentary Secretary for Defence The Hon. Graham John Edwards MP Shadow Parliamentary Secretary for Education Kirsten Fiona Livermore MP Shadow Parliamentary Secretary for Environment Jennie George MP and Heritage Shadow Parliamentary Secretary for Infrastructure Bernard Fernando Ripoll MP Shadow Parliamentary Secretary for Health Ann Kathleen Corcoran MP Shadow Parliamentary Secretary for Regional Catherine Fiona King MP Development (House) Shadow Parliamentary Secretary for Regional Senator Ursula Mary Stephens Development (Senate) Shadow Parliamentary Secretary for Northern The Hon. Warren Edward Snowdon MP Australia and Indigenous Affairs

vii CONTENTS

TUESDAY, 7 DECEMBER

Chamber Indigenous Education (Targeted Assistance) Amendment Bill 2004— Second Reading...... 1 Third Reading...... 12 Australian Security Intelligence Organisation Amendment Bill 2004— First Reading ...... 12 Second Reading...... 12 In Committee...... 20 Third Reading...... 21 Textile, Clothing and Footwear Strategic Investment Program Amendment (Post-2005 Scheme) Bill 2004 ...... 21 Customs Tariff Amendment (Textile, Clothing and Footwear Post-2005 Arrangements) Bill 2004— First Reading ...... 21 Second Reading...... 22 Questions Without Notice— Regional Services: Program Funding...... 25 Distinguished Visitors...... 27 Questions Without Notice— Iraq ...... 27 Regional Services: Program Funding...... 28 Indigenous Affairs: National Indigenous Council ...... 29 Howard Government: Ministerial Code of Conduct ...... 31 Ansett Australia: Employee Entitlements...... 32 Fisheries: Illegal Operators...... 33 Health: Allied Health Professionals...... 34 Australian Defence Force: Drug Use...... 36 Family and Community Services: Senior Australians...... 37 Education: Funding ...... 38 Centrelink: Job Network...... 39 Questions Without Notice: Additional Answers— Immigration: Rophin Morris ...... 40 Immigration: Asylum Seekers ...... 40 Abortion ...... 41 Questions Without Notice: Take Note of Answers— Answers to Questions...... 42 Ansett Australia: Employee Entitlements...... 48 Petitions— Immigration: Asylum Seekers ...... 49 Medicare: Services ...... 49 Military Detention: Australian Citizens...... 49 Notices— Presentation ...... 50 Business— Rearrangement...... 53 Notices— Postponement ...... 53

CONTENTS—continued

Committees— Employment, Workplace Relations and Education References Committee—Reference...54 Hanukkah...... 54 Multiculturalism ...... 54 Committees— Legal and Constitutional Legislation Committee—Extension of Time...... 57 Community Affairs Legislation Committee—Meeting ...... 57 Treaties Committee—Reference ...... 57 Australia-United States Free Trade Agreement— Return to Order...... 58 Committees— Treaties Committee—Corrigenda...... 59 Membership...... 59 National Water Commission Bill 2004 ...... 59 Tax Laws Amendment (Superannuation Reporting) Bill 2004— First Reading ...... 59 Second Reading...... 59 Business— Rearrangement...... 63 Tax Laws Amendment (Superannuation Reporting) Bill 2004— Report of Senate Economics Legislation Committee...... 63 Textile, Clothing and Footwear Strategic Investment Program Amendment (Post-2005 Scheme) Bill 2004 ...... 63 Customs Tariff Amendment (Textile, Clothing and Footwear Post-2005 Arrangements) Bill 2004— Second Reading...... 63 Third Reading...... 86 National Water Commission Bill 2004— Report of Senate Environment, Communications, Information Technology and the Arts Legislation Committee ...... 87 Copyright Legislation Amendment Bill 2004— Report of Senate Legal and Constitutional Legislation Committee ...... 87 Tax Laws Amendment (Superannuation Reporting) Bill 2004— Second Reading...... 87 In Committee...... 93 Third Reading...... 97 Copyright Legislation Amendment Bill 2004— Second Reading...... 97 In Committee...... 109 Third Reading...... 119 Schools Assistance (Learning Together—Achievement Through Choice and Opportunity) Bill 2004— Consideration of House of Representatives Message...... 119 Tax Laws Amendment (Small Business Measures) Bill 2004— First Reading ...... 128 Second Reading...... 128 Third Reading...... 133 National Water Commission Bill 2004— Second Reading...... 133

CONTENTS—continued

Adjournment— Curran, Mr Charles and Mrs Eva ...... 151 Xstrata: Proposed Investment in Australia ...... 154 Windschuttle, Mr Keith ...... 156 Eureka Stockade: 150th Anniversary ...... 158 Tasmania: Health...... 160 Documents— Tabling...... 164 Tabling...... 165

Tuesday, 7 December 2004 SENATE 1

Tuesday, 7 December 2004 distribution of funds to remote communities. ————— Secondly, the extensive reporting require- The PRESIDENT (Senator the Hon. ments, which we effectively dealt with yes- Paul Calvert) took the chair at 12.30 p.m. terday in the Vocational Education and Train- and read prayers. ing Funding Amendment Bill, make it clear that the government is approaching Indige- INDIGENOUS EDUCATION nous education funding with the same main- (TARGETED ASSISTANCE) streaming approach. The problem with In- AMENDMENT BILL 2004 digenous communities, particularly those in Second Reading the more remote areas of Australia, is that Debate resumed from 6 December, on mo- they will not have the resources to fulfil the tion by Senator Colbeck: requirements of reporting. Thirdly, we think That this bill be now read a second time. the election commitment to fund boarding places for students from remote communities Senator ALLISON (Victoria) (12.31 and the additional city based apprenticeships p.m.)—The Australian Democrats know that and other tertiary training places represents the Indigenous Education (Targeted Assis- yet another example of the government’s tance) Amendment Bill 2004 is required for policy-on-the-run approach to Indigenous the funding of Indigenous schools and com- affairs. These programs do not address a munities by January next year, so we do not whole range of very complex issues regard- want to stand in the way of funds reaching ing remote Indigenous communities and we those schools and other institutions. That are yet to see the details of either program. money is desperately needed by Indigenous students. However, we do want to put on the I think we need to remember that the edu- record our strong opposition to the way in cation we are talking about here is for In- which this government has gutted the In- digenous Australians, who have the lowest digenous Education Direct Assistance Pro- literacy and numeracy rates in the country by gram. I also want to emphasise how severely a long way, and I might say lower than so lacking this supplementary funding is. The many other countries as well. The Indige- bill provides funding for the next four years nous population is growing at close to twice for education and training of Indigenous stu- the rate of non-Indigenous Australians. Con- dents through two programs: the Indigenous tributions to Indigenous education should be Education Strategic Initiatives Program and increasing, in our view. We have the chance the Indigenous Education Direct Assistance to exponentially improve the education sta- Program. It continues the away from home tistics and, more importantly, the life oppor- base element of Abstudy at 2004 levels and it tunities of Indigenous Australians through introduces accountability arrangements in- education, given the burgeoning young popu- volving extensive and detailed reporting on lation. I think we are yet to embrace this op- Indigenous education programs. portunity in a productive way. Our main concern with these changes is Unfortunately, this legislation does not the very clear and real lack of improvement move in that direction at all. Although the in funding for Indigenous education. This hard work and commitment of many Indige- bill contains a mere five per cent increase in nous and non-Indigenous educators must be real terms on funding between 2002 and acknowledged, the statistics remain shock- 2003. There are also concerns about the re- ing. Only half of young Indigenous people aged between 15 and 19 attend secondary

CHAMBER 2 SENATE Tuesday, 7 December 2004 school. Only 10 per cent complete their year of this year revealed that funding for the 12 qualifications—less than a third of non- program in its previous form had not re- Indigenous completion rates. Although the ceived any major increases in funding since number of Indigenous people at universities its establishment in 1991-92. According to has increased, the percentage of Indigenous the Australian Education Union, even the university students has actually decreased indexation of the Indigenous Education Stra- over the Howard government’s years. Con- tegic Initiatives Program, or IESIP, is applied sidering that the percentage of Indigenous at a much lower rate than all other schools young people is increasing at a faster rate funding. than that of non-Indigenous people, we Given this history, I think we need to be would expect the university trend to be going clear about the money the government in the opposite direction. Universities are claims to be spending generously on Indige- making up for the drastic inequalities in edu- nous education. This eight per cent increase cation standards of Indigenous people over the next four years is the only signifi- through special entry programs—70 per cent cant increase in the program’s 16 years. of Indigenous university students gained en- Given the distinct lack of growth in previous try through special entry programs, com- years, this is hardly substantial. The increase pared with just 20 per cent of non- in supplementary recurrent assistance, or Indigenous students. We should clearly be SRA, is due to increased enrolments, as the addressing the inequalities at preschool, pri- funding is on a per capita basis. Indigenous mary school and secondary school so that enrolments in the schooling sector alone in- these programs become less necessary. I creased by 5.4 per cent from 2001 to 2002. would also make the point that the specific This so-called new money—$86.3 million— funding provided through this legislation, does not constitute extra expenditure on a per although supplementary, is often the most capita basis. SRA funding for education pro- relevant and targeted funding for Indigenous viders who are being reclassified from re- students. Until mainstream educational insti- mote to non-remote areas and funding for tutions and curricula reflect and include the students in cities will be frozen at 2004 lev- experiences of Indigenous Australia, main- els. This is despite the fact that enrolments stream funding will not deliver equal bene- are increasing in regional and urban areas fits to Indigenous students. too. That means there will be a real loss to It is the most disadvantaged Australians non-remote Indigenous students. that the government is again short-changing Given the government’s response to the with these amendments to the Indigenous idea of cutting funding to elite private Education (Targeted Assistance) Act. This schools, one might expect them to apply government has a history of saving money their ‘no losers’ policy to Indigenous stu- on Indigenous education. In January 2000, dents as well but, sadly, this is not the case. changes to Indigenous education funding for Since we are constantly being reminded of Abstudy were estimated to produce savings the fact that we are living in a time of record to the government of approximately $75.2 national prosperity, these cost-cutting exer- million for the year 2000 alone. In the last cises in one of Australia’s areas of greatest funding quadrennium, from 2001 to 2004, need are truly offensive. Essentially, the gov- these changes have clearly saved the gov- ernment are trying to spread existing funding ernment a substantial sum. The Indigenous further. What this means is that, where some Education Direct Assistance Program review improvements have been made so that those

CHAMBER Tuesday, 7 December 2004 SENATE 3 particular Indigenous students do not appear in itself is no longer an appropriate interven- to be the most disadvantaged Indigenous tion’ to achieve the involvement of Indige- students, the government are directing the nous parents in educational decision making. funding to Indigenous students that are even This is a dubious statement for the govern- more disadvantaged—a new measurement of ment to use, given that it comes with no sup- disadvantage that does not consider the rest porting evidence. of the population. Since the numbers of Indigenous students The risk of this approach is that any pro- are growing, per capita formula based fund- gress already made will be ruined, but the ing would also mean an increase in the total government seems prepared to take that risk. funding. So, instead, the government will Instead of investing more money overall, the now distribute funds on the basis of applica- funding will just be rejigged and stretched tions. This will mean that some ASSPAs will further. I think it is necessary to outline a few find it difficult to get any funding: some will of the ways in which the government’s not have applications approved and some changes risk sacrificing gains to stretch fur- will find it too difficult to apply at all—for ther and further. Firstly, the government is example, those parents who do not write purporting to address disadvantage in remote English. A competitive system such as this is communities by redirecting supplementary likely to result in the most powerful ASSPAs recurrent assistance funds from regional and receiving significantly more funding than urban Indigenous students to newly classi- others and will disempower the least edu- fied remote students. There is no doubt that cated of the communities. That was borne remote communities require increased fund- out by the inquiry into Indigenous education. ing. However, the assumption on which this When we went to some of the more remote redistribution is based is that urban Indige- communities, it was quite clear that there nous people benefit significantly from main- were some that just did not get their act to- stream education—a premise which is not gether to write grant applications—and these supported by the statistics or the anecdotal will be the schools that miss out. evidence. There will be losers in this plan. Thirdly, the funding for the Vocational and Indigenous students in urban areas will re- Educational Guidance for Aboriginals ceive less per student than in previous years. Scheme, or VEGAS—a scheme which sup- Secondly, the Aboriginal Students Support ports projects in relation to future study or and Parent Awareness—ASSPA—scheme careers for school students, parents and In- will no longer be funded on a per capita basis digenous people in custody—is being rolled but on the basis of applications. The per cap- into the whole of school intervention strat- ita formula left decision making in the hands egy, along with other ASSPA schemes. The of parents and resulted in some very positive submission based funding, with a narrower parent-school partnerships. The govern- set of guidelines, means many of the projects ment’s media releases state that the DEST will simply no longer be funded. Fourthly, review of the Indigenous Education Direct the funding for the successful Indigenous Assistance Program found that formula Tutorial Assistance Scheme will also be based funding was ‘no longer an appropriate spread further. Instead of tutoring for all In- approach’. I will not be the first person to digenous students to prevent them falling point out that a reading of this document re- behind on benchmark testing, the new struc- veals no such finding. However, it does in- ture will only offer tutoring to students in clude a statement that the ‘ASSPA program years 4, 6 and 8 when they fail to meet cer-

CHAMBER 4 SENATE Tuesday, 7 December 2004 tain standards. Perhaps the government has Through these amendments, the govern- not done its research, but the Productivity ment is effectively reserving the right to re- Commission’s 2003 statistics indicate that quire an education provider to collect data on children who are behind in year 3 are less performance indicators and targets—again likely to remain at school beyond the com- with no additional resources. It also provides pulsory age. Only 72 per cent of Indigenous that funding recipients are required to report students nationally, compared with a 90 per not only on the planned expenditure and the cent student average, achieve the year 3 actual expenditure of Commonwealth funds reading benchmarks. This is clearly saying but also on the way in which the recipient that we must catch Indigenous children be- has advanced and intends to advance the ob- fore they fail the year 3 tests. It is also at jectives of the act from other non- odds with the tutorial scheme we dealt with Commonwealth funds—again with no addi- yesterday which applies to mainstream tional resources. The Democrats recognise schools and goes to every student who has the need for better data collection in Indige- failed that year 3 benchmark test. nous education, but it seems that the time, The second main area of concern for the energy and resources required to fulfil these Democrats is the accountability provisions. reporting demands will come out of the fund- We are obviously not opposed to account- ing for the educational initiatives themselves. ability. Indeed, we understand that the states The $39 million over four years for the would be made to account for their expendi- Indigenous Youth Leadership Program and ture on Indigenous education, and we wel- the Indigenous Youth Mobility Program is come that. We agree that funding should another example of this government’s ill- make it to the people for whom it is in- conceived and hastily implemented policy on tended. A finding of our Indigenous educa- Indigenous education. Aside from being an tion inquiry was that some states and, in par- absolute pittance, these programs do nothing ticular, territories were squirreling away this about the state of proper schooling in remote money and not using it on Indigenous peo- communities or about the problems associ- ple, so this is a welcome amendment. How- ated with low retention rates of Indigenous ever, the government knows no bounds when students in city boarding schools. One of the it comes to accountability requirements on reasons identified by Noel Pearson for the money for Indigenous people. very low retention rates of Indigenous stu- Given that the amendments of which I am dents at boarding school was that they enter speaking are purportedly about making In- at an educational level far below that of their digenous education providers more account- peers due to the poor education in their able, I want to emphasise the double stan- communities. That in itself should indicate to dards in this government’s approach to ac- the government that the narrow approach to countability. On the one hand, much of what funding places in the city is unlikely to pro- the government is doing to Indigenous edu- duce any different results. cation is by guidelines, not legislation for the In conclusion, the Democrats will of parliament to consider, and yet we are being course support the passage of this bill, but asked to pass legislation which demands an only because the people who would suffer excessive amount of reporting by schools, from a delay are the Indigenous students and Indigenous organisations and community communities relying on that funding. The groups under the veil of accountability, with funding is again provided at a minimum, as it no extra resources allocated for that purpose. has been for 16 years. We urge the govern-

CHAMBER Tuesday, 7 December 2004 SENATE 5 ment to consider the points made in our sec- cation (Targeted Assistance) Act ond reading amendment and to engage 2000, communities in the decision-making process (ii) guarantee that targeted assistance regarding the education of their children. I funding is indexed at a rate compa- would also point out that this bill has been rable to other schools funding, and referred to the Senate Employment, Work- (iii) consult with parents and teachers place Relations and Education References before going ahead with the restruc- Committee, which will give the Aboriginal turing of the ASSPA scheme and the community a chance to have their say on ITAS”. these measures, even if it is after the bill Senator CROSSIN (Northern Territory) goes through. We hope that the findings and (12.47 p.m.)—I rise to contribute to the de- recommendations of that committee will be bate on the Indigenous Education (Targeted properly considered. I move: Assistance) Amendment Bill 2004. No doubt At the end of the motion, add: people who know of my contributions in this chamber will know that this is a fairly pas- “but the Senate: sionate subject for me and has been now for (a) notes that: the best part of nearly three decades. (i) funding for the Indigenous Educa- tion Direct Assistance program has The stated purpose of this bill is to amend had no substantial increase since its the Indigenous Education (Targeted Assis- inception 16 years ago and that in a tance) Act 2000 in order to improve Indige- time of record national prosperity, nous education outcomes and to appropriate Indigenous education should be a that money for Indigenous education that is matter of priority; over and above mainstream funding for the (ii) the changes to the Aboriginal Stu- period 2005 to 2008. It does so through the dent Support and Parent Awareness provision of funding for both the Indigenous (ASSPA) scheme and the Indige- Education Strategic Initiatives Program, nous Tutorial Assistance Scheme commonly known in the industry as IESIP— (ITAS) are being imposed without prior to that it was known as AEP, the Abo- any genuine consultation with In- riginal Education Program—and the Indige- digenous communities and with a disregard for the successful ele- nous Education Direct Assistance Program, ments of these programs; and the acronym of which is IEDA. These in- clude elements of what was the Aboriginal (iii) the Government’s focus on remote communities actually involves a re- Tutorial Assistance Scheme, which will now direction of funding from urban and be known as the Indigenous Tutorial Assis- regional Indigenous students to very tance Scheme, and what is known as ASSPA remote Indigenous students, rather funds. ASSPA stands for Aboriginal Students than increasing the pool of funds for Support and Parental Awareness, and it now Indigenous education in recognition seems to be located under what is termed the of the level of disadvantage of In- Whole of School Intervention Strategy, about digenous students relative to non- which I will talk more later. Indigenous students; and We all would be only too well aware of (b) calls on the Government to: the need to improve Indigenous education (i) provide a substantial increase in outcomes in this country. The social justice funding under the Indigenous Edu- report of earlier this year was fairly scathing in what it had to say about the Howard gov-

CHAMBER 6 SENATE Tuesday, 7 December 2004 ernment’s outcomes in the field of Indige- other words, more government intervention. nous affairs as a whole. While some things We would not deny that accountability is have improved, the gap between Indigenous important. We do need and want to know and non-Indigenous people remains large how funds are being used and we would like and has not closed. This certainly applies to know what is being achieved. However, as across the various levels of education. In his I will discuss later, the changes being intro- second reading speech, the Minister for Edu- duced under this bill would appear to have cation, Science and Training claimed: been made with little consultation with the Closing the education divide between Indigenous stakeholders, the Indigenous people of this and non-Indigenous Australians remains one of nation, and one can therefore certainly ques- this government’s highest education priorities. tion the educational value of the changes. When I look closely at the implications of I have to say that uncovering the implica- this bill, I fail to see how that will be the tions of the changes in this bill reveals one of case. Associate Professor Boni Robertson, the most incompetent exercises in consulta- according to an article in the Campus Re- tion that I have known the officers of the view, has said that funding for Indigenous Department of Education, Science and Train- education needs to be drastically increased ing to undertake in the 6½ years that I have considering the large percentage of young been fronting up to them at Senate estimates. people in the Indigenous population and the We now know that there are 3,800 ASSPA discrepancy between the participation and committees in this country. We know that graduation rates of Indigenous Australians DEST randomly selected 400 of those, sent across all levels of education and that of the them a discussion paper and only got 10 re- non-Indigenous population. According to the sponses. It is on the basis of that that these article, she said of this bill that the slashing changes are being made. Why were 3,800 of affirmative action programs like ASSPA ASSPA committees not sent the documenta- and other Indigenous education in schools tion? Why were there not state or territory this year needed to be urgently addressed. consultations and face-to-face consultations? She also said that renewed funding by both Why were questions not asked about why sides of government to implement Indige- only 10 responses were received? Did people nous language programs and address the ex- not understand the changes? Were they not traordinary high levels of truancy, suspen- asked to respond to the changes? Were they sions and inclusions of young Indigenous sent a discussion paper for information only? students from within the education system To make the substantial changes that this bill was of paramount importance to the ongoing implies after getting feedback from only 10 development of Indigenous Australia. So committees out of 3,800 shows a lack of there is no resounding support for the scrutiny and accountability that I have not changes outlined in this bill, and Boni known from DEST officers in the 6½ years Robertson is one person who has spoken out that I have been in this place. about that. I have had many representations from my However, notwithstanding the problems Indigenous constituents in the Northern Ter- with the fine print of this bill, as is so often ritory, particularly from urban Darwin and the case with this government, it thinks that Palmerston, who have expressed concern not outcomes will be improved by having more only about the proposed changes to Indige- regulations, more accountability and more nous education but also about the way in funding tied to performance indicators—in which those changes were made. They came

CHAMBER Tuesday, 7 December 2004 SENATE 7 away from DEST-provided information ses- Successful projects such as the National In- sions with far more questions and concerns digenous English Literacy and Numeracy than they went in with. I still believe to this Strategy, NIELNS, and the scaffolding pro- day, having met parents from those ASSPA gram are continued, but one would have committees two weeks ago, that DEST still hoped that successful programs might have really has no idea how these changes are go- been expanded and funded for growth, not ing to operate. The government has no plan frozen at present levels. as to how these changes are going to operate, The structured scaffolding approach to lit- and we are less than three weeks away from eracy has proved to be very successful. I the start of the new year. have seen it in operation and I know the Let me first refer to the figures in this bill. work of Brian Gray, the instigator of this Based on the government’s announcement on approach, very well. It is especially success- 5 April, this bill provides $641.6 million over ful for teaching Indigenous students in re- the four-year period from 2005 and 2008, so mote areas. It has demonstrated some excel- it is in fact the next quadrennium of IESIP lent outcomes in improved student perform- funding. Of this, $513 million is for mainte- ance. But again, this bill gives little sign that nance of supplementary recurrent funding there will be any growth in this program to and $128.1 million is for ongoing and new improve outcomes for a larger number of strategic projects. So this is really an in- students. crease of only 16 per cent over a four-year What most concerns both me and my In- period—a four per cent increase for each digenous constituents, however, is the pro- year—which hardly provides for any real posed changes under IEDA to programs such growth, especially when one considers that as ASSPA and ITAS, where funding ar- demographically, certainly in my electorate, rangements are changed in a most significant the number of Indigenous people, and hence way. Many of these changes that I alluded to Indigenous students, is rising very rapidly. earlier we discovered through the process of One would think that funding for this real estimates. The changes are being proposed growth is essential if outcomes are to be im- with minimal consultation. From a govern- proved. ment that has abolished the ATSIS organisa- Again in his speech the minister claimed tion, which gave Indigenous people their that the government’s approach was to pro- major voice, I guess it should not come as vide greater weighting of resources towards too big a surprise that there was minimal those with greatest disadvantage: those in consultation on these changes. remote areas. There is little real evidence of Let me move to what some of these that in this bill. Although remote areas do get changes are going to be. In a media release funded more than urban areas, this has been on 5 April the Minister for Education, Sci- so for some time, to take account of the ence and Training, Dr Brendan Nelson, said: greater costs of service delivery in remote ... we’ve funded a range of things over the last areas. Strategic funding will be continued at four years which we’ve had evaluated that have existing levels of $128.1 million—in other been found not to deliver the outcomes that they words frozen, in nominal terms. So this is should, for example, the Aboriginal Student Sup- hardly a generous funding bill. It is very hard port and Parent Awareness Committees. There are to see how this funding approach will im- 3,800 of these committees throughout Australia prove Indigenous outcomes or how it redi- and the review which we conducted— rects resources to the most disadvantaged.

CHAMBER 8 SENATE Tuesday, 7 December 2004 remember, DEST randomly sampled 400 of to this government, is a one-way street. In- those committees and got a response from 10 digenous people will be forced to walk it, of them— and there will be no reciprocal obligation on found that they have delivered quite poor out- behalf of this government, and this bill is the comes educationally for Aboriginal students. very first example of that. There is a group of people connected with If this government were genuine in its ASSPA committees working in Darwin and comments about welfare reform and mutual Palmerston and the greater rural area, and I obligation, ASSPA committees would not be know that Warren Snowdon has been work- abolished or changed, they would be ing with a similar group of people in Alice strengthened and their funding increased. Springs. The work that they have done over But these people are going to have crawl up the last four or five months is to be abso- hill and down dale, put in grant submissions lutely commended. They have formed a and compete for this funding. That means group of combined ASSPA committees to that some schools will miss out under these fight at every chance they possibly can the changed arrangements. The people that have changes to this legislation. In a newspaper been working flat out to try and bring about that they put out in June they say: some equity and justice and to get their con- What Dr Nelson doesn’t say is that ASSPA has cerns highlighted are fantastic people like never been allocated the level of funding neces- Delsie Tamiano from Palmerston High sary to achieve the educational outcomes he is School. She has been a power of strength in talking about. The facts are that in urban-based the last couple of months in bringing Indige- schools, ASSPA gets $110 per ... student a year. nous people together in urban centres to get That’s $2.75 per student per week ($4 for secon- them to understand the implications of these dary students). changes. I refer also to Robbie Robinson Given those figures and the restrictive funding from Alice Springs, Cherie Holtze from guidelines, it is completely unrealistic for the Taminmin high, Mark Munnich, Sharna Howard government to expect ASSPA to achieve Raye from Palmerston High School, Sharna beyond that which it is currently funded to do. Taut from Malak Primary School, Gloria In an age when this government talks about Craigie, Patty Raymond and Eddie mutual obligation and quid pro quo for ac- McKenzie. There are a whole lot of terrific cess to services by Indigenous people in re- urban Indigenous people who are fighting for sponse to funding from this government, this some extra money out of this government to is an area that absolutely reeks of hypocrisy. maintain ASSPA committees and keep the It talks about welfare reform for Indigenous system as it currently is, because they be- people. It talks about mutual obligation. It lieve that they are achieving significant out- talks about increased rights and responsibili- comes—outcomes that this government, ties Indigenous people need to undertake, yet through a flawed consultation process, has it attacks the very committees that currently not bothered to look at or consider. only get $2.75 per Indigenous student per I was told in estimates hearings that con- week through the ASSPA committees. One sultations were also held with ATSIC and has to seriously question the motivation of Indigenous education consultative bodies. this government and, as I said, its absolutely Unfortunately, there is no Indigenous educa- hypocritical stance and the jargon it uses tion consultative body in the Northern Terri- when it talks about welfare reform and mu- tory, so I am not sure who this government tual obligation. Mutual obligation, according talked to in the Northern Territory. So we

CHAMBER Tuesday, 7 December 2004 SENATE 9 missed out on the consultations despite hav- reason why ASSPA programs were invented ing the largest percentage of the national In- in the first place: it was predominantly to get digenous population. I have to say again that Indigenous parents involved, committed and the consultations were not good enough; they participating in their child’s education. were cursory, badly handled and managed There are cases in the Northern Territory only minimally before DEST decided on where ASSPA committees are the only con- some fairly major changes which are now of tact, as I said, between Indigenous parents serious concern to Indigenous people in the and the school. In urban areas where Indige- Northern Territory. These changes have been nous students are usually in the minority in publicised through information sessions, and schools, they were the only school communi- I am told the minister wrote to all school ties that Indigenous parents felt comfortable principals and ASSPA committees. However, attending or speaking at. The DEST Review this is telling people of changes already of the Indigenous education direct assistance made, over which they have not been con- program at page 40 states: sulted and for which they can see little rea- Improving the participation of Indigenous parents son. in school education is a national priority— From next year ASSPA committees as oh yeah— such will be abolished on the ground, ac- to improve student outcomes ... cording to the government, that they were not working efficiently to achieve outcomes. So this government seeks to abolish the very However, in many cases in the Northern Ter- committees that encouraged that participa- ritory they were the only contact Indigenous tion, and it talks about mutual obligation! parents had with the school. Let us never That same review on page 41 said: forget the reason why ASSPA committees There was support for the concept of the were established—a history and a back- ASSPA program among those consulted. Many ... ground which I am closely associated with. were of the view that ... it [is] one of the most Of the 21 Aboriginal education goals, goal important Indigenous education programs. No. 1 was to encourage more participation So what happens? This government is decid- by Aboriginal parents in their child’s school- ing to abolish them. Are we perhaps back to ing. Goal No. 1 was established in 1989. The some hidden agenda of assimilation? I do not outcome of that and the way in which it was think that agenda is hidden anymore; it is implemented—in other words, the perform- well and truly out in the open. So from next ance indicator—was the establishment of year ASSPA funding is to be abolished. No ASSPA committees that worked alongside longer will schools with Indigenous students school councils, where they could, and automatically receive the funding amount alongside school principals, and were given a according to the number of Indigenous stu- discrete bucket of funding in order to set dents. some educational outcomes. In some areas What we now know is that those commit- we know that involves breakfast programs so tees, if they seek to exist, No. 1 have to be- that kids can be fed before they start the come part of or associated with a school school day. It was about homework centres, council, and No. 2 will have to put in a grant after-school-hours programs, additional ex- application to access those funds. In the case cursions and extending that child’s educa- where you might have 10 or 20 Indigenous tional program over and above what the kids in a school and are looking at $110 per school provided. Let us never forget the key student per year, it is probably not a lot of

CHAMBER 10 SENATE Tuesday, 7 December 2004 money. But in cases like Yirrkala in the Amendment Bill 2004. Of course, given that Northern Territory that is $60,000—that is a she is a senator for the Northern Territory, hell of a decent sized grant application, I she takes a particular interest in these mat- would have thought. Who is going to write ters. Despite the fact that there is no doubt it—the principal, staff at the school or In- that Senator Crossin can make intelligent digenous parents? contributions to debates, I never get the feel- I put it to the Senate that Indigenous par- ing that she ever really tackles the central ents will not have the time. I put it to the issues. Having listened very carefully to Senate that staff are already overloaded with Senator Crossin’s comments, I did not get a an administrative burden. So I do not under- feeling for where the real, fundamental prob- stand, in this day and age, when Indigenous lems were and what the Labor Party’s ap- education participation and outcomes are at proach to those problems was. The Labor their lowest levels, why we seek to create Party’s approach to Indigenous policy over more hurdles for people to access Indigenous the years has been marked ‘F’ for ‘fail’, in education funding when the system was my view. working fine and needed only to be strength- I will tackle some of the matters that ened and encouraged, not abolished or Senator Crossin raised in her remarks. I think changed. it is important, Senator Crossin, when you In conclusion, there are many aspects of make a contribution to a debate, that you get this bill, particularly in relation to the ITAS your facts straight. I must say that in my funding, that I know my colleague Warren consultation with officers I get the distinct Snowdon has addressed in the other place. I feeling that on a number of key issues the am glad that the Senate has referred the im- facts of the case have eluded you. I would plications of the proposed changes to fund- not say that you have deliberately ignored ing arrangements contained in this bill to the them, because I would not believe that you Employment, Workplace Relations and Edu- would do such a thing, but you perhaps need cation References Committee for inquiry. to carry out some further research in order to The funding changes proposed in this bill make sure that your facts are correct. need very close scrutiny. I hope the Senate This bill amends the Indigenous Educa- committee will provide Indigenous parents tion (Targeted Assistance) Act 2000 in order with the chance to be consulted and to voice to maintain and enhance the Australian gov- their views about the changes proposed in ernment’s effort in improving education out- the bill. This government has never provided comes for Indigenous Australians over the those parents with the chance to have a say 2005-08 funding quadrennium. The bill pro- about this matter. The Senate will take up vides funding for both the Indigenous Educa- those reins, step into the shoes of DEST and tion Strategic Initiatives Program and the the government, and give those parents a Indigenous Education Direct Assistance pro- voice. (Time expired) gram for the 2005-08 quadrennium. IESIP Senator KEMP (Victoria—Minister for provides supplementary recurrent funding as the Arts and Sport) (1.07 p.m.)—I had the well as funding for significant national initia- opportunity to listen to some of the remarks tives and special projects. IEDA provides made by Senator Crossin in her contribution funding for the Indigenous Tutorial Assis- to the second reading debate on the Indige- tance Scheme and funding to support a nous Education (Targeted Assistance) whole-of-school intervention strategy. The bill also provides for the continuation of the

CHAMBER Tuesday, 7 December 2004 SENATE 11 away from base element of Abstudy for the committees, all directors-general of educa- 2005-08 funding quadrennium. tion and Indigenous education consultative The bill provides additional funding for bodies and Indigenous support units. Sixty- two new government initiatives: the Indige- two written responses were received, includ- nous Youth Leadership Program, which aims ing, I point out to Senator Crossin, only to identify and develop future Indigenous 10 from ASSPA committees. In addition, 25 leaders, focusing mainly on remote commu- case studies were conducted, at least seven nities; and the Indigenous Youth Mobility of which focused on ASSPA committees. Program, which will assist young Indigenous The opposition really needs to get its facts people who, with the support of their com- straight on this issue before launching into an munities, choose to relocate to capital cities attack on DEST. I am advised that the offi- or major provincial centres to take up em- cers have done a very conscientious job. I ployment and training opportunities, target- point out that on 5 April the Minister for ing apprenticeships and other occupations Education, Science and Training, Dr Nelson, such as nursing, accountancy, business man- wrote to all ASSPA committees to inform agement and teaching. This funding is part of them of the changes to the way the govern- a $2.1 billion package of measures aimed at ment proposes to support them during the improving Indigenous education outcomes 2005-08 quadrennium. He informed them— over the next four years. and I quote: The issue of accountability is one which is The per student funding formula for ASSPA often raised by senators. The bill includes committees will be replaced by a proactive sub- provisions to strengthen the accountability mission process that will require committees to arrangements for agreements made under the work closely with schools to identify specific act. It specifies commitments and conditions, approaches to address Indigenous learning needs. including financial and educational account- The opposition is critical of the government ability conditions, that must be included in for directing its supplementary Indigenous agreements. It includes a provision enabling education funding to those Indigenous stu- the minister to intervene to address underper- dents at greatest educational disadvantage— formance by funding recipients. The provi- those in remote areas. That is a rather sur- sions include the introduction of school at- prising attack, I would have thought. Let me tendance benchmarks, measuring outcomes assure the Senate that this government will at the remote rural, provincial and metro unashamedly direct resources to these stu- level; the transparent reporting of expendi- dents, whilst at the same time maintaining a ture on Indigenous education to ensure that level of supplementary funding for Indige- all money provided annually gets to the in- nous students in metropolitan areas. There is tended recipients; and sanctions for failure to no doubt— report. Senator Carr—So we’ll have more In- One of the issues that Senator Crossin digenous students at Geelong Grammar, will raised at some length—some would say at we? some tedious length but certainly at some Senator KEMP—Senator Carr, you had length—regarded consultation on the IEDA your chance to make a contribution. You ar- review. The opposition questions the consul- rived in the chamber late, and that is why I tation process for the IEDA review. The final am now speaking. This happens from time to discussion points were sent to 400 ASSPA time, but you should have been here if you

CHAMBER 12 SENATE Tuesday, 7 December 2004 wanted to make a contribution. There is no AUSTRALIAN SECURITY doubt that Indigenous students in remote INTELLIGENCE ORGANISATION areas are faring far worse than Indigenous AMENDMENT BILL 2004 students in state capital cities and in Can- First Reading berra. The report of the Commonwealth Bill received from the House of Represen- Grants Commission on Indigenous funding tatives. showed this quite conclusively. Senator KEMP (Victoria—Minister for Let me turn now to the second reading the Arts and Sport) (1.16 p.m.)—I move: amendment. I have pretty much covered it in my remarks, but it will not surprise senators That this bill may proceed without formalities to hear that the government will be opposing and be now read a first time. the second reading amendment. I understand Question agreed to. that the bill is being supported, despite the Bill read a first time. critical comments that have been made. I Second Reading reiterate that I think all the criticisms I have Senator KEMP (Victoria—Minister for heard have been misinformed and not based the Arts and Sport) (1.17 p.m.)—I move: on the known facts. I urge a speedy passage for the bill. That this bill be now read a second time. Senator CARR (Victoria) (1.14 p.m.)— I seek leave to have the second reading by leave—I move: speech incorporated in Hansard. Subparagraph (a)(i), omit “16”, substitute “8”. Leave granted. This is a small amendment to the second The speech read as follows— reading amendment that has been proposed AUSTRALIAN SECURITY INTELLIGENCE by Senator Allison. It would amend the 16 ORGANISATION AMENDMENT BILL 2004 years to eight years. This bill amends the Australian Security Intelli- The ACTING DEPUTY PRESIDENT gence Organisation Act 1979. (Senator Crossin)—The question is that It is another important step in the government’s Senator Carr’s amendment to Senator Alli- counter-terrorism efforts. son’s proposed amendment be agreed to. The safety and security of its population is the Question agreed to. most important responsibility of any government. Our response to the threat of terrorism has been The ACTING DEPUTY PRESIDENT— comprehensive and wide ranging, including a The question now is that the amendment national review of hazardous materials by the moved by Senator Allison, as amended, be Council of Australian Governments. agreed to. Ammonium nitrate has been given priority be- Question agreed to. cause of its history of use by terrorists and its Original question, as amended, agreed to. ready availability to the general public. Bill read a second time. Of particular interest to Australia is that Jemaah Islamiyah had planned to use ammonium nitrate Third Reading to bomb United States and other western targets Bill passed through its remaining stages in Singapore, including the Australian High without amendment or debate. Commission. In June this year COAG agreed on a national approach to ban access to ammonium nitrate for other than licensed users.

CHAMBER Tuesday, 7 December 2004 SENATE 13

The licensing regime will ensure that ammonium The Bill expands and clarifies the circumstances nitrate is only accessible to persons who have a in which ASIO can furnish security assessments demonstrated legitimate need for the product, are for the states and territories, while also looking to not of security concern and will store and handle the future. the product safely and securely. The measures in the bill ensure, as far as is possi- This scheme balances security considerations ble, that the security assessment regime will con- with the legitimate needs of industry and farmers. tinue to operate flexibly and effectively in our This is a great example of state and territory gov- changing security environment. ernments working in partnership with the Austra- (Quorum formed) lian government on our national security. Senator LUDWIG (Queensland) (1.20 The Queensland government has introduced its p.m.)—I rise to speak on the Australian Se- licensing regime and similar regimes will begin to curity Intelligence Organisation Amendment apply in all other states and territories over the Bill 2004. This bill forms part of a national coming months. licensing regime regulating the access and The licensing regime requires ASIO to furnish ownership of materials considered a threat to security assessments for the states and territories. national security. The opposition will be With the passage of this legislation, ASIO will be supporting this bill; however, we will be ready to fully perform this role when the requests moving amendments at the committee stage. start coming in from the states and territories. ASIO is able to furnish security assessments to The bill was proposed by the Attorney- assist the states and territories in controlling ac- General in fulfilment of an agreement cess to the places where ammonium nitrate is reached on 25 June 2004 at the Council of stored. Australian Governments Review of Hazard- This bill, the Australian Security Intelligence ous Materials, which agreed on a national Organisation Amendment Bill 2004, expands and approach to the banning of access to ammo- clarifies the circumstances in which ASIO can nium nitrate other than for specifically furnish security assessments. authorised users. Terrorists have previously These amendments will better underpin ASIO’s used ammonium nitrate as the raw material ability to furnish assessments in relation to a for constructing explosives, as demonstrated wider range of activities which may be carried out by terrorist attacks in Oklahoma and Bali. in relation to, or which involve ammonium ni- More recently the terror group Jemaah Isla- trate—including purchasing, importing, manufac- miah allegedly planned to use ammonium turing, storing, guarding, transporting, supplying, nitrate to bomb the Australian High Com- exporting, using, possessing, disposing, or han- mission in Singapore. dling. It is important to note that for the security as- Australia produces about 900,000 tonnes sessment regime to apply, a person’s ability to of ammonium nitrate per year. At present perform an activity in relation to, or involving ammonium nitrate is readily available and ammonium nitrate must be controlled or limited commonly used throughout Australia by both on security grounds. the mining industry as an explosive and the The amendments are proactive—they are in- agricultural industry as a fertiliser. tended to be sufficiently broad to cover, to the The COAG agreement recognises the extent that is possible, issues which may arise in threat that any continuing unregulated access the future such as a person’s ability to perform an to or possession of ammonium nitrate could activity in relation to, or involving other hazard- ous materials. pose to Australian national security and the need for a national response that balances

CHAMBER 14 SENATE Tuesday, 7 December 2004 security considerations with the legitimate store and handle the product safely and se- needs of both industry and farmers. The curely. As part of this licensing regime, the agreement suggested that this could be best states and territories intend to conduct back- achieved through a licensing regime that ground checks on those persons who apply regulated persons who may be authorised to for licences. use, manufacture, store, transport, supply, In the normal course the states will be in a import or export security sensitive ammo- position to check criminal records, but they nium nitrate. SSAN fertilisers are those with will require the assistance of ASIO in order greater than 45 per cent ammonium nitrate to check ASIO’s terrorist databases. As content. COAG agreed that the states and amended, paragraph 35 of the Australian territories would use their best endeavours to Security Intelligence Organisation Bill 2004 ensure that the legislative arrangements for enables ASIO to provide security assess- the licensing regime would be in place by ments in relation to persons who potentially 1 November 2004, with administrative ar- have access to security sensitive ‘informa- rangements to be finalised as soon as possi- tion’, security sensitive ‘places’ or a security ble thereafter. sensitive ‘thing’. The expansion of paragraph The Attorney-General indicated on 35 to include a reference to ‘thing’ extends 12 January 2004 that the Commonwealth the coverage of the bill to regulate activities was to develop a ‘model’ scheme based upon that may not be associated with such a place. the Queensland initiatives in this area. As of This could include, but is not limited to, the today, only the states of Queensland and Vic- purchasing, supplying, importing, exporting, toria have subsequently introduced licensing possessing, handling, using, guarding, trans- regimes consistent with the COAG agree- porting, manufacturing, disposing of or any ment. A licensing regime can be effective other activity that may involve the handling only if it is applied nationally. The partial or control of SSAN. Consistent with this ex- implementation of a national scheme to date panded definition of prescribed administra- is failing to protect Australia’s national secu- tive action, the bill has amended paragraph rity. The federal government has consistently 39(2) to include the term: taken the view that the regulation of SSAN is ... thing (other than information or a place). a matter for the states. Expert advice sug- Paragraph 39(2) provides an exception to gests that that may be too narrow a view paragraph 39(1)—that is the earlier para- given international agreements regulating graph—which prevents a Commonwealth explosives. Nonetheless it is hoped that state agency from taking, refusing to take or re- and territory governments will quickly enact fraining from taking prescribed administra- legislation to implement reciprocal licensing tive action on the basis of any communica- schemes. tion in relation to a person made by ASIO The government is seeking through this that does not amount to a security assess- bill to assist the implementation of present ment. and future state and territory licensing re- Currently, section 39(2) of the ASIO Act gimes developed in accordance with the 1974 enables a Commonwealth agency to COAG agreement of 25 June 2004. The li- take action of a temporary nature to prevent censing regime will ensure that ammonium a person’s access to any information or place nitrate is only accessible to persons who in circumstances where a preliminary com- have a demonstrated legitimate need for the munication by ASIO has satisfied that Com- product, are not of security concern and will

CHAMBER Tuesday, 7 December 2004 SENATE 15 monwealth agency that the requirements of way in which the agencies responsible for security necessitate such action as a matter of national security have conducted themselves urgency. The amended paragraph 39(2) en- within the framework of the legislation we ables a Commonwealth agency to also take have passed. But, in a world where fear and such action in relation a person performing reaction can sometimes lead people to pro- an activity in relation to or involving a thing, pose and to take precipitative steps and other than information or a place. While sec- where the debate about law and order readily tion 35(a) is passive in the sense that ASIO whips up fears and passions in our commu- responds to a request for a security clear- nity, it is important for this parliament to ance, section 39(2) is active in that it em- keep some kind of potential check in place powers the Commonwealth to injunct or re- so that we do not add too greatly to the num- strain an individual from undertaking a par- ber of Australian citizens over whom the ticular action. security check by the intelligence agencies is On that basis we have some concerns that run. the term ‘thing’ mentioned in the legislation We do not want to be a country where to is too broad. We therefore suggest an do the work of an ordinary citizen requires a amendment to the bill to include a new defi- person to be vetted, security checked, by our nition of ‘prescribed thing’ replacing ‘thing’ intelligence services. We want to restrict that as set out in paragraphs 35 and 39. Amend- requirement to the minimum that is neces- ing the bill in this way, Labor believes, is sary to promote the very interests that the good public policy. The reason that is impor- government has articulated today—that is, tant is that it keeps within the control of this the basic safety and security of our fellow parliament the range of things which will be citizens. We also do not want to provoke the subject of potential security checks. In paranoia and fear that these powers may be other words, it makes certain that this par- overreached. Equally, there are a large num- liament has an oversight, because a regula- ber of other matters which, for very proper tion of that nature needs to be tabled and it is reasons, the states and territories already open to members in the House and in the have controlled or limited access to. We Senate to move the disallowance of such a should not leave a very large door open to a regulation. Indeed, in the unlikely circum- kind of creeping incrementalism where, in stance that you can keep the disallowance order to go about ordinary business, super- motion and disallow the regulation, it pro- added to those existing regulatory arrange- vides a check on the excessives of the execu- ments is an obligation to be security vetted tive. by ASIO. As we have witnessed with the way in Having an obligation for any new thing— which the debate about national security and be it plastic explosives, nuclear waste mate- counterintelligence has emerged in Australia, rial or whatever—to come within this regime there have been instances where the Austra- simply to be made the subject of a regulation lian Labor Party has been rightly critical of so that members of this parliament can po- overreach in legislation that has come before tentially move for disallowance is a caution- this place. In a number of instances the legis- ary check on the executive. It simply means lation has been amended in ways which have that the power is not readily used without made certain that potential abuses could not thought. Parliamentarians on both sides of occur. We have, I think, so far seen no dem- the chamber who feel that there has been a onstration in this country of overreach in the move towards overreach can raise that issue.

CHAMBER 16 SENATE Tuesday, 7 December 2004

The measure largely prevents the issue from one month post the COAG agreement, the arising, because it makes people think before press revealed that over two tonnes of am- they go one step too far. I strongly commend monium nitrate had been stolen from farms to the Attorney-General the adoption of the in the Virginia area, north of Adelaide, over quite minor amendment proposed in this in- the course of a 12-month period. Earlier this stance. year, South Australian police admitted that That is the broad framework of the oppo- they might never find an additional 3.5 ton- sition’s response—that we move more cau- nes of ammonium nitrate that was reported tiously in this area and maintain the right of stolen. To place these matters in perspective, the Australian parliament always to supervise the bomb utilised in the Bali bombing was the actions of the executive. We should not allegedly in the order of only 150 kilograms. move any further with a regime that either Recent computer modelling has conserva- authorises or requires security vetting of tively suggested that a five-tonne fertiliser Australian citizens beyond that which is bomb detonated in a generic Australian city demonstrated to be necessary, but at the could kill up to 900 people and injure almost same time we must make sure that those 10,000 more. Those large quantities of am- agencies have the full range of powers and monium nitrate were stolen after the gov- capacities that they require. ernment had not only witnessed multiple foreign terrorist attacks utilising ammonium Although the opposition acknowledge the nitrate based bombs but had also been spe- Commonwealth’s participation in the states cifically advised by COAG of the need to based scheme to regulate the handling of regulate all stages of the ammonium nitrate ammonium nitrate, we remain with signifi- supply chain. cant concerns in respect of those areas where the Commonwealth does have responsibility. As long ago as February 2002 the then In the light of those concerns, the opposition federal Attorney-General, Mr Daryl Wil- are concerned about the delay that has oc- liams, participated in a radio interview dur- curred in tabling this bill or any similar bill. ing which a hypothetical scenario of a person If you look at the length of time it has taken endeavouring to buy two tonnes of ammo- this parliament to deal with these issues, you nium nitrate was raised. Mr Williams said: can start perhaps at 9/11. More recently, Obviously that would start alarm bells and you looking at the Bali bombings, which oc- would want to find out why they wanted to buy curred in October 2002, surely the signifi- the explosives if they obviously weren’t a farmer cance of Australia being vulnerable to a simi- or if they’re an urban dweller. lar ammonium nitrate terrorist device must Perhaps the commentator overestimated the have presented itself before the COAG government on this occasion. Why has the agreement in June 2004. Yet the government government waited until now to act upon this has failed to act until now, again apparently issue when it was first raised in a COAG resulting from a narrow view of the Com- meeting between the states and the Com- monwealth legislative competence under the monwealth as early as 2002? On 12 January foreign affairs power. 2004 the Attorney-General promised that Press reports in 2003 documenting the ‘the development of a national licensing re- ease with which a fertiliser bomb could be gime was proceeding according to his pro- produced within Australia also failed to in- gram’. We are now a significantly long way cite any action by the Commonwealth. Only away from 12 January 2004. On 12 January the Attorney-General also conceded that

CHAMBER Tuesday, 7 December 2004 SENATE 17 there was an urgency to the issue as well and Senator GREIG (Western Australia) that it ‘takes a long time to get things done in (1.36 p.m.)—The Australian Security Intelli- this country’. That may well be so under a gence Organisation Amendment Bill 2004 Liberal Party or under the current govern- expands the range of circumstances in which ment. If only the coalition government were ASIO can provide security assessments re- so forthcoming on other matters it would be garding individuals for the benefit of the far better. states and territories. Under the current re- Under a coalition government you would gime ASIO is empowered to provide security expect, at least on a broad number of issues, assessments in relation to individuals who they could act far quicker than they have have access to security restricted information done in this instance. How could the Attor- or places. However, following a COAG ney-General in one breath declare that the agreement regarding the regulation of am- issue required urgent and immediate atten- monium nitrate in Australia, it has become tion and then in the next breath say that, de- necessary for ASIO to provide assessments spite seeming delays, everything was pro- in relation to individuals who have access to ceeding according to plan? That was on hazardous substances which are restricted on 12 January 2004. Why didn’t the government security grounds. develop a plan to have this issue resolved On 25 June this year COAG agreed to in- years ago? They did nothing. Even more stitute a national ban on ammonium nitrate alarming is the fact that COAG has only re- other than for specifically authorised users. cently commenced conducting a review of The ban is to be implemented by way of a other hazardous materials that may poten- licensing regime in each state to ensure that tially be used in explosive devices. More ammonium nitrate is only available to indi- than three years after the September 11 at- viduals who have a demonstrated need for it, tacks, and nearly a decade after the Okla- are not a security concern and will store the homa bombing, the government are only substance safely. As an initial point, I would now beginning to consider regulating terror- like to express the Democrats’ strong support ists’ tools of trade. Only now has COAG for a ban on the purchase and use of ammo- sought to investigate other such potentially nium nitrate other than for a limited number hazardous materials. of legitimate uses. This is an issue which we This bill, whilst necessary, is very much have campaigned on, and we welcome the belated. It is a catch-up on national security. government’s decision to finally address the It is a check-up that first occurred years ago dangers posed by this substance. Given the that should have been followed through but potential for ammonium nitrate to be used in was not. Only now the government is turning acts of terrorism—which has been known its attention to it. The opposition can only since at least 1995 when it was used by hope that the government’s delay has not Timothy McVeigh to carry out the Oklahoma been too great. Obviously this bill is neces- bombing—it is incredibly disappointing that sary. But, at the end of the day, it is a pretty the government has taken so long to intro- limp-wristed approach by the federal gov- duce this legislation. In fact, it does amount ernment to a very serious matter. Australians to some degree of negligence on the part of should not be misled into thinking this bill the government. Senator Andrew Bartlett represents anything like an adequate federal took up this issue with the government on response to the significant national security 21 June this year, when he asked: issues that we all confront.

CHAMBER 18 SENATE Tuesday, 7 December 2004

Why is it that, over 18 months after the danger of We Democrats are concerned by the breadth accessibility of ammonium nitrate for use as an of these terms. We acknowledge that the po- explosive was identified as a significant risk, it tential scope of the legislation will be limited can still be purchased over the counter without by the fact that it will apply to activities that any sorts of controls or even a need to show ID? are controlled or limited on security grounds. Significantly, only four days later COAG ‘Security’ is defined in the act as protecting finalised plans for the national ban. Australians from espionage, sabotage, politi- The Attorney-General has indicated that cally motivated violence, the promotion of he has intelligence suggesting that Jemaah communal violence, attacks on Australia’s Islamiah had planned to use ammonium ni- defence system and acts of foreign interfer- trate to bomb the United States and other ence. Furthermore, it is limited by the fact Western targets in Singapore, including the that it will apply to activities that would af- Australian High Commission. Legitimate fect security in connection with matters uses of ammonium nitrate include mining; which are within the functions and responsi- quarrying; the manufacture of fertilizer and bilities of the Commonwealth. Nevertheless, explosives; educational, research and labora- we remain of the view that the bill is too tory use; commercial agricultural use by broad. In its current form it will enable the primary producers; and services for the government to expand the range of transportation, distribution and use of the ‘things’—to use the language in the bill— product. Given that around a million tonnes with very little accountability. of ammonium nitrate products are used in While we Democrats recognise that there Australia each year, there is clearly a risk for may be other hazardous substances in rela- this substance to end up in the wrong hands. tion to which security assessments will even- It is, therefore, vital that Australia has a strict tually be required, we are not prepared to licensing regime to regulate the purchase, give the government a blank cheque to ex- supply, import, export, possession, handling, pand this list. Our view is that anything in use, storage and transportation of ammonium relation to which security assessments may nitrate. be furnished must be prescribed by disallow- While we Democrats have no hesitation in able regulations. By requiring the govern- supporting the strict regulation of ammonium ment to list ammonium nitrate and other nitrate use and the furnishing of security as- similar substances in the regulations, there sessments by ASIO in conjunction with the will be some form of ongoing parliamentary regulatory scheme, we are concerned by the oversight of this process. If there is concern way in which this legislation has been about the furnishing of security assessments drafted. Rather than providing for security in relation to any particular substance or assessments specifically in relation to the use thing, the regulations listing that substance or of ammonium nitrate, this bill has been thing will be able to be disallowed by our drafted in broad and ambiguous terms. The parliament. We Democrats had intended to bill provides that a security assessment can move an amendment precisely with this ef- be furnished in relation to: fect during the committee stage; however, ... a person’s ability to perform an activity in rela- having consulted with the Labor opposition, tion to, or involving, a thing (other than informa- we have discovered that they had given in- tion or a place), if that ability is controlled or structions for the very same amendment to limited on security grounds ... be drafted. Consequently, we simply ac- knowledge and support that amendment. In

CHAMBER Tuesday, 7 December 2004 SENATE 19 closing, we do welcome the introduction of regime. The government believes that the this bill, which, unlike much of the govern- licensing in this case is the responsibility ment’s other antiterror bills, will actually solely of the states and territories. After all, help to make Australians safer. It is long the regulation of dangerous goods and explo- overdue and we are disappointed by the gov- sives is a state and territory responsibility. ernment’s incredibly broad drafting of it, but, All jurisdictions already have in place regu- as I have indicated, we intend to rectify that latory agencies for explosives and dangerous situation during the committee stage. goods that will enable them to quickly bring Senator ELLISON (Western Australia— ammonium nitrate under tight control. Those Minister for Justice and Customs) (1.42 existing agencies will allow us to regulate p.m.)—I thank senators for their contribution ammonium nitrate nationally without creat- to the Australian Security Intelligence Or- ing new bureaucratic structures. Most juris- ganisation Amendment Bill 2004. This im- dictions have existing legislation or are portant bill is a step forward in protecting quickly introducing new legislation and our national security. Senators Ludwig and regulations to control ammonium nitrate. It Greig have made some points that I will refer makes sense, therefore, that states and terri- to shortly. This bill will expand and clarify tories have this responsibility. They have the the circumstances in which ASIO can furnish mechanisms in place and they have the infra- security assessments and in doing so it will structure. To do anything other than use ex- facilitate the full implementation of the na- isting state and territory regulatory authori- tionwide licensing regime for ammonium ties would mean duplication and would not nitrate. This regime will ensure that ammo- be the most efficient way to implement a nium nitrate is only accessible by persons regulatory regime for ammonium nitrate. who have demonstrated a legitimate need for The other issue that was raised was the be- the product, who are not of security concern lated response to the ammonium nitrate is- and who will store and handle the product sue. This was a point raised by both Senator safely and securely. The amendments to the Ludwig and Senator Greig. It is important to ASIO Act will ensure that ASIO can ade- note that this lasting regime involved liaison quately perform its role under this scheme to and agreement amongst all jurisdictions. This furnish security assessments for activities was a difficult and complex process, and in carried out in relation to or that involve am- this context the length of time involved was monium nitrate. At the same time the not unexpected. The regulation of ammo- amendments are sufficiently broad to cover nium nitrate must balance security needs on issues that may arise in the future. In these one hand with legitimate commercial activi- ways the bill will help to ensure that the se- ties on the other. We needed to carefully con- curity assessment regime will continue to sider the various options so as to achieve operate flexibly and effectively in our chang- maximum effectiveness with minimal cost to ing security environment. legitimate users. We needed to consult with I mentioned Senators Ludwig and Greig other Australian government agencies, with making some points and I will refer to those the states and territories and with private in turn now. Senator Ludwig was critical of industry. We also consulted with overseas the fact that only two states have imple- governments to benchmark international best mented the national licensing regime while practice. This consultation and policy devel- at the same time he suggested that the states opment work was done as quickly as possi- are not the best placed to implement such a ble, bearing in mind that an effective and

CHAMBER 20 SENATE Tuesday, 7 December 2004 balanced outcome is better than a hasty re- required. Providing that justification will sponse. I commend the bill to the Senate. ensure that such things can be dealt with Question agreed to. properly and appropriately. Bill read a second time. I seek the government’s support for these amendments. I think they are sound. They do In Committee provide good public policy. They do ensure Bill—by leave—taken as a whole. that there is flexibility within the legislation Senator LUDWIG (Queensland) (1.46 and that the population, the general public, p.m.)—by leave—I move opposition can feel assured that there is oversight re- amendments (1) to (3) on sheet 4464: maining with the government on what may (1) Schedule 1, item 1, page 3 (line 14), omit be regarded by some as quite extensive legis- “thing”, substitute “prescribed thing”. lation. On those short points, I seek the gov- (2) Schedule 1, page 3 (after line 20), after item ernment’s and the Democrats’ support. 1, insert: Senator GREIG (Western Australia) 1A Section 35 (1.48 p.m.)—We Democrats echo the senti- Insert: ments of the opposition and Senator Ludwig. prescribed thing means a thing, includ- We concur with the arguments put forward. ing any substance that is prescribed by As I said in my contribution to the second regulation under this Act. reading debate, we were looking very much (3) Schedule 1, item 3, page 3 (line 30), omit to the same outcome in proposing that we “thing”, substitute “prescribed thing”. draft similar amendments with the aim of These amendments have the desired effect of achieving the same outcome. We are like- ensuring that the word ‘thing’ provides for minded on this, and as such we will support parliamentary review. They ensure that that the opposition’s amendments. We support word can be prescribed by regulation under them for the reasons Senator Ludwig has this act. There is always a consideration that, outlined and for the reasons I gave in my contribution to the second reading debate. by regulation, the parliament can review any regulations that are subsequently made. The Senator ELLISON (Western Australia— amendments do not confine the govern- Minister for Justice and Customs) (1.49 ment’s ability to ensure that the Australian p.m.)—The government does not see its way Security Intelligence Organisation Amend- clear to support the opposition’s three ment Bill 2004 is effective. They provide amendments. I can understand what Senator good public policy to ensure that review can Ludwig is saying, but when you look at the be done quickly and that things can be added word ‘thing’ as it appears in section 35 of the to the list of prescribed matters to ensure that bill you see that it is part of the definition of the legislation is contemporary. They also a prescribed administrative action. ‘Thing’ allow the parliament to oversight the federal was used because it is important that there be executive to ensure that they do not over- appropriate flexibility within the legislation, reach their positions and do not start pre- particularly in our changing security envi- scribing things which might seem out of the ronment. It should be noted that other parts ordinary or not relevant without some justifi- of this definition of prescribed administrative cation. These things can always be added action refer to access to information or place. with a bit of justification, a bit of explana- They are words which are equally as broad. tion, from the executive as to why they are In this context the government does not con-

CHAMBER Tuesday, 7 December 2004 SENATE 21 sider that it is necessary or consistent with TEXTILE, CLOTHING AND the approach in the rest of the legislation to FOOTWEAR STRATEGIC define ‘thing’ in the regulations. INVESTMENT PROGRAM The government has undertaken ongoing AMENDMENT (POST-2005 SCHEME) consultation with the states and territories BILL 2004 about the form of legislation through which CUSTOMS TARIFF AMENDMENT they each intend to implement the licensing (TEXTILE, CLOTHING AND regime. As appropriate, and within the appli- FOOTWEAR POST-2005 cable legislative regime of each jurisdiction, ARRANGEMENTS) BILL 2004 different terminology and definitions are First Reading used to achieve the same result—that is, the Bills received from the House of Repre- implementation of this licensing regime to sentatives. ban access to ammonium nitrate for other than licensed users. By giving ‘thing’ a very Senator ELLISON (Western Australia— specific meaning in regulations, there is a Minister for Justice and Customs) (1.52 risk that the definition will become too nar- p.m.)—I move: row and inadvertently not cover all the dif- That these bills may proceed without formali- ferent state and territory provisions. In view ties, may be taken together and be now read a of that, it is fraught with difficulty and the first time. government does not support the opposi- Senator NETTLE (New South Wales) tion’s three amendments. (1.52 p.m.)—I seek to amend the motion so Question agreed to. that the bills can be taken separately. Then we can deal with the issue of the Strategic Bill, as amended, agreed to. Investment Program for the TCF industry Bill reported with amendments; report separately from the issue of reducing tariffs adopted. which, in the Customs tariff amendment bill, Third Reading are not sought to be put in place until 2010. Senator ELLISON (Western Australia— A series of other tariff reduction cuts are al- Minister for Justice and Customs) (1.51 ready in place and will commence on p.m.)—I move: 1 January 2005. There is no proposal in this legislation or anywhere else for there to be That this bill be now read a third time. any study or analysis of the consequences of Question agreed to. the existing tariff cut reductions that come in Bill read a third time. on 1 January 2005. So to deal with both the issue of a structural adjustment program to compensate people for the tariff reduction cuts that come into effect in 2005 at the same time as trying to deal with tariff reduction cuts coming into play in 2010 is premature. In order for there to be analysis and report reflection by the parliament on the conse- quences of the existing tariff cut reductions that come into effect on 1 January, I seek to amend the minister’s motion so the two bills can be dealt with separately.

CHAMBER 22 SENATE Tuesday, 7 December 2004

I note that the Labor senators who were on The speeches read as follows— the Economics Legislation Committee which TEXTILE, CLOTHING AND FOOTWEAR considered this piece of legislation in August STRATEGIC INVESTMENT PROGRAM this year put forward as a recommendation AMENDMENT (POST-2005 SCHEME) BILL that these two issues be dealt with sepa- 2004 rately—both the structural adjustment pro- The purpose of the Textile, Clothing and Foot- gram for the industry, which relates to the wear Strategic Investment Program Amendment tariffs coming into effect on 1 January, and (Post 2005 Scheme) Bill 2004 is to extend the then the subsequent issue of whether or not Textile, Clothing and Footwear (TCF) Strategic there should be further tariff reductions com- Investment Program (SIP) for another ten years ing into play in 2010. It is a view that has and to establish the TCF Small Business Program. been put forward as a recommendation by The Strategic Investment Program is the centre- the Labor senators who were involved in that piece of the Government’s strategy for the TCF industry for the next decade. As announced on committee. It is also a view that was put 27 November 2003, the Government proposes forward to that committee by the Textile generous long-term assistance for the industry Clothing and Footwear Union of Australia in worth $747 million. The Government’s package their submission and hearing before the in- includes: quiry in August this year. On that basis and • $575 million for extending TCF SIP; in order for us to be able to evaluate what are • $25 million for a ten year TCF small busi- the consequences of the tariff reductions ness program; coming into play in January, I request that • the minister’s motion be divided so that the $50 million over ten years for a product di- versification scheme; two bills are dealt with separately. • $20 million for a supply chain efficiency The ACTING DEPUTY PRESIDENT program from 2010 to 2015; (Senator Bolkus)—We will divide the ques- • $27 million for extending the Expanded tion. The question is that these bills be taken Overseas Assembly Provisions scheme for a together. further five years; and Question agreed to. • $50 million for a ten year structural adjust- The ACTING DEPUTY PRESIDENT— ment program to assist both displaced work- The question now is that these bills may pro- ers and encourage industry restructuring. ceed without formalities and be now read a By setting policy in place for a decade, the Gov- first time. ernment is providing the industry with long-term certainty so as to encourage investment and inno- Question agreed to. vation. Bills read a first time. A gradual reduction of TCF tariffs is integral to Second Reading this assistance package. As tariffs impose substan- Senator ELLISON (Western Australia— tial costs on Australian families, and are ineffec- tive as protection for local industry, the Govern- Minister for Justice and Customs) (1.56 ment will lower tariffs in two steps over ten years. p.m.)—I move: Two 5 year tariffs pauses are contained in the That these bills be now read a second time. Customs Tariff Amendment (Textile, Clothing I seek leave to have the second reading and Footwear Post-2005 Arrangements) Bill speeches incorporated in Hansard. 2004. The Government’s policy was developed after a Leave granted. lengthy period of consultation. This consultation

CHAMBER Tuesday, 7 December 2004 SENATE 23 confirmed the Government’s view that support part of the Customs Tariff Amendment (Textile, must be focused on activities which will make a Clothing and Footwear Post-2005 Arrangements) lasting difference. Investment in new plant and Bill 2004. equipment, and in innovation, must be the prior- The Government has already extended for 5 years ity. It also became clear that assistance should be the Expanded Overseas Assembly Provisions weighted towards those parts of the sector facing scheme, at an estimated cost of $27 million in the greatest adjustment, in particular clothing and revenue forgone. finished textile firms. As clothing and certain finished textile manufac- The package is supported by peak bodies, such as turers will face a tariff reduction in 2015, the Textiles and Fashion Industries Australia and the Government will further assist this sector through Carpet Institute of Australia, and leading compa- a $20 million Supply Chain Program. After 2010, nies. competitive grants will be available to support The new Strategic Investment Program will be major capital investments to strengthen the local broadened and simplified. The current five grants supply chain for these TCF sectors. The program will be reduced to two. New activities, such as will be open to manufacturers of clothing and brand support and non-production information certain finished textile products (and their related technology, will be supported. With these textile suppliers) who would otherwise not be in changes, more firms can be expected to use SIP. receipt of benefits under the Post-2005 SIP. SIP already supports most of the industry—firms In all, by the time the Government’s plan expires receiving SIP account for 75 per cent of industry in 2015, the sector will have received about $1.4 value-add and 63 per cent of jobs. billion in direct assistance (and about $13 billion The subsidies offered in the new program—80 indirectly through tariff protection). per cent for innovation and 40 per cent for capital It is essential to recognise that TCF tariffs cost the equipment—are the most generous available to community up to $1 billion a year, disproportion- any industry. For the first five years, funding for ately affecting low income households. The 2.1 SIP will be worth about $100 million a year. To million Australians living in households earning direct support to firms facing the greatest adjust- less than $301 per week spend twice as much of ment, firms producing leather and technical tex- their income on clothing as other families. tile products will only be eligible for grants for capital investment. In the main, these firms have For its part, the industry is clear that firms benefit far more from direct financial support for innova- not been affected by tariff reductions since the mid-1990s. For the same reason, funding after tion and investment than through tariffs. For this reason, the Government believes that TCF tariffs 2010 will be limited to firms manufacturing clothing and certain finished textile products (ie. should be reduced to the general manufacturing rate. Consistent with the Government’s 1998 de- those firms still to face a tariff adjustment). $100 million will be available to this section of the cision, tariff reductions will be staggered to allow industry time to adjust. The Government’s policy industry after 2010. is that all TCF tariffs should be 5 per cent by For small TCF firms which may not meet the 1 January 2015. TCF tariffs will be paused at $200,000 threshold for SIP claims, a new $25 their 2005 rates for 5 years, and then the majority million TCF Small Business Program will be of TCF tariffs will be reduced to 5 per cent on available. 1 January 2010. The exceptions to this rule will The Government will also introduce a Product be clothing and certain finished textile articles Diversification Scheme. $50 million in duty cred- which will be reduced to 10 per cent on 1 January its will be available over ten years as an incentive 2010, held at this level for 5 years and then re- for firms to increase their local production as well duced to 5 per cent on 1 January 2015. as to diversify their product range. Introducing To help firms, workers and communities affected this scheme will require amendment to the Cus- by restructuring in the industry, the Government toms Tariff Act 1995 through the creation of a will establish a $50 million Structural Adjustment new Schedule 4 tariff item—this amendment is

CHAMBER 24 SENATE Tuesday, 7 December 2004

Program. The Program will have three objectives: 1 January 2010 and to 5% from 1 January 2015. assisting TCF employees who have been re- The Bill also reduces customs duty rates applica- trenched to secure alternative employment by ble to other textile, clothing and footwear goods providing streamlined access and additional assis- to 5% from 1 January 2010. tance under Job Network programs; assisting TCF The enactment of the post-2005 duty rates at this firms to consolidate into more viable entities, and time provides transparency and certainty for tex- to assist communities adjust—especially in TCF tile, clothing and footwear manufacturers, ena- dependent communities. The value of the package bling sufficient time for planning prior to the re- is commensurate with the anticipated employ- ductions in 2010 and 2015. ment impacts. Senator BUCKLAND (South Australia) This Government has taken a balanced approach (1.56 p.m.)—I note the time we have avail- in developing its policy. The policy assists firms to become more competitive by providing long able to consider the legislation and see that I term policy certainty; incentives to invest, inno- will not have time to go into the substantive vate and diverse their product range; it reduces part of my contribution now. I would like to tariffs in a measured way via a series of tariff say on these two textile, clothing and foot- pauses which the industry can absorb; it will re- wear bills that there is a need for what the duce the price of TCF goods over the long term; government is suggesting it will be doing and it provides assistance to those who might be and that the Strategic Investment Program, affected by restructuring. the SIP scheme, is one that, on first reading, The Government’s TCF plan is backed by ample is something that is well and truly required, funding. By any benchmark, $747 million is a but I just wonder if it is too late. In the sub- significant amount of taxpayers’ money. With the stantive part of my comments at a later time I sole exception of the much larger automotive want to go into the impact on the whole tex- industry, the TCF sector receives far more assis- tance than any other part of the manufacturing tile, clothing and footwear industry in my sector and this support will continue for the next home state of South Australia of factory clo- decade. sures, cutbacks in the number of people in ————— the industry—that is, of those surviving parts of the industry—and the greater use of peo- CUSTOMS TARIFF AMENDMENT (TEXTILE, ple working as contractors in the textile, CLOTHING AND FOOTWEAR POST-2005 ARRANGEMENTS) BILL 2004 clothing and footwear sector. The Customs Tariff Amendment (Textile, Cloth- I will not, as I would have liked, be able to ing and Footwear Post-2005 Arrangements) Bill go into those sections that deal with out- 2004 contains amendments to the Customs Tariff workers or those people working in what we Act 1995. often hear described as sweatshops. These Those amendments are complementary to the are the people who will be affected and who amendments contained in the Textile, Clothing will not, in fact, get any benefit from any SIP and Footwear Strategic Investment Program scheme set up by the government. However, Amendment the grant that will be set up to provide for (Post- 2005 scheme) Bill 2004. Together, these research and development is, I believe, well Bills extend the provisions of the Textile, Cloth- overdue. It is one that will go a long way to ing and Footwear Strategic Investment Program help industry develop in this country. It will for another ten years. assist industry to compete against the cheap The Customs Tariff Amendment (Textile, Cloth- imports which on many occasions are of far ing and Footwear Post-2005 Arrangements) Bill inferior quality to products that are being 2004 will reduce customs duty rates applicable to sold in this country. clothing and certain finished textiles to 10% from

CHAMBER Tuesday, 7 December 2004 SENATE 25

Senator Sherry—It will help the current would probably do well if they went to accounts too. Bondi themselves, had a good lie down and Senator BUCKLAND—As Senator soaked up a bit of sunshine. Sherry says, it will help the current accounts This is a question from the Australian La- somewhat. Indeed, the quality of the product bor Party about programs within the regional that we are receiving and the number of peo- services portfolio when yesterday, asking ple that are being disadvantaged by cutbacks questions about that portfolio and those pro- in the industry are matters that we need to grams, they criticised Primary Energy Aus- take into account. We can throw money at tralia Pty Ltd in relation to their grants under the TCF industry now but we cannot redeem the program that Senator O’Brien refers to in some of the past practices that we have fool- his question. Senator Wong, Senator Carr ishly let go. It seems to me that when there is and, more recently, Senator O’Brien, have a factory closure, too many people are ab- asked questions about four or five different sent— programs that the company had sought assis- Debate interrupted. tance under. I remind Australian Labor Party senators, and in fact all senators, that compa- QUESTIONS WITHOUT NOTICE nies from regional Australia who seek to de- Regional Services: Program Funding velop programs that assist employment right Senator O’BRIEN (2.00 p.m.)—My across Australia, if they have proposals, quite question is to Senator Ian Campbell, the often come to local, state and federal gov- Minister representing the Minister for Trans- ernments trying to find what sorts of pro- port and Regional Services. I refer the minis- grams are available to assist them to develop ter to his attempt at a defence of Regional their ideas. Usually these ideas are aimed at Partnerships funding and I ask whether he improving the economy and the employment recalls his challenge to any critic of funding prospects for people within the region. We allegations to ‘go and buy himself a pair of saw, in attacking this program yesterday, the Blundstones, get them a bit dirty and go and Australian— talk to the people who are trying to build Senator Chris Evans—Mr President, on regional Australia’. Is the minister aware that a point of order: I have brought this to your a Regional Partnerships grant of $220,000 attention a couple of times this week, but I has been awarded to a project based on think ministers have fallen into the habit of Bondi in the electorate of Wentworth, one of just reminiscing, rambling and attacking the Australia’s wealthiest urban localities and Labor Party rather than actually seeking in possibly the latte capital of Australia? Would any way to answer the question. The minister the minister care to revise his own Blund- was asked a question about the Regional stone challenge to a pair of thongs, a beach Partnerships grant in Bondi. He has not at all towel and Armani sunglasses? attempted to deal with those issues. While I Senator IAN CAMPBELL—I did sym- know you allow some leeway, it seems to me pathise with Stephen Smith when he was the leeway has got to the point where ques- talking about the countdown of the number tion time is becoming pointless. Please of question times on television recently. would you ask him to address the question. Clearly, from the quality of that question, Senator Knowles—Mr President, on that Friday’s question time cannot come soon point of order: I draw the Senate’s attention enough for Senator O’Brien and the mem- to your statement yesterday about the types bers of the Australian Labor Party, who

CHAMBER 26 SENATE Tuesday, 7 December 2004 of questions that are being asked by the La- capacity and jobs in regional Australia. Hav- bor Party in question time. You said that, ing failed in attacking— apart from the point that question time is Opposition senators interjecting— meant to be a time for questions, senators’ The PRESIDENT—Order! Senators on questions would be far more effective and my left: stop shouting across the chamber. telling if they were not surrounded with And I remind the minister of the question. statements, assertions, allegations, insinua- tions and other extraneous material. I put to Senator IAN CAMPBELL—The ques- you, Mr President, that that question that the tion relates to the Regional Partnerships pro- Labor Party are now trying to rule that Sena- gram of the government, which has given tor Ian Campbell is somehow not answering grants to places right across Australia, in- contained all of those issues. cluding to the Marine Discovery Centre in Bondi, which is a program that supports Senator O’Brien—Mr President, on the these projects across Australia and builds point of order: unfortunately, I was not here jobs in regional Australia. The Labor Party yesterday to hear your eminent words, but I want to tear the program down piece by would have thought that the question was piece. They are prepared to bring it down in entirely consistent with many questions Gunnedah and they are prepared to bring it asked on both sides of this chamber for quite down in Bondi. What I suggest to the Austra- some time. I was quoting the minister’s own lian Labor Party is that, rather than tearing comments in an answer to a question back to down the program and being oppositionist, him and asking him to comment on that. I destructive, negative, carping and whining, assert that that is in order and, indeed, there they be positive. If it means that they do not was no suggestion that the question was out want to get their shoes dirty, good luck to of order when it was put and the minister them. rose to his feet. Senator O’BRIEN—Mr President, I ask The PRESIDENT—Thank you, Senator. a supplementary question. I would be inter- I did circulate my statement yesterday to ested if the minister could tell us how a grant those senators who were not here. Just as I of $220,000 to a Bondi project in the seat of cannot direct ministers how to answer ques- Wentworth assisted regional Australia. Per- tions, I cannot direct senators how to ask haps he could also tell us why the seat of them, but I would remind the minister that Wentworth received more money under the there are two minutes remaining and remind Regional Partnerships program than 80 other him of the question that was asked. electorates, including many in rural and re- Senator IAN CAMPBELL—Bob Hogg, gional Australia. Could it have anything to Michael Costello, Bob McMullan and a do with the Liberal Party’s bitter preselection range of others do not need any help from battle in this blue-ribbon seat that led it to me. I will just stick to the issues and the pro- being such a contest? gram. They are trying to denigrate the Re- The PRESIDENT—The last part of that gional Partnerships program because they do question, Senator, was asking for an opinion not like the government supporting employ- and, as you know, that is not allowed. But I ment projects, projects that reduce green- ask the honourable minister if he would an- house gas emissions or projects or propo- swer the parts of the supplementary question nents that support communities and build that were relevant.

CHAMBER Tuesday, 7 December 2004 SENATE 27

Senator IAN CAMPBELL—I will do tributing to this progress? Is the minister my very best, Mr President, and thank you aware of any alternative policies? for your assistance and guidance. The Bondi Senator HILL—I thank Senator Fergu- Marine Discovery Centre has received a son for his question. I know he, as Chair of $201,000 grant. It is a proposal which will the Parliamentary Joint Standing Committee expand the primary school program and cre- on Foreign Affairs, Defence and Trade, has a ate secondary school programs, Indigenous deep interest in these matters. The task of coastal tours, film production, advertising, building a new Iraq, politically, economically fit-out, launch, order and evaluation. The and socially, after the overthrow of the tyrant project was contracted on 7 October. It has Saddam Hussein is enormously complex and commenced. It is another example of the challenging. A new political structure, a new government helping to improve the under- system of administration, new instruments standing of our environment, particularly by for national security—external and inter- our younger generations. The program has nal—and a new economic infrastructure are also received funding from my own depart- necessary, and that is just a start. Saddam left ment, $18,282 from the Envirofund, little that could be built upon. In so many $100,000 from New South Wales Fisheries’ ways, it has meant building a new nation. recreational fishing trusts and a range of The vast majority of the Iraqi people have other grants. It seems to me like a very relished the opportunity for democracy, secu- worthwhile program, and I commend the rity, freedom from oppression and economic Labor Party senators to go and visit Bondi opportunity. They deserve the support of the over the break. international community. They do have the DISTINGUISHED VISITORS support of the UN Security Council, and The PRESIDENT—Order! I would like many billions of dollars have been interna- to draw the attention of honourable senators tionally pledged to assist with reconstruction. to the presence in my gallery of a delegation These tasks would be difficult enough from the National Assembly of Vietnam, led without the opposition of a violent and cruel by the Hon. Ngo Anh Dzung MP, vice- insurgency determined to defeat these rea- chairman of the foreign affairs committee. I sonable aspirations of the Iraqi people, an warmly welcome you to the Australian par- insurgency particularly targeting those Iraqis liament and particularly to our Senate cham- taking public positions in building the new ber. I trust that your visit will be both infor- Iraq—politicians, judges, policemen, gov- mative and enjoyable. ernment workers and the like—and an insur- Honourable senators—Hear, hear! gency which is also fighting to undermine the 30 January election, that expression of QUESTIONS WITHOUT NOTICE democratic choice, particularly through vio- Iraq lent intimidation of the process and partici- Senator FERGUSON (2.09 p.m.)—My pants and through cruelly attacking the fami- question is to the Leader of the Government lies of those Iraqis taking a lead. in the Senate and the Minister for Defence, Australia is part of a multinational force Senator Hill. Would the minister inform the not only approved by the United Nations Senate of progress being made in Iraq in the Security Council but encouraged by the Se- lead-up to next year’s democratic elections? curity Council to assist the Iraqi people with How is the Australian Defence Force con- their task. It is dangerous and difficult work

CHAMBER 28 SENATE Tuesday, 7 December 2004 but greatly appreciated by the broader Iraqi vite Mr Latham to take up the briefing that community. The Australian contribution is has been offered to him. (Time expired) also greatly appreciated by others in the mul- Regional Services: Program Funding tinational force, particularly those such as the Senator BOLKUS (2.14 p.m.)—My United States, which has committed so much question is to Senator Ian Campbell, the in personnel and funding and has suffered Minister representing the Minister for Trans- great pain in terms of lives lost and injuries. port and Regional Services. I ask the minis- The Australian forces continue to be out- ter whether he can confirm that the Regional standing in their work, whether it is defend- Partnerships grant awarded to the Marine ing our officials, who are so critical to the Discovery Centre at Bondi is amongst almost political process, training the new Iraqi $3 million in grants awarded to urban pro- Army, providing health personnel—and our jects based in Australia’s capital cities. Can medical team at Balad received many of the the minister confirm that more than $800,000 wounded, military and civilian, from Fallu- of Regional Partnerships funding has been jah and did a brilliant job—helping air traffic allocated in metropolitan Adelaide, including control at Balad, providing air transport in- $187,000 for a church redevelopment in the cluding medical evacuation, maritime sur- marginal seat of Makin? Can he confirm that veillance and interception and in so many more than $450,000 of Regional Partnerships other ways. Not only is their work of the funding has been allocated to metropolitan highest professional standard but their good Brisbane electorates, including more than spirited and cooperative approach is appreci- $138,000 for the establishment of a dog day ated by all. I was pleased last Friday to meet care centre in that region? Can he also con- many of them and to convey the appreciation firm that more than $480,000 of Regional of the government and the Australian people Partnerships funding has been awarded to and the best wishes of all of us. I realise that, projects in metropolitan Sydney, including particularly at Christmas time, this is a tough $82,500 for a division of the Hillsong time for them and their families. Church in what the minister may describe as The Iraqi people are determined to press rural and regional Redfern? Just how re- on with their election, despite the dangers gional are these partnerships, Minister? and difficulties. I am told some 240 political Senator IAN CAMPBELL—I am happy parties have registered interest. Candidates’ to get detailed briefings on each one of those lists are being prepared, registration of vot- projects. What I invite the Labor Party to do ers—including Iraqis outside the country—is is to analyse in their own terms these pro- proceeding, polling booths will be based on jects. They have all obviously matched the the school system and plans for printing the guidelines of the program. What I would like ballot papers are in place. I am told the inde- the opposition to do—I have invited them to pendent electoral commission is doing a do this day after day as they try to attack lo- great job. cal community groups working to build op- Lastly, I was asked about alternative poli- portunities, to build facilities and to build cies. Apparently the new opposition defence capacity and employment across Australia— spokesperson, Mr McClelland—the third in is, rather than criticising, carping, whingeing three years—and Mr Rudd are going to dis- and whining, to actually come clean and say cuss these issues over Christmas. I also in- which one of the projects they would stop. Will they stop the R.M. Williams centre?

CHAMBER Tuesday, 7 December 2004 SENATE 29

Will they stop the equine centre? Will they munity process, that empower communities, stop the bio-fuels project in Gunnedah? Will that support local communities and that sup- they close down the Marine Discovery Cen- port projects that quite often do not get sup- tre in Bondi? Let us see how fair dinkum ported under other funding. It is entirely ap- Labor are in relation to this program. We propriate, if you are a community focused on believe it is a good program to have the building a new facility, creating new oppor- Commonwealth working in partnership with tunities in regional areas, that you come to a local communities—for example, in relation government and try to find programs that to the Bondi project which is funded under match the project that you are seeking to cre- this program. ate. If some projects fail under some pro- You have had the New South Wales gov- grams but get supported under others, then ernment making contributions. You have had good luck to the local citizens who get be- New South Wales fisheries. You have had the hind these projects, do the hard yards and get local council. In fact, you have got all three them up and running. You have got only one levels of government involved in this project. party here trying to drag them down: the fed- You have got three levels of government— eral Labor Party. Labor and Liberal—supporting the project. Indigenous Affairs: National Indigenous There is only one party out of step, as they Council have been with most of the community over Senator FIFIELD (2.19 p.m.)—My ques- recent months, and that is the Australian La- tion is to the Minister for Immigration and bor Party here in the federal parliament. Multicultural and Indigenous Affairs. Will Senator BOLKUS—Mr President, I ask a the minister advise the Senate of the role of supplementary question. It is a fundamental the Howard government’s new National In- question: how can multiple grants to inner digenous Council? Is the minister aware of city applicants be justified under a program any alternative policies? meant to assist rural and regional communi- Senator VANSTONE—I thank Senator ties? Is it because the projects that failed un- Fifield for the question. The government’s der other more appropriate program criteria National Indigenous Council is an integral were then channelled through this sham Re- part and a very important part of the gov- gional Partnerships assessment process? ernment’s reforms to Indigenous affairs. It Given the minister’s professed concern for will have its first two-day meeting in Can- the plight of rural and regional Australia, berra this week. Members of the council not how can he now defend the allocation of mil- only will meet between themselves but will lions of dollars of regional funding to mar- have the opportunity to meet for a couple of ginal metropolitan and even inner city elec- hours with the ministerial task force so that torates in the weeks and months preceding Indigenous people get the opportunity to the recent federal election? meet with all the ministers that have funding Senator IAN CAMPBELL—These are responsibility for Indigenous affairs. And, of programs that have been supported in some course, the National Indigenous Council will instances by local government, state Labor meet with the Prime Minister. It will provide governments and the federal coalition gov- expert advice to the government at the na- ernment. The point that the Labor Party do tional level. It will provide advice on general not understand and do not want to accept is direction, on policy, on different programs that they are all projects that involve a com- and assessments of service delivery. It will

CHAMBER 30 SENATE Tuesday, 7 December 2004 give us its views on the acceptance on the still have because Labor would not vote to ground and the effectiveness on the ground get rid of ATSIC, having said it was their of programs. It is a vital and integral part of policy. I have some more to say about this our reforms to improve both the outcomes matter. The ATSIC chairman, as a matter of and the opportunities for Indigenous Austra- interest— lians. Opposition senators interjecting— I said in here many, many months ago— Senator Carr interjecting— not long after being given this responsibil- The PRESIDENT—Order! Senator Carr! ity—that our prime motivation was to give value for money to first Australians. We in- Senator VANSTONE—Senators opposite tend to do that. We are moving to much bet- seem to be more interested in yelling and ter national and regional advisory relation- screaming their views than in getting on ships, but nothing—nothing—will be as im- board with the government for the future and portant as establishing direct relationships the progress of Indigenous Australians. It with local communities through shared re- might be of interest to senators to know that sponsibility agreements, listening to what the the chair of ATSIC, Mr Clark, became the communities have to say, giving them a real chair by getting probably no more than 102 voice and sharing responsibility with them first preference votes as a regional council- for the direction in which they want to go. lor. When you add up all the first preference Local problems will need local solutions. votes he needed to become the chair, you get a total of 140. Some people might think that As Theodora Narndu, one of the elders getting 140 votes makes you a representa- from the Wadeye trial site, said: ‘The trial tive, but we do not—and he was not. Mr has opened up the door. Before, it’—the Clark got fewer votes than Senator Conroy. government—‘never opened that door for the (Time expired) Aboriginal people to give us a voice. So to- day’—that is, when she was speaking—‘I Senator FIFIELD—Mr President, I ask a feel that strong. I am a traditional landowner supplementary question. Could the minister speaking from my heart. That is what I feel. I further advise the Senate how the National can see the door is wide open.’ This govern- Indigenous Council will serve Australia’s ment is about opening that door to many, Indigenous community better than ATSIC? many more communities than Wadeye and Senator VANSTONE—Quite, Senator the other trial sites. We want local people to Fifield. Why the National Indigenous Coun- have a real say, not just to listen to a few cil will serve the Australian community and elected representatives. the Indigenous community far more effec- While I am on that issue, I might turn to tively is that they are not dependent on the the issue of ATSIC. It just did not work. The votes of a few. National Indigenous Council will not repeat Senator Carr interjecting— the experiment of that so-called representa- Senator VANSTONE—All these council- tive body. I remind senators opposite that lors are there because of their own skill and only 20 per cent of the people who could their own merit. vote voted for ATSIC. Let me put that an- Senator Carr interjecting— other way: 80 per cent of the people said it was not worth bothering. Mr Clark is the Senator VANSTONE—They are Indige- current commissioner of ATSIC, which we nous Australians who have walked in those shoes, jumped those hurdles and climbed

CHAMBER Tuesday, 7 December 2004 SENATE 31 those mountains. They have been successful of conduct, what action has the Prime Minis- in their own right. They are still successful in ter taken to resolve the many contradictions their own right and they can speak independ- in Mr Crookes’s statement? ently— Senator HILL—If that question is Senator Carr interjecting— whether I am surprised that a Labor minister The PRESIDENT—Order! Senator Carr, from Queensland is attacking The Nationals shouting across the chamber is disorderly. then, no, I am not surprised. Am I surprised You have continued to do it while this ques- that he is attacking the staff of a member of tion has been answered, and I ask you to The Nationals? No, I am not surprised by cease. that at all. Do I believe that these regional programs are in the best interests of Austra- Senator VANSTONE—So these people, lia? Yes, I do believe that. I believe it is im- because of their own experience, their own portant to have a government in this country skills and their own expertise are not an- that recognises the need to build infrastruc- swerable to a particular group. They do not ture in rural and regional Australia to give have to make sure that more money goes to them a chance to be competitive with the rest Charleville, to this region or to that region. of the country. I am disappointed that the They can speak for themselves, and I am Australian Labor Party still does not appreci- sure that they will. It is very clear that there ate the importance of that objective. No, we are other Indigenous Australians keen to get will not apologise for supporting rural and on board with shared responsibility arrange- regional Australia. We will give them a fair ments and with giving Indigenous people the chance. We are committed to that, and per- opportunity to shape their futures. (Time ex- haps that is why they keep voting for us at pired) election after election. Howard Government: Ministerial Code of I do not ask the Labor Party to look to that Conduct objective in supporting rural and regional Senator WEBBER (2.25 p.m.)—My Australia. I ask them rather to look to sup- question is to Senator Hill, the Minister rep- port rural and regional Australia because it is resenting the Prime Minister. I refer to the in the best interests of the whole nation. section of the ministerial code of conduct There are only a couple of days to go, but it that addresses contact with lobbyists. Is the is not too late for the Labor Party to get out minister aware that the explanation given by of the gutter and start looking more posi- Mr Ken Crooke about his attendance at a tively at what is necessary to benefit all Aus- meeting with the Queensland government tralians. One way to do that is to help the and A2 dairy marketers has now been dis- bush build its infrastructure, and that is one puted by the Queensland minister for pri- of the commitments for which this govern- mary industries? Can he confirm that the ment is not going to apologise. Queensland minister has publicly stated that Senator WEBBER—Mr President, I ask Mr Crooke ‘did not indicate that he was a supplementary question. I remind the min- working for Ms Kelly’ but rather ‘said noth- ister that my question was about the ministe- ing to lead us to believe that he was not still rial code of conduct. We will try again. Can acting for A2’? Given that Mr Crooke was the minister confirm that the ministerial code employed under the Members of Parliament of conduct requires that contact with lobby- (Staff) Act at the time, and in light of the specific requirements of the ministerial code

CHAMBER 32 SENATE Tuesday, 7 December 2004 ists does not ‘give rise to a conflict between Minister for Transport and Regional Ser- public duty and private interest’? vices. In September 2001 the government Senator Abetz interjecting— said it would underwrite Ansett worker enti- tlements and it set up the $10 ticket levy to Senator Chris Evans interjecting— do that. Can the minister now confirm that Senator WEBBER—Now that it has the government has made a $158 million been confirmed that Mrs Kelly employed in profit so far on the levy plus the $289 million her office a lobbyist for a company seeking a from Ansett asset sales? Minister, isn’t this grant from a program under her direct con- double dipping? Does the minister recall Mr trol, can the minister confirm that at no time Anderson saying back in 2001 that there did Mrs Kelly formally consult the Prime would be no double dipping by this govern- Minister on this matter although she is ex- ment? pressly required to do so by the code of con- Senator IAN CAMPBELL—I thank duct? Senator Allison for the question. I cannot Senator Abetz interjecting— confirm that that is the case, because it is not Senator Chris Evans interjecting— the case. No funds were retained by the gov- Senator WEBBER—In light of the unre- ernment other than for the levy administra- solved questions about the lobbying activi- tion and the announced security funding ties of one of her staff, can the minister con- package. The government has paid out $336 firm that in accordance with the code of con- million to guarantee worker entitlements. duct Mrs Kelly is accepting responsibility for The special employees entitlement scheme the actions of this staff member? covered all unpaid wages and leave, pay in lieu of notice and eight weeks redundancy The PRESIDENT—Order! Senator pay. The levy was not to pay for entitlements Abetz and Senator Evans, if you want to owed to workers above the community stan- have a conversation, go outside. dard. The terms of the scheme were agreed Senator HILL—It was difficult to hear by the administrators and the Australian all of the supplementary question with the Council of Trade Unions in the Federal Court interjections of Senator Evans in the front hearing of September 2001. The government row, I have to say. If the supplementary ques- always intended that any surplus funds tion was whether this government stands by would be used to assist the aviation and tour- the code of conduct, yes, it does. Does it be- ist industries. The levy ceased in July 2003 lieve that it is important to separate private with approximately $286 million collected. interests from public interests? Yes, it does. Once reimbursements were made to the gov- Do all coalition ministers accept that? Yes, ernment from the administrators, there was a they do. Are they adhering to it? Yes, they surplus of $93 million collected. The gov- are. I suggest that the Labor Party worry ernment deferred payment of a further $67 more about its own deficiencies, even sug- million owed to it by the administrators pro- gested recently by the Premier of Queen- viding additional funds to the workers. sland, than these matters. Rural and regional The government has fully met its com- Australia deserves our support. We will give mitment to employees as well as its com- it and we will not apologise for it. mitment to reinvest any surplus money from Ansett Australia: Employee Entitlements the air passenger ticket levy to the benefit of Senator ALLISON (2.30 p.m.)—My the aviation and tourism sectors. To this end, question is to the Minister representing the the minister announced on 4 December last

CHAMBER Tuesday, 7 December 2004 SENATE 33 year that the Australian government would lian waters, and does he still claim to be spend the $93 million surplus on a further winning the war on illegal fishing? major expansion of the nation’s aviation se- Senator IAN MACDONALD—I thank curity regime. Issues on the remaining out- Senator O’Brien for a very important ques- standing entitlements owed to former Ansett tion on fisheries management in Australia— workers are matters for the administrators. regrettably, we get too few of those. There Senator ALLISON—Mr President, I ask are problems with illegal fishing in Australia, a supplementary question. I believe the min- principally, I might say, in the state run fish- ister may have misled the Senate in his eries which are run by the Labor govern- statement that no other funds had been taken ments. I do not want to make a politically from Ansett. I ask him to again check that so partisan point out of a very serious issue. The far this government has collected the levy federal government is helping the states in plus $289 million from Ansett asset sales. ways that I cannot speak too much about in Isn’t it the case, Minister, that your govern- trying to address some really serious prob- ment has actually hoodwinked Ansett work- lems in fisheries. The abalone fishery—not a ers and the travelling public? Why doesn’t Commonwealth fishery, I might say—is in the minister use the asset sales money to pay significant difficulty through criminal activi- the 9,500 Ansett workers who are still owed ties. The states seem incapable of handling $212 million, and will he pay those entitle- them, and the Commonwealth has taken a ments by Christmas? leadership role in that, as usual. There are Senator IAN CAMPBELL—As I said, other state run fisheries where there are prob- these are matters for the administrators. lems with illegal fishing and, again, we want to work cooperatively. I am disappointed that Fisheries: Illegal Operators apparently some of my state colleagues on Senator O’BRIEN (2.33 p.m.)—My the ministerial council feel it appropriate to question is to Senator Macdonald, the Minis- leak that sort of information to try and have ter for Fisheries, Forestry and Conservation. federal Labor colleagues make a fairly cheap Does the minister recall issuing a press re- political point out of it. It is a very serious lease on 24 October 2002, entitled ‘We are issue, and we want to help. winning the war on illegal fishing’, just one I was disappointed that the state Labor of at least 134 press releases the minister has ministers did not support another paper I had issued since assuming the role of fisheries which would have allowed some equity and minister which laud the Howard govern- fairness to Commonwealth licensed fishers ment’s record in tackling the problem of ille- who were thrown out of business by state gal fishing? Can the minister now confirm decisions—like Mr Beattie is doing in that he delivered a paper to the Natural Re- Queensland, shutting down fishing industries source Management Ministerial Council on in Queensland and not giving one cent of Friday last week in Melbourne entitled ‘Na- compensation. Whereas the Commonwealth, tional Fishing Industry Strategy’? Didn’t in the Barrier Reef representative areas pro- paragraph 2 of this paper include the state- gram where it has put fishermen in some ment that ‘illegal fishing appears to be in- difficulty, has a very generous structural ad- creasing in Australian fisheries’? Isn’t this a justment package, the Queensland Labor direct admission that the minister has failed government does nothing. in his duty to curtail illegal fishing in Austra-

CHAMBER 34 SENATE Tuesday, 7 December 2004

The question was about fisheries man- made in 2002 that we are winning the war on agement and illegal fishing generally. The illegal fishing when in his answer he advised Commonwealth has been very successful in us that the type of illegal fishing in northern policing our fisheries down in the Southern Australian waters has gone from the village Ocean—perhaps some of the most difficult type fishermen to a more aggressive fishing seas in the world. We have just spent $90 of some of the fish stocks? Can he demon- million on a boat. Senator Ellison and I had strate to the Senate how we can possibly be the honour of launching it with its new guns winning the war on illegal fishing, bearing in a couple of weeks ago in Perth. That shows mind the activities that he has described, any illegal fishermen, particularly the inter- when the problem in northern Australian wa- national criminal cartels, that the Howard ters is actually getting worse? government is absolutely deadly serious Senator IAN MACDONALD—We are about illegal fishing in its waters; that it will winning the war on illegal fishing, certainly take very strong and determined action to in the Southern Ocean. The word around the deter that happening and, where it does oc- traps in ports around the world from where cur, to apprehend those involved. the international criminal cartels operate is We do have a problem in the north of Aus- that it is not worth their while going into tralia as well, with Indonesian village fish- Australian waters anymore. I do not want to ermen—or what used to be Indonesian vil- blow our own trumpet but it represents a lage fishermen—coming across the border to great effort by the Australian Navy, the Aus- fish in Australia’s much better managed wa- tralian Customs Service and the fisheries ters. In those waters, through the good man- patrol officers, who all do a great job in pro- agement of the Australian Fisheries Man- tecting Australian waters. In the north there agement Authority, we have sustainable is a problem, but we are working on that. We shark stocks. Shark fin is now selling in the are holding our own, and it is going to get Asian market at something like $US100 per better. We are doing a lot of work with the kilogram. This gives great encouragement to Indonesians and there is a lot more work that Indonesian fishers to come across to our wa- will occur. I would hope that the Labor Party, ters. But the Australian government has at- for once in its life, would be bipartisan re- tacked that problem head on. Under the aus- garding a matter that is very much in Austra- pices of the Navy and its patrol boats, Cus- lia’s national interest. (Time expired) toms and its patrol boats and Coastwatch, we Health: Allied Health Professionals have taken a whole-of-government approach Senator LEES (2.40 p.m.)—My question that is doing particularly well having regard is to the Minister representing the Minister to this difficulty in the north. This year we for Education, Science and Training, Senator have detained more Indonesian boats than Vanstone. Does the minister agree that medi- ever before. We intend to continue to do that cal work force shortages go well beyond until such time as we can make those who shortages of doctors and nurses? Is the min- would enter our waters illegally understand ister aware that there are also severe short- that there is no profit in coming illegally into ages of allied health professionals—in par- Australian waters. ticular, of podiatrists? Despite this, the po- Senator O’BRIEN—Mr President, I ask diatry school at Curtin University in Western a supplementary question. I thank the minis- Australia has closed; the University of West- ter for his answer. Could he advise us ern Sydney has closed its first-year intake whether he stands by the statement that he

CHAMBER Tuesday, 7 December 2004 SENATE 35 from next year; and the podiatry program of also be writing to all vice-chancellors advis- the University of South Australia is severely ing them that he will be including an addi- constrained by lack of funding. Will the min- tional condition of grant funding in funding ister ensure that there are sufficient funds agreements, requiring that any closures of available so that more allied health profes- specialist courses be negotiated and agreed sionals can be trained, particularly podia- with the Commonwealth. trists, and that they are able to be trained The department is developing a set of stra- right across Australia in all states? tegic principles for higher education priori- Senator VANSTONE—I thank Senator ties that will be used to inform the govern- Lees for the question. She has had a long- ment’s decisions about and investment in standing interest not only in higher education higher education provision. The principles but in allied health. I am advised that, across will provide the sector with guidance on how the whole sector, the government funds this additional clause in funding agreements about 60,000 higher education places in al- will operate in practice. The department is lied health areas, excluding medicine and also liaising with the health departments in dentistry. In 2003 there were about 1,500 all jurisdictions to ensure that we address domestic chiropractic and osteopathy stu- health work force issues and shortages stra- dents and over 770 domestic students in po- tegically. diatry. Senator, I will send you some of my fabu- The government has also allocated a sig- lous foot rub. I quite understand the need for nificant number of new places in allied good podiatrists—they are the most under- health areas. By 2008, for example, the gov- rated people in the world. ernment will be providing about 5,000 addi- Senator Patterson—It hasn’t been to the tional places in nursing. A figure of 104 new TGA! podiatry places by 2008 were allocated Senator VANSTONE—It does not have through this process. In terms of health TGA approval; it comes with no promises places overall, the government will be pro- but I will happily send you some. viding more than 7,000 places to assist in meeting the needs of the allied health sector. Senator LEES—Mr President, I ask a That will go a long way towards alleviating supplementary question. I thank the minister some of the shortages and problems that for her answer. It is pleasing to note that the have been experienced by a range of health government’s attention has been drawn to professionals. this issue. I asked specifically about the level of funding for allied health courses. The uni- However, it is important to say that state versities are arguing that they simply are not and territory governments are going to have funded to the level they need to run allied to examine pay and conditions for health health courses. For example, is the govern- workers in an effort to lift the retention rate ment prepared to consider funding courses of the existing work force, particularly such as podiatry to the same level that it now nurses. The minister will be writing to the funds dentistry, because a lot of similar re- Vice-Chancellor of the University of Western quirements are in place for both those Sydney, Professor Reid, expressing concern courses? at the way in which the decision to suspend the intake of students in podiatry and oste- Senator VANSTONE—I will take the de- opathy was announced. The minister will tail of that question on notice. Senator, I can- not believe I heard you ask whether we were

CHAMBER 36 SENATE Tuesday, 7 December 2004 prepared to fund podiatry to the same level in this Northern Territory question. Apart that we fund dentistry. Dentistry is terribly from that, yes, a magistrate did dismiss a expensive. I will ask the minister to give a case. The magistrate found that the method detailed answer on the cost requirements for adopted to require the taking of these tests each course. If we have happy feet we can was, and I am paraphrasing, ‘inconsistent have a happy nation—podiatrists of the with part 8A’, I think, ‘of the Defence Act’. world unite! I am in favour of these people It is true that Defence decided to bring in this and I think they do a tremendous job. I am system through command rather than not opposed to it in any way, but we will see through legislative prescription. Advice has what the minister can tell us. Just as a little been sought on the consequence of the ruling hint, Senator, it has been my experience that of that particular Defence Force magistrate, vice-chancellors will always tell you that and the government is considering advice on there is not enough money to do what they this issue at the moment. Have other cases want to do, and when their salary packages been dismissed? I am not aware of any other are open to public scrutiny we might all be- cases that have been dismissed. Otherwise, lieve it. we will deal with the consequences of that Australian Defence Force: Drug Use particular finding in a way that gives the military the confidence they need to ensure Senator CROSSIN (2.45 p.m.)—My that their zero tolerance drug policy, which is question is to Senator Hill, the Minister for supported by the government, certainly sup- Defence. Can the minister confirm that, in ported by this side of the chamber, can be September this year, a Defence Force magis- properly implemented and respected. trate dismissed a drug charge against an offi- cer after ruling that the Army’s urinalysis Senator CROSSIN—Mr President, I ask drug testing system was unlawful? Isn’t it a supplementary question. Minister, I refer true that the magistrate had no other option you to the October 2003 drug raid at Robert- because the government had not made regu- son Barracks, Darwin, where 47 personnel lations to legally authorise officers to collect returned positive drug tests. Isn’t it the case urine samples for drug-testing purposes, and that, because the regulations to allow random to this day still has not? Can the minister testing in the ADF still have not been intro- indicate whether any other charges or con- duced two years after they were promised by victions have been overturned because of the the government, the 47 personnel have had absence of regulations authorising legal ran- their convictions overturned? Has the minis- dom drug testing? Can the minister confirm ter received legal advice on these 47 over- that his former assistant minister Danna Vale turned convictions and on whether the ADF promised on 17 September 2002 to introduce is liable for claims of unfair dismissal or regulations to legally authorise random drug compensation for these personnel? testing and urinalysis in the Australian De- Senator HILL—The supplementary fence Force? Minister, why is the ADF still question does tend to confirm my suspicion waiting for the government to make these that this is a question on behalf of somebody regulations two years after they were prom- who gave a positive test. I am disappointed ised? to hear that the Labor Party is yet again mov- Senator HILL—I hope the honourable ing down this path rather than supporting— senator supports the zero tolerance policy of Senator Chris Evans—Mr President, I the ADF and that there is no hidden agenda raise a point of order. My understanding of

CHAMBER Tuesday, 7 December 2004 SENATE 37 the standing orders is that it is not competent Senator PATTERSON—I thank Senator for the minister to cast an aspersion on the Johnston for his question. I am pleased to say questioner or their motives. That is clearly that when you run a strong economy and what the minister was trying to do. He would when you manage the budget responsibly also be well aware that Mr Bevis on behalf you can actually give social dividends to the of the Labor Party put out a press release community—to carers, to families and to yesterday supporting a no drug tolerance seniors. From late next week, over 280,000 position. In terms of the aspersion cast by the self-funded retirees with a Commonwealth minister, Mr President, I ask you to call on seniors health care card will begin receiving him to withdraw it because it was clearly not their first $100 instalment of the new $200 in order. seniors concession allowance promised dur- The PRESIDENT—I do not believe the ing the election. From March next year, over minister used any unparliamentary language. 2.2 million people of age pension age will I remind him to return to the supplementary begin receiving the first instalment of their question. new utilities allowance payment of up to $100 a year for singles and $50 for each Senator HILL—It is clear to me that the member of a couple. The new utilities sup- supplementary was designed to undermine plement builds upon the pension payment the authority of command within the ADF. If reforms that the Howard government has that is the way the honourable senator on delivered which set the maximum single rate behalf of the Labor Party wishes to pursue of pension to at least 25 per cent of male to- her interests in question time, so be it. In my tal average weekly earnings. view it is not related to the issue of regula- tions under the Defence Act, because there As a result, since March 1996 single and are significant shortcomings within that pro- partnered pensions have increased by 37 per vision that would have limited the capacity cent, which represents an increase that is 15 to test for the drugs in question. The military per cent above inflation. Single pensioners has chosen to proceed through command. are now $43.80 better off a fortnight and There is an issue arising as a result of the couples are each $37 better off a fortnight Defence Force magistrate’s decision. That than they would have been under Labor’s must be considered and the next step forward indexation policies. determined by government, and that is what I am proud to have implemented and de- government is considering at the moment. livered the first of our commitments follow- (Time expired) ing the election which helps grandparents Family and Community Services: Senior who are primary carers of their grandchil- Australians dren. From 1 November, the work, study and training test was waived for access to child- Senator JOHNSTON (2.51 p.m.)—My care benefit for grandparents who are pri- question is to the Minister for Family and mary carers of their grandchildren. On Community Services, Senator Patterson. Will 1 January 2005, those grandparents who re- the minister inform the Senate how the How- ceive income support will also be eligible for ard government is delivering on its election up to 50 hours of approved child care free of commitments to provide extra support to charge for each child—a significant assis- senior Australians? Is the minister aware of tance to grandparents with the primary re- any alternative policies? sponsibility of caring for their grandchildren.

CHAMBER 38 SENATE Tuesday, 7 December 2004

I have already delivered my commitment cessions from pensioners. In Victoria, for to improve opportunities and flexibility for example, pensioners have lost part of their carers. We have increased the number of motor vehicle concession. hours that carers may spend in work, training Last election, the Labor Party tried to or study without losing qualification for hoodwink the Australian public with their carer allowance. I am also pleased that all Medicare Gold policy—a policy which the state and territory ministers at the recent incoming president of the Labor Party has ministerial meeting accepted my initiative to called a ‘turkey’. Let me remind you that this help ageing carers plan for the future of their policy is stuffed. It is a stuffed turkey and I sons and daughters with disabilities—an is- hope it disappears over Christmas with the sue that confronts many older people. In ad- rest of the Christmas turkeys. (Time expired) dition, following the Australian govern- Education: Funding ment’s offer of $72½ million, the state and territory ministers agreed to negotiate mutu- Senator LUDWIG (2.55 p.m.)—My ally acceptable arrangements to meet the question is to Senator Vanstone representing respite needs of carers who are over 70 years the Minister for Education, Science and of age and care for an adult son or daughter Training. I refer the minister to the Howard or sons and/or daughters—sometimes there government’s higher education reforms. Is are two adult children for whom they are the minister aware that New South Wales is caring. the only state that delivers police recruit edu- cation in the tertiary sector? Minister, isn’t it On top of this, from April 2005 the gov- the case that the Howard government’s ernment will increase the private health in- higher education reforms will mean the ma- surance rebate to 35 per cent for people aged jority of New South Wales police recruits between 65 and 69 and to 40 per cent for who undertake a diploma course in policing people aged 70 and over. These are all recent will now have to pay full fees? Minister, why measures—either in the last budget or com- is the Howard government taking action mitments in the recent election—to assist which will put police careers beyond the older Australians. You can do these sorts of means of ordinary young Australians? things only when you run a strong economy, when you do not borrow against the next Senator VANSTONE—Senator, I think if generation to pay for the current older gen- you had asked me whether there is any state eration. other than New South Wales that offers that type of tertiary training for police officers I In 2001, the Australian government of- would have said no, but I would probably fered the states and territories funding to then have had to check. I gather by your provide concessions for self-funded retirees question that that is the case. If it is not, then with Commonwealth seniors health care there is some small course somewhere. I am cards—concessions similar to those held by sure the minister will provide information pension concession card holders. The offer and confirm that for you. was based on joint funding where we would pay 60 per cent and the states would contrib- As to the impact of the higher education ute 40 per cent. Most state and territory gov- reforms with respect to those students, I do ernments ignored the Australian govern- not have any information. I will ask the min- ment’s additional offer of funding. I was not ister if he can give a very swift response to prepared to wait and we delivered. In some your question. Policing plays a very impor- cases, states and territories are stripping con- tant role in the Australian community.

CHAMBER Tuesday, 7 December 2004 SENATE 39

Whether it is community policing, organised minister advise whether Centrelink staff have crime policing, international policing, what- been instructed to increase customer referrals ever it is, we all depend on it and it is very to Job Network members before Christmas important. I will ask the minister to give you by strongly encouraging disability support a response as quickly as he can. pensioners and parenting payment customers Senator LUDWIG—Mr President, I ask to accept a referral and to avoid telling them a supplementary question. I thank the minis- that their participation is not compulsory ter for taking the question on notice to seek unless asked? Minister, are Centrelink staff an answer from the minister. While the min- required to conduct any assessment of a cus- ister is doing that, I ask again: why is the tomer’s suitability for referral to a Job Net- Howard government seeking to prevent stu- work member? dents from modest income families from Senator PATTERSON—I do not know entering the police force? Isn’t it the case the answer to that question, Senator Greig. that the Howard government’s action in Mr Hockey would be able to answer that in charging up-front fees for police diplomas more detail. I do not know about any instruc- will make it even harder to attract young tions that Centrelink staff may or may not people to a dangerous and difficult profes- have been given. I do not always take for sion? While you are taking the first question gospel something that is told to me by a con- on notice, perhaps you could check whether stituent or in a telephone call. It may or may the Minister for Justice and Customs alerted not be correct. I will ask Mr Hockey for any the Minister for Education, Science and information, so I may respond to your ques- Training to the damage that the Howard gov- tion. I will get it back to you as quickly as ernment’s higher education policy would do possible, most probably after question time to police recruiting. If he has not done so, tomorrow. why not? Senator GREIG—Mr President, I ask a Senator VANSTONE—If the good sena- supplementary question. I ask the minister to tor would like me to work as his admin assis- check also whether the minister can advise tant and check up on a few other things from whether Centrelink customers with a disabil- other ministers because he does not have the ity are informed about services available to time and will not make the effort to chase them through specialised disability employ- them up, I am reasonably efficient and I am ment services. If they are, at what point are happy to give it a go for you! If anyone they informed and are they freely able to wants to talk about support for policing in migrate to these services once a referral to a Australia, particularly the Australian Federal Job Network member has been accepted? Police, they need only look at the budgets for Senator PATTERSON—I will get an an- the Australian Federal Police prior to this swer to that question as well. People who government coming to power and look at visit Centrelink now are treated very differ- them now. Then the good senators opposite ently from when they visited the old DSS might think twice about the value of the offices before 1996. They are totally differ- question that was just asked. ent places. Because of the initiatives of for- Centrelink: Job Network mer Senator Newman in the first instance Senator GREIG (2.58 p.m.)—My ques- and then the work that was undertaken with tion is to Senator Kay Patterson as Minister the development of Centrelink, people now for Family and Community Services. Can the

CHAMBER 40 SENATE Tuesday, 7 December 2004 get much better services than they ever got disabilities can and do migrate to Australia and under the old DSS. Australia values their contribution. However the processes operate so that persons who are as- Senator Hill—Mr President, I ask that sessed as likely to impose significant impact on further questions be placed on the Notice the community may be refused a visa, as Austra- Paper. lia has stringent health criteria for people seeking QUESTIONS WITHOUT NOTICE: to enter Australia, particularly on a permanent ADDITIONAL ANSWERS basis. Immigration: Rophin Morris The health criteria work to protect Australia not only from diseases that present a communicable Senator VANSTONE (South Australia— public health risk such as tuberculosis but also to Minister for Immigration and Multicultural limit entry of persons who are likely to require and Indigenous Affairs and Minister Assist- expensive, long term or scarce health and welfare ing the Prime Minister for Indigenous Af- resources into the future. fairs) (3.00 p.m.)—Senator Greig asked me a Immigration: Asylum Seekers question the other day in relation to the Dis- Senator VANSTONE (South Australia— ability Discrimination Act. I have further Minister for Immigration and Multicultural information for him which I seek leave to and Indigenous Affairs and Minister Assist- have incorporated in Hansard. ing the Prime Minister for Indigenous Af- Leave granted. fairs) (3.01 p.m.)—Senator Nettle also asked The answer read as follows— a question of me the other day. I have some Senator Greig asked: further information for the senator, which I Mr President, I ask a supplementary question. Is it seek leave to have incorporated in Hansard not the case that the fact that the family had not for the Senate’s benefit. It may be of interest sought a bridging visa had nothing to do with to senators to know that the person to whom why their application was rejected? More impor- she was referring was in fact given the op- tantly, given that the Australian government re- portunity to remove things from their lug- cently co-sponsored a United Nations General gage, unlike the assertion that she boldly Assembly resolution on the development of a made in this place. convention on the rights of people with disabili- ties, is the minister concerned that Australia’s Leave granted. apparently discriminatory immigration policy The answer read as follows— may place Australia in breach of current and per- Senator Nettle asked: haps future international human rights obligations Mr President, I ask a supplementary question. Is in this regard? the minister aware that this young asylum seeker, Answer: whose bags were packed by DIMIA officials, Australia’s immigration laws are consistent with begged whilst on route of representatives of Australia’s international human rights obligations. DIMIA who had packed the bags for the evidence Section 52 of the Disability Discrimination Act in the bags about his conversion to Christianity to (DDA) exempts decisions under the Migration be removed from the bags? Is the minister aware Act and its regulations from the effects and opera- that the department refused to do this and that this tion of the DDA. The exemption has had long evidence is now being held by the Iranian authori- term and bipartisan support to enable the opera- ties and is undoubtedly forming the basis of the tion of health criteria as part of visa and entry case in which he will face a court and a death requirements. penalty? Immigration laws do not stop persons with dis- Answer: abilities from being granted visas. People with

CHAMBER Tuesday, 7 December 2004 SENATE 41

I am aware of the removal to which Senator Net- What is the rationale for limiting the contracep- tle referred, however it is not correct to say that tives that can be purchased using our overseas aid this person had an application outstanding. This funds to those that are registered in Australia? individual had exhausted all avenues of appeal Senator Hill—The Minister for Foreign Affairs and had sought my intervention on two earlier has provided me with the following information occasions and the removal was appropriate. in response to the Honourable Senator’s question. A lawyer acting for this person contacted my de- Australian support for family planning activities partment on the day of his departure and indicated is based on the principle of voluntarism agreed at that a further intervention request would be the International Conference on Population and lodged the next day. The lawyer did not provide Development (IPCD) in Cairo in 1994, and reaf- any information about the substance of this pro- firmed at IPCD+5 in 1999 and at IPCD+10 in posed request. May 2004. A stated intention by an agent to lodge a request The use of the aid budget for family planning for s.417 intervention in the future is just that; is activities is governed by the Guiding Principles not itself a request. for Australian Assistance for Family Planning For the Senator’s future reference, she may be Activities, reflecting the consensus reached at interested to know that a request for s.41 7 inter- Cairo and IPCD+5 and ICPD+l0. vention is not a legal impediment to removal un- These Guiding Principles emphasise freedom of der s198 of the Act. choice and non-coercion. The four Guiding Prin- In relation to the Senator’s question regarding the ciples are: individual begging to remove evidence from his • Individuals should decide freely the number bags in relation to his conversion to Christianity, I and spacing of their children and have the in- am advised that the Department did not refuse to formation and means to exercise this choice; give him access to his bags. In fact, the person in • question was given access to his bags, including Women and men should have access to the his check-in luggage, whilst waiting for his flight. widest possible range of safe and effective He changed his clothes from this baggage and family planning methods and should partici- removed at least one other item from his baggage. pate fully in defining the family planning ser- vices they need; Abortion • Family planning programs should cater for all Senator HILL (South Australia— people who may be sexually active; and Minister for Defence) (3.01 p.m.)—I have • Australia’s assistance should actively work some further information in response to a towards improving the quality of care in fam- question asked by Senator Allison on 2 De- ily planning programs. cember in relation to overseas aid funds and In addition to the four Guiding Principles, the family planning activities. I seek leave to Government has two specific criteria in relation have the answer incorporated in Hansard. to supporting family planning activities through Leave granted. the aid program: The answer read as follows— Australian aid funds are not available for activi- ties that involve abortion training or services, or Senator Allison asked the Minister representing research trials or activities, which directly involve the Minister for Foreign Affairs upon notice on abortion drugs. 2 December 2004: The Government seeks to support activities that Why does the government prohibit the use of provide information and access to safe, voluntary overseas aid funds for training people in deliver- and affordable family planning options. The Gov- ing safe abortions? ernment does not consider abortion to be a method of family planning; therefore information that promotes abortion as a method of family

CHAMBER 42 SENATE Tuesday, 7 December 2004 planning or provides instructions on abortion It was quite amusing to see Senator Ian procedures is not eligible for Australian aid fund- Campbell fall into the same trap that he put ing. However, Australia-funded activities can himself into previously. The first bit of ad- provide medical treatment, support and counsel- vice I would give to Senator Campbell is: ling to women suffering from complications re- when you get a brief from the National Party, sulting from an unsafe abortion. In addition, Aus- tralian aid funds can be used to provide informa- particularly from Minister Anderson about a tion on unsafe abortion as an issue relevant to program that he has shamelessly used to promoting responsible family planning. pork-barrel in National Party electorates and Australian aid funds can only be used to purchase to assist the Liberal Party in electorates that monthly cycle oral contraceptive pills; emergency they thought they could win or needed to contraceptive pills, barrier methods (including defend, you should look very carefully at the condoms, diaphragms, cervical caps), Depo brief and treat with caution the suggestion Provera (three monthly injectable), Copper T and that was made to him, very obviously, that Multiload IUDs and Implanon (hormonal im- the form of defence was to attack the Labor plant). Party and say, ‘This program is all about re- The Government restricts the purchase of contra- gional Australia; therefore the Labor Party is ceptives with Australian aid funds to those con- attacking regional Australia by questioning traceptives which are registered in Australia. In this program.’ the cases of monthly cycle oral contraceptive pills, emergency contraceptive pills and condoms, It only took one response for that defence it is not necessary that the particular brand or to fall to smithereens, to be absolutely shat- formula be registered in Australia. Australian aid tered. What better example could there be of funds can be used to provide information and divergence of the Regional Partnerships pro- training on a range of contraceptives used in pro- gram from regional Australia than the advice ject areas, including those not registered in Aus- to the Senate of a program which appears on tralia (for example, Norplant). Mr Anderson’s department’s web site as be- The rationale for limiting contraceptives that can ing funded under that program—that is, the be purchased using our overseas aid funds to project, which has been identified finally by those that are registered in Australia is based on Senator Ian Campbell in his answer today, safety. By using contraceptives that are registered which is located at Bondi in the seat of Wen- in Australia, we are assured that the contracep- tives meet a world class standard and quality and tworth in metropolitan Sydney. Of course, that, therefore, will be safe and effective. It would other answers revealed that there are a num- be remiss of Australia to deliver anything less to ber of other projects, valued at over $3 mil- our partner countries. lion, which happened to have leaked out of QUESTIONS WITHOUT NOTICE: regional Australia into metropolitan Austra- TAKE NOTE OF ANSWERS lia. When you examine the profile of those approvals you see that they have been in the Answers to Questions main directed towards seats which the gov- Senator O’BRIEN (Tasmania) (3.02 ernment needed to defend or which the gov- p.m.)—I move: ernment thought it had a chance of winning. That the Senate take note of the answers given That is the reality. Wentworth is a good ex- by the Minister for the Environment and Heritage ample. (Senator Ian Campbell) and the Minister for De- Who can forget that preselection battle be- fence (Senator Hill) to questions without notice asked by opposition senators today. tween the disendorsed sitting member, Mr King, and Mr Turnbull. Mr Turnbull, of course, expended a great amount of money

CHAMBER Tuesday, 7 December 2004 SENATE 43 and exhorted a whole lot of people to be that did not fit the original guidelines. (Time branch-stacked into the Liberal Party for him expired) to win preselection from a sitting member. The DEPUTY PRESIDENT—I call The sitting member then fought back and Senator McGauran. said he would stand as an Independent. So is Senator McGAURAN (Victoria) (3.07 it surprising that we see $221,000 going into p.m.)—That was an indication of the interest that great electorate of Wentworth, where I took in the previous speaker. The opposi- some of the wealthiest people in Australia tion really have been dragging this issue out live, which contains some of the most expen- for the last couple of weeks as they have sive housing in the country—that great elec- nothing else to occupy their time. Where are torate of Wentworth that has been held by the the economic questions from the opposition? conservative parties consistently since it was Wasn’t there a commitment, an understand- formed? Yet $221,000 is awarded to that ing and a message sent to the opposition af- electorate. ter the election about establishing their eco- I wonder what Mr Abbott said, because nomic credentials? Isn’t that, by their own his seat did not get any money. What did Mr admission, exactly where they lost the last Abbott do to Mr Anderson? His seat did not election? Yet, since the parliament has sat, get a cracker. But Mr Turnbull’s seat got we have not heard any economic questions; $221,000. Ross Cameron must be absolutely all we have heard is an attack on a legitimate filthy—he could only get $20,000 in the seat and proper program established by the gov- of Parramatta. What would Ross Cameron be ernment for the regions. thinking now—‘What did I do wrong?’ He The opposition have jumped on the band- obviously regrets what he said to the Tele- wagon of the Independent member for New graph. He probably regrets not checking out England, who first raised this issue. He has who was sharing the flat. Since Senator Ian now been utterly discredited, but that has not Campbell suggested last week to Senator stopped the Labor Party from ploughing on Carr that he should go and buy himself a pair with their frivolous and dead-end attack of Blundstones, get them a bit dirty and go upon the government on this program. This and talk to people who are trying to build is their modus operandi. When they run out regional Australia, Mr Anderson was re- of puff, have nothing to say and are all tor- ported in the Australian on Saturday as say- tured inside over leadership matters, what do ing that the Regional Partnerships program they do? They single out the bush and the does not discriminate against particular parts programs. Why not? They have very little of the country. What it discriminates against, support out there, and they know it. It is an in the main, are seats that are not of interest easy thing for them to kick around. They to the National Party and the Liberal Party. It have been doing it basically ever since the discriminates against seats such as Warringah Labor Party began. Certainly the modern or other northern Sydney seats or Banks, Labor Party have no affinity with the regions Lowe, Blaxland, Reid or Werriwa, which did at all and this is yet another example. not get a cracker. What it demonstrates is that this funding program had a set of guide- The opposition tried the same thing in the lines on the web site but a big ‘get out of jail’ last term. Who can forget their attack on an- loophole guideline overriding all of the rest, other perfectly legitimate region based pro- kept secret since September last year, which gram that brought success—the Natural allowed the funding of a variety of programs Heritage Trust? They spent weeks and weeks

CHAMBER 44 SENATE Tuesday, 7 December 2004 of parliamentary time with fillers attacking with regard to budgetary allocations. We the Natural Heritage Trust. Where did it get have been very successful, thank you very them? Nowhere at all. There was no penetra- much. You highlight our success every day in tion in the community because they knew the parliament. what a great success the program was for the I suggest you go to Bondi, lie on the beach regions and for the environment. That pro- and have a rest, as was suggested by Senator gram has been fully funded to this day. We Macdonald, then come back and start work- are proud to back the Natural Heritage Trust ing on your economic credentials. Drop these just as we are proud to support, and will not fillers. They are a complete waste of time. step back from supporting, the Regional You know that. Experienced politicians—and Partnerships program, formerly the Regional there are one or two over there now; I will Solutions Program. We will not step back name Senator Forshaw as an experienced from it, Senator O’Brien. In fact, we are politician—know these fillers do not get proud of it. traction. This is just a filler before Christmas. What we like about this program is that it You have an opportunity in the new year to is a bottom-up program. These regional and establish your economic credentials. rural grants have been fashioned around the Senator BOLKUS (South Australia) regional summit of 1997 because we believe (3.12 p.m.)—I have to say at the start that it they have to come from the bottom up. These is a bit rich to be lectured on financial re- programs have to be recognised by the local sponsibility by a bloke who had to be saved community, supported quite often by the lo- by a special favour from the ANZ Bank with cal council, state government and certainly respect to his financial irresponsibility. In those most successful area consultative question time today we saw more evidence committees, where local leadership gets to- of this government-rorted, taxpayer-funded gether to find out what the region requires. program. This program was rorted by the This is a real bottom-up program. It has been government in order to win favour at the last an enormous success and we are proud to say election. This program took money from the that we back it. The National Party, most of taxpayer in an endeavour to con them and to all, are proud to say that we back it. We have buy their votes. It is more evidence of the come under attack for supporting this pro- government using taxpayer funds—as Sena- gram, but we are unashamedly supportive of tor O’Brien said, no matter what it takes—in this program and unashamedly spokes men this case for no baser purpose than to buy and women for our regions. We are un- votes. ashamedly trying to win the budget dollar, The program was geared to development wrestling over the budget dollar. and to development in rural and regional Senator George Campbell—East Mel- Australia. We saw through evidence today bourne? and over the last week or so that the pro- Senator McGAURAN—I wonder if gram’s outcomes were far distant from its those on the opposite side of the chamber designed objectives. The program’s objec- will ever understand that when you are in tives were development, regional develop- government there is only one cake and there ment and rural development. Its outcomes in is a wrestle for the dollar. That is why rural so many circumstances were not the needs of and regional members, National and Liberal, the electorate but the needs of government do go in to bat for their local constituencies members in marginal seats. As we saw in

CHAMBER Tuesday, 7 December 2004 SENATE 45 question time today, we have the funding of ropolitan transport hub in metropolitan Ade- a dog day centre, so aptly called Happy Tails, laide received funds. One program for rural in Brisbane; we have funding for a church students and one project in Morphett Vale, body to fit out a centre from which Hillsong which may in its operation cover rural and can deliver its employment and mentoring regional South Australia, received funds. The programs to the Redfern community; and we Parrakie Football Club got $35,000; the have in my state of South Australia funding Modbury Junior Football Club got $60,000; of almost $800,000 in metropolitan elector- the Ingle Farm football club got $35,000; the ates—not in rural and regional Australia. Golden Grove football club got $30,000; the South Australia is a great example. We Para Hills Knights soccer club got $25,000; should look at South Australia in terms of and the Modbury soccer club upgrade got how a program which could have done a lot $25,000. All those clubs are in the seat of of good in addressing the needs of rural and Makin. To top it off, $187,000 went to the regional South Australia was diverted to ac- Golden Grove church redevelopment, which commodate and give priority to the needs of is also in the seat of Makin. So footy clubs government members. There is real need in won out—but just some football clubs. rural and regional South Australia. In places What about those football clubs in elec- like the Pit lands to Port Augusta and Port torates like Hindmarsh? What about those MacDonnell there are communities in real sports and soccer clubs in inner city Ade- need. Places like Port Lincoln and Clare are laide, in Thebarton and Mile End? They burgeoning economies also with infrastruc- worked under the apprehension that this pro- ture needs. gram was not for them. They worked under But what do we have? We have the fund- the apprehension that Thebarton, Mile End, ing of some selected programs in accordance Lockleys and Henley Beach were not part of with the electoral priorities of government rural and regional South Australia, and clubs members. I am not saying that the projects in those places did not apply. In Adelaide the that were funded are not worthy of funding; Kilburn community and sports club— what I am saying is that under this program another sports club—got $250,000; the Ov- they should not have been given the priority ingham sports club got $30,000; a boarding that they were. This is a program for rural house for Indigenous students at Northfield and regional South Australia, for rural and got $17,000; and a project for the identifica- regional Australia. If projects like these can tion of transport logistics and employment be funded under this program, what about all opportunities in Enfield got $44,000. Those the other community groups that also had places are nowhere near rural and regional meritorious claims but did not apply because South Australia. As well as that, a program in they believed the government’s literature that the seat of Kingston, in Morphett Vale, got this program could not be accessed by them? $99,000. That may actually have an outcome What we have is a misappropriation of funds for rural and regional South Australia. Sports for rural and regional Australia. clubs have needs. This is not the program for them to have those needs met. (Time expired) As I said, in the state of South Australia close to $800,000 in funds has gone to met- Senator BARNETT (Tasmania) (3.17 ropolitan Adelaide. When you look at those p.m.)—I rise to speak to Senator O’Brien’s projects, you find that six football clubs, two motion and to respond to the allegations soccer clubs, one church group and one met- made by senators from across the chamber. I want to start by responding to the allegations

CHAMBER 46 SENATE Tuesday, 7 December 2004

Senator Bolkus laid at this government and Cameron and hitting them with a wet lettuce at a particular senator on this side with re- leaf. Let us look at some of the facts, particu- spect to financial irresponsibility and mis- larly on the Marine Discovery Centre at management. Those allegations came from a Bondi. Let us see who has been supporting senator who was part of a government that in this very important project. Do you know 1996 left the Australian people with a $96 who has been supporting it? The state Labor billion debt. He was a key performing minis- government in New South Wales. ter—or underperforming minister—during Senator Ferris—Fancy that! that time. Senator BARNETT—Fancy that! Before Senator George Campbell—What is the you asked your question today, Senator debt now? It is $406 billion. O’Brien, did you ask the state Labor gov- Senator BARNETT—That debt has been ernment why they made that allocation, why paid off to the extent that it is now less than they spent that money and why they wanted $30 billion. The government has not only to support such an important tourist venture paid off that debt but also has the ability to as the Marine Discovery Centre? I will tell fund specific programs, Senator George you how much they spent: $100,000, just in Campbell, to the extent of $5 billion extra 2004. Who else supported it? The local each year. That is a Labor debt that has been council. There was grassroots support for a paid down. Senator Campbell knows that local project. The Waverley Council made a fact, as does the public, because it is on the community grant over a period of three public record. Senator Bolkus, when he years. That would make you think it would asked a question in question time today, said have a little bit of credibility, a little bit of that we used the Regional Partnerships pro- support, from the local community. Of gram to target key marginal seats. The Labor course the Australian government wants to Party attack was specifically based on the get behind it and say: ‘Yes, this is good. It is stage 2 redevelopment of the Bondi Marine good not only to create jobs and develop- Discovery Centre, which is in the seat of ment in the area but to make this a particular Wentworth in Sydney. That is known as a and special event.’ Eight hundred and fifty blue-ribbon Liberal seat. He talked about the thousand-odd overseas tourists visit each pork-barrelling of marginal seats. His argu- year. ment contradicts itself. It is lost. Bondi was the centre of the Olympics in Senator O’Brien in his address today the year 2000. Are you opposed to such talked about the preselection battles for the events? Let us ask the Labor Party about seat of Wentworth, but he failed to talk about that. I was there with my family and I en- his own preselection battle. He lost the sup- joyed the events at Bondi. It was a wonderful port of the Left, with David Price, who is the location for the beach volleyball. It was a State Secretary of the Labor Party in Tasma- great success. Indeed, the Olympics in 2000 nia, dumping him from the No. 1 spot to the were a great success and a credit to all Aus- No. 3 spot. Senator O’Brien, those in glass tralians, particularly the Australian govern- houses can throw stones. That is what hap- ment and the state government at the time. pened. You were fortunate enough to retain These are the things that have been ne- that position, after a bit of a scramble. Then glected in the arguments that have been put you started attacking the Hon. Tony Abbott by the Australian Labor Party. We want to and former parliamentary secretary Ross suggest to the opposition that they get out

CHAMBER Tuesday, 7 December 2004 SENATE 47 there, get their hands dirty and talk to the gional Australia. They said: ‘This is about people concerned—the local community jobs in regional Australia. Why does the La- groups that want to support these projects. bor Party single out the bush for particular They know how important they are. The Ma- attention?’ rine Discovery Centre met the criteria. That I am a great supporter of the bush. I think is on the public record. They have met all the the people in regional and rural Australia are criteria. The application was received and it great people. They are great battlers and they was successful. I want to pay tribute to the deserve all the help they can get. They get volunteers who got behind it as well. They very little in real terms from this govern- received a little bit of support during the In- ment, and they have got very little in real ternational Year of Volunteers in 2001. The terms from this government since 1996. But, contribution of volunteers should not be for- when it comes to electioneering and being gotten and the Australian government is get- able to target seats that potentially may ting behind them, as it is behind this special change hands in an election, this government community project. There are plenty of pro- becomes very focused on what its programs jects in Tasmania that Senator O’Brien are intended to do. That is why you have a knows about, and I would like him to go on mix of programs entitled Regional Partner- the public record and nominate the specific ships being used to fund projects in seats in projects in Tasmania that he opposes. (Time metropolitan Australia that are determined to expired) be marginal or under threat. Senator GEORGE CAMPBELL (New Wentworth is about as metropolitan as you South Wales) (3.22 p.m.)—I also wish to can get. It would have the highest number of speak on the motion to take note of the an- millionaires in this country within its swers to the questions asked by Senator boundaries. It would have the most expen- O’Brien during question time, and particu- sive real estate in this country within its larly to deal with the issue of the Marine boundaries. It is hardly a seat that you would Discovery Centre at Bondi Beach. I also, like say is suffering from disadvantage and de- Senator Barnett, looked at the DOTARS web spair. I walk around it every week. I happen site to see what this program was. to enjoy living in Wentworth. I happen to Senator Barnett—Your colleagues particularly enjoy Bondi. I can tell you about didn’t. all the best coffee shops and the best lattes in Senator GEORGE CAMPBELL—The the country—not in regional Australia, in the title of the program, Senator Barnett, is Re- country. The Zoo Bar in Bondi Junction is gional Partnerships. The state is New South one, and Centennial Bites down at Clovelly Wales and the location is Bondi. I have to is another one. They were all visited by their admit that I was a little surprised, given that I local member, canvassing for votes, during live 10 minutes away from Bondi. It is a the last election. I can name them one after great privilege to get up and speak on this another—the Gelato Bar in Campbell Pa- issue as a constituent of the seat of Wen- rade, the Thai Flora Restaurant in Hall tworth and to learn, through this debate, that Street—there is a multitude of them. People I am part of regional Australia. The minister, in Wentworth will not starve or go short of a Senator Ian Campbell, in his response—and decent cup of coffee. The current member Senator Hill in his response to an unrelated has probably bought coffee for every person question—asked why we are attacking re- who lives in the seat of Wentworth. During the last election campaign he was seen con-

CHAMBER 48 SENATE Tuesday, 7 December 2004 stantly wandering in and out the coffee shops it was expected that the administrator of An- of Wentworth canvassing votes for himself. sett would contribute to those worker enti- To suggest that the people of Wentworth or tlements through the sale of assets—through Bondi need to soak up $220,000 worth of a winding up the company, in other words. At program that I presume was initially de- the time, Minister Anderson was asked by signed to assist the people of regional Aus- journalists, ‘You won’t be double-dipping, tralia is an absolute absurdity. will you?’ The minister assured those jour- I am sure that the people at the Marine nalists that this was not to be the case. It has Discovery Centre in Bondi are very grateful become the case. for the $220,000, and I am sure they do a The government has collected $286 mil- very good job in travelling around the lion through the Ansett ticket levy. Of the schools of the area to promote knowledge $336 million which it loaned, in the first in- about marine life. Most of the kids in the stance, to the Ansett administrators, $208 area spend their life at Bondi Beach anyway; million has already been paid back. That they go and experience the marine life first- provides a net profit of more than $150 mil- hand. They are out on their surfboards from lion, which the government has chucked into early in the morning until late at night at general revenue and used to fund a whole Bondi, Bronte, Coogee—all the beaches range of unrelated projects. Those projects around that eastern suburbs area. It is obvi- were loosely related to aviation, but, if the ous that this was an election ploy to transfer travelling public who paid an extra $10 in these moneys into those electorates that the their levy every time they travelled in this government thought were vulnerable. It had country had known, no doubt they would nothing at all to do with promoting partner- have been a bit angry about the fact that it ships in regional Australia or assisting to paid for things like security training for re- build jobs in regional Australia. (Time ex- gional airport staff and multiagency counter- pired) terrorism exercises at regional airports—not Question agreed to. so much because they were not worthy pro- jects but because the Ansett employees are Ansett Australia: Employee Entitlements still owed $212 million in entitlements that Senator ALLISON (Victoria) (3.27 they are not able to be paid. The minister has p.m.)—I move: the cheek to suggest that it is entirely up to That the Senate take note of the answer given the Ansett administrators. It is not, because by the Minister for the Environment and Heritage the government has made itself the highest (Senator Ian Campbell) to a question without priority creditor. Even though it has raised all notice asked by Senator Allison today relating to this money from the levy, it is still effec- the entitlements of former Ansett employees. tively saying, ‘We’ve not been paid every- The fact is that this government has profited thing we paid you.’ as a result of both the levy and the way in KordaMentha, who are the administrators which it is claiming asset sales on top of that of Ansett, cannot pay further entitlements, levy. The minister, I think, misled the cham- even though Ansett employees are owed ber, and my staff confirmed this, by saying about $212 million, until they have paid back that the government had not collected addi- the full $336 million. But remember again tional money. Let us just go through it. It is that the levy has raised more than $286 mil- quite complex. The government set up a levy lion over and above that. So, effectively, the scheme back in September 2001. At that time government is hoodwinking both the general

CHAMBER Tuesday, 7 December 2004 SENATE 49 public and Ansett employees and profiteering over two years. A detention centre is no place for at the expense of those employees. The min- children to grow up. ister says they have all been paid up. Maybe We therefore pray that the Senate asks the Minis- they have been, but only to the government’s ter for Immigration to exercise her power to im- own very restrictive level of entitlements that mediately release these children and their families it said it would pay. For instance, there is a from behind the razor wire. maximum of eight weeks redundancy pay, as by Senator Crossin (from 83 citizens). I understand it, whereas many of those em- Medicare: Services ployees were Ansett employees for years and To the Honourable President and Senators assem- years, well beyond that entitlement. There is bled in Parliament the Petition of the undersigned $212 million there that should be paid by this draws to the attention of the Senate: government to those workers, and it should • That the City of Palmerston is the fastest happen before Christmas. This is the appro- growing city in Australia with a current priate time to do it. population of more than 40 000 persons Furthermore, the government should ad- • That Medicare is a valued service of the vise the Ansett administrators that it will no community and the ability to access this ser- longer collect any further moneys from the vice is vital for all people within the City of sale of assets because this is neither reason- Palmerston able nor fair. The government is simply tak- • There is no Medicare office within the ing advantage of its position. I understand boundaries of the city that back when the levy was set up it was not • The nearest Medicare offices for persons understood how much the assets would raise, within the City of Palmerston are in Darwin so there was some doubt. But the govern- and Casuarina, located 20kms away ment has just taken advantage of that and Your petitioners believe that not having a Medi- will keep insisting—I understand that there care Office within the boundaries of the City of is about $60 million still to come—that that Palmerston persons are being deprived of this money be paid to it instead of being paid to important and vital service and urge the Senate to employees. The handling of the Ansett work- immediately request the Minister consider a Medicare office for the City of Palmerston. ers’ entitlements has been a sorry mess. We know there has been an enormous amount of by Senator Crossin (from 257 citizens). distress on their part in not being able to ac- Military Detention: Australian Citizens cess those entitlements. (Time expired) To the Honourable the President and members of Question agreed to. the Senate in parliament assembled. The petition of the undersigned shows: PETITIONS That the treatment of Hicks and Habib is not in The Clerk—Petitions have been lodged accordance with Geneva Convention Guidelines for presentation as follows: applying to prisoners of war. Immigration: Asylum Seekers Your petitioners ask that the Senate should: To the Honourable President and Senators assem- Ensure that Hicks’ and Habib’s rights are met bled in parliament: under the guidelines of the Geneva Convention, This petition of certain citizens of Australia draws as it applies to prisoners of war. to the attention of the Senate: Send a deputation to George W. Bush asking that There are still many kids held in immigration Hicks and Habib be returned to Australia. detention in Australia. Most have been there for Ensure that Hicks and Habib be entitled to civil trials in Australia if charged with any crime.

CHAMBER 50 SENATE Tuesday, 7 December 2004

by Senator Kirk (from 480 citizens). gally reproduced his work, the celebrated Petitions received. ‘T shirt case’ and that he continues to ad- vise fellow artists on copyright, protocols NOTICES and responsibilities, particularly about de- Presentation pictions of dreaming and totems in their work; Senator Ellison to move on the next day of sitting: (d) further notes that: (i) Indigenous cultural expression is a That the following bill be introduced: A Bill fundamental part of Indigenous heri- for an Act to amend the Customs Act 1901, and for related purposes. Customs Amendment Bill tage and identity, and unauthorised use of Indigenous art and cultural expres- 2004. sion can be inappropriate, derogatory Senator Ellison to move on the next day and culturally offensive, of sitting: (ii) individual Indigenous artists are custo- That the following bill be introduced: A Bill dians of the knowledge and wisdom for an Act to amend the Australian Sports Com- their work incorporates and reflects, mission Act 1989, and for related purposes. Aus- therefore Indigenous moral rights are tralian Sports Commission Amendment Bill collective rights that are inalienable 2004. from their community of origin, and Senator Ellison to move on the next day (iii) Indigenous artists are particularly vul- of sitting: nerable under Australian law, which of- That the following bill be introduced: A Bill fers virtually no protection for the moral rights owned collectively by In- for an Act to amend the Criminal Code Act 1995 to provide for offences relating to trafficking in digenous communities; and persons, and for related purposes. Criminal Code (e) urges the Government to take immediate Amendment (Trafficking in Persons Offences) action to amend the Copyright Act 1968 Bill 2004. to ensure the adequate recognition and protection of Indigenous communal Senator Ridgeway to move on the next moral rights. day of sitting: Senator Sherry to move on Thursday, 9 That the Senate— December 2004: (a) congratulates Mr John Bulunbulun on That new Divisions 9.2A and 9.2B in item [10] winning the Australia Council’s Red of Schedule 1 to the Superannuation Industry Ochre Award which honours an Aborigi- (Supervision) Amendment Regulations 2004 (No. nal or Torres Strait Islander person who, 2), as contained in Statutory Rules 2004 No. 84 throughout his or her lifetime, has made and made under the Superannuation Industry outstanding contributions to the recogni- (Supervision) Act 1993, be disallowed. tion of Indigenous Australian art at both Senator Cherry to move on the next day national and international levels; of sitting: (b) notes that Mr Bulunbulun is a practicing artist of more than 30 years and an impor- That the following matters be referred to the tant ceremonial leader and singer around Environment, Communications, Information his Arnhem Land community of Manin- Technology and the Arts References Committee grida; for inquiry and report by 10 March 2005: (c) also notes that Mr Bulunbulun was a pio- (a) the provisions of the Australian Commu- neer for the protection of artist rights fol- nications and Media Authority Bill 2004 lowing a landmark court case he fought and the Australian Communications and and won against a manufacturer who ille- Media Authority (Consequential and Tran-

CHAMBER Tuesday, 7 December 2004 SENATE 51

sitional Provisions) Bill 2004 and related That the provisions of paragraphs (5) to (8) of bills; standing order 111 not apply to the Customs (b) whether the powers of the proposed Aus- Amendment Bill 2004. tralian Communications and Media Au- I also table a statement of reasons justifying thority and the Australian Competition and the need for these bills to be considered dur- Consumer Commission will be adequate ing these sittings and seek leave to have the to deal with emerging market and techni- statement incorporated in Hansard. cal issues in the telecommunications, me- dia and broadcasting sector; Leave granted. (c) whether the powers of Australia’s compe- The statement read as follows— tition and communications regulators meet Purpose of the Bill world best practice, with particular refer- The bill prescribes commercial quantities for ence to the United Kingdom regulator Of- drugs in Schedule VI of the Customs Act 1901 for com and regulators in the United States of which a commercial quantity is not currently pre- America and Europe; and scribed. (d) whether legislation is needed to prevent Reasons for Urgency cross ownership between delivery of communications and media content. The Customs Act 1901 (Customs Act) includes serious drug offences, such as drug importation Senator Greig to move on the next day of offences. The maximum penalties for those of- sitting: fences vary depending on the quantity of drug That— involved. Offences involving ‘trafficable quanti- (a) the time for the presentation of the report ties’ of prescribed drugs carry penalties of up to of the Legal and Constitutional Legisla- 25 years imprisonment, whereas those involving tion Committee on the Disability Dis- commercial quantities of prescribed drugs carry crimination Amendment (Education Stan- penalties of up to life imprisonment. The different dards) Bill 2004 be extended to 8 Febru- penalty levels reflect the relative seriousness of ary 2005; and for example, importing a commercial quantity of a drug compared to importing a smaller traffic- (b) that the terms of reference be varied to able quantity. allow for the examination of whether the bill: The drugs to which the offences apply, and the corresponding quantities, are set out in Schedule (i) provides full legislative support for the VI to the Customs Act. However, that schedule introduction of the Disability Standards does not prescribe commercial quantities for all for Education, of the listed drugs. (ii) permits existing rights under the Dis- Recently, there have been instances where large ability Discrimination Act 1992 to be quantities of drugs for which the Customs Act undermined, and does not prescribe a commercial quantity have (iii) reflects the recommendations of the been imported into Australia. The Commonwealth Productivity Commission’s report, Re- Director of Public Prosecutions has advised that, view of the Disability Discrimination in the absence of a prescribed commercial quan- Act 1992. tity, it has not been possible for judges to consider Senator ELLISON (Western Australia— imposing life imprisonment penalties and they Manager of Government Business in the have been limited to the maximum penalty for Senate) (3.35 p.m.)—I give notice that, on offences involving trafficable quantities, being 25 years imprisonment. the next day of sitting, I shall move: There has also been judicial criticism of the fact that there are no commercial quantities prescribed for some drugs listed in Schedule VI of the Cus-

CHAMBER 52 SENATE Tuesday, 7 December 2004 toms Act. For example, in a recent case involving (iv) $212 million is still owed in entitle- the importation of large quantities of ‘ice’ (me- ments, and thylamphetamine), the judge commented that he (v) the administrators of Ansett, Mr Men- would have imposed a larger sentence if the legis- tha and Mr Korda, are unable to pay lation provided for it. entitlements to former Ansett employ- It is proposed to prescribe commercial quantities ees until such time as they have repaid for drugs in Schedule VI of the Customs Act 1901 the full $336 million loaned by the for which a commercial quantity is not currently Government; and prescribed. This will ensure courts can impose (b) calls on the Government to: appropriate sentences where large quantities of (i) cease collecting repayments under drugs are involved until the new serious drug SEESA from the administrators until offences commence, which is expected to be in Ansett workers are paid their entitle- the latter half of 2005. ments in full, and Without these interim measures in place, it is (ii) use the surplus of the Ansett passenger possible that those who import large quantities of ticket levy to pay outstanding Ansett drugs may escape appropriate penalties. This sce- worker entitlements as was the stated nario is not in line with the expectations of the purpose rather than redirecting these Australian community. funds to aviation security initiatives. Senator Allison to move on the next day Senator Brown to move on the next day of sitting: of sitting: That the Senate— That the following matters be referred to the (a) notes that: Rural and Regional Affairs and Transport Refer- (i) a meeting of former Ansett employees ences Committee for inquiry and report by in Sydney on 27 November 2004 called 11 May 2005: on the Government to ‘cease making (a) compensation arrangements for wheat financial gains’ whilst entitlements are growers after the writing-off of the Iraqi still owed to former employees, wheat debt, with particular reference to: (ii) both Ansett workers and the general (i) how decisions were made, and public were told by the Government at (ii) the impact on wheat growers individu- the time of the establishment of the Special Employee Entitlements ally and generally; and Scheme for Ansett Group’s Eligible (b) any related matters. Employees (SEESA) that the revenue Senator Nettle to move on the next day of from the Ansett ticket levy would be sitting: used to fund the payment of Ansett workers entitlements and that on That the Senate— 17 September 2001 the Deputy Prime (a) notes: Minister (Mr Anderson) told journalists (i) that the inaugural Dr Andrew that the Government would not ‘double McNaughtan memorial lecture was de- dip’ in establishing SEESA, livered on 7 December 2004, which (iii) after underwriting a $336 million loan also marks the 29th anniversary of the to Ansett administrators, the Govern- Indonesian invasion of East Timor, ment has collected $286 million (ii) Dr McNaughtan’s major contribution to through the Ansett ticket levy and re- the struggle of the East Timorese peo- couped $208 million through Ansett as- ple, including his work to achieve eco- set sales, has effectively double dipped, nomic justice in relation to the and has made a $150 million profit from the scheme,

CHAMBER Tuesday, 7 December 2004 SENATE 53

Timorese claim to oil and gas reserves That the time for the presentation of the report in the Timor Sea, of the Legal and Constitutional Legislation (iii) the remarks of Timorese Foreign Min- Committee on the Copyright Legislation ister, Mr Jose Ramos Horta, who said Amendment Bill 2004 be postponed to a later last week that Australia’s reduced com- hour of the day. pensation offer to Timor Leste Question agreed to. ‘amounted to an unacceptable black- NOTICES mail’, and (iv) the patronising and inaccurate com- Postponement ments by the Minister for Foreign Af- Items of business were postponed as fol- fairs (Mr Downer) in response to East lows: Timorese dissatisfaction with the Aus- Business of the Senate notice of motion no. tralian Government’s compensation of- 1 standing in the name of Senator Stott De- fer when he said ‘East Timor wouldn’t spoja for today, proposing the reference of be an independent country if it wasn’t matters to the Legal and Constitutional for Australia’; and References Committee, postponed till (b) calls on the Government to: 8 December 2004. (i) negotiate a fair and equitable maritime Business of the Senate notice of motion no. boundary with Timor Leste according 2 standing in the name of the Chair of the to current international law and the Foreign Affairs, Defence and Trade Refer- provisions of the United Nations Con- ences Committee (Senator Hutchins) for vention on the Law of the Sea, today, proposing the reference of matters to (ii) respond to the request by Timor Leste the Foreign Affairs, Defence and Trade for more regular meetings to settle the References Committee, postponed till maritime boundary dispute between the 8 December 2004. two countries within a more reasonable General business notice of motion no. 17 timeframe, standing in the name of Senator Brown for (iii) return Australia to the jurisdiction of today, relating to Tasmanian forests, post- the International Court of Justice and poned till 8 December 2004. the United National Convention on the General business notice of motion no. 27 Law of the Sea for the adjudication of standing in the name of Senator Lees for maritime boundaries, and today, relating to Asian elephants, post- (iv) commit to hold in trust revenues from poned till 10 February 2005. disputed areas immediately outside the General business notice of motion no. 33 Joint Petroleum Development Area of standing in the name of Senator Brown for the 20 May 2002 Timor Sea Treaty for today, relating to kidnappings in Colombia, further apportionment between Austra- postponed till 8 December 2004. lia and Timor Leste after the maritime General business notice of motion no. 44 boundary dispute between the two standing in the name of Senator Ludwig countries has been settled. for today, relating to counterfeit passports, BUSINESS postponed till 9 December 2004. Rearrangement Senator FERRIS (South Australia) (3.37 p.m.)—by leave—At the request of the Chair of the Legal and Constitutional Legislation Committee, Senator Payne, I move:

CHAMBER 54 SENATE Tuesday, 7 December 2004

COMMITTEES vey questions which were mislead- Employment, Workplace Relations and ing, incomplete or inaccurate, Education References Committee (vi) the extent to which small businesses rate concerns with unfair dismissal Reference laws against concerns on other mat- Senator MURRAY (Western Australia) ters that impact negatively on suc- (3.39 p.m.)—I move: cessfully managing a small busi- (1) That the matter of unfair dismissal be re- ness, and ferred to the Employment, Workplace Re- (vii) the extent to which small businesses lations and Education References Com- are provided with current, reliable mittee for inquiry and report by 14 June and easily accessible information 2005, with the following terms of refer- and advice on federal and state un- ence: fair dismissal laws; and (a) to examine: (b) to recommend policies, procedures and (i) the international experience con- mechanisms that could be established cerning: to reduce the perceived negative im- pacts that unfair dismissal laws may (A) unfair dismissal laws, and have on employers, without adversely (B) the relationship between un- affecting the rights of employees. fair dismissal laws and em- ployment growth in the small (2) That the committee be authorised, with the business sector, approval of the President, to commission (ii) the provisions of federal and state independent research, as desirable or nec- unfair dismissal laws and the extent essary, to investigate each of these terms to which they adversely impact on of reference. small businesses, including: Question agreed to. (A) the number of applications HANUKKAH against small businesses in each year since 1 July 1995 Senator LUDWIG (Queensland) (3.39 under federal and state unfair p.m.)—I move: dismissal laws, and That the Senate— (B) the total number of businesses, (a) notes that on 7 December 2004 the Jewish small businesses and employ- festival of Hanukkah begins at sunset; and ees that are subject to federal and state unfair dismissal (b) wishes a happy Hanukkah to the Austra- laws, lian Jewish community. (iii) evidence cited by the Government Question agreed to. that exempting small business from MULTICULTURALISM federal unfair dismissal laws will create 77 000 jobs in Australia (or Senator LUDWIG (Queensland) (3.39 any other figure previously cited), p.m.)—I ask that general business of motion (iv) the relationship, if any, between No. 43 today, which condemns Sydney Lord previous changes to Australian un- Mayor Clover Moore and relates to multicul- fair dismissal laws and employment turalism and the celebration of Christmas, be growth in Australia, taken as a formal motion. (v) the extent to which previously re- The DEPUTY PRESIDENT—Is there ported small business concerns with any objection to this motion being taken as unfair dismissal laws related to sur- formal?

CHAMBER Tuesday, 7 December 2004 SENATE 55

Senator Brown—I have an objection In view of the level of interest in this issue, I pro- unless the minute by Lord Mayor Clover pose to deal with it as the first item of business. Moore, which I have circulated, is incorpo- The City is spending over $900,000 ($300,000 rated into Hansard. more than last year) decorating the city and cele- brating the Christmas season, followed by spend- The DEPUTY PRESIDENT—As I un- ing another $5 million on New Years Eve celebra- derstand it, leave has been granted for that, tions and the Sydney Festival during January, Senator Brown; therefore, there is no objec- closely followed by Chinese New Year. tion to the motion being taken as formal. While there has been a view expressed that the Senator LUDWIG—I move: City is not doing enough there is also a contrary That the Senate— view in the community—indicated by many of the letters published in the Sydney Morning Her- (a) condemns Sydney Lord Mayor Clover ald today—that the expenditure of ratepayer’s Moore for inappropriately using multicul- money on these type of activities is already more turalism as a shield for stripping back than adequate. Christmas celebrations; Council has to strike a balance between compet- (b) notes: ing views in the community, making a reasonable (i) the damage that is done to multicultur- and justifiable decision concerning the expendi- alism by this kind of misguided action, ture of public money. (ii) multiculturalism does not mean aban- Councillors will understand that this year’s deco- doning your own beliefs or culture out rations and celebrations were planned many of deference to imagined offence to a months ago and the expenditure approved by the different culture, and former General Manager. I am informed that past (iii) that Christmas itself is multicultural, practice has usually been to have decorations celebrated as it is across Europe, North specially commissioned . and then generally re- and South America, parts of Asia, Af- used for about 3 years, and there has been no rica, the Pacific and wherever Chris- major departure this year from what has happened tians may be; in previous years. (c) embraces the spirit of Christmas and To ensure there is no misunderstanding, I will encourages the people of Australia, now place on the public record the Council’s whatever their beliefs, to practise the Christmas and festive season activities. Christmas message of peace and goodwill to all; and The City’s celebrations commenced on 25 No- vember with the lighting of the Christmas tree (d) wishes a safe and merry Christmas to the and a concert attracting 7,000 children and their people of Australia. families in Martin Place, with me arriving in a The document read as follows— Christmas sleigh with Santa. We ran a children’s ITEM 3D. FESTIVE SEASON CELEBRA- colouring in competition with the prize lighting TIONS AND CHRISTMAS DECORATIONS the official Christmas tree. FILE NO: The Martin Place Christmas tree is 20 metres tall, DATE: 6/12/04 and took 9 days to install. It has 180 gold and silver baubles, 120 stars and 19,000 lights. MINUTE BY THE LORD MAYOR The City has also decorated Chifley Square, Syd- To Council: ney Town Hall and Pitt Street Mall and is still in As Councillors will be aware, there has been con- the process of installing 545 banners to _decorate siderable public interest in the City’s Christmas the streets, based on a . “Christmas lights” theme decorations and events in recent days, with some and “seasons greetings” translated into the 8 most misinformed criticism driven by a fabricated frequently spoken languages within the City quote wrongly attributed to me. boundaries, The banners will be located in

CHAMBER 56 SENATE Tuesday, 7 December 2004

George Street, Martin Place, Taylor Square, An- I’d also like to put on record my real concern that zac parade, Green Square and Kings Cross. we should not lose sight of the fact that Christmas We are also having roving Christmas street per- is about the birth of baby Jesus and it is a spiritual formers around the CBD shopping precinct on and religious festival. We should not be preoccu- weekends during December. pied with commercial and material things—how many hundreds of thousands of dollars we are Most importantly, we are also holding free family spending on temporary decorations. I believe we Christmas concerts in the City’s expanded areas should focus on the more important and enduring in Rosebery, Alexandria, Rushcutters Bay, Glebe aspects—like generating peace and goodwill to- and Surry Hills, with Santa, carollers, a big brass wards others—and caring about everyone in our band, MC Justine Clarke from Playschool and community, including the disadvantaged. As special performances at each location, elected representatives, we should be more focus- I attended the Alexandria Park Twilight Christmas sed on those far less fortunate than ourselves, Concert last Friday night and can report that it rather than the number of Christmas lights sus- was a fantastic event and very much appreciated pended over the Pitt Street Mall. by the local community. I’m pleased to report that the Council is also con- The City is in partnership with the major retailers ducting a number of very important but lower key who have supported the city’s concerts, and as Christmas functions and activities for the less has happened in previous years, 400,000 copies fortunate, including: of a full colour magazine promoting Christmas • Delivery of Christmas Hampers to approxi- events, transport, trading hours, gift ideas, church mately 300 Meals on wheels clients services and Christmas stories has been produced by Fairfax in association with the City. • A Christmas luncheon with traditional Christmas lunch, entertainment and a variety Perhaps some of the views expressed in the past of treats including chocolates, Christmas few days have been driven by nostalgia, and pub- cake and cherries to take home at each of lic disappointment at a reduced level of retailer council’s 9 Aged and Disability Activity commitment to Christmas displays in recent Centres; years. People’s memories of their childhood Christmases often revolve around the type of • Each Activity Centre has been given funds to displays that retailers used to put on—the Santa purchase Christmas decorations grottoes and window displays that we rarely see • A free BBQ dinner and then a tour of the anymore. Christmas lights in suburbs famous for their Yes, most of us do remember those things decorated houses for approximately 120 aged fondly—but I don’t believe that it is actually the residents City’s responsibility to reproduce the sort of retail • A Christmas luncheon cruise for around 50 display that seem now to be a thing of the past. Meals on wheels Volunteers This is essentially a commercial and marketing • Groups of aged residents have been taken on decision made by individual retailers. special Christmas shopping outings However, I am happy to raise this with the city’s • Assistance with providing transport to a vari- retailers to ensure that they are given the opportu- ety of Christmas activities and concerts nity to consider their displays and participate in • planning for next year’s celebrations. Providing transport for the Crystal Set Choir to perform at nursing homes I am advised that in other major cities of the • world which are often cited as examples of great Hosting a Christmas function at the Redfern Christmas decorations, the bulk of the decorations Community Centre to be attended by local are .provided by the retailers themselves, rather residents with a BBQ meal, activities, Santa, than by government. Christmas stockings and lollies for the chil- dren.

CHAMBER Tuesday, 7 December 2004 SENATE 57

As well as these and many other community- want to be seen to be opposing a motion based Christmas activities, the Council has many wishing people a happy Christmas. Similarly, public events planned for the entire festive sea- whilst we do not oppose the motion wishing son. the Jewish community a happy Hanukkah, I The celebrations will continue through New want to put on the record that I do not think Year’s Eve with’ the award-winning , fireworks we should make a precedent of wishing displays and the Sydney Festival in January, right happy celebrations for every religious festi- up to Chinese New Year. val in the Australian community. We could On New Year’s Eve there will be 2 fireworks be doing something pretty much every day, shows again this year, with an earlier one for and I would be worried about the precedent children at 9pm and the traditional midnight dis- play. This year the bridge effects have been de- it might set. vised by sculptor Neil Dawson, and it will con- COMMITTEES tinue to be one of the world’s most watched New Legal and Constitutional Legislation Year’s Eve displays. Committee As co-sponsor of the Sydney Festival the Council Extension of Time is playing an important role in enriching the cul- tural life of the city, allowing people to enjoy 23 Senator FERRIS (South Australia) (3.41 free events and encouraging people to visit Syd- p.m.)—At the request of the Chair of the ney. The festival is one of the most attended Legal and Constitutional Legislation Com- events in Australia and it is a 3 week celebration mittee, Senator Payne, I move: of arts and culture, with 52 events featuring the That the time for the presentation of the report best local and international theatre, music, dance, of the Legal and Constitutional Legislation opera, multi-disciplinary and visual arts. Committee on the Disability Discrimination In supporting all of these events, the City is Amendment (Education Standards) Bill 2004 be spending around $6 million of ratepayers’ money. extended to 8 December 2004. RECOMMENDATION Question agreed to. That arising from consideration of a Minute by Community Affairs Legislation the Lord Mayor to Council on 6 December 2004, Committee on Festive Season Celebrations and Christmas Decorations, it be resolved that Council note the Meeting many actions and events undertaken by the City Senator FERRIS (South Australia) (3.42 of Sydney—to celebrate the festive season in p.m.)—At the request of the Chair of the 2004-2005. Community Affairs Legislation Committee, (SGD) COUNCILLOR CLOVER MOORE MP Senator Knowles, I move: Lord Mayor That the Community Affairs Legislation Question agreed to. Committee be authorised to hold a public meeting during the sitting of the Senate on Thursday, 9 Senator Brown—I wish to record the December 2004, from 10.30 am, to take evidence Greens’ opposition to paragraphs (a) and (b) on a matter relating to the Department of Health of that motion but not to (c) and (d). and Ageing. Senator BARTLETT (Queensland— Question agreed to. Leader of the Australian Democrats) (3.40 Treaties Committee p.m.)—by leave—Along similar lines to Reference Senator Brown, I wish to record that the Democrats do not support the condemnation Senator GREIG (Western Australia) of the lord mayor, but we certainly would not (3.43 p.m.)—I move:

CHAMBER 58 SENATE Tuesday, 7 December 2004

That the Senate— the most recent meeting had been in (a) recalls that on 2 December 2002 a pro- December 2003; and posed agreement between Australia and (d) recalls that on 30 August 2004, it again the United States of America (US), pursu- referred the proposed agreement to the ant to which Australia would agree not to committee for inquiry and report by surrender US nationals to the International 30 April 2005; Criminal Court without the consent of the (e) notes that: US (the proposed agreement) was referred (i) the committee had not commenced the to the Joint Standing Committee on Trea- ties for inquiry and report; inquiry prior to the proroguing of the 40th Parliament, and (b) notes correspondence from the secretary (ii) the reference lapsed with the prorogu- of the committee to the Clerk of the Sen- ate, dated 16 July 2003, which: ing of the 40th Parliament; and (i) stated that ‘as far as the Committee is (f) refers the proposed agreement, with par- ticular reference to the following matters, aware, there is no such proposed agreement’ and that it had ‘therefore to the Joint Standing Committee on Trea- ties for inquiry and report by 30 June decided to defer commencing the in- quiry into the matter referred until the 2005: text of such an agreement is made (i) whether the proposed agreement would available to the Committee’, and breach the terms, or be otherwise in- (ii) however, acknowledged that ‘the consistent with the spirit, of the Rome Statute which Australia has ratified, Committee is empowered to inquire into any question relating to a treaty or (ii) the effect of the proposed agreement, other international agreement, whether either itself or in conjunction with simi- or not negotiated to completion, re- lar agreements between the United ferred to the Committee by either States and other states, on the ability of House’; the International Criminal Court to ef- (c) further notes: fectively fulfil its intended function, (i) the report on ABC Radio’s PM pro- (iii) the implications of any extradition pro- visions in the proposed agreement and gram of 28 August 2002, that the US had written to the Australian Govern- whether the proposed agreement would require the re-negotiation of existing ment, requesting it to enter into the proposed agreement and that, accord- extradition agreements to which Aus- tralia is a party, and ing to the Minister for Foreign Affairs, the Government was ‘sympathetic’ to (iv) the implications of the proposed the request, agreement with respect to Australia’s national interest. (ii) the report on Network Nine’s Sunday program of 8 September 2002, in Question agreed to. which the then Attorney-General indi- AUSTRALIA-UNITED STATES FREE cated that the US had requested Austra- TRADE AGREEMENT lia to enter into the proposed agreement and that the Australian Government Return to Order had no objection to the proposed Senator ELLISON (Western Australia— agreement, and Minister for Justice and Customs) (3.44 (iii) evidence from Department of Foreign p.m.)—by leave—I make a short statement Affairs and Trade officials on 19 Feb- on behalf of the Minister for Trade in re- ruary 2004 that negotiations with the sponse to a Senate order for the production US were ongoing and that, at that time,

CHAMBER Tuesday, 7 December 2004 SENATE 59 of documents. The letters and attachments That senators be discharged from and ap- exchanged between the governments of Aus- pointed to committees as follows: tralia and the United States to finalise the Community Affairs References Commit- Australia-United States free trade agreement tee— were placed on the Department of Foreign Appointed— Affairs and Trade web site at 10 a.m. on Fri- Substitute members: day, 3 December 2004. I believe that ad- Senator Allison to replace Senator dresses the issue. Lees for the committee’s inquiry Senator BARTLETT (Queensland— into aged care Leader of the Australian Democrats) (3.45 Senator Murray to replace Senator p.m.)—Mr Deputy President, I raise a point Lees for the committee’s inquiry of clarification of the statement just made by into children in institutional care Minister Ellison regarding compliance with Participating member: Senator Lees the return to order of production of the at- Native Title and the Aboriginal and Tor- tachments and annexures to do with the free res Strait Islander Land Fund—Joint trade agreement. Does publication on the Statutory Committee— web site equate to those things being laid on Appointed—Senator Lees. the table? The order made by the Senate was Question agreed to. that they be laid on the table. I recognise they have now been made public, which was NATIONAL WATER COMMISSION the aim of the order, but does it actually BILL 2004 equate? TAX LAWS AMENDMENT The DEPUTY PRESIDENT—Senator (SUPERANNUATION REPORTING) Bartlett, I have got the answer for you. The BILL 2004 answer is no; it does not equate to being laid First Reading on the table. Bills received from the House of Repre- COMMITTEES sentatives. Treaties Committee Senator ELLISON (Western Australia— Corrigenda Minister for Justice and Customs) (3.47 p.m.)—I indicate to the Senate that these Senator EGGLESTON (Western Austra- bills are being introduced together. After de- lia) (3.45 p.m.)—On behalf of the Chair of bate on the motion for the second reading the Joint Standing Committee on Treaties, I has been adjourned, I will be moving a mo- present corrigenda to the 61st report of the tion to have the bills listed separately on the committee on the Australia-United States Notice Paper. I move: Free Trade Agreement. That these bills may proceed without formali- Membership ties, may be taken together and be now read a The DEPUTY PRESIDENT—The first time. President has received letters from an Inde- Question agreed to. pendent senator seeking variations to the Bills read a first time. membership of certain committees. Second Reading Senator ELLISON (Western Australia— Manager of Government Business in the Senator ELLISON (Western Australia— Senate) (3.46 p.m.)—by leave—I move: Minister for Justice and Customs) (3.47

CHAMBER 60 SENATE Tuesday, 7 December 2004 p.m.)—I table a revised explanatory memo- “Australia’s water resources are highly vari- randum relating to the National Water Com- able, reflecting the range of climatic condi- mission Bill 2004 and move: tions and terrain nationally. In addition, the level of development in Australia’s water re- That these bills be now read a second time. sources ranges from heavily regulated work- I seek leave to have the second reading ing rivers and groundwater resources, speeches incorporated in Hansard. through to rivers and aquifers in almost pris- Leave granted. tine condition.” The speeches read as follows— A further layer can be seen in the pattern of Aus- tralia’s water use. Agriculture uses around 70 per NATIONAL WATER COMMISSION BILL 2004 cent of total water used in Australia. Domestic It is my great pleasure to speak to this Bill to es- consumption and industrial activity make up the tablish a new national institution dedicated to remainder. And of course, water provides impor- advancing the sustainable use of water in Austra- tant amenity value to many Australians for recrea- lia. tion and tourism. Water also has inherent ecologi- The Bill establishes the National Water Commis- cal value, and cultural value to some indigenous sion as an independent statutory body, with two communities. key functions: Against this background, there are several factors • assessing the implementation and promoting converging in Australia now to place enormous the objectives and outcomes of the National pressure on some of our major water resources. Water Initiative Intergovernmental Agree- These factors include: drought, our fast-growing ment; and cities, dryland salinity, continued growth in irri- gated agriculture, and climate change. Moreover, • advising on financial assistance to be pro- we have an obligation to future generations of vided by the Commonwealth under the Aus- Australians to be wise stewards of those water tralian Water Fund. resources which are not yet showing signs of I want to provide some further context for each of stress or overuse (for example in northern Austra- these inter-related roles for the new Commission. lia). First, let me place them in the wider context of Taken as a whole, this picture of Australia’s water water in Australia. resources simply underscores the need to improve Water in Australia our national effort in managing these resources. It’s well known that we are the driest inhabited This is why water reform remains so critical. continent on earth, with the second highest per National Water Initiative capita water usage of any country in the world. At the outset, let me say that the Australian Gov- The basic fact is that our water resources do not ernment supports an effective National Water match the patterns of either our production, or our Commission because it is critical to driving con- urban settlements. Just over a quarter of the con- tinued reform of water management and water tinent accounts for around 80 per cent of Austra- use in Australia. lia’s total run-off—predominantly Tasmania and Truly national water reform commenced with the in the northern parts of Queensland, Western Aus- original COAG Water Reform Framework agreed tralia and the Northern Territory. The most inten- by Commonwealth and State governments in sively irrigated river basin—the Murray Darling 1994. Governments have extended these com- Basin—comprises nearly 14 per cent of Austra- mitments, and raised them significantly by sign- lia’s area, but accounts for only 6 per cent run-off. ing the National Water Initiative in June 2004. In Add to this picture the diverse nature of our water particular, the establishment of investment cer- resources. As the preamble to the National Water tainty for water users was identified as being a Initiative puts it: fundamental requirement for the realisation of National Water Initiative objectives.

CHAMBER Tuesday, 7 December 2004 SENATE 61

It’s worth noting that for over a decade now, the nificant resourcing for the Natural Heritage Trust cause of national water reform has enjoyed strong and the National Action Plan on Salinity and Wa- bipartisan support at the federal and state political ter Quality. The significance of this decision is levels. This reflects too a coalescing of the views that there are now major, additional, national re- of almost all stakeholders—irrigators, scientists, sources available to help advance the objectives environmental groups—around the need to re- and outcomes of the National Water Initiative. fresh the original COAG agenda through the Na- In developing the Fund, the Government has rec- tional Water Initiative. ognised that progress needs to be made at several The introduction of the National Water Commis- different levels; hence there are three quite dis- sion Bill today indicates the Government’s com- tinct funding programmes all aimed at achieving mitment to getting on with the job. I know that practical on-the ground outcomes. the recently appointed CEO of the interim Com- Firstly, $1.6 billion will be invested over five mission, Mr Ken Matthews, is already meeting years in the Water Smart Australia Programme to with State officials to update them on establish- accelerate the uptake of smart technologies and ment of the Commission and to indicate the part- practices in water use across Australia. nership approach which he intends to bring to the The Government has identified a number of pro- Commission’s operation. And the Government jects that would be funded, subject to a number of stands ready to receive from State and Territory conditions such as contributions from State gov- governments their nominations to fill the three ernments and the private sector; and provision of Commissioner positions, as agreed in the Na- appropriate due diligence (in other words evi- tional Water Initiative. dence that projects are viable). These projects The Government’s intention is that the National include: Water Commission will be a key driver for na- • securing the long-term future of South Aus- tional water reform. To achieve this, the Bill as- signs several key functions to the Commission, tralia’s water supply; including to: • assisting NSW and Victoria with structural adjustment for over-allocated groundwater • evaluate governments’ progress in imple- menting the outcomes, objectives and actions systems; and under the National Water Initiative, and re- • developing a viable Wimmera-Mallee pipe- port to COAG on their progress; line project to replace the world’s largest open channel water supply system with a • conduct the scheduled 2005 assessment of commitments under the National Competi- network of pipelines; and tion Policy water reforms, which was to have • investing in water savings and efficiency been undertaken by the National Competi- measures in the Macalister Irrigation District tion Council; and to recover water for stressed rivers. • undertake an initial stocktake of Australia’s Investment under the Australian Water Fund will water resources and water management ar- be made on the basis that it is consistent with, and rangements. helps to achieve, the principles, outcomes and actions of the National Water Initiative and the Australian Water Fund Living Murray Initiative. State and Territory gov- The National Water Commission’s role in advanc- ernments which have signed up to, and are im- ing water reform is not restricted to these func- plementing, the NWI will be eligible to make tions. Importantly, the Bill also assigns to the bids, as well as local authorities and private pro- Commission a central role in relation to the Aus- ponents. tralian Water Fund. The second programme to be funded from the The Government has pledged $2 billion over five Australian Water Fund will see investment of years to establish the Australian Water Fund. This $200 million in the Raising National Water Stan- is in addition to the $200m provided to recover dards Programme. The programme will lift Aus- water for the Living Murray Initiative, and sig-

CHAMBER 62 SENATE Tuesday, 7 December 2004 tralia’s national capacity to measure, monitor and The Bill also provides that the Commission meet manage water resources over the long term. In- at least 8 times per year, and with a full and ambi- vestment under this programme will assist in tious work programme. achieving the outcomes of the NWI and will sup- By placing this body in the Prime Minister’s port- port projects such as a nationally consistent water folio, the Commission will be able to bring to accounting system, and working with communi- water issues the profile and significance which ties to conserve rivers with high environmental that entails. The Prime Minister has identified values. water as one of his top personal priorities for this The Commission will make recommendations on term of Government. projects put forward under these programmes of The National Water Commission will be instru- the Fund for the Government’s final decision. The mental in ensuring that water issues in Australia Commission will also administer these pro- continue to capture the public’s imagination and grammes of the Fund. energy in working towards practical water solu- The third programme is the Water Wise Commu- tions. The importance of water to securing Aus- nities Programme, which will invest $200 million tralia’s economic and environmental future de- over five years to promote a culture of wise water mands no less. use. Community organisations will be provided ————— with grants of up to $50,000 allocated on a com- petitive basis to deliver on-the-ground results that TAX LAWS AMENDMENT (SUPERANNUATION REPORTING) BILL increase water use efficiency, improve river or groundwater health or improve community edu- 2004 cation on water saving. This Bill makes amendments to the Superannua- The Department of Environment and Heritage tion Guarantee (Administration) Act 1992. will administer the Water Wise Communities Pro- The Howard Government has demonstrated our gramme in conjunction with the Department of commitment to a superannuation system offering Agriculture, Fisheries and Forestry. choice of fund, incentives to save and flexibility The Australian Government’s intention is that by to assist people to retire when they are ready. For combining the reform evaluation role and the instance, under the co-contribution scheme— programme delivery role, the National Water which the Labor party promised to abolish at the Commission will play a key and constructive part last election—the Government contributes $1.50 in improving water use and management in Aus- for every $1 of voluntary personal contributions, tralia. to a maximum $1500 for employees on incomes up to $28,000. National Water Commission This Bill demonstrates this Government’s com- Lastly, let me say something about the way in mitment to reducing compliance costs for em- which the Government expects the Commission ployers. As announced in the Prime Minister’s itself to operate. statement titled Committed to Small Business on As mentioned earlier, the Bill allows for Com- 6 July this year, we are removing the superannua- missioners to be nominated by the Common- tion guarantee reporting requirement from the wealth, and by the States and Territories. The Bill superannuation guarantee arrangements for all also requires the Commissioners to act in the best employers, not just small business employers. It interests of the Commission—it certainly does not is proposed that these amendments should take envisage a disparate set of Commissioners each effect from 1 January 2005. Employees will still representing and advocating different sectoral or be provided with information on at least an an- government interests. The cause of water reform nual basis from their superannuation fund and needs to rise above that, and so does the Commis- many will receive information more frequently on sion. payslips as required by various Australian work- place legislation provisions and awards.

CHAMBER Tuesday, 7 December 2004 SENATE 63

Full details of the amendments in this Bill are the Environment, Communications, Informa- contained in the explanatory memorandum. tion Technology and the Arts Legislation I commend this Bill. Committee, I move: Debate (on motion by Senator George That the time for the presentation of the report Campbell) adjourned. of the Environment, Communications, Informa- tion Technology and the Arts Legislation Com- Senator ELLISON (Western Australia— mittee on the provisions of the National Water Minister for Justice and Customs) (3.48 Commission Bill 2004 be postponed to a later p.m.)—I move: hour of the day. That the resumption of the debate be made an Question agreed to. order of the day for a later hour. TAX LAWS AMENDMENT Senator Brown—Mr Deputy President, I (SUPERANNUATION REPORTING) raise a point of order. I wonder if the minis- BILL 2004 ter could indicate what later hour that might be. Report of Senate Economics Legislation Committee Senator ELLISON—This will be listed in accordance with the list that we have cir- Senator EGGLESTON (Western Austra- culated to Independent senators and the op- lia) (3.51 p.m.)—At the request of the Chair position. There is a list of bills which we are of the Economics Legislation Committee, seeking to deal with during this sitting week, Senator Brandis, I present the report of the and of course we received these messages a committee on the provisions of the Tax Laws moment ago from the other place. They will Amendment (Superannuation Reporting) Bill take their place on the Senate red. We have 2004, together with documents presented to the Textile, Clothing and Footwear Strategic the committee. Investment Program Amendment (Post-2005 Ordered that the report be printed. Scheme) Bill 2004, as I understand it, which TEXTILE, CLOTHING AND is currently in the second reading debate at FOOTWEAR STRATEGIC the moment. Then we will go to the Tax INVESTMENT PROGRAM Laws Amendment (Superannuation Report- AMENDMENT (POST-2005 SCHEME) ing) Bill 2004, which is one of the ones that BILL 2004 we have just dealt with in this message. Then CUSTOMS TARIFF AMENDMENT we will go to the Copyright Legislation (TEXTILE, CLOTHING AND Amendment Bill 2004, then to the National FOOTWEAR POST-2005 Water Commission Bill 2004 and then to the ARRANGEMENTS) BILL 2004 Tax Laws Amendment (Small Business Measures) Bill 2004. That is the current state Second Reading of play as we see it. Debate resumed. Question agreed to. Senator BUCKLAND (South Australia) Ordered that the bills be listed on the No- (3.52 p.m.)—Before the second reading de- tice Paper as separate orders of the day. bate on the Textile, Clothing and Footwear Strategic Investment Program Amendment BUSINESS (Post-2005 Scheme) Bill 2004 and the Cus- Rearrangement toms Tariff Amendment (Textile, Clothing Senator EGGLESTON (Western Austra- and Footwear Post-2005 Arrangements) Bill lia) (3.50 p.m.)—by leave—As the Chair of 2004 was interrupted by question time today,

CHAMBER 64 SENATE Tuesday, 7 December 2004

I was making reference to employment num- she pursued her career as a tailor and found bers in my own state of South Australia. Per- that that was the only thing she wanted to do. haps it is sometimes hard for some of us, My mother had a couple of other jobs, and I with our backgrounds, to look at these sorts know she was never happy in them because of bills without giving consideration to the they were not her chosen vocation. These effects they have on workers and their fami- people were thrown to the wilderness and lies. I also mentioned a number of closures there was no support from the local members of clothing or textile factories. Whilst I can- or the ministers who were there when there not be specific about those people working in was good news to tell. That was disappoint- sweatshop situations in the industry, which ing. we know exist—some illegally—I can say South Australia has taken a big hit. In fact, that Levi Strauss lost 90 workers in South as for the known work force in South Austra- Australia recently and Fletcher Jones lost 40 lia there are 257 in the clothing sector. As I in the south-east. also said earlier, there is a growing trend to- I was also in the process of commenting wards contractors doing the work at home that it seems that when there is good news to and calling people in only when they are re- sell on any industry, including the textile quired. That figure has now grown to 98. So industry—whether there is a new range of there are 257 in the real work force, if you clothes, an expansion of factory production like, and then 98 contractors, and that figure or new machinery in a factory—there always is growing, because we are told that that suits seems to be a government minister there with the needs of industry. I will not go into the the local member, so pleased to be seen and footwear sector, which is in an even worse photographed shaking hands with the work- situation and is also suffering. ers. But that is not so when it comes to the As I said before, where the government closure of these factories, some of which I will now be working towards these research have visited. During the closure of Fletcher and development funds to give some relief to Jones in Mount Gambier, not even the local what are further reductions in tariffs, those member showed his face or made comment tariffs will not really take full effect until about the situation these workers were 2010. That gives the industry time to prepare placed in. for the future. The textile and clothing indus- I mention Mount Gambier because it is try never ceases to amaze me. We are always one of those rural and regional centres—it is looking for the cheaper products that come in not a Bondi Junction retail outlet or pro- from overseas when in fact we can do it to a ducer; it is a true rural and regional centre better standard here in Australia. I am not and the second largest city now in South entirely sure that you can put it down to Australia. Many of those workers had been wages being the barrier against the industry in those jobs in that factory for their entire progressing in Australia. I think funding is working lives of many years. Some had been required for some research and development there 20 years going on 30 years, producing into better and more effective ways of deal- garments for the Australian market. It is hard ing with a changing industry. I suppose I am to talk to those people and ask them, ‘What the wrong one to talk about fashion, but I do you do after this?’ Happily, some of them tend to think that the industry is driven by have found employment in other areas, but fashion, so there is a lot of change going on not in the areas that they are trained for. all the time. The money that will be available When my late mother was in the work force for these companies through the research and

CHAMBER Tuesday, 7 December 2004 SENATE 65 development funding may be a little bit late, and say, ‘We want to see structural change of but it certainly will not go astray. I trust that the industry.’ If it is done wrong, it is done the industry will give consideration to the wrong forever, and I tend to think that the effect that they have on the Australian econ- textile industry might have been one of those omy and use that money wisely to properly that did not do it—I cannot say wrong—as build an industry that is the envy of the right as they could have to give the industry world. I think they could. They certainly the opportunities that exist in Australia. have, or had, the people, and hopefully many If my family is any judge at all, there is of those people can go back into the work certainly a market for clothing, shoes and force in that industry. other textile products that come through the We are not opposing this bill. There are industry. When you see a place like Sheridan many things wrong with it if you really put it being reduced by 150 people, it is almost not under the microscope, as there is with most on the market. But you go to the store, as I things, but on this occasion there is the op- did recently with my wife, to buy the Sheri- portunity to work with the industry and with dan sheets that we have had since we mar- the funding that is being made available to ried—different ones, by the way; it is the them to get something right for a change. I only brand that we have had in the house— trust that the government are serious about and we cannot get them. We can get some- what they are suggesting will occur and I thing that looks identical to them, but it has a trust that the industry will work with gov- different brand name. They are imported, and ernment and with those people who are there I think that is a real shame and something to help them use the money to develop the that we should not be proud of. industry further. Labor support the passage of the Textile, It is widely agreed that the investment Clothing and Footwear Strategic Investment must be for innovative processes—and inno- Program Amendment (Post-2005 Scheme) vative thought processes as well—if the in- Bill 2004 and the Customs Tariff Amend- dustry is to survive, and it has to survive un- ment (Textile, Clothing and Footwear Post- til 2010 before we can do very much. If the 2005 Arrangements) Bill 2004. We believe industry just sees this as a handout to help it that, as I have said many times before, if the until 2010 and is not looking to use that in- industry is serious about it and the govern- vestment money wisely and to develop the ment is serious about it—and I tend to think industry, I would say we are on the verge of that it may be serious about this particular seeing the end of the textile industry in this issue—then we do have an opportunity to not country. That would be a shame and it should only save the industry as it is now but also be monitored very carefully by the govern- expand it and look to better things in the fu- ment. ture. There have been many structural adjust- Senator RIDGEWAY (New South Wales) ments in this industry in the last two or three (4.03 p.m.)—I also rise this afternoon to decades. The removal and the reduction of speak to the Textile, Clothing and Footwear the protective barriers were initiated by the Strategic Investment Program Amendment Hawke government in 1987, and they have (Post-2005 Scheme) Bill 2004 and the Cus- driven much of the change that has taken toms Tariff Amendment (Textile, Clothing place. I often think that, as in other industries and Footwear Post-2005 Arrangements) Bill I have been involved with, you open the gate 2004. The TCF industry is a critical one, as

CHAMBER 66 SENATE Tuesday, 7 December 2004 we all know, and the Productivity Commis- tariff on clothing and finished textiles will be sion dealt with this particular issue. They reduced to 10 per cent in 2010, and this 10 reported on it in 2000-01. Australia’s 5,000 per cent tariff will be reduced to five per cent TCF firms have generated a turnover of in January 2015. some $9 billion and provided factory based Essentially, it is all being done to enable employment for at least 58,000 Australians. the industry to adjust to the new tariff ar- The commission also noted that there is also rangements, and the government has an- the equivalent of as many as 25,000 full-time nounced that a $747 million assistance pack- employees engaged in outwork. age will be implemented. Of that, the pack- As the Productivity Commission report age includes $500 million for an extension of pointed out, TCF manufacturing in Australia the TCF Strategic Investment Program to covers a diverse range of activities, including 2010; $100 million for an extension of SIP early stage processing of leather and natural for the clothing and finished textile sectors to fibres; the production of textiles; the trans- 2015; $50 million for a 10-year structural formation of leather, yarns and textiles into adjustment program to assist displaced clothing and footwear; carpets and other fab- workers; $50 million for an import credit ric products for the home and office; and scheme; and, lastly, $25 million that is set technical textiles such as shadecloth, medical aside for a 10-year grants based program for and sanitary products, filtration products and small business. insulation materials. The report also noted This is an issue that I have been following how important the TCF sector is in certain for many years. I have certainly been in- states and, more particularly, in regions ac- volved in inquiries and I have met with peo- counting for six per cent of all value-added ple in the industry. The Australian Democrats production and nine per cent of total em- believe that the strategic investment program ployment in Victoria’s manufacturing sector. is a valuable industry support mechanism. It There is also significant TCF production in has had a positive effect on the industry as it regional centres such as Albury-Wodonga, has adjusted to major tariff reductions in the Wangaratta, Geelong, Bendigo and Devon- last 10 years. The extension of the scheme port. for a further five years does have unanimous The report of the Productivity Commis- support in this place. The Democrats, sion review of TCF assistance was released though, have expressed our support for the last July. The government considered the extension of the program, and we would be commission’s recommendations and in No- very pleased to vote for legislation that vember last year the minister, the Hon. Ian would achieve that as an outcome. Macfarlane, announced that there would be a However, the Australian Democrats do not five-year pause on tariff reductions from support making this extension conditional 2005 for the TCF industry and that that upon a further program of tariff reductions. would be followed by a gradual 10-year pro- We support the position that has been put gram of tariff reduction. Tariffs will be main- forward by the TCFUA—that is, that the tained to the 2005 level until 1 January 2010; federal government is seeking to force the however, in 2010 the 10 per cent tariff on industry to accept tariff reductions as the cotton sheets, woven fabrics, footwear and price of further industry assistance, despite carpets, and the 7½ per cent tariff on sleep- there being no evidence that this will result ing bags, table linen and footwear parts will in benefits to Australians. We do not believe be reduced to five per cent. The 17½ per cent

CHAMBER Tuesday, 7 December 2004 SENATE 67 that it is necessary at this point in time. We tivities to develop niche areas and expand believe that a more suitable approach would their export activities to ensure the long-term be to extend the SIP until 2009 and then re- sustainability of their own particular part of view the need for a further round of tariff the industry. They are understandably con- cuts post 2010 close to that time. Guaranteed cerned about certainty and the need to base tariff reductions that will not come into ef- their future capital investment decisions on fect until after this round of SIP funding ex- the fact that they are being guaranteed reim- pires do not need to be included in this legis- bursement through the SIP. They have been lation, so we see that, really, as an anomaly. particularly concerned about the timing of The Democrats’ industry policy states our the bills and were keen to see them progress belief that manufacturing and industry have through the parliament even before the elec- been undermined by an array of government tion. These firms are unlikely to be affected policies, including the reduction in tariffs, by the proposed tariff reductions. One of the the restrictions on the research and develop- lobbyists that I met with put this to me: ‘The ment tax concession, the cuts to industry as- tariff reductions are so small I could lose sistance programs, an unsympathetic tax sys- more than that each day based purely on cur- tem and a failure to engage in strategic in- rency fluctuations.’ For firms the size of the dustry and regional development planning. firm that person represents this is certainly The Democrats believe that the fundamental true, and I think we ought to keep this in problem is this government’s, and previous mind in how we deal with these bills and governments’, blind faith in market solutions with issues for the future concerning this and untrammelled competition policy. industry. We do support the freezing of any further The vocal lobbying on these bills has reduction in tariffs and reducing them only if come from firms that represent only a small our trading partners are doing the same. As percentage of the total industry—fewer than stated in a submission to the Senate Econom- 500 of the more than 4,000 firms that engage ics Legislation Committee’s inquiry into in the TCF business. The remainder of the these bills, this industry has experienced sub- 4,000 that I talk about are smaller firms. stantial employment losses over the past They range in size from very small to me- decade. That is no secret, and I think we are dium sized enterprises. These firms do not all well aware of that. Policies that seek to get the benefit of the strategic investment decrease tariffs further when our trading program. Given that this is a scheme that partners are not following our lead—in my reimburses major capital investments, these mind at least—exacerbate the problems that firms do not spend enough money to get any currently exist. money from the SIP pool. When it comes to fairness, we ought to keep that in mind. It The TCF industry has been vocally lobby- seems to me that when you talk about tariff ing on these bills. Representatives from the reductions they will be disproportionately big end of the TCF town have negotiated this affected by these cuts. Smaller margins and package with the government, accepting a the volumes of production render them much program of tariff reduction and the need to more sensitive to fluctuation in tariff levels, know exactly the terms under which this will and the potential for job losses in their case happen over the next 10 years. It seems to can be significantly high. The TCF Union—I me that this will enable them to strategically think rightly—has lobbied hard in the names plan their investment and development ac- of these smaller firms, arguing that, while the

CHAMBER 68 SENATE Tuesday, 7 December 2004

SIP is unanimously supported, coupling this the sake of argument, we were to accept the scheme with mandatory tariff reductions TCFUA’s figure of the loss of 30,000 jobs as probably is unnecessary and will dispropor- a result of these changes to the industry, that tionately affect those firms at the small end $50 million figure would essentially amount of the industry, with a potentially devastating to $1,667 per newly jobless worker over the effect on employment especially in regional course of the next 10 years. I believe the areas like the ones I mentioned earlier. government has failed to prove that the tran- I understand that, on the one hand, busi- sitional assistance component of its proposed ness owners and employers within the indus- changes to the assistance scheme is sufficient try are keen to have some certainty in turn, to help employees develop and adapt their and that is understandable. They have ac- skills or to retain or find new jobs. Again, cepted a program of tariff reduction and the that ought to be cause for concern. need to know exactly the terms under which I also want to mention the issue concern- this will happen over the course of the next ing the Homeworkers Code of Practice. Dur- 10 years. This will enable them to strategi- ing the inquiry into this bill the committee cally plan their investment and development heard disturbing and heartbreaking evidence activities to ensure their long-term sustain- about outworkers in the garment industry ability. On the other hand, employees of the working terrible hours for very little pay and TCF industry are justifiably concerned about under dreadful conditions. We heard about a the real prospect of job losses under these woman who receives $7 an hour to sew new arrangements. They also raised the swimwear and who sometimes has to work question about whether or not the structural up to 16 hours a day to support her family. adjustment program will provide enough These conditions are having a terrible impact incentives for transitions where there are job on her health. We also heard the story of an losses. outworker in the fashion industry who has The National Secretary of the TCF Union made ladies blouses for at least the past 15 has also expressed serious concerns about years. She used to receive $11 per garment the government’s proposed amendments to but in the last five years she has received the program—that the reduction in funding only $5.30 per garment, and the work has of SIP will possibly see the loss of up to become more complicated. For instance, for 30,000 jobs in the TCF sector by 2010. A some of the garments—not that I would significant loss of jobs over that period of know much about these things, not purchas- time ought to be a cause for concern for all ing blouses—she has to join as many as 13 Australians. As I mentioned earlier, the gov- pieces together. She usually starts work at six ernment has promised $50 million for a 10- o’clock in the morning. If there is the stress year structural adjustment program to assist of an urgent order, she has to start work displaced workers as part of its plan for post- when she wakes up at three o’clock or five 2005 arrangements. The government’s media o’clock on that day. release describes this as a program to ‘offer We fight hard to ensure that all Australians case-by-case help to workers who are af- have a decent working environment, and it is fected by large plant closures’. disgraceful that there are people in this coun- At first glance, this would seem to be in- try who are treated so very badly by their sufficient for what is likely to be a major employers. There was a report into out- program of labour market adjustment. If, for workers in the garment industry in 1997, before I came to the Senate. In the years

CHAMBER Tuesday, 7 December 2004 SENATE 69 since that report came out the government on the table and is certainly not with what we has done virtually nothing to implement any have before us on this occasion. of the recommendations to make life better Senator STEPHENS (New South Wales) for garment workers. It is a disgrace that we (4.18 p.m.)—These bills give effect to key still hear stories about the continued and sys- elements of the package of measures that the tematic of exploitation of outworkers in the Howard government announced for the tex- TCF industry. The Australian Democrats tiles, clothing and footwear industries in No- believe that all participants in the TCF indus- vember 2003. The Textile, Clothing and try should sign up to the FairWear Home- Footwear Strategic Investment Program workers Code of Practice or an equivalent Amendment (Post-2005 Scheme) Bill 2004 code of practice and end the exploitation of extends the TCF strategic investment pro- outworkers in this industry. This should be a gram for a further 10 years effective from 1 mandatory condition to receiving SIP fund- January 2005. Under this program, $575 mil- ing under this legislation. lion will be provided to support eligible in- I want to conclude by expressing my ex- dustry investments in R&D expenditure. The treme disappointment in the opposition. I SIP bill also provides for the establishment believe that, desperate to prove some form of of a $25 million TCF small business pro- economic credentials in the wake of their gram. The Customs Tariff Amendment (Tex- recent election loss, they sold out on their tile, Clothing and Footwear Post-2005 Ar- key principles to their constituents, not so rangements) Bill 2004 provides for further much to the union but to the potential 30,000 TCF tariff reductions in 2010 and in 2015. people who would presumably support them The substance of the bills currently before and who may well be out of work. I believe the Senate was introduced by the govern- that, if they had stuck to their guns and in- ment on 16 June this year, and on 24 June sisted that the tariff reduction provisions in both bills were passed in the other place after this bill be de-linked from the extension to a Labor amendment to split the bills was de- the SIP program, there was leverage to nego- feated. On the previous day, the bills had tiate with the government to pass that part of been referred by the Senate to the Senate the bill that we all agree on and to delay the Economics Legislation Committee. That tariff reduction component until a later date. committee reported on 30 August and in- I think it is fairly clear—the writing is on the cluded minority reports from Labor and De- wall—that they have decided to let this get mocrat senators. Senator Ridgeway has through. No matter about all the passionate elaborated on those concerns. But the 2004 speeches we have heard in this place about federal election was called before the Senate this issue over the past year, all of the effort could consider either the bills or the report, that went into the committee inquiry and so the bills should be seen as a single pack- report has pretty much come to nil. age. Legislatively, they are linked through I sincerely hope that the anticipated out- the commencement clause in the SIP bill. comes of this legislation are not as dire as Before addressing the bills in detail I some of us might fear. If they are, I think we would like to say something about the recent have only ourselves to blame because the history of the TCF industry and the competi- inquiry was pretty clear in elucidating many tive challenges it will confront in the future. of the issues. The policy response does not The TCF industry provides a wide range of seem to be commensurate with what we had goods, including basic yarns and textiles,

CHAMBER 70 SENATE Tuesday, 7 December 2004 carpets, clothing, footwear and sophisticated productivity levels and increased exports, technical textiles. The profile of TCF firms is albeit from a low base, but high levels of equally diverse, ranging from large factories protection have not inoculated the industry employing hundreds of people to a multitude from employment reductions and greater of small to medium sized enterprises. While import competition. While the TCF industry estimates vary, TCF firms employ at least has plainly been through a difficult period of 58,000 people in the formal sector and an- adjustment, there can be no turning back to other 25,000 or so outworkers. The indus- its highly protected, high-cost and uncompe- try’s revenue in 2000-01 was over $9 billion. titive past. The key to the industry’s survival TCF firms make a substantial contribution to and prosperity lies in investment and innova- a number of regional economic centres, in- tion, in high value-added production and cluding Geelong, Ballarat and Bendigo, Vic- niche marketing and in phased adjustment toria; Albury, New South Wales; Devonport, away from uncompetitive activities. This is Tasmania; and the Gold Coast, Queensland. the only way to ensure secure, sustainable Many TCF manufacturers can also be found jobs for the thousands of Australians em- in our major capital cities. ployed by TCF firms. In the decade following World War II, In November 2003 the Howard govern- steep protective barriers and other forms of ment announced a $747 million package of industry support shielded the TCF industry measures for the TCF industry. Key compo- from international competition. These poli- nents of this package included an extension cies skewed and distorted the development of the strategic investment program, SIP, for of the industry, encouraging an inward- a further 10 years effective from 1 January looking orientation and a fragmented, high- next year. Under the new version of the SIP, cost and ultimately unsustainable industry the number of grant types will be reduced structure. from five to two, with subsidies to be pro- Since the early 1970s, Australia’s TCF in- vided for capital investment type 1 grants, dustry has been progressively exposed to representing a 40 per cent subsidy, and R&D greater competition, and Labor governments expenditure type 2 grants, with an 80 per have played a decisive role in this process. cent subsidy. Also, there is a $25 million Change in the TCF industry has also been TCF small business program for companies driven by market forces. Responses within that cannot meet the $200,000 threshold for the TCF industry to these policy changes and SIP claims. There will be further reductions market trends have not been uniform. Some in TCF tariffs in 2010 to 2015, with tariffs TCF firms have adapted well, building a applying to all TCF products, except for strong competitive advantage in niche areas, clothing and finished textiles, falling in 2010 including some technical textiles, but others to five per cent—the general manufacturing have struggled in the face of imports from rate. Tariffs on clothing and finished textiles low-cost competitors. will fall to 10 per cent in 2010 and five per cent in 2015. There is also a $50 million In overall terms, there has been some ra- structural adjustment program to assist dis- tionalisation in the industry. Between 1996- placed workers and encourage community 97 and 2000-01, TCF employment and pro- restructuring. duction levels fell and TCF imports secured an increased share of the local market. Over The bills now before the Senate imple- the same period, however, TCF firms lifted ment the first three elements of this pack- age—the extension of the SIP, the establish-

CHAMBER Tuesday, 7 December 2004 SENATE 71 ment of the TCF small business program and Industry, Tourism and Resources suggesting the tariff reductions in 2010 and 2015. The that the government split its two TCF bills. government’s TCF assistance package pro- This would have allowed the time-sensitive vides substantial support for needed invest- SIP bill to be passed before the end of the ment and innovation within the industry. It is year and consideration of the TCF tariff bill worth noting that the government’s proposed to take place in 2005. The minister con- further TCF tariff reductions will not take firmed that the government would not accept place until 2010, giving affected firms time Labor’s proposal to split the TCF bills. The to prepare and adjust. Under already existing minister subsequently indicated that the gov- legislation, tariffs for all TCF producers— ernment would agree to Labor’s proposal save for makers of clothing and finished tex- that a review of the TCF industry be con- tiles—will fall to between five and 10 per ducted in 2008. Some of those opposed to cent on 1 January 2005. While tariffs for Labor’s position on this legislative package clothing and finished textiles remain substan- have drawn attention to language adopted at tially higher, this part of the industry is being the ALP national conference in January 2004 given longer to adjust—until 2015—to reach which called for TCF tariffs ‘to be held at the target tariff rate of five per cent. current levels pending a review to be under- Tariff reductions inevitably entail adjust- taken by a new Labor government’ and ment pressures for local TCF firms. It is in- flagged Labor’s opposition to ‘the govern- creasingly widely recognised, however, that ment’s TCF legislation to be introduced ... they will not be the main source of competi- prior to the next election which further re- tive pressures that these firms face in coming duces tariffs’. decades. The short- to medium-term outlook The simple, yet powerful, point I would for the TCF industry is being shaped by three make about this language is that it was prem- non-tariff related factors: the appreciation of ised on Labor winning the 2004 federal elec- the Australian dollar; regional and global tion. With that election lost, we have re- trade liberalisation trends, including a possi- thought our approach. In particular, we have ble free trade agreement with China; and confronted two unarguable facts. First, with other non-tariff barriers affecting Australian the government securing a majority in the TCF exports. Senate from 1 July 2005, further tariff reduc- I turn to Labor’s position on the TCF bills. tions for the TCF industry will be an inevita- Labor supports the package of the govern- ble legislative consequence of this parlia- ment’s TCF bills currently before the Senate. ment. Second, failure to pass the govern- Passage of the SIP bill will deliver much- ment’s TCF legislative package before the needed certainty for the TCF industry. With end of the year will delay the extension of this legislation in place, TCF firms through- the SIP—denying the TCF industry much out Australia can plan, finetune and imple- needed certainty and disrupting investment ment their investment strategies with confi- plans predicated on SIP assistance. dence. As I mentioned earlier, further TCF An important outcome of the opposition’s tariff reductions in 2010 and 2015 are part of discussions with the minister was his agree- the government’s TCF legislative package. ment to hold a review of the TCF industry in On 15 November this year the shadow 2008, if in government. In a letter to the minister for industry, infrastructure and in- shadow minister for industry, infrastructure dustrial relations wrote to the Minister for and industrial relations dated 29 November, Minister Macfarlane states:

CHAMBER 72 SENATE Tuesday, 7 December 2004

The Government is prepared to agree to a Review structural adjustment program, SAP, to assist on the operational effectiveness of the TCF post- displaced workers and encourage industry 2005 Assistance Package in 2008 in return for the restructuring; and, second, the exclusion of Australian Labor Party’s support for the passage leather and technical textile firms from R&D of these Bills. grants under the SIP. The $50 million quan- The Review would consider the effectiveness of tum of assistance provided under the SAP is the programs in assisting the industry to improve geared to the government’s estimates of ex- its competitive position and would take into ac- pected job losses in the TCF industry. Ac- count changes in the global competitive condi- tions at that time. It would not extend to the Gov- cording to the government, the SAP supple- ernment’s program of tariff reductions or the level ments assistance already available through of financial assistance made available to the in- the Job Network and in addition provides dustry as part of the TCF post-2005 Assistance customised support for retrenched TCF Package. workers. The program replaces the TCF la- Given the lack of support from the industry and bour adjustment program, or LAP, which the Australian Labor Party for this Review being operated between 1990 and 1996. conducted by the Productivity Commission, I am Serious questions have been raised about proposing that the Review be undertaken by gov- the SAP’s size and effectiveness. In submis- ernment officials, either from my portfolio or from relevant Government Departments. sions to the Senate Economics Legislation Committee, the Victorian state government The minister subsequently gave this under- and the City of Geelong, for example, ex- taking to the House of Representatives. The pressed concerns that the SAP, which over its effect of this commitment from the minister 10-year life will provide an average of $5 is that a review of the TCF industry is now a million per annum, might not be adequate to bipartisan commitment. On the basis that meet expected demand for this assistance. Labor wins the next election, such a review The TCF Union of Australia has also been will still take place. critical of the SAP, arguing that it has not Labor is strongly supportive of a proposed been properly consulted on this scheme. Dur- 2008 review. The review will be well timed, ing his discussions with the shadow minister taking place after the extended SIP program for industry, infrastructure and industrial re- has been in operation for three years but be- lations on the government’s TCF legislative fore the 2010 round of tariff reductions package, Minister Macfarlane indicated that comes into effect. The review represents an he would be happy to discuss the design and excellent opportunity to take stock of the implementation of TCF labour adjustment competitive pressures that the TCF industry measures with the relevant unions. He said will face in coming years, including pres- he had an ‘open door’ to the unions and sures resulting from the state of the Austra- would be happy to discuss any concerns that lian dollar, the expected ASEAN-CER FTA they might have about these measures. Given and a possible FTA with China. It will also his commitment, the opposition urges Minis- enable the government’s TCF assistance ter Macfarlane to meet with the TCF Union package to be carefully scrutinised, including of Australia and other interested unions as those elements of this package which Labor soon as possible. has reservations about. Another part of the government’s TCF as- I will single out two aspects of the gov- sistance package which has attracted critical ernment’s assistance package for particular attention is its exclusion of leather and tech- attention here: first, the 10-year, $50 million nical textile producers from R&D grants un-

CHAMBER Tuesday, 7 December 2004 SENATE 73 der the extended SIP. This matter was raised fostering these changes. The TCF industry by Labor senators in the Senate Economics and its employees have taken significant Legislation Committee report on the gov- strides in meeting the restructuring chal- ernment’s TCF bills. The government’s ra- lenges set by those Labor governments. The tionale for this exclusion is that SIP support Howard government’s TCF assistance pack- is intended for those parts of the TCF indus- age provides continued support for the indus- try facing the most serious adjustment pres- try’s efforts and its workers’ efforts. The suc- sures. Leather and technical textile firms, cess or failure of this package will hinge on which are already subject to five per cent its capacity to foster a competitive, efficient tariffs, do not, in the government’s view, fall and dynamic TCF industry—an industry able into this category. The leather and technical to offer sustainable jobs to the thousands of textile industry associations—the Technical Australians who work in its factories and Textile and Nonwoven Association and the workshops. Labor supports the passage of Australian Association of Leather Indus- the two TCF bills before the Senate. They tries—have disputed this, arguing that their will ensure certainty for the TCF industry members must continue to invest in R&D, and foster investment in sustainable jobs. and therefore access the type 2 grants, to be And Labor strongly supports the proposed internationally competitive. This matter, to- TCF review in 2008. I commend the bills to gether with the effectiveness of the structural the Senate. adjustment program for displaced workers, Senator NETTLE (New South Wales) should be examined carefully in the 2008 (4.37 p.m.)—Both the Textile, Clothing and TCF review. Footwear Strategic Investment Program The competitive environment facing the Amendment (Post-2005 Scheme) Bill 2004 TCF industry has changed markedly over and the Customs Tariff Amendment (Textile, recent decades. The pace and scale of change Clothing and Footwear Post-2005 Arrange- will only intensify in the coming years as ments) Bill 2004, when taken together, im- globalisation deepens, China and India con- plement the changes to industry assistance tinue their emergence as major economic for the textile, clothing and footwear sector powers, consumer preferences evolve and and at the same time impose further tariff technology is transformed. The survival and cuts. There is absolutely no justification for future health of Australia’s TCF industry linking these two bills. That has been said depends on investment, innovation, a highly many times by the Labor members of the skilled work force and international competi- Senate Economics Legislation Committee tiveness. If there is one overarching lesson that looked at this legislation and by 24 out from the 20th century’s economic history it of the 42 submissions to that particular in- is that protectionism is not a sustainable in- quiry. Something I attempted to do earlier dustry strategy and not an effective way to today was to stop the unnecessary linking of guarantee jobs. Australia’s economic success these two bills, for which there has been no over recent decades has been built on open- justification. Indeed, the Labor senators on ness to global trade and investment flows, the committee recommended that the bills be greater competition in local markets and the dealt with separately. They recommended emergence of a more innovative, entrepre- that the Labor Party decline to pass the cus- neurial and efficient business culture. toms bill. Of course they have reversed their The Hawke and Keating governments’ position and now plan to support another economic reforms played a decisive role in round of hefty tariff cuts that will cost thou-

CHAMBER 74 SENATE Tuesday, 7 December 2004 sands more jobs, with the potential to make in Australia. It directly employs 64,000 peo- the industry so small that it becomes unvia- ple, or seven per cent of the manufacturing ble. work force. It accounts for four per cent of If this is another attempt by the ALP, post manufacturing turnover. According to a Pro- election loss, to make itself more attractive ductivity Commission report released last to business then it is misguided, because the year, exports—excluding wool scouring, industry assistance package put forward in leather tanning and dressing—are worth $1.1 this legislation does not assist those busi- billion per year. An indication of the impact nesses that are most in need—that is, small- of earlier tariff cuts can be seen in the fall in and medium-sized businesses—nor does it turnover in the sector, down almost 16 per provide anywhere near adequate assistance cent in the 10 years to 1999-2000, whilst to TCF workers, who, according to the ex- employment declined by 37 per cent. perience of the sector over almost three dec- The Textile Clothing and Footwear Union ades, will have considerable difficulty find- of Australia, in their evidence to the Senate ing work if they lose their jobs as a result of committee that looked at this legislation, said the tariff changes. that from 1986 to 2000 there was a halving The Greens will oppose the customs bill, of the number of workers employed in the but we will also be moving an amendment to TCF industry. Many of those workers have ensure that, if the bill passes, the provisions been unable to find other jobs. There was a cannot take effect until such time as the gov- study carried out last year by Monash Uni- ernment conducts a review of the impact on versity entitled The long goodbye: TCF the sector of bilateral and multilateral trade workers, unemployment and tariff deregula- agreements and the 2005 tariff cuts. Given tion. It looked at what happened to 400 the previous speaker’s contribution and justi- workers in the TCF industry in Victoria who fication for why Labor is supporting this re- lost their jobs between 1999 and 2003. Half duction in tariff cuts, we look forward to the of these workers never found another job. ALP’s support for that review. Although the Those who did had fewer hours, lower wages structural adjustment bill is inadequate, we and less favourable conditions than they had will support it, but we will urge the govern- enjoyed working in the TCF industry. ment to examine additional measures pro- Both men and women had lost their jobs, posed in the Senate Economics Legislation but women had a disproportionately greater Committee inquiry into this bill, such as a load of the job losses because the TCF sector requirement for labour impact statements to is dominated by women, many of whom are be provided by businesses in receipt of funds migrants who have been in the industry for under the program; a requirement for proper most, if not all, of their working lives. I had a labour market adjustment programs; a re- delegation of TCF workers from Victoria quirement that those people who receive come and visit me and Michael Organ last funding under the bill meet the Fair Wear year. One of the women from there told me code of conduct with regard to the treatment about her circumstances. Not only had she of, and wages and conditions for, out- and many other women in her community workers; and access to the structural adjust- lost their jobs in the TCF industry and facto- ment program for small business. ries in their small regional towns; many of The textile, clothing and footwear sector them had husbands who also worked in the is a substantial component of manufacturing same factories. So they had been hit with a

CHAMBER Tuesday, 7 December 2004 SENATE 75 double whammy, with their families losing We want to keep a strong textile industry in Aus- their entire source of income. tralia, but we’ve also got to have regard for the levels of assistance that it receives relative to the The TCF sector comprises many small- to rest of manufacturing. medium-sized businesses. According to the Productivity Commission report, businesses Yet we see this government, who are driving employing 20 or fewer people account for a the TCF sector offshore and whose actions quarter of the sector’s production and one- have resulted in such significant job losses third of its jobs. Gerard Kitchener, who is the within the sector, now proposing that there National Industry Policy Adviser to the be further tariff reductions. TCFUA, in his evidence to the Senate com- The government has had no difficulty in mittee into the bills stated that he believed shovelling billions of dollars every year to that 80 per cent of companies in the TCF big companies through corporate welfare. industry employed fewer than 20 employees. Indeed, the coalition bought its way back I really worry for the future of an industry into office on 9 October with an unprece- when I consider together: the upcoming in- dented spending spree that contradicted the ternational trade agreements, with the likely constant refrain of the need for fiscal respon- consequence of the Australian marketplace sibility. Yet when it comes to genuine assis- being flooded with cheaply made clothing tance for the TCF sector, for the employees products from elsewhere in the region; the and for small and medium sized businesses, impact of job losses on women, particularly the government is acting like Scrooge at women from non-English-speaking back- Christmas time. It has found $747 million for grounds, in regional parts of this country; the business for a 10-year program but precious impact on the whole regional community little for the workers who stand to lose their through these job losses; and the govern- jobs—jobs which some of these people have ment’s intention to make it easier for em- held for most, if not all, of their working ployers in small businesses with fewer than lives. 20 employees, which make up 80 per cent of The TCF sector has endured a series of the TCF industry, to be able to sack their tariff cuts for decades, and a further round of work forces. Already we have reports saying tariff cuts takes effect on 1 January 2005. On that 50 per cent of TCF workers who lose top of this we will have the impact of the their job cannot get another one. If this gov- Australia-US free trade agreement under ernment’s unfair dismissal legislation is which US trade barriers will stand—barriers passed then they will have no avenue for like the yarn forward rule, which allows for redress if they are unfairly dismissed. the make-up of garments in overseas coun- The TCF sector is of particular importance tries so long as the home country made the to local economies in a number of regions— fabric or the yarn that is used. Singapore’s to name a few, Geelong, Bendigo, Wanga- experience has been that they have found the ratta, Albury-Wodonga and Devonport. In yarn forward rule so hard to clear that they addition, there are many substantial employ- no longer even bother to apply for tariff re- ers in both Sydney and Melbourne. The ductions; they simply pay the tariff. They Prime Minister reportedly told Melbourne cannot meet the tariff-free status with the US radio in April this year that he understood the yarn forward rule in place, a rule that will importance of the textile industry, particu- exist for Australian manufacturers as a result larly in regional areas. He said: of the Australia-US free trade agreement.

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The Australian TCF sector has substan- ... across urban and rural settings, person after tially increased its exports in its drive to re- person spoke of loving their jobs. Sometimes it main viable, but it is struggling against other was because she liked to do the job well; some- countries that have retained their tariffs to times it was because she liked to be with ‘friends protect their domestic industries. This makes (like) sisters, family’. Sometimes it was because he felt he had no place in the world if he was not it extremely difficult for Australian compa- a man out there earning for his family. Always, nies to compete in the export field. In addi- there was pride expressed in ‘doing a job well’. tion, there is likely to be an impact from the “We like to do our job well,” said a middle aged Australia-Thailand free trade agreement and garment worker born in Greece. She sat up there is the prospect of a bilateral agreement straighter, and smiled when she said this, and the with China and possibly a multilateral women around her nodded ... agreement with ASEAN members. All of TCF workers need a committed program of these agreements have the potential to place genuine assistance that meets the specific even further pressure on the TCF sector in needs of individual workers if they are to Australia. find new jobs, having lost their jobs as a re- The words of those affected convey the sult of tariff reductions. This may sound dif- social impact of this government’s blind ficult, but the most significant skill require- drive to eliminate tariffs. The Geelong Ad- ments for people who have been forced out vertiser some time ago quoted a woman who of the TCF industry have already been iden- fled war-torn Croatia with her family and tified. As Michelle O’Neil from the TCFUA who now works in a carpet factory in Gee- told the Senate committee hearing: long. She said: ... some really critical points for workers, such as When I started here seven years ago, I could providing both vocational training and English hardly talk and didn’t know about the job or how language and literacy training. There are a high to speak to people. A girl I worked with for six number of workers in this industry whose first years here taught me. I have good friends here. I language is not English and who need not only love Geelong, I love working here ... and now I new skills but also the capacity to read and write am better with my English. in English to be able to access other jobs. She went on to say: At the Senate committee inquiry Michelle I feel happy to go to work each day. Every day O’Neil quoted the Monash University study I thank God I have work and I hope to keep my which found: job for many years. ... most focus group respondents said they were For those who have lost their jobs, life is given no or inadequate information about entitle- much harder. A Bendigo woman in her 40s ments and little information about what to expect from, and how to work with, Centrelink. This was told the Monash University study looking at particularly the case for those people whose first people who had lost their jobs in the TCF language was not English. The percentage of industry in Victoria: workers who received any formal assistance in When I started, there were six or seven textile terms of non-financial assistance such as retrain- factories in Bendigo. There’s only one left now ... ing was below 20 per cent. So less than 20 per you think: where’s the job? What am I going to cent of workers received any formal assistance. do? Where am I going to go? Of the workers who had found employment, the A woman in Moe said: ‘Making us relocate great bulk of them had found only casual, inse- cure or part-time employment, and not one of the is wrong. Why should we have to relocate participants had found work that was paying the our whole life to get another job?’ The Monash University study found that:

CHAMBER Tuesday, 7 December 2004 SENATE 77 same or better wages. So every person who had committing itself to the continuation of one lost their job— of the most destructive, unsustainable indus- over the four years of this study— tries in the country—the logging of old and had then found one ended up in employment growth forests for woodchips for export. The where their income had reduced, and the great Prime Minister promised in Launceston in bulk of that was casual employment. October that no single forestry job would be This does not have to be the case, and Mi- lost under a re-elected coalition government, chelle O’Neil, in her evidence to the Senate but the government has not committed to committee, went on to describe a situation putting the forestry industry on a viable, which could be the case if there is genuine long-term footing to ensure the preservation government investment in real structural ad- of both our ancient forests and long-term justment programs that assist the workers at jobs. But it is very different for TCF work- the coalface with their individual needs. She ers, many of them women, many of them described the situation this way: from a non-English-speaking background and many of them with few other skills for We had a very successful program that was run a couple of years ago after a major retrenchment earning a living. The government is prepared at a place called Bradmill in Yarraville, Victoria. to sacrifice these workers to the uncertainties We managed to negotiate with the receivers of of the global market. that business to run an assistance program that Senator MURPHY (Tasmania) (4.53 was called ‘Life after Bradmill’ to assist some p.m.)—I want to make a brief contribution 400 workers who lost their jobs as part of that with respect to the Textile, Clothing and company changing and reducing its work force. Footwear Strategic Investment Program From that study, we found that the great bulk of workers had never written a CV in their lives and Amendment (Post-2005 Scheme) Bill 2004 that the majority did not have English as a first and the Customs Tariff Amendment (Textile, language and had never entered a Centrelink of- Clothing and Footwear Post-2005 Arrange- fice or any other training institution. It was only ments) Bill 2004. They are, of course, very with very intensive direct support that they man- important bills, particularly with regard to aged to access English language training and the strategic investment program funds. other jobs ... There are a couple of things that I want to Every economic policy has a human conse- raise, and I guess I will raise them further quence; it affects people’s lives. TCF work- with the government when the bills reach the ers made jobless because of the govern- committee stage. They are matters that relate ment’s drive to eliminate tariffs have the to the overall operation of the program. Of right to proper assistance to find other work, course, we know that there is a significant and regional communities that rely on the amount of money and it is very important for sector for their economic wellbeing deserve this industry to receive these funds to assist it proper support. both to adjust and to meet the continuing This government is big on talk about the competitive pressures we are seeing in goods need to encourage people back into the work being brought in from overseas. force and about the rise in the number of With regard to the competitive aspect, in people drawing the disability support pen- the funding provided for in the bill it is inter- sion. But when it comes to addressing struc- esting to note that there is little focus being tural change in the labour market, this gov- given to the opportunities that can and do ernment is found wanting. It is interesting to exist in export to overseas countries, particu- note that the government has no difficulty larly to countries like China. The govern-

CHAMBER 78 SENATE Tuesday, 7 December 2004 ment, through some agency such as Aus- I would also like to clarify the assistance, which trade, has a responsibility to ensure that in- would be provided to displaced TCF workers dustries such as the TCF industry are given under the proposed TCF Structural Adjustment great opportunity to maximise the opportuni- Program (SAP). I share your view that this is a ties that exist in exporting to overseas coun- critical part of the package. The level of available funding for the TCF SAP is $50 million over ten tries. Because they do exist. Often it is the years, nominally at $5 million per annum but with case that individual companies have neither flexibility to shift any unspent monies in a par- the expertise nor the financial capacity to ticular year forward to subsequent years. This make inroads into those markets. flexibility is required because it is highly likely In visits I have made to China, I have that employment losses in the industry will be looked at the retailing of clothing and foot- “lumpy” and unpredictable in nature. wear in some of the major department stores The level of funding for the TCF SAP is com- in the big cities—that is, stores like David mensurate with the best analysis of likely job Jones or Myers here. You will see that a great losses in the industry. In its final report the PC— deal of the clothing available on the retail the Productivity Commission— racks there is far more expensive than it is quoted employment losses of up to 9,563 over the here. These are name brands. We have an 15 year period from 2005 to 2020. This was based opportunity to actually create some name on the adoption of the PC’s recommendations. brands in this country to provide to people in This modelling has been subsequently updated to those countries that can afford to pay money take account of the actual policy announced by the Government and the analysis concludes that for imported clothes—indeed, that are in fact employment losses will be 5,815. looking for imported clothing. They do not want to buy clothing manufactured within The TCF SAP is intended to supplement rather than substitute for existing assistance. The Gov- their own country. They are looking for ernment, via Job Network, has in place a national something different. They are no different to network of private and community organisations people in other countries who want to buy dedicated to finding jobs for unemployed people. something that somebody else has not got. I Most retrenched TCF workers would be eligible would have liked to see a bit of thought for Job Network services but some may not be given in this package to how those sorts of fully eligible (for example those who do not qual- markets can be accessed and further devel- ify for income support due to working spouses or oped. do not pass the income and asset test). With regard to the structural adjustment The TCF SAP will broaden Job Network to take account of the particular needs of retrenched TCF program, I had a meeting with the Minister workers, who tend to be mature aged and from for Industry, Tourism and Resources on non-English speaking backgrounds. The TCF 22 June, at which I raised a number of con- SAP will enable retrenched TCF workers to ob- cerns with him about certain aspects of the tain immediate access to Intensive Support cus- bills. In particular I raised concerns I had tomised assistance, irrespective of whether or not about the structural adjustment program, the retrenched TCF worker would otherwise be which was formerly known as the labour eligible for Job Network services. In normal cir- adjustment program, which ran from I think cumstances a job seeker would have to wait up to 1990 through to 1996. The minister re- 12 months to receive this support. This means that sponded in writing on 29 July. I would like retrenched TCF workers will receive substantial and individually tailored employment assistance to read his response to the chamber. He said as well as access to complementary employment this: and training programs and to a supplemented Job

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Seeker account. The range of complementary tivity Commission in its report referred to the employment and training programs includes ap- loss of 9,563 jobs, and the analysis of the propriate vocational and preparatory job training, updated modelling concluded that this figure and language skill courses. would be reduced to 5,815. That represents a This program contrasts markedly with the TCF significant difference. I will be interested to Labour Adjustment Program (LAP) that operated hear from the government during the com- from 1990 to 1996 and was predominantly fo- mittee stage what happens if the figure is cused on assisting people in Melbourne and Syd- higher than 5,815. What happens if the figure ney. Under the TCF LAP there were strict eligi- bility requirements that meant benefits could only is 7,000 or 10,000? What funding will be be accessed if a retrenched TCF worker had made available and how will it be made worked 24 out of the previous 36 months in the available? TCF industry, and support was only available for I believe there are many questions that 12 months. Additionally, as you noted in our remain unanswered at the moment. I would meeting, workers were not allowed to return to have thought that the opposition, in looking the TCF industry. There will be no such restric- tions under TCF SAP. to approve this legislation, would have been more mindful of this aspect of the package I believe the combination of TCF SAP and the and would have pursued the issue more existing Job Network structure has the capacity to more greatly improve the job prospects of re- strongly than it seems to have done. It should trenched TCF workers than a revamp of the for- have tried to put in place a clearer and more mer TCF LAP. concise approach to how we will deal with I appreciate the minister’s explanation but it workers who are displaced as a result of the still leaves the concern I have. The previous proposed changes. program had its problems: a significant On the occasions when I met with indus- amount of money was expended and a great try representatives they raised with me that deal of it did not deliver any real outcome. they are yet to be advised about how the That is why it is so important that this par- package will work. We assume—and I think ticular program gets it right. the minister says, in effect—that the program I expressed concern to the minister with will work as it has previously. I think the regard to union involvement. There seems to industry would be interested to know—they be no clear plan to have a group of people may know by now; I have not heard that they who will look at what previously worked know—what the eligible expenditure, the under the LAP, because there were some five per cent total eligible revenue, will things that did work. I urge the government comprise. and the minister to include the relevant trade Those are the questions I would like to ask union, the TCFUA, at the table to ensure that when we get to the committee stage. I hope the things that did work are implemented. It the government will respond by giving some is important that the people on the ground answers that are clearer than the answers I representing those workers, who understand have received so far from the minister. The better than most the needs of those workers, package does need to be passed because it is be included in the process. important that companies that have been re- As far as job losses are concerned, the ceiving assistance be able to commence their minister in his letter stated with respect to forward planning. It is probably a little un- the government’s analysis that the modelling fortunate that this issue was not dealt with had been subsequently updated. The Produc- earlier.

CHAMBER 80 SENATE Tuesday, 7 December 2004

The other important matter involves the which industries get sacrificed and which structural adjustment package. It would be workers get burnt. TCF companies and very useful if we were able to say what spe- workers are pawns that have been advanced cific types of programs will be involved. way out in front and are waiting to be cut Given that we have already had experience down. of this from 1990 to 1996, we ought to be Australia is an interesting case in the able to say, ‘Yes, this is how we will deal world of TCF tariffs and tariff reductions. with the issue of English language training; The reductions foreshadowed in this legisla- this is how we will deal with employment tion are not about economic gains. They are retraining; these are the sorts of areas that we not for product innovation gains, they are not will focus on.’ I cannot understand why some for job gains and they are not for consumer more concise explanation cannot be given gains, because all of these will be in the regarding these issues. It would be very help- negative. They are all about ideology only. It ful if that could occur when we reach the is a government strategy that will inevitably committee stage. see the decimation of the Australian clothing, Senator MARSHALL (Victoria) (5.05 footwear and textile industry. These bills are p.m.)—Labor is supporting the Textile, about reducing tariffs applicable to clothing Clothing and Footwear Strategic Investment and certain finished textiles to 10 per cent Program Amendment (Post-2005 Scheme) from 1 January 2010 and to five per cent Bill 2004 and the Customs Tariff Amend- from 1 January 2015. The customs bill also ment (Textile, Clothing and Footwear Post- seeks to reduce tariffs applicable to other 2005 Arrangements) Bill 2004, not because textile clothing and footwear goods to five we believe they represent good policy but per cent from January 2010, and the other because we recognise the reality of the po- tied bill sets out amendments to the SIPS. litical situation. Voting the bills down would Labor does not see TCF industries as have no effect on tariffs and would only pawns and we do not see TCF industries as serve to delay the implementation of the stra- expendable or doomed. We see a viable fu- tegic investment program scheme, known as ture for the Australian clothing, footwear and SIPS. We do support the SIP scheme, albeit textile industries. We think it is essential that with modifications, and we do want to pro- our country maintains these industries. Labor vide certainty and assistance for an industry recognises the need for competitiveness but that is facing an extraordinarily difficult fu- not in forcing the industry offshore to ture. achieve it. Labor believes that we must en- In terms of principle, Labor rejects this sure the TCF sector grows and creates jobs in crude effort by the conservatives at social the communities in which these industries and economic engineering. These bills and are located—and good jobs for future gen- the Howard government approach have erations in all these areas. Labor’s approach made, and are making, TCF industries the is about helping to maintain TCF industries sacrificial lamb of Australian industry. The and assisting them to adjust. We want to see Howard government’s approach to TCF in- a set of principles and practical implementa- dustries is kamikaze, contradictory and cal- tion plans in place to help TCF industries lous. The conservatives have turned tariff make a transition, not a plan to soften the reductions into a bizarre chess gambling extinction of these industries in Australia. game where they pick the industry winners and the workers who are winners, and decide

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We want adequate support for labour mar- they doing this? Let us look at some of the ket adjustment and maintenance of a critical logic and reasoning that they have put for- mass for TCF manufacturing in Australia, ward. The government argue that they want improved export market access, increased to make TCF industries more competitive but R&D and the development of a highly I wonder how this will occur. The Productiv- skilled work force. Labor supports a con- ity Commission has acknowledged, follow- tinuation of the strategic investment program ing econometric modelling, that, whilst in until 2015 but believes it should be reconfig- the past there were some economic gains to ured to give greater reward to innovation in be made in TCF tariff liberalisation, that de- product design, productivity and delivery. bate has now shifted. The Productivity Labor’s approach is about helping those Commission has made it clear that it cannot communities which sustain TCF industries to be assumed that further liberalisation will adjust—particularly those in regional and result in any substantial economic gain. The rural Australia. We need to slow the rate of Productivity Commission report states: tariff reductions, making them more gradual ... removing special support for TCF production and giving employers and workers time to would provide little measurable ‘allocative effi- adjust. A proper and rigorous case for any ciency’ gain. future reductions should also be made before But it is not just the Productivity Commis- any decision is taken because at the moment sion saying this. The NIEIR study says the there is no case whatsoever. same; so, too, the Centre for Policy Studies There are 64,000 Australian workers in and the Victorian Department of Finance and TCF industries, many in regional areas that Treasury. They all say that any gains would rely heavily on this industry. The industries be negligible—less than four-hundredths of are critical to many regional towns, including one per cent or even negative gains. They all Ballarat and Geelong in Victoria, Devonport agree on that. And they all agree on one and Launceston in Tasmania, Wollongong in other thing: there would be massive job New South Wales and so on. The effects will losses and serious effects in regional Austra- be felt particularly in Victoria where about lia. They all agree on that too. half of the industry is based. As a Victorian The government says that, as a result of senator, this concerns me greatly. The worst reduced tariffs, there will be lower prices for five areas affected will all be in Victoria: consumers but the Productivity Commission Barwon and Geelong, Melbourne, the Wim- has not established that any competition re- mera, the Central Highlands, Lodden- sulting from tariff reductions would lead to Campaspe and the Ovens Murray. lower prices for Australian consumers either. Modelling commissioned by the Produc- No-one has established that case. Recent free tivity Commission on future tariff reductions, trade agreements with Thailand and the USA undertaken by Econtech, estimated that will have a severe effect on Australia’s TCF 5,000 jobs will go in Melbourne and about industries from next year, compounding cur- 1,500 will go in Western Victoria. The Na- rent problems facing the industry today. tional Institute for Economic and Industry Should a free trade agreement be negotiated Research, NIEIR, estimated the loss of a to- with China, as the government seems intent tal of 6,300 TCF jobs plus 19,600 indirect on doing, the effect on Australia’s TCF in- jobs in Victoria alone. These communities dustries will be enormous. The global indus- are being sacrificed by this government’s try is also facing the abolition of quotas in proposed post-2005 arrangements. Why are the European and US markets in January

CHAMBER 82 SENATE Tuesday, 7 December 2004

2005, the implications of which are profound for more of the same. The current account for all TCF industries outside of China. deficit is one of Australia’s major economic So the coming couple of years in particu- weak points. This policy will simply exacer- lar are set to be extremely unstable for Aus- bate the problem. tralia’s TCF industries. Surely, this is not the The decision also does not make sense time to be considering this legislation. There when we consider Australia’s international is no reason why these tariff cuts should be trading policy and direction. By unilaterally made now. There have already been substan- cutting tariffs on TCF products at this unnec- tial tariff reductions in recent years, and tariff essary time we are throwing away a valuable reductions which have already been legis- bargaining chip available to us in future trade lated for 2005 remain in effect until 2010. negotiations. Blind Freddy can see that this Even if you support further tariff reductions, legislation will compromise Australia’s ne- there is no need for tariff reduction legisla- gotiating position in future bilateral and mul- tion to be in place until 2009. And there is tilateral trade negotiation rounds. The illogi- absolutely no logic in tying these two bills cality of the conservatives astounds me. At a together. time when Australia’s TCF industries are One of the key arguments put forward by being prevented from accessing key interna- the federal government for tying the tariff tional markets because of high tariffs and legislation to the industry assistance meas- non-tariff barriers affecting their export ures is that industry assistance is compensa- products, we are expecting them to adapt to tion for the effects of tariff reductions. Be- lower trade barriers in the domestic market. sides contradicting its own argument that all It is just not fair. To tie general tariff reduc- tariff reductions are beneficial for the indus- tions to industry assistance is to blindly pur- try, the government’s argument is flawed sue an ideological approach to industry pol- because not all of industry receives industry icy that benefits no-one. The gains are all assistance. There is no logical reason to tie theoretical, illusory, ideological gains bring- the SIPS legislation for post-2005 assistance ing satisfaction to the minds of this conserva- to tariff reduction legislation, which does not tive government. But the costs are not illu- come into effect until 2010. The federal gov- sory. They are very real and they are felt by ernment is seeking to force the industry to people and communities. accept further tariff reductions as the price The TCF industry has experienced sub- for further industry assistance, with no evi- stantial employment losses over the past dence that this will result in benefits to Aus- decade. Policies that seek to decrease tariffs tralia overall. further when our trading partners are not The Productivity Commission’s economic following our lead will only exacerbate the modelling also shows that the removal of problem. Neither the federal government nor TCF assistance will result in the deteriora- the Productivity Commission have ever pre- tion of Australia’s current account deficit sented any evidence regarding the economic through an increase in imports. If we go on costs of job losses because their economic past experience, we can clearly see this. The modelling has a base assumption that all dis- Productivity Commission has said that in the placed TCF workers find other jobs, despite 10 years of tariff adjustments between 1991 all the evidence to the contrary. Similarly, and 2001 there was a reduction of national they have presented no evidence regarding output of around $1 billion. This is a policy the economic cost to regional Australia of further job losses. Whilst the Productivity

CHAMBER Tuesday, 7 December 2004 SENATE 83

Commission outlines the modelling done for properly weigh up the pros and cons here— the PC on regional implications, this model- things that the conservatives and the Produc- ling is based on no net job losses in regional tivity Commission appear not to have even Australia. The assumption is that if Victoria thought about. As the TCFUA—the organi- loses jobs, other states gain. The best model- sation, the union, that deals face to face ling we have to go on suggests that regional every day with people affected by tariff re- workers displaced by TCF closures find it ductions—has said before, the Australian harder to find new employment, especially community needs to know the answers to where TCF assumes a high proportion of the some very detailed questions about these total work force, as it does in Victoria. matters. A study by Monash University’s Centre The Australian community needs to know for Work and Change in the Global Era, the economic cost of a sacked worker being WAGE, gives strong evidence of the em- on unemployment benefits. What does it cost ployment problems TCF workers face. There to pay welfare and what revenue is lost is no recognition by the federal government through less taxation? What spending power in their TCF package, or by the Productivity is lost to the economy overall by this reduc- Commission in their review, that women tion in income? What is the flow-on effect of have borne the brunt of job losses over the job losses to other business through both the past decade. Full-time female employment closures of businesses and the loss of spend- has suffered the most since tariff rates began ing power? Are there resultant social costs reducing in the late 1980s. In 1985 there through people spending long periods unem- were 67,000 full-time women employed in ployed? Are these social costs, including TCF jobs. This had reduced to 30,000 in sickness, depression, alcohol or other drug 2002. Male full-time jobs over the same pe- abuse taken into account? When TCF facto- riod fell from 37,000 to 31,000. The fact that ries close is there a calculation about the loss many of these workers are also older and of business other businesses suffer as a re- from non-English-speaking backgrounds sult? Are the flow-on effects calculated for contributes to their difficulty in finding new those companies who no longer supply or employment. Past research by Weller and service machinery or provide raw materials? Webber in 2001 demonstrated that a large Are the effects on their suppliers calculated? proportion of employees in the TCF indus- Is the cost to regional Australia of workers tries are older unskilled women from non- and their families having to move to seek English-speaking backgrounds who find it other employment ever calculated? extremely difficult to regain employment. The huge reduction in employment in The research showed that five years after TCF industries as a result of tariff reductions being retrenched one-third of workers stud- has had a massive effect on Australian fami- ied were still unemployed and only one-third lies, particularly on women. There has been a had found commensurate employment. reduction of approximately 37,000 full-time Labor want to see properly targeted labour female jobs, and about 6,000 male jobs. The adjustment programs that will ensure re- federal government is in denial about the employment and keep people in Australia’s effects of unemployment on TCF workers regional communities. We want to see prop- and their families. A study by the Centre for erly targeted labour adjustment programs Work and Change in the Global Era of over based on reality, based on the facts. There is 300 displaced TCF workers in August 2003 a lot that we need to know before we can found that the mean time since retrenchment

CHAMBER 84 SENATE Tuesday, 7 December 2004 was 39 months—more than three years. Only of all these companies—owner families and 54 per cent of those surveyed had found the workers whose families are dependent on work and only one in five had found work the wage income. A lower threshold would broadly commensurate with their former increase the amount of eligible companies TCF job in terms of hours, pay and condi- receiving assistance and would also ensure tions. Although 96 per cent had worked full that TCF clothing companies currently un- time before retrenchment, only 21 per cent derrepresented in receiving SIPS would re- now work full time, with the mean number ceive a more proportional share. Small com- of hours worked per week after retrenchment panies with fewer than 20 employees consti- being 27 hours. tute about 80 per cent of TCF enterprises, yet One-fifth of the sample has found only in 2002-03 companies of this size comprised casual employment after losing their jobs— only 25 per cent of the companies actually approximately the same number as have receiving SIPS funding. Any new scheme found full-time employment. Sixty-six per must address these disparities and assist all cent had received no financial assistance Australian families affected. Our approach is from the government since retrenchment. Of about helping families and family companies those who had received financial assistance, stay in business, not just focusing on the gi- 29 per cent had received unemployment ants in the TCF industries. benefits. To properly assist these TCF work- And let us not forget a very vulnerable ers who are displaced we need a properly group of workers which could also be deci- funded labour adjustment program. The fed- mated by this government legislation— eral government’s current TCF package does outworkers. Outworkers in TCF industries not address this issue. are some of Australia’s most exploited work- The Strategic Investment Program ers. Outworkers are very often mums trying Scheme is discriminatory towards families in to earn income to support their families, to certain segments of the TCF industry. SIPS support their children. Sometimes the out- favours particular industry sectors and is dis- workers are indeed children. This legislation proportionately favourable to the largest TCF is only likely to exacerbate their plight. companies. The government should expand The Productivity Commission estimates the scheme to enable the inclusion of a that it would cost 75c per Australian per year broader range of companies. This can be to assist the TCF sector. It is my clear view achieved by lowering the eligible expendi- that if we were to ask Australians whether ture threshold from $200,000. Only about they would be prepared to pay this to main- 400 of the 4,900 TCF companies receive tain these industries in this country the over- SIPS, yet all 4,900 companies are being whelming answer would be yes. The good asked to absorb the costs of tariff reductions. sense of Australians is infinitely superior to To access SIPS, companies must have eligi- the poor logic of this conservative govern- ble expenditure in excess of $200,000 in or- ment. When there is clearly no proven case, der to qualify for assistance. Many compa- when the public authorities, academics, pri- nies that otherwise may meet the SIPS guide- vate think tanks, commentators and analysts, lines cannot meet this threshold and there- union and industry stakeholders are all say- fore are excluded from the scheme. Many of ing there is no benefit to Australia or Austra- the 4,500 TCF companies which do not re- lians, why would you sacrifice this industry? ceive SIPS funding are family companies, Why would you sacrifice Australian compa- and TCF tariff reductions affect the families nies and jobs? Why would you throw away

CHAMBER Tuesday, 7 December 2004 SENATE 85 international trade bargaining chips? (Time funding to tariff cuts. When dealing with expired) concerned industry groups looking to make Senator HARRADINE (Tasmania) (5.25 sure of continued SIPS funding, all it has p.m.)—I spoke about the Textile, Clothing done is to send those industry members on to and Footwear Strategic Investment Program the opposition, Independent senators, the Scheme legislation earlier this year and I Democrats and Greens to act as government took the opportunity then to express my con- lobbyists. The various industry groups that cern that the Strategic Investment Program have approached me and my office have said Scheme funding—which, as we all know, is that they do not want tariff cuts but that they very good funding by and large and I think would wear tariff cuts some years into the has broad support—was to be linked to tariff future if they had to in order to get certainty cuts to take place in 2010 and 2015. There is, now on funds through SIPS. They were con- as I argued, no need to decide the tariff cuts cerned that the government was so uncom- now. I listened to particularly the contribu- promising but were not able to persuade the tion by Senator Murphy, and I was apprecia- government to shift its position. So the gov- tive of that because he knows the industry. I ernment is willing to use industry groups to repeat: there is no need to decide upon the try to blackmail senators into supporting a tariff cuts now as we are being asked to. I do bad measure because a good measure is not think the case has really been made for linked to it and may be lost. I am sad to see further tariff cuts, and I agree with what the that the opposition has caved in to that opposition said in March, the last time we blackmail and that the government has not dealt with this: why not review the situation allowed us a vote on each of the two bills on closer to the time and then decide whether their separate merits. there is a benefit in tariff cuts? As far as Tasmania is concerned, there are I am surprised that the opposition has now about 1,500 TCF workers in Tasmania, with apparently decided to support both the SIPS around 10 per cent of Devonport’s work funding and the tariff cuts after its strong force employed in the industry. As was said opposition to the legislated tariff cuts earlier by Senator Marshall, the last speaker, and by this year. As Senator Carr commented on that others, the back-up industries are also facing occasion: job losses. So the impact of tariff cuts on workers in this area is certainly of concern to We take the view that there should be no further tariff cuts without a comprehensive review of the my state. Workers losing jobs might be TCF industries. We take the view that there forced to look for work elsewhere and leave should be a proper inquiry into the effects of re- the state, taking their families with them. ductions in tariffs up to 2010 and that that should Any job losses have a big effect across the occur before further tariff cuts are undertaken. community. The lives of real people are af- Senator Carr highlighted the fact that the fected by these decisions. The unions, of Productivity Commission has stated it is not course, who represent the workers on the able to show that further tariff reductions ground in the various TCF industries around would generate a net national benefit. If the country, are quite opposed to further tar- there isn’t a net national benefit, why cut iff cuts. tariffs? My concern about tariff cuts on workers’ Of course, the government has been in- jobs has really not been addressed. I would transigent in linking the SIPS payments and find it very difficult indeed to vote without the necessary review and examination, and in

CHAMBER 86 SENATE Tuesday, 7 December 2004 fact against the will of the Productivity A number of senators have made contribu- Commission. There is no proven national tions, and there has been an ongoing debate benefit for cutting tariffs. I would find it very in this country about tariffs for now a con- difficult to support this legislation which cuts siderable time. I recall, albeit not all that tariffs, but of course I support very strongly clearly, that in 1975 the then Whitlam gov- the continuation of SIPS funding. ernment took the axe to tariffs in a very high- I believe that we ought to at least bat the handed fashion which saw literally hundreds legislation back to the House of Representa- of people in my home state of Tasmania be- tives. Let us see who stands up on this occa- ing thrown out of work. That is why this sion when faced with the predictability of job government, in seeking to reduce tariffs, is losses as a result of tariff cuts. This should be providing, and linking with a reduction in exposed, but obviously it will not be, and I tariffs, assistance to these various industries. understand why—the opposition have de- It should be remembered that basically one cided on what they will do. At least I would man’s tariff is another man’s tax and, as a have thought it would be important to high- result, a burden is placed on every Australian light this particular measure as unacceptable in relation to the placement on tariffs— blackmail. The ACTING DEPUTY PRESIDENT Senator ABETZ (Tasmania—Special (Senator Bolkus)—Keep on going, Senator Minister of State) (5.33 p.m.)—I thank hon- Abetz. Don’t be provoked. It is very hard not ourable senators for their contributions in the to be provoked by Senator Conroy some- second reading debate on the Textile, Cloth- times. ing and Footwear Strategic Investment Pro- Senator ABETZ—Do we have an agree- gram Amendment (Post-2005 Scheme) Bill ment? 2004. Undoubtedly there will be matters that The ACTING DEPUTY PRESIDENT— will be raised during the committee stage. I There are no amendments. thank those senators who flagged those is- Senator ABETZ—If the suggestion is sues during the second reading debate, be- that there might not even be a committee cause it allows us to have some answers pre- stage, that might be even better. But, having pared in anticipation of those questions being said that, the arguments are fairly clear as to raised again during the committee stage. why the government has been seeking to As honourable senators would be aware, I reduce tariffs. Tariffs in the TCF area are am a senator from Tasmania. There are a considered to cost consumers up to $1 billion number of TCF industries in Tasmania, such a year, which is about $150 a year for each as Blundstones, the Australian Weaving household. Therefore, there is a need to Mills at Devonport and Ulster Tascot. As a make these reductions. But we seek to bring result, I and my colleagues, especially the them in in a phased period with certainty so new members for Braddon and Bass, have that industry can adjust. I commend the bill been following this debate very closely and to the Senate. are supportive of the measures being intro- Question agreed to. duced in the Senate today. From my personal perspective, especially welcome is the new Bills read a second time. small business program, which will provide, Third Reading if I recall correctly, up to $25 million worth Bills passed through their remaining of assistance. stages without amendment or debate.

CHAMBER Tuesday, 7 December 2004 SENATE 87

NATIONAL WATER COMMISSION was the introduction of quarterly payments BILL 2004 of superannuation guarantee contributions by Report of Senate Environment, employers. Quarterly payments were intro- Communications, Information Technology duced for a number of reasons, including the and the Arts Legislation Committee safety and financial advantages more regular payment provided for employees, gains in Senator McGAURAN (Victoria) (5.38 government revenue and administrative ad- p.m.)—On behalf of the Chair of the Envi- vantages for the ATO. At the time, approxi- ronment, Communications, Information mately 90 per cent of employers were paying Technology and the Arts Legislation Com- on a quarterly or monthly basis, so the mittee, Senator Eggleston, I present the re- changes impacted only on the remaining 10 port of the Senate Environment, Communi- per cent—overwhelmingly small businesses. cations, Information Technology and the Arts Legislation Committee on the provisions of As part of the introduction of quarterly the National Water Commission Bill 2004, payments, a further requirement that em- together with the Hansard record of proceed- ployers report superannuation guarantee con- ings and documents presented to the commit- tributions paid on an employee’s behalf to tee. that employee within 30 days of the payment was introduced. This measure was seen as Ordered that the report be printed. enabling the employees to follow up quickly COPYRIGHT LEGISLATION where the employer might be defaulting on AMENDMENT BILL 2004 SG contributions. Labor had for some time Report of Senate Legal and Constitutional been arguing for these changes and, prior to Legislation Committee the government introducing the bills in 2002, Senator McGAURAN (Victoria) (5.39 had moved amendments on two occasions. p.m.)—On behalf of the Chair of the Legal After a year of quarterly payments and re- and Constitutional Legislation Committee, porting to members, the government has now Senator Payne, I present the report of the introduced legislation that removes the re- committee on the Copyright Legislation quirement to report to members superannua- Amendment Bill 2004, together with the tion guarantee contributions paid on their Hansard record of proceedings and docu- behalf. ments presented to the committee. The removal of the reporting requirement Ordered that the report be printed. was announced by the government during the election as part of its small business pol- TAX LAWS AMENDMENT icy. The government’s view is that reporting (SUPERANNUATION REPORTING) to employees creates an unnecessary compli- BILL 2004 ance burden on employers and, in particular, Second Reading small business. The government admits that Debate resumed. by removing the requirement there will be a Senator STEPHENS (New South Wales) higher burden placed on superannuation (5.39 p.m.)—The Taxation Laws Amend- funds that will have to deal with greater ment (Superannuation) Bill (No. 2) 2002 and numbers of inquiries regarding the payment the Superannuation Guarantee Charge of contributions but believes that it is more Amendment Bill 2002 were passed in 2002. important to reduce the burden on employ- Amongst the changes these bills introduced ers. The removal of the reporting require- ment creates a major gap in the safety net for

CHAMBER 88 SENATE Tuesday, 7 December 2004 employees. The reporting enables the em- of some employers in the rural sector that ployee to keep track of his or her superannu- employ seasonal and/or transient employees ation guarantee contributions. If they are and the hospitality industry, which has a high reported regularly, it gives the employee the turnover of casual employees. opportunity to follow up before the situation There is some irony in the government’s becomes irretrievable. If an employee is only stated concern about the impact of superan- notified annually by the fund, which is the nuation legislation on employers when from most common situation, it may well be too 1 July 2005 employers will be hit by a mas- late to remedy that situation. sive new wave of regulation as a conse- There are significant non-payment prob- quence of the so-called choice of super fund. lems in relation to the superannuation guar- New forms, new regulations, extra costs and antee, and often the problem is not identified additional legal liability will come with so- until the business concerned is bankrupt or in called choice—but more of that closer to the the hands of a liquidator. Whilst it is difficult time. Labor is most concerned about the ef- to obtain an accurate number of superannua- fect the removal of the reporting require- tion guarantee payment defaults on business ments will have on the ability of employees failure, it is certainly in the tens of thousands to monitor the payment of their superannua- each year. Many workers have lost years of tion guarantee contributions. Labor will re- superannuation in these circumstances. Most luctantly support this bill but will move dur- often they are those workers who can least ing the committee stage of the bill to have it afford to lose their superannuation savings— amended to ensure that the ATO reports on low-income workers and those who will face the levels of non-payment of superannuation difficulty finding employment after the col- contributions, as follows: lapse of their employer’s business. (1) Schedule 1, page 3 (after line 10), at the end Labor’s comprehensive employee entitle- of the Schedule, add: ments protections scheme would have pro- 3 At the end of section 44 vided full compensation. Although the em- Add: ployee may still contact the fund to find out (2) A report prepared in accordance with if contributions are being made, it is unrea- subsection (1) must include: sonable to expect employees to do this on a (a) the number of employers who have regular basis and it is also unreasonable to failed to pay one or more of their place the extra burden on the funds—an ex- employees’ superannuation guaran- tra burden that will involve costs which in tee contributions by the date re- turn will reduce fund returns and ultimately quired by law; the retirement nest eggs of Australian work- (b) the number of employees whose ers. Superannuation industry organisations employers have failed to pay their and superannuation funds across the board superannuation guarantee contribu- have attacked the proposed change as a wa- tions by the date required by law; tering down of the safety provisions. Of par- (c) details of the total amount of super- ticular concern is the so-called choice of annuation guarantee contributions fund legislation commencing 1 July 2005. outstanding at the close of each re- Nonetheless, there is an argument for ex- porting year; empting from the reporting requirements (d) the number of defaulting employers employers who have a high turnover of em- who paid outstanding superannua- ployees. Examples have been given to Labor

CHAMBER Tuesday, 7 December 2004 SENATE 89

tion guarantee contributions after per fund might lapse between annual contribu- the payment date required by law; tions. Furthermore, the bills require employers to (e) the number of actions taken by the report to their employees the amount and destina- Australian Taxation Office to en- tion of their SG contributions. This will encour- force the payment of unpaid super- age employees to take an interest in their super- annuation guarantee contributions; annuation and alert them to any noncompliance sooner. (f) the number of actions taken by the Australian Taxation Office to en- It is also worth noting that, as I said, this was force the payment of unpaid super- actually part of the government’s 2001 su- annuation guarantee contributions perannuation election policy. I want to quote that were fully or partially success- now from the Prime Minister’s press release ful; of 5 November 2001 announcing his A Better (g) the total amount of outstanding su- Superannuation System policy. He said: perannuation guarantee contribu- In order to ensure fairness between employees tions recovered at the close of the and to encourage employers to make regular su- reporting year. perannuation contributions, the Coalition will These will be requirements for inclusion in require all employers to make at least quarterly the annual report. superannuation contributions on behalf of their Senator CHERRY (Queensland) (5.46 employees. p.m.)—The Tax Laws Amendment (Super- All of this makes it quite clear that the gov- annuation Reporting) Bill 2004 is in some ernment recognised not only that superannu- respects a surprise. It removes an election ation should be paid to employees quarterly promise the government made in 2001 and but also that employees needed to know that replaces it with what is clearly a very oppor- they were receiving it. Really that is a fun- tunistic election promise they made before damental part of education. In fact when the the last election. It is a surprise because the government announced this backflip back in legislation to actually introduce quarterly July 2004, when they decided to remove the reporting on superannuation and quarterly requirement to report to employees, they reporting in respect of employer contribu- were panned by not only the unions—the tions back to employees was only debated in usual suspects—but also pretty much the this place two years ago. In fact it is a pity entire superannuation industry and large that Senator Coonan, the then Assistant chunks of the press. It is not often I find a Treasurer, is not in the chamber today be- Financial Review editorial criticising the cause I want to read back into the Hansard government, but after this particular an- what she said when introducing this report- nouncement was made the Financial Review ing requirement on 27 June 2002. She said: went to press. On the one hand it was very The new regime will provide much more cer- positive about the government’s superannua- tainty to employees. More frequent contributions tion agenda, such as the government’s co- will create higher superannuation benefits be- contributions scheme, which was increased cause of compounding interest, a lower risk of in June last year and cut the surcharge, and workers losing superannuation entitlements if a the introduction of choice of funds legisla- company falls over and more timely evidence of tion. On the other hand, the Financial Re- noncompliance making it easier for the ATO to view editorial of 9 July this year said: detect those employers who are failing to pay, and The super week has been soured by political will lower the risk that a member’s death and opportunism. Prime Minister John Howard disability insurance where it is provided by a su- abruptly announced a reversal of the rule that

CHAMBER 90 SENATE Tuesday, 7 December 2004 employers have to notify fund members each information that the explanatory memoran- quarter that their contributions have been paid dum says it does. In addition, the ACTU into their super fund ... Every employer has to pay points out: the amounts each quarter anyway, so the burden consists mainly of having to write to employees. It is not correct that state legislation necessarily Small employers do struggle in industries with a provides for superannuation information to be lot of itinerant employees, but why not tackle supplied in payslips. In New South Wales, South these problems with a suitable “best endeavours” Australia and Queensland, payslips are required clause? to contain information about contributions but not the funds to which they are paid. Instead, we have seen the minister in charge of superannuation, Helen Coonan, who talks end- So we see that what the explanatory memo- lessly about safety in super and reducing the randum is saying about this bill is not in fact amount of “lost” super, praising this overreaction. what it does. The simple fact is that a large Even though it will take away the most basic pro- number of employees will now again no tection—that members know contributions are longer have much clue as to where their su- actually paid—the minister believes “a combina- perannuation is going. This makes it much tion of practices and safeguards found throughout more difficult for choice of funds to operate other ... legislation will allow employers and em- effectively and for the education of employ- ployees to remain informed about superannua- ees to actually be effective. I want to also tion”. quote the contribution from the Association How does the government expect fund mem- of Superannuation Funds of Australia to the bers to take greater interest in their super, track their money or choose the right fund if they’re Senate committee because I think it made a told about their account balance only once a year? very important point. It said: That is a pretty good summary of the issues The superannuation industry saw the reporting tied up with this legislation. I think it is a real obligation as particularly useful in tackling the problem of lost superannuation accounts as it will pity that we see this legislation coming for- help employees keep track of their contributions. ward from the government at this particular At an even more basic level, contributions report- point in time. The actual explanatory memo- ing is a form of employee education as it is quite randum attached to this bill is, in my view, likely that an employee will take more notice of misleading about the impact of this bill. It information about what the employer is paying to says quite clearly in the regulation impact a fund on their behalf when it is associated with statement: current entitlements to salary and wages. It is perhaps more difficult for fund communications The provision of information to employees to claim this level of attention. will be maintained by a combination of reporting provisions in other Australian workplace legisla- So you can see that the superannuation in- tion that requires reporting on payslips, and an- dustry, the unions and, indeed, the financial nual reporting from superannuation funds. press recognise that reporting back to em- The ACTU, in their submission to the Senate ployees was a fundamental part of develop- committee looking into this bill, said the ing security and certainty in superannuation problem is that employees not covered by an and reducing that huge body of $7 billion in award or whose award or agreement does not lost accounts in this country. We in the De- provide for superannuation contributions to mocrats recognise that you need to reduce be made do not have an entitlement to in- compliance costs to business, and I think that formation about superannuation contribu- is appropriate. You do not want to impose a tions. There is a real problem that the indus- compliance cost on business unless it is ab- trial relations system does not provide the solutely necessary, and whenever you do you

CHAMBER Tuesday, 7 December 2004 SENATE 91 seek to minimise that compliance cost as This is a very disappointing bill. When much as possible. this legislation was introduced two years The advice from the Australian Financial ago, it had unanimous support in the Senate. Review’s editorial was that we seek to ensure We had all been calling for a long time for that best-endeavours reporting is picked up. quarterly reporting. We had all been calling The advice from ASFA is that we at least for a very long time—I have been involved expand out the reporting on payslips to make in superannuation debates going back to sure that that picks up reporting back to em- 1993—for efforts to actually reduce the inci- ployees. Indeed, if we are going to take the dence of lost accounts. This legislation to actual assertion in the explanatory memoran- introduce quarterly reporting as well as quar- dum that payslips is where all this stuff is terly payments was actually a very positive reported, why don’t we actually say that if step towards reducing the incidence of lost they report it in payslips they do not have to accounts. It is a pity that, as part of a small report? That would actually pick up a large business compliance measure, the impor- chunk of the compliance problem and reduce tance of that has been lost. It is a pity that we it significantly whilst actually confining the are going to actually see less, rather than compliance issue to that very small number more, reporting and that we are going to ac- of employees not covered by awards and not tually let business off the hook over develop- covered by agreements which include super- ing decent and reasonable reporting back to annuation clauses that provide for reasonable their employees. reporting back to their employees. That As I said, we have a whole bunch of ideas would actually significantly reduce the com- on how to actually reduce the compliance pliance cost burden and ensure that we were cost. Recognition through payslips is one making a contribution to reducing the inci- idea, and that is the subject of the amend- dence of lost accounts and reducing the inci- ment that I will move today. It could also be dence of people not knowing where their done through the tax system, to augment the superannuation is going. tax reporting which employers are already That is why in the committee stage the required to do. It could be done in other Democrats will be moving an amendment, ways to actually ensure that the report does which I have just circulated, to actually get back to employees in a way that mini- broaden the reporting requirement in this mises the cost to employers. That debate has particular bill to cover this and to recognise not been opened. As the Australian Financial that a reporting requirement is met where the Review editorial said, this is very much about information is provided on payslips or in a an opportunist statement—a bit of a big bang form that the employee can reasonably un- announcement following up on the Prime derstand, such as a letter. For the vast major- Minister’s small business compliance an- ity of employers who already provide this nouncement back in July last year. information through payslips, that would I am pleased that Senator Coonan has mean that the actual compliance cost would joined the debate in the chamber. It is cer- not be there, and hopefully it would encour- tainly disappointing to see this legislation age employers to put this information in pay- coming forward. The Democrats will be op- slips, which would be the best place for it to posing this legislation. That does not mean be provided. It would at least ensure that we are not open to discussing how to reduce there is reporting back to employees so that the compliance costs of superannuation re- they can in fact track their superannuation. porting; we are very open on that issue. But

CHAMBER 92 SENATE Tuesday, 7 December 2004 let us have a debate about how we actually nuation guarantee employer reporting re- balance, on one side, the importance of com- quirement. The government recognises the pliance costs and, on the other side, ensuring high cost faced by employers in complying the employees get the information they need with this requirement, particularly those em- to actually protect their superannuation and ploying high levels of casual and itinerant make it safe and secure. Let us not engage in workers. The government has responded to these opportunistic, simplistic solutions these concerns, which it regards as well which may benefit certain categories of founded, with amendments that will remove small business but will actually reduce the the requirement for employers to report to certainty and security facing employees in employees under the superannuation guaran- this country in terms of their superannuation. tee arrangements from 1 January 2005. This Particularly with the choice of funds legisla- initiative will significantly reduce paperwork tion coming, it is absolutely crucial that we and costs for employers and remove duplica- ensure that employees have more informa- tion of information for many small busi- tion to make informed decisions about their nesses. superannuation rather than less. Some senators have raised concerns that I will ask the minister to address, in her this amendment will have adverse conse- second reading debate comments, what the quences for employees. In fact, I think both government intends to do to overcome the of the speakers in this second reading debate very large hole that is now going to appear in have raised this issue. Obviously the gov- superannuation reporting and to ensure that, ernment disagrees with this proposition or when the choice of funds legislation comes this bill would not be coming forward in its in, employees do not lose the information current form. The basis for the government’s they are receiving through quarterly reports. disagreement is that, whilst it is important How are employees going to be informed of that employees remain informed and en- what they have actually received, given that gaged in relation to their superannuation en- the assertions in the explanatory memoran- titlements, there is already a combination of dum are not correct about the role of the practices and safeguards found throughout award system and the role of state legisla- other Australian legislation that will allow tion? How are you going to ensure that em- employees to remain informed about their ployers are encouraged to continue to pro- superannuation. Currently, superannuation vide this information so that employees can funds provide members with at least annual in fact follow their superannuation and make reports, showing both employer and member reasonable and informed choices, and so you contributions. Only information from funds actually reduce the incidence of lost ac- can provide the certainty to members that counts? contributions have been received by the fund Senator COONAN (New South Wales— and allocated to the correct account, and Minister for Communications, Information members can contact their funds as fre- Technology and the Arts) (5.59 p.m.)—I quently as they wish. thank honourable senators who participated There are also a number of provisions in in the second reading debate on the Tax Australian workplace legislation and awards Laws Amendment (Superannuation Report- that require employers to report superannua- ing) Bill 2004. The small business sector has tion contributions more regularly on pay for some considerable time been concerned slips. These amendments will not affect at the administrative burden of the superan- those obligations, nor will they affect an em-

CHAMBER Tuesday, 7 December 2004 SENATE 93 ployer’s obligation to make superannuation that the amendments that are being proposed contributions at least quarterly. That brings ignore the fact that the objective of this bill is us to consider the extent to which the notifi- to significantly reduce the compliance bur- cation, in addressing the concerns of small den on employers, particularly small busi- business, can be modified. The Workplace nesses. We will get to it later but I think I can Relations Act 1996, for example, requires apprehend Senator Cherry’s amendment, and employers operating under federal awards, my response to it is that it simply does not certified agreements and Australian work- achieve this objective and is not aligned with place agreements—as well as Victorian and the government’s intent in this bill. The territory employers—to provide information amendment would fail to assist small busi- in relation to superannuation contributions ness and would maintain an onerous quar- on pay slips. That requirement exists already. terly reporting requirement that has in effect Queensland and South Australia have similar been made redundant by the existence of provisions requiring employers to disclose other measures and safeguards that I have information about certain superannuation outlined in my remarks. For all of these rea- contributions on pay slips. So the govern- sons the government will be urging the Sen- ment recognises the importance of employ- ate to pass the bill without amendment. ees knowing that their superannuation enti- Question agreed to. tlements are being met and having a sense of Bill read a second time. ownership over their retirement savings. We have talked about that a great deal in debates In Committee on superannuation over the past three years. Bill—by leave—taken as a whole. As I have already noted, employees will con- Senator STEPHENS (New South Wales) tinue to receive at least annual statements (6.06 p.m.)—On behalf of Senator Sherry, I from their superannuation funds and, impor- move opposition amendment (1) on sheet tantly, even critically, they can contact their 4466, as amended with a slight typographical funds as frequently as they like to satisfy correction: themselves that their entitlements have been (1) Schedule 1, page 3 (after line 10), at the end received by their funds and allocated to their of the Schedule, add: accounts. This level of conclusiveness is not 3 At the end of section 44 provided by current employer reports. Add: I was disappointed to hear that Senator (2) A report prepared in accordance with Cherry is not supporting the bill in its current subsection (1) must include: form. I was hoping that the good sense of the objectives behind this bill would receive (a) the number of employers who have failed to pay one or more of their support, given the great importance of keep- employees’ superannuation guaran- ing compliance costs at a level that is not tee contributions by the date re- unjustifiably burdensome on our business quired by law; community and of getting the balance right (b) the number of employees whose between keeping employees informed of employers have failed to pay their their contributions and meeting the need for superannuation guarantee contribu- business efficiencies and reducing the com- tions by the date required by law; pliance burden. We are all aware that small (c) details of the total amount of super- business continually complains about com- annuation guarantee contributions pliance. If I may just foreshadow, it seems

CHAMBER 94 SENATE Tuesday, 7 December 2004

outstanding at the close of each re- employee notifications; 16,200 employers porting year; were audited as part of data-matching activi- (d) the number of defaulting employers ties; 2,153 employers identified as high risk who paid outstanding superannua- were contacted about their quarterly obliga- tion guarantee contributions after tions before a liability actually arose; other the payment date required by law; proactive activity included providing speak- (e) the number of actions taken by the ers at 14 industry conferences and the issuing Australian Taxation Office to en- of a number of ATO and other publications; force the payment of unpaid super- and $380.8 million was raised in superannua- annuation guarantee contributions; tion guarantee liabilities and $234.6 million (f) the number of actions taken by the was collected. In many instances, the amount Australian Taxation Office to en- remaining uncollected is still being pursued. force the payment of unpaid super- The ATO estimated that employers paid annuation guarantee contributions that were fully or partially success- $37.3 billion in superannuation contributions ful; in 2003-04. This figure was provided by APRA. (g) the total amount of outstanding su- perannuation guarantee contribu- For these reasons, conclusively, the gov- tions recovered at the close of the ernment say this amendment is unnecessary, reporting year. is not well drafted, will add complexity to Senator COONAN (New South Wales— the law and will of course impose compli- Minister for Communications, Information ance costs on the ATO. All of these draw- Technology and the Arts) (6.06 p.m.)—I backs with the amendment, in our view, think it is appropriate that I place on record make it something that the government are the basis for the government not agreeing to not going to support. I do want to stress that Labor’s amendment. It is for the reason that I in this whole field of superannuation we was beginning to develop in my earlier have had many debates over the past three comments: it really does represent a deter- years—I have moved on to another portfolio, mination to throw the baby out with the but I retain a keen interest in the area—and I bathwater when you have regard to the ob- think we have achieved a great deal by nego- jective of this bill, which is to significantly tiation and by being able to tease out, discuss reduce the compliance burden on employers, and debate in this chamber several amend- particularly small business. It is ironic that, ments for the benefit of the system. So I having agreed to this very sensible piece of would say, with some justification, I feel, legislation that is going to remove an unnec- that the government are not being bloody- essary administrative burden on employers, minded about this. We will not be supporting Labor now seem determined to put that at this amendment. If I could just pass on a lit- risk by moving this amendment. tle piece of advice to Senator Stephens, who It is worth noting that the Commissioner is probably taking this through for Senator of Taxation currently provides substantial Sherry: if Labor is really serious about re- information referred to in the proposed storing its relationship with business it amendment. That information is in the an- should now pass this bill unamended. nual report, which is made public on the Senator STEPHENS (New South Wales) ATO web site. In the 2003-04 annual report (6.10 p.m.)—The Labor Party certainly agree this information appeared on pages 69 to 71: that there are some practical problems asso- 9,923 employers were audited as a result of ciated with the current reporting requirement

CHAMBER Tuesday, 7 December 2004 SENATE 95 that all employers notify all employees of the and to track the size of the default problem. superannuation guarantee contributions that A requirement that the ATO in its annual re- have been made on their behalf. I made ref- port clearly indicate the number of noncom- erence to that in my speech in the second plying employers, the number of employees reading debate. Difficulties undoubtedly oc- affected by noncompliance at the level of cur in some industries with a high turnover enforcement and the actual recovery of un- of employees, and we noted the examples of paid superannuation guarantee would have the hospitality and the agriculture industries. achieved this. I am very disappointed that the Labor suggest that a more appropriate ap- government will not accept the amendment. proach to these problems is a carve-out, us- Question put: ing regulation of those industry sectors That the amendment (Senator Stephens’s) be where there is a real and substantial problem, agreed to. instead of the blanket approach of removing The committee divided. [6.18 p.m.] the reporting requirement from all employ- ers. This is a reasonable and sensible ap- (The Chairman—Senator J.J. Hogg) proach which I note that the minister has said Ayes………… 34 will not be supported by the government. Noes………… 29 It is hypocritical of the government and Majority……… 5 some industry associations who have made submissions to complain about additional AYES paperwork and costs for business, when the Allison, L.F. Bartlett, A.J.J. introduction of so-called fund choice on Bishop, T.M. Brown, B.J. 1 July 2005 will lead to a far greater increase Buckland, G. * Campbell, G. in paperwork and costs than the measure Carr, K.J. Cherry, J.C. Collins, J.M.A. Conroy, S.M. under consideration in this amendment. Crossin, P.M. Denman, K.J. Quarterly payments were introduced for a Faulkner, J.P. Forshaw, M.G. number of reasons, one of which was Greig, B. Harradine, B. safety—a consumer protection measure in Hogg, J.J. Kirk, L. anticipation of the proposed introduction of a Lees, M.H. Ludwig, J.W. fund choice regime. There are significant Lundy, K.A. Mackay, S.M. nonpayment problems in relation to superan- Marshall, G. McLucas, J.E. Moore, C. Murphy, S.M. nuation guarantees, and often the problem is Murray, A.J.M. Nettle, K. not identified until the business concerned is O’Brien, K.W.K. Ray, R.F. bankrupt or in the hands of a liquidator. Ridgeway, A.D. Stephens, U. Whilst it is difficult to obtain an accurate Webber, R. Wong, P. number of the superannuation guarantee NOES payment defaults on business failure, it cer- Abetz, E. Barnett, G. tainly is, as I said before, in the tens of thou- Boswell, R.L.D. Brandis, G.H. sands each year. Many workers have lost Calvert, P.H. Campbell, I.G. years of superannuation in those circum- Chapman, H.G.P. Colbeck, R. stances, and they are the workers who can Coonan, H.L. Eggleston, A. * least afford to do so. Ellison, C.M. Ferguson, A.B. Ferris, J.M. Fifield, M.P. At the very least, a regular reporting Heffernan, W. Humphries, G. mechanism should be provided to facilitate Johnston, D. Kemp, C.R. the identification of defaulting employers Lightfoot, P.R. Macdonald, J.A.L.

CHAMBER 96 SENATE Tuesday, 7 December 2004

McGauran, J.J.J. Minchin, N.H. closing comments that this is a requirement Patterson, K.C. Santoro, S. of award legislation and of state payroll leg- Scullion, N.G. Tchen, T. islation. As I pointed out in my speech in the Troeth, J.M. Vanstone, A.E. second reading debate, there are holes in that Watson, J.O.W. reporting system. In respect of the award PAIRS system, because of the award simplification Bolkus, N. Tierney, J.W. process many awards no longer include Cook, P.F.S. Knowles, S.C. clauses requiring the actual notification of Evans, C.V. Macdonald, I. payment of superannuation. In particular, the Hutchins, S.P. Payne, M.A. Sherry, N.J. Mason, B.J. award only requires the pay slip to include Stott Despoja, N. Hill, R.M. the information where the award clause actu- * denotes teller ally says that. I would have thought that the Question agreed to. vast majority of employees who are covered Senator CHERRY (Queensland) (6.23 by the workplace relations system are not p.m.)—I move Democrat amendment (1) on covered by a requirement in the award clause sheet 4473: that superannuation contributions and the (1) Schedule 1, item 1, page 3 (lines 6 and 7), award fund be included. omit the item, substitute: The minister also pointed to state legisla- 1 After subsection 23A(2) tion about payroll payments. It is worth not- Insert: ing again that New South Wales, South Aus- (2A) A report prepared in accordance with tralia and Queensland are required to contain subsection (2) can be in the form of: certain information about contributions but (a) pay advice; or they do not include information about the (b) letter; or fund to which the contributions are to be (c) any form in which the information paid. So we have a significant hole in the can be communicated effectively to award system in that it only requires the in- the employee. formation be included in the pay system if This particular clause seeks to broaden the the award clause actually says that that is the flexibility of the reporting requirement on case. We have a significant problem with quarterly superannuation. In particular, it state legislation in that three states that have seeks to ensure that reporting to an employee reporting of superannuation do not require through a pay slip is deemed to be compli- the fund to go on the pay slip. ance with this legislation. What that means is What we are simply saying in relation to that an employee will actually be told either the minister’s comments about ensuring that through a letter from their employer or the reporting be done through pay slips is: through some other form, as the act currently ‘Okay, fine—if they do report through pay requires, or by their pay slip, into what fund slips then they are deemed to meet this re- their superannuation is going. porting requirement,’ so that there are no This puts into place very formally the holes in the system. Pick it up through pay provisions which the minister was speaking slips and it is done. If the award clause says about in her comments earlier and which are you must report it through pay slips then, also included in the explanatory memoran- fine, you comply with the legislation. If state dum, where it says that there are require- legislation requires you to do it, fine, you ments that allow for superannuation to be comply with legislation. If they do not, then reported in pay slips. The minister said in her either you do it through a pay slip or you

CHAMBER Tuesday, 7 December 2004 SENATE 97 give the employee a letter or some other Senator CHERRY (Queensland) (6.28 form of communication. I commend this p.m.)—I intend dividing on this question and amendment in particular to the Labor Party, I was proposing to do that at 7.30, when we because it is your policy. I will read out the return after the dinner break. Would the min- policy released by Nick Sherry and Simon ister give me a little more information? In Crean in November last year: terms of the claim in the explanatory memo- All contributions, made by either the employer or randum that reporting through pay slips is the employee, are included on an employee’s pay covered by provisions in Australian work- slip at the time of payment. place legislation and also through state legis- Employers are already required to report SG con- lation, would she acknowledge that both of tributions made on behalf of an employer to ac- those reporting requirements have holes and cumulation funds within 30 days of the contribu- that a significant part of the work force does tions being made. Labor will extend this to re- not receive that information through pay quire reporting of all contributions made to an slips? accumulation fund through an employer. Sitting suspended from 6.29 p.m. to The Labor Party said that this was important 7.30 p.m. to protect superannuation fund members and to ensure that they knew where their super- The TEMPORARY CHAIRMAN annuation was going. So this amendment we (Senator Bolkus)—The question is that the are moving today is the Labor Party’s policy Democrat amendment be agreed to. at the last federal election. It is also the intent Question agreed to. of what is expressed in the explanatory Bill, as amended, agreed to. memorandum. From that point of view, I Bill reported with amendments; report commend it to the Senate. I think it is an im- adopted. portant amendment and I hope that the Sen- ate supports it. In moving this amendment I Third Reading ask the minister whether she will acknowl- Senator COONAN (New South Wales— edge that there are holes in the award system Minister for Communications, Information where the award does not include a clause Technology and the Arts) (7.31 p.m.)—I requiring information in respect of payment move: of superannuation and whether she also rec- That this bill be now read a third time. ognises the hole in respect of state legislation Question agreed to. in that it does not require the fund to be Bill read a third time. noted on pay slips? COPYRIGHT LEGISLATION Senator COONAN (New South Wales— AMENDMENT BILL 2004 Minister for Communications, Information Technology and the Arts) (6.27 p.m.)—Very Second Reading briefly, the government takes the view that Debate resumed from 30 November, on Senator Cherry’s amendment is redundant, motion by Senator Ellison: that it does not provide any additional flexi- That this bill be now read a second time. bility relative to the current law and, finally, (Quorum formed) that it does nothing to reduce employer com- pliance costs. Given the time, I will confine Senator CONROY (Victoria) (7.34 my comments to saying that the government p.m.)—Mr Acting Deputy President, you does not support it. would recall the debate we had in this cham-

CHAMBER 98 SENATE Tuesday, 7 December 2004 ber back in August for the passage of the United States Free Trade Agreement Australia-United States free trade agreement. Implementation (USFTAI) Act; During that debate Labor amended the FTA (ii) with concern, that this Bill has the bills. Those amendments were necessary to potential to enable persons other ensure the FTA did not undermine our Phar- than copyright owners or exclusive maceutical Benefits Scheme and to protect licencees to force an internet service provider to take down allegedly in- local Australian content on television. There fringing copyright material from was great controversy at the time about La- their system and that this potential bor’s amendments in regard to the PBS. The new ground for ISP liability is not Prime Minister said they would be unwork- contained in the USFTAI Act; able, they were a mistake, they were not con- (iii) that this Bill was sent to the Legal sistent with the spirit of the agreement and and Constitutional Committee they would cause us great problems with the which heard evidence that the Bill Americans; Labor was trying to sink the may disrupt the balance of interests FTA. That was what the Prime Minister was between copyright owners, users suggesting. If the FTA failed to come to frui- and internet service providers; tion because of Labor’s amendments it (iv) that the Government intends to re- would be Labor’s fault. spond to these concerns through Regulations that will flesh out legis- We are debating this Copyright Legisla- lative safe harbour provisions and tion Amendment Bill 2004 today not because will consult with stakeholders in the of any mistake on the part of the Labor Party, preparation of these provisions; not because Labor’s PBS amendments have (v) the commitment by the Government threatened to prevent the US FTA being im- to keep implementation of the safe plemented—no, not at all. Rather, this bill is harbour scheme under close review necessary to address this government’s in- and, as necessary, consult with competence. This bill is required to address stakeholders on any issues that may all of the mistakes that the government made arise, including appropriate re- in its US FTA implementation bill, although sponses; it also appears to go further than that. It was (vi) that Labor’s amendments to the not Labor’s amendments that threatened the Australia-US FTA are not contrary to the terms of the FTA, our interna- US FTA. It was the government’s incompe- tional obligations under WTO tence, the government’s mistakes, the gov- TRIPs and are not referred to in this ernment‘s failure to correctly amend Austra- Bill; lian law to ensure that we complied with our (vii) with concern, that the diplomatic obligations under the US free trade agree- note of exchange from the US refers ment. Accordingly, in light of the govern- to Labor’s amendments and the ment’s failure, I move the following amend- Senate therefore calls on the Gov- ment to the motion for the second reading of ernment not to weaken in response this bill: to US pressure and to reaffirm its commitment to Labor’s amendments At the end of the motion, add: to protect the pharmaceutical bene- “but the Senate: fits scheme and local Australian (a) notes: content for television; and (i) with concern, the failure of the Gov- (b) calls on the Government to restate ernment to previously correctly im- its view that Australia has a different plement its obligations under the

CHAMBER Tuesday, 7 December 2004 SENATE 99

approach to the US on the criminali- pact of these amendments. It was for these sation of pirated satellite signals in reasons that Labor sent this bill to the Senate the home and to therefore give an Legal and Constitution Affairs Legislation explanation of its commitment to the Committee for examination. Just as Labor US to undertake a review of Austra- had to establish a Senate Select Committee lia’s domestic policy relating to criminalisation of all forms of satel- on the US FTA to give the public the oppor- lite signal piracy, including unau- tunity to have their say on the FTA, Labor thorised distribution or receipt of was required to refer this bill for examination signals by commercial establish- by committee. ments and within the home, that At the hearing of the committee held last shall conclude no later than 1 July night, the Australian Film Industry Coalition 2005”. advised that the arrangements in the bill do The government says that this bill is neces- ensure a fair balance between owners and sary to make various minor and clarifying users. These arrangements are essential, they amendments to the Copyright Act and the US suggested, to ensure artists, performers and FTA Implementation Act. These amendments owners of copyright are adequately rewarded are not minor and clarifying. Indeed, items for their efforts. These are very valid points. 11 and 13 of the bill that address the copy- However, it was also suggested that there are right obligations of Internet service providers major problems with the bill. In particular, it have, we understand, appeared without con- will undermine the FTA safe harbour sultation with the Internet industry and come scheme, removing immunity for ISPs who as a complete surprise. The text of the FTA act in good faith under the new arrangement commits Australia to a scheme for determin- and remove important protections for ISPs’ ing ISP liability based on the safe harbour customers. Internet users may no longer be concept—that is, if they meet certain condi- able to prevent their legitimate material from tions, ISPs will not be liable for breaches of being taken down. copyright that may occur on their network by The committee heard evidence that these users. The text of the FTA is broad. ISPs may new provisions go further than Australia’s be liable if: obligations required by the FTA. If we are to ... they fail to act expeditiously to remove or dis- encourage the development of a knowledge able access to the copyright material once they based economy in Australia, this is not the become aware that the material/s infringing, or become ‘aware of facts or circumstances from way to do it. If we are to encourage an open which the infringement was apparent’. and free flow of information across the Internet, this is not the way to do it. Officials The government’s FTA implementing legis- from the Attorney-General’s Department lation apparently did not adequately reflect advised the committee that many of the con- this requirement. This bill therefore sets out cerns raised by ISPs would be addressed in further conditions that ISPs will have to meet accompanying regulations. However, these to access the safe harbour. The bill raises regulations have not yet been made avail- complex issues affecting the balance of able. The Senate is not in a position to scru- rights between copyright owners, copyright tinise them. users and ISPs. We are, once again, put in a position of as- The Australian Digital Alliance and the sessing legislation without the accompanying Internet Industry of Australia have expressed regulations that will affect the operation and considerable concern about the potential im-

CHAMBER 100 SENATE Tuesday, 7 December 2004 impact of the legislation. Notwithstanding The US goes on to: the inadequacy of this arrangement, Labor ... urge the Australian government to review this accept an assurance received today from matter, particularly in light of Australia’s interna- Minister Vaile that the concerns of ISPs and tional obligations. copyright users will be resolved through Labor’s amendments to protect the PBS, regulations. The government has made it were developed on the basis of sound legal quite clear that these regulations will flesh advice, released publicly, fully scrutinised out the legislative safe harbour provisions and supported by the accompanying legal and the rights and obligations of copyright counsel advice. No such advice was released owners, users and ISPs. Labor also take as- by the government to support their argument surance from Minister Vaile’s commitment that Labor’s amendments may have contra- that: vened the deal. Nor has the US released any ... the Government will keep implementation of advice to support its claims. the scheme under close review and, as necessary The government supported Labor’s will consult with stakeholders on any issues that amendments. It is therefore the responsibility may arise, including appropriate responses. of the government to recommit to those Mr Acting Deputy President, I seek leave to amendments and to push back on any US table the letter that the shadow trade minister attempts to challenge those amendments in received today from Minister Vaile, as it is the future. It is incumbent upon, and the re- the intention of the shadow minister to table sponsibility of, the government to respond the letter in the other place. robustly if the US were to challenge Labor’s Leave granted. amendments at some point in the future. Senator CONROY—The exchange of Those amendments were based on sound diplomatic notes between Australia and the legal advice. They were supported by the US on 17 November was the final step be- government and passed by the parliament. tween our two countries to bring the FTA They were necessary to protect the PBS and into force on 1 January 2005. The content of must not be diminished in any way by any those letters was very instructive for the ref- future action the US—or the government— erences that have been made to key areas of may take. Australian public policy. The government The US has made it clear that the ex- appears to have made further commitments change of letters between Australia and the to the US on key areas of public policy with- US enabling the FTA to come into force on out adequate—indeed any—consultation 1 January was dependent upon this bill suc- with Australian stakeholders. Notwithstand- cessfully passing through this parliament. ing Labor’s rock solid legal advice that our This raises a very serious concern. Once amendments to the PBS are compliant with again, we are confronted by this govern- the text of the FTA and our obligations under ment’s continuing arrogance and lack of re- the WTO TRIPs agreement, the US has ex- spect for the authority of this parliament. The pressed concern in their letter. Specifically, parliament is not here merely to rubber the US has said Labor’s amendments: stamp decisions of the executive. Once ... impose a potentially significant, unjustifiable, again, the Senate is being presented with a and discriminatory burden on the enjoyment of bill as a fait accompli. The bill was devel- patent rights, specifically on owners of pharma- oped in full consultation with the US to en- ceutical patents. sure that they were satisfied with the laws

CHAMBER Tuesday, 7 December 2004 SENATE 101 that this government intended to introduce. I rise this evening to speak to the Copyright Leg- Minister Vaile attached a copy of this bill to islation Amendment Bill 2004. his letter to Ambassador Zoellick. The gov- I would like to begin by saying that, in my view, ernment consulted the US—a stakeholder in we should not be dealing with this Bill today. the FTA, but another country. The govern- This is an immensely complex Bill, which will ment consulted with the US on the contents have a major impact on Australian copyright in- of key elements of this bill before consulting dustries. The Senate is being asked to enact this Bill without due consideration, without taking a fully with its own citizens, its own stake- thorough look at these provisions and working holders. We have again been presented with out what their impact will be. This is a house of another signed and sealed deal with accom- scrutiny, and the opportunity for scrutiny is being panying legislation that the parliament must denied. rubber stamp. The question of liability for Carriage Service For these reasons Labor is committed to Providers is the most talked-of example, but the introducing a new mechanism for parliamen- fact remains that there are many other problems tary scrutiny of free trade agreements. Prior with this Bill as well. The Parliamentary Library to commencing negotiations for bilateral or Briefing—which was released only this morn- regional free trade agreements, a Labor gov- ing—raises a number of other issues that need to be considered. Will the test for ‘temporary repro- ernment will table in both houses of parlia- ductions’ cause confusion within Australian law? ment a document setting out its priorities and Will there be unintended consequences? Could objectives. This will include an assessment the provisions with respect to the definition of of the costs and benefits of any proposals ‘profit’ be drafted more clearly? Why has the that may be negotiated. Once the negotiation non-commercial end use of encoded broadcast not is complete, the government will table in been included in this Bill, when it is clearly re- parliament a package including the proposed quired by the FTA? These questions, and many treaty, together with any legislation required more, need to be examined thoroughly by a Sen- to implement the treaty domestically. Labor ate Committee. is committed to giving the Australian public Delaying this Bill will NOT invalidate the US an effective democratic and transparent Free Trade Agreement. The Agreement has been process to review any FTA being negotiated signed, the letters have been exchanged. The deal WILL come into force on 1 January irrespective to ensure it is in Australia’s national interest. of what is decided here today. No matter what our Labor will not conduct FTA negotiations in Minister has agreed to with the US behind closed the secret manner pursued by this govern- doors, no matter what compromises have been ment. This government’s arrogance and con- made or concessions offered, this Parliament has tempt for the parliament is unacceptable and a right to do its job properly. must not be allowed to continue. The events of this week do not constitute the Sen- Senator NETTLE (New South Wales) ate doing its job properly. The Government re- (7.46 p.m.)—I seek leave to incorporate leased the text of the Bill only days ago, after Senator Ridgeway’s contribution to the sec- what seems like only the most cursory of consul- tations with Industry. The Minister describes the ond reading debate on the Copyright Legisla- Bill as making ‘minor and technical’ amend- tion Amendment Bill 2004. ments, a claim that is patently false. We then find Leave granted. out that the Senator RIDGEWAY (New South Wales) Industry was consulted on a version of the Bill (7.46 p.m.)—The incorporated speech read that didn’t even include the most controversial as follows— provisions. They were sneaked in at the last mo-

CHAMBER 102 SENATE Tuesday, 7 December 2004 ment. These are not the actions of a Government sions before now, that is not the Senate’s fault. who has nothing to hide. We have to do our job properly, and it is for that What has been promised to the US that we don’t reason that I will be proposing a second reading know about? I can only wonder. amendment that will refer this Bill to the Senate Legal and Constitutional Affairs Committee for a Then the Senate refuses to exempt this highly full and proper Inquiry after the second reading technical, extremely complicated Bill from the stage. cut-off. The Selection of Bills committee holds an extraordinary meeting to refer this Bill to a spe- As we discussed in August, the IP chapter of the cial committee—with a 24 hour reporting dead- Agreement is the most significant—with the most line. The Legal and Constitutional Affairs Legis- far-reaching reforms which will have a direct and lation Committee met for two hours last night. serious impact on Australian innovative indus- Two hours! The provisions of the Bill are so tries. Some of these changes, such as the ratifica- complex that the first witnesses—who had only tion of the WIPO treaty, are positive reforms. been allotted 25 minutes to give evidence—were However, aspects of the chapter relating to exten- kept before the Committee for a full hour. Even sion of the copyright term, provisions relating to then, they were asked to provide substantial anti-circumvention devices, and liability of ISPs amounts of further evidence on notice. The same relating to copyright infringement are very dan- story followed for the second and third witnesses. gerous developments. By the time we got to the Attorney-General’s We are changing the future of Australian copy- Department and DFAT witnesses, only FIFTEEN right law through a trade agreement, rather than minutes were available for questioning. Needless through thorough, reasoned, considered debate to say, the Committee did not get the answers it here in our own country about how we want our was looking for. In fact, I would go so far as to future media landscape to be structured. These say that the hearing raised more questions than it changes are being implemented for strategic po- answered. litical and trade objectives, as items to be horse- The Committee doesn’t even have time to issue a traded in negotiations—a compromise here, a report. No, instead we are tabling the Hansard, as concession there—rather than with an eye to what if that proves that there was a process of scrutiny is best for Australia. This is an unacceptable way undertaken at any point. What anyone who reads to go about policy development. These commit- this Hansard will find is that last night’s hearing ments have been locked in, with no opportunity was confusing and dealing with very complicated for the Australian people to have their own say. matters. Each Senator on that Committee, both The fact remains, however, that even IF we sup- Government and non-Government expressed their ported the USFTA, the specific provisions of this incredulity that the provisions of this Bill clearly Bill are sufficiently controversial that the Bill go beyond the requirements of the Free Trade should be opposed in its own right. Agreement. I want to spend a moment discussing the various Why are we being asked to enact these shock- sections of the Bill, and the potential problems ingly onerous provisions, that may arise. Then I will turn to the most con- when the FTA doesn’t even ask us to? Why are troversial aspect of the Bill, and that is the provi- we being asked to scuttle the internet industry in sions relating to Carriage Service Provider liabil- Australia, when we are not required to by the ity. Agreement, and in fact, what we are proposing This Bill amends the wording of the general ex- goes WAY beyond what the US has imposed in its ception for the making of temporary reproduc- own country! tions. However, under these provisions, the pro- This Bill is a mess. It needs to be thoroughly con- tection from infringement would only apply to sidered and debated, not rushed through this place temporary reproductions made as a necessary part in the final week of sitting. If the Government of a technical process of use. The problems with couldn’t get its act together to draft these provi- this test lies in the definition of the terms ‘tempo- rary’ and ‘necessary’—a matter I had intended to

CHAMBER Tuesday, 7 December 2004 SENATE 103 pursue further at the third reading stage, but given service providers, Category C and D apply mainly that this Bill now has Opposition support, we to Internet Service Providers (ISPs). have made the judgement call that there will be The new aspects of the ‘financial benefit’ test are no point us bringing up these very important mat- problematic in themselves, but given that I only ters. have a short time here today, I will defer further The Bill also amends the criminal offence provi- discussion of this matter. sions of the Copyright Act, to do with making I want to focus instead on the provisions of this infringing copies of copyright material to obtain Bill that establish that mere awareness of cate- profit. It changes the test that is required to be gory ‘C’ or ‘D’ activities creates liability. These met to prove that profit has been obtained. Rather are the most controversial aspects of this Bill. than simply replacing one version of the test with the version mandated by the FTA, the Govern- Under AUSFTA, the awareness test is linked to the process for notification of infringement. This ment is seeking to implement an ‘either/or’ test, which may produce some unexpected results as process provides a system for copyright owners to send `take-down notices’ informing ISPs of copy- courts try to grapple with the differences between the two elements. right infringements across their network. It also provides an opportunity for the alleged infringer The Bill also criminalises the showing of illegally to provide a counter-notice refuting the allegation. obtained encoded broadcast material (such as Different obligations arise for ISPs depending on subscription television or radio) for commercial the nature of the take-down notice and whether a advantage or profit. However, the Bill does not counter-notice is received. Also, AUSFTA re- provide a criminal offence for the non- quires that monetary remedies be available commercial (that is, personal) end-use of infring- against people providing false information in ing broadcasts, which is clearly required by the notices and counter-notices. In the original Agreement. The United States’ view that Austra- USFTAI Bill, this ground of liability was going to lia has not complied with AUSFTA is almost cer- be established by regulation, together with the tainly correct. While the Australian provisions specifics of the ‘take down notice’ system as it fulfil this requirement for commercial purposes, will operate in practice. the question of personal use has been ignored completely. Why the Government would deliber- There were serious concerns about the potential effect of this system in the original USFTAI Act, ately choose to avoid implementing the FTA in this case is a mystery. although some players in the industry were con- tent that the scheme provided for a fair balance of The USFTAI Act established a new regime for the rights and obligations of copyright owners, determining when Carriage Service Providers ISPs and copyright users. (businesses that provide internet or telecommuni- However, this new Bill goes even further than the cations services) might be liable for copyright infringements by users over the CSP’s network or original Act, and upsets this balance. Under the new provisions, ISPs must take material down if service. The effect of the existing CSP provisions they are aware that material is infringing, or if is to create a ‘safe harbour’ of conditions where a CSP can avoid liability if certain criteria are ful- they are ‘aware of facts or circumstances that make it apparent the material is likely to be in- filled or certain processes are followed. This Bill amends the USFTAI Act tests for ‘financial bene- fringing’. This removes the copyright owner from the equation, and places the entire responsibility fit’ and ‘awareness’ that determine whether a CSP has ‘safe harbour’ protection. for enforcing the scheme onto ISPs. ISPs will be required to take action on even the slightest sus- The new provisions relate to ‘Category C and D’ picion that a copyright infringement may have activities—which relate to hosting websites that occurred. may contain copyright infringing material, or ISPs will be responsible for making decisions on linking to sites that contain copyright infringing material. While the Bill applies to all ‘carriage’ infringement or not—and their liability is at stake. The onus will be on the ISP to err on the side of

CHAMBER 104 SENATE Tuesday, 7 December 2004 extreme caution—taking all suspect material As I discussed earlier, I firmly believe that we down to avoid liability from legal action by copy- should not be dealing with this Bill at this time. I right owners. However, if they do take material had intended to move a Second Reading Amend- down which is later proven not to have infringed ment to refer this Bill to a Committee for thor- copyright, the copyright user will be able to sue ough consideration before the Senate is asked to for damages. deal with it any further. However, the Opposition We have not yet seen a copy of the proposed has indicated that they will not support our pro- regulations that will provide the detail of how this posed amendment, so we have elected not to scheme will operate in practice. The Senate is move it. I must say, I am very disappointed with being asked to enact the punitive aspect of this the Labor Party in this matter. Not content simply test, but with no detail of any checks and balances with letting the FTA through in August—albeit that may be provided in the regulations. This is with token amendments that will achieve very unacceptable—and yet another reason why con- little—they are now going to let through a bill sideration of this Bill should be delayed—we that they actually KNOW will do significant must see the proposed Regulations before this harm. We had also prepared amendments that Bill can be passed. would have removed Items 11 and 13 from the Bill, which would have enabled us to still imple- In his second reading speech, the Minister ment the terms of the FTA, but refrain from doing claimed that industry had been consulted on this real damage to the Australian internet industry, Bill, and were satisfied with its provisions. How- but the Labor Party has rolled over. ever, this has been shown to be false. Representa- tives of the internet Industry Association have Why are we even here for the next six months? It publicly expressed their deep concern about this seems to me that the Government doesn’t need to new test. While they were consulted on an earlier wait until July 2005 to gain control of the Sen- version of the Bill, these new provisions have ate—they already have it. The ALP is willing to been included in the final Bill without any consul- let anything get through this place—even when tation at all. The IIA are supported by the Austra- they know full well that they are condemning lian Digital Alliance and the Australian Vice sectors of Australian industry to ambiguity, con- Chancellor’s Committee in their opposition to fusion, and unquantifiable harm. these provisions. I would like to end by recording my apologies to So far, the Attorney-General and Trade Minister the Industry representatives who worked so hard have not been forthcoming with convincing ex- to bring us up to speed on this Bill so quickly—I planations as to why these provisions are neces- thank them for their assistance, and express my sary. They are not required by the AUSFTA, they regrets that we weren’t able to achieve a better go further than the USA’s own system under the result. Digital Millennium Copyright Act, and will create Senator NETTLE (New South Wales) major burdens on Australian ISPs. (7.46 p.m.)—The US-Australia free trade This Bill is a mess. While parts of it may be in- agreement is a disaster for Australia’s econ- terpreted as enacting the AUSFTA more effec- omy, culture and society. The impact of the tively (not that this is a good thing!), other parts agreement is even clearer with this Copy- go far further than the FTA, and others still stop right Legislation Amendment Bill 2004, short of implementing the deal at all. We have no which will further transform Australia’s in- idea what has been agreed behind closed doors tellectual property law to align it with the between Vaile and Zoellick, and whether com- promises have been made in regard to the IP worst aspects of the US copyright law. It was chapter of the Agreement to make up for conces- clear from the beginning of the negotiations sions to do with pharmaceuticals. The Bill cannot that, despite government claims, any agree- be supported, and at the very least must be ment reached on the trade agreement would amended to overcome the more onerous aspects benefit US corporations at the expense of of its provisions. Australian industry, workers and consumers.

CHAMBER Tuesday, 7 December 2004 SENATE 105

The final deal was a dud for Australian agri- those in the Singapore and Chile free trade culture and manufacturing industry and agreements. They are part of an ongoing traded away important regulation of access agenda of the United States to push through to cheap medicines and intellectual property. bilateral trade agreements that enhance the Earlier this year the government, with the control and ownership of US corporations in support of the opposition, rammed through the IT and entertainment industry. the implementing legislation for the deal, The US wanted these changes, because despite widespread public opposition to the according to a new book by trade experts agreement. We now know that even the weak Linda Weiss, Elizabeth Thurbon and John amendments passed by the Senate regarding Mattews: the evergreening of pharmaceutical patents The intellectual property protected sector is are likely to be challenged by the United now by some accounts the largest sector of the States. US Trade Ambassador Zoellick, in his entire US economy. Everything from life forms to recent letter to the Minister for Trade, Mark movies is covered in this sector. Its exports now Vaile, released by the government last week, exceed the exports of automobile, automobile states: parts, agricultural and aircraft industries com- bined. This is the real reason for the US concern If subsequent practice reveals problems with the to extend and strengthen IP rights. The copyright- full exercise of US rights I have discussed above, protected sector on its own—covering films, TV Australia should expect that we will take appro- programs, home video, digital video-discs, busi- priate remedial action. ness and entertainment software—was estimated This is exactly the danger the Greens and to be worth 5.2 per cent of US GDP in 2001, other critics of the trade agreement warned US$535 billion. In the same year, this sector of. The US will use the agreement as a stick achieved foreign sales of US$89 billion, making with which to break open the Pharmaceutical it the leading export sector in the United States ... Benefits Scheme, undermine generics and Thus in the area of intellectual property, the US has a very definite agenda backed by very real force up the price of medicines for sick Aus- economic interests. tralians—all this so that big US pharmaceu- tical corporations can boost their profits. The US Free Trade Agreement Implementa- tion Act 2004 implemented this agenda in While there has been a lot of debate about Australian law: for example, extending the the PBS and the cultural components of the life of copyright from 50 to 70 years, the so- free trade agreement, in many ways some of called ‘Disney’ clause. The Greens opposed the key issues in the agreement have not this legislation and the IP component of this been properly explored yet. While the gov- legislation not only because it increased the ernment claims the agreement is about free powers of US corporations but also because trade, this intellectual property component of it did not even include some of the few pro- the trade agreement—the harmonising of our tections that do exist in the United States for laws with the US intellectual property users and consumers in the form of fair use laws—means less free trade and more gov- and the free speech provisions that exist in ernment enforcement of private monopoly the US constitution. The Australian Libraries rights. Chapter 17 of the free trade agree- Copyright Committee explained at the time: ment covers trademarks, patents and copy- right. Most of the clauses on intellectual The detrimental consequences of this will be felt broadly amongst educational, consumer, cul- property reproduce those in the United States tural and research institutions. Without expansion Digital Millennium Copyright Act 1998 and of the fair dealing provisions to balance the

CHAMBER 106 SENATE Tuesday, 7 December 2004 stronger copyright owner rights, institutions func- ernment to agree to them—will go far further tioning for the benefit of the public, will bear the than international agreements. They will set burden of a longer copyright term, more stringent a new benchmark for the United States when copyright owner rights, and tougher penalties for it comes to their negotiations either with bi- incidental, minor and non-commercial breaches lateral agreements or with multilateral of Copyright. This will expose institutions to greater costs and greater risks. Ultimately this agreements. will adversely affect the end users of these institu- The government claim that the changes tions, who will not be able to access the same contained in this bill are merely technical or level of knowledge via copyrighted material. minor. But that is not what the industry The agreement in the legislation also went groups or consumer groups are saying. well beyond what Australia had even signed Groups as diverse as Optus, Telstra, libraries, on to in the highly criticised WTO agreement universities and the Australian Consumers on trade related aspects of intellectual prop- Association are all very concerned by the erty rights, known as TRIPS. Australia and proposals put forward in this legislation. In Australians will not benefit from these laws particular, changes which will effectively if they come into force on 1 July next year. remove the safe harbour provisions that were Australia already has a balance of payments introduced in the earlier legislation, the im- deficit when it comes to intellectual property. plementing bill, mean that diversity on the We are a net importer of ideas and technol- Internet will be threatened. ogy and our payments of royalties to foreign The bill includes provisions which will do companies exceed our income in 2002 by a range of different things. They will broaden more than $A1 billion. Thanks to the How- the scope of offences to which criminal pro- ard government we now have some of the visions apply to commercial piracy that does most unbalanced and restrictive intellectual not occur in a trade context and strengthen property laws in the world, with holders or the criminal regime for business end-user owners of copyright—that is, primarily big piracy, increase the obligation of copyright business—holding all of the cards at the ex- users to go behind the person or corporation pense of users and consumers such as librar- named on the item to find out if there are ies, universities, Australian industry and or- additional copyright owners, narrow the dinary consumers. scope of the incidental copies exception to But post the election in United States the temporary copies made as a necessary part of US has come back for more. The Minister using a copy of the work and limit the transi- for Trade, Mark Vaile, has caved in yet tion period in which copyright users can again, agreeing to changes to Australia’s in- claim compensation due to the extension of tellectual property law that go even further copyright from 50 to 70 years. But the provi- than international agreements and even fur- sions that the Greens and community groups ther than the US law in protecting the US are particularly concerned about regard the corporate owners of intellectual property at liabilities of Internet service providers, and the expense of users and consumers. Why? these are complainants whom we believe can The US are going to do whatever they can have the greatest impact. However, other get away with in terms of furthering their industry groups have been pointing out con- own agenda, and it seems that the Howard cerns about other parts of this legislation as government are all too willing to cooperate. well. The clauses contained in the bill—and the US has managed to get the Australian gov-

CHAMBER Tuesday, 7 December 2004 SENATE 107

Changes to copyright law forced by the notices and claims which have meant that US free trade agreement made earlier in the Internet service providers are forced into year imported from the US the so-called safe taking off line web sites and services rather harbour scheme for Internet service provid- than risking potential legal action. ers. This scheme meant that ISPs, the Inter- The key problem with these items is that net service providers, that operated within they force ISPs to take action regardless of the guidelines and the requirements of the the substance of the claim, or risk legal ac- safe harbour would not be subject to liability tion. Claims can be spurious and unfounded for infringing copyright from materials yet, because they are not tested in a court through the hosting of a user’s web sites or prior to the ISP needing to take action, they services. This included the transmission of are wide open to abuse. Some ISPs have infringing material, the caching of material, been served with tens of thousands of take- the hosting of web sites with infringing ma- down notices. Often these notices are auto- terial and the linking to infringing material. matically generated by software which Internet service providers under the exist- searches the Internet for potential infringe- ing legislation must still remove infringing ments. According to the Internet Industry material if they have actual knowledge of an Association, which represents a range of in- infringement, but they are not required to dustry players including Optus and Telstra monitor their web sites and servers for in- through to the smaller IT companies, this bill fringing material. For example, if they re- will cause huge problems. They say, ‘Internet ceive a court order requiring them take down service providers will be caught between a material, they need to comply. But they do “rock and a hard place”—liable to copyright not need to go looking for that material on owners if we don’t act, liable to customers if their sites. However, items 11 and 13 con- we do.’ The careful balance of the rights of tained in this bill will mean that the safe har- copyright owners, users and ISPs is severely bour provisions will go out the window. Item undermined. 11 and item 13 of the bill will have a signifi- The Electronic Frontiers Foundation, EFF, cant and detrimental effect on the Australian a leading advocate for organising Internet IT industry and, more importantly, on ordi- rights and freedoms, have compiled a list of nary consumers and users of the Internet. examples of some of the abuses that have Item 11, which is the same as item 13, states: occurred under similar provisions in the US The carriage service provider must act expedi- Digital Millennium Copyright Act. This has tiously to remove or disable access to a reference meant that information in the public domain residing on its system or network if the carriage has been taken down. For example, Wal- service provider: Mart have used take-down provisions to stop (a) becomes aware that the copyright material to web sites occurring that compare their prices which it refers is infringing; or— to the prices of their competitors; the Church and this is particularly concerning— of Scientology have served take-downs on (b) becomes aware of facts or circumstances that web sites that host articles critical of the make it apparent that the copyright material to Church of Scientology; and the owners of which it refers is likely to be infringing. trademarks have tried to use take-downs Similar clauses in the Digital Millennium against their competitors. Copyright Act 1998 in the United States have The number of notices served on one led to a burgeoning industry of take-down company can often, as I said before, number

CHAMBER 108 SENATE Tuesday, 7 December 2004 in the thousands or, indeed, the tens of thou- could also be used politically with, for ex- sands. A conference was held at the Univer- ample, a take-down notice being served on sity of New South Wales in April this year, at the ISP of a political opponent’s web site. which Sarah Deutsch, from Verizon, a major The result, even if only temporary, could American ISP, told the symposium: mean that the web site would be off line for A US ISP received from January to today— weeks. It could, for example, be at a crucial that is, from January until the end of April or important point in an election campaign. this year— The effect is a reduction in diversity and freedom of speech on the Internet and a huge over 30,000 notices, only two of them actually impost on Australian IT’s small and large related to materials that were on its system of network. So these were all non-compliant notices business. and in the past 12 months the same ISP— The Greens’ amendments will remove which received 30,000 notices from January from the bill the provisions which would to April— effectively shut down the safe harbour for Internet service providers in Australia. Those received over 90,000 notices. are items 11 and 13 of the bill. The effect of So this is the number of notices that we are removing these items will not prevent the talking about being automatically or other- enactment of alternative provisions in the wise—but predominantly automatically— future, so the government would be able to generated. The Australian Consumers Asso- do so by regulation, as was originally envis- ciation has described this proposed regime as aged in the legislation—certainly in the con- a ‘recipe for disaster’. They say it ‘turns sultations that occurred with the industry. Internet service providers into a policeman Hopefully, it means that government will of other people’s copyright, solely based on consult further with industry and address the some sort of assertion of ownership’. The problems these items will cause. Australian Digital Alliance, which represents libraries and universities, say that a scheme This legislation is unnecessary and unwel- such as that contained in this bill ‘has to ad- come. It will take us even further down the dress the potential for owners to send out path of the US monopoly copyright law but spurious take-down notices without reason- without the protections. In the cases I am able claim to a copyright breach’, and they talking about, it will be worse than the US have called for these clauses to be re- law. It is not at all about protecting Austra- moved—something that the Greens will ad- lian consumers and the IT industry but eve- dress in amendments. rything about helping giant US media and IT corporations. The Greens opposed the US The problem, of course, is that ISPs have free trade agreement implementing legisla- no real way of testing the claims of take- tion, and we will also be opposing this bill down notices and will always err on the side today as well as moving the amendments I of caution and immediately remove material have outlined and others that are yet to be subject to notification. They will always do circulated. We will continue to campaign in this regardless of the rights or wrongs of the support of genuine fair trade rather than free claim, because they do not want to risk the trade. We will also campaign for a better deal big legal battles that we have seen recently in for Australian industry and ordinary people cases such as the music industry’s pursuit of who are affected by such agreements, not Kazaa, the Internet file-sharing software just on the IP component of the legislation company. Of course, such take-down notices

CHAMBER Tuesday, 7 December 2004 SENATE 109 that we are talking about today but also more Senator NETTLE—As I said at the out- generally. set, the first series of questions that I have—I Senator IAN CAMPBELL (Western have a number of questions—relates to the Australia—Minister for the Environment and exchange of letters that were only laid on the Heritage) (8.04 p.m.)—I thank all senators table on Friday. They also relate to the issues for their great contributions to the Copyright that will be raised in the Australian Greens Legislation Amendment Bill 2004 . amendment on sheet 4467. The last sentence of point 6 in the first letter from Minister Question agreed to. Vaile to Bob Zoellick stated: Senator IAN CAMPBELL (Western We assure you that, through the operation of these Australia—Minister for the Environment and arrangements now and in the future, the advance Heritage) (8.04 p.m.)—by leave—I wish to notification required by section 26B(1)(b) of the record the coalition senators’ vote against the Therapeutic Goods Act will be given prior to en- second reading amendment. try into the marketplace to allow patent holders Original question, as amended, agreed to. sufficient opportunities to apply to a court for injunctive relief to prevent the entry into the mar- Bill read a second time. ketplace of potentially infringing products. In Committee Could the minister explain what the phrase Bill—by leave—taken as a whole. ‘sufficient opportunities’ in point 6 of that Senator NETTLE (New South Wales) letter means? How does the minister define (8.06 p.m.)—Firstly, I have a series of ques- the sufficient opportunities that are outlined tions for the minister that relate to the Aus- here? This is what we are working from. We tralian Greens’ first lot of amendments on had a bill. Now we have an exchange of let- sheet 4467. The first questions I have relate ters. In order to understand it, we need to be to the letters exchanged and released on Fri- clear of the intention in the exchange of let- day. The last sentence under point 6 ‘Phar- ters, because that is now the direction that is maceutical patent notification’ in the letter provided. So perhaps the minister could from Minister Vaile to Bob Zoellick reads: firstly explain ‘sufficient opportunities’. We assure you that, through the operation of these Senator IAN CAMPBELL (Western arrangements now and in the future, the advance Australia—Minister for the Environment and notification required by section 26B(1)(b) of Heritage) (8.10 p.m.)—My advice is that that the— letter is an accurate reflection of the current Senator Ian Campbell—Mr Chairman, situation and changes nothing. In other on a point of order: this bill does not in any words, the listing under the current scheme place deal with pharmaceutical patent notifi- provides sufficient notification. cations. Senator NETTLE (New South Wales) The CHAIRMAN—There is no point of (8.10 p.m.)—I am just a bit confused by the order at this stage. An amendment is not be- minister’s answer because, if the letter adds fore the chair; you are just being asked gen- nothing, why do we have it? The purpose of eral questions, Minister, as I understand it. the letters is to clarify and make clear the The bill’s title includes the words ‘and for position of the negotiated agreement between related purposes’. The connection is the US the two governments. We have the legisla- free trade agreement. I will listen closely to tion, but clearly one of the two parties in- the line of questioning for you. volved did not believe that it was adequate to deal with the issues. They have resolved fur-

CHAMBER 110 SENATE Tuesday, 7 December 2004 ther issues, and that has resulted in the ex- Senator IAN CAMPBELL (Western change of letters that were tabled in parlia- Australia—Minister for the Environment and ment yesterday. I am confused by the minis- Heritage) (8.13 p.m.)—If Senator Nettle ter’s answer that they do not add anything, turns to the next page, page 3, she will see because that raises the question: why do we that it states: have them? I do not know if the minister ... how the new notification required by Austra- wants to add anything more to that before I lian law fits into Australia’s arrangements for the go on. Therapeutic Goods Administration and Pharma- Senator IAN CAMPBELL (Western ceuticals Benefits Scheme listing processes al- Australia—Minister for the Environment and ready in place. Heritage) (8.11 p.m.)—The two countries So, once again, it is a clarification that the have separate legislative regimes and the existing law meets the requirements under letter seeks to clarify Australia’s. article 17 of the agreement. Senator NETTLE (New South Wales) Senator NETTLE (New South Wales) (8.11 p.m.)—I have quite a lot of questions (8.14 p.m.)—My understanding is that the here which go to trying to understand the first paragraph on page 3, which you directed purpose of the letters. If some questions need me to, relates to notifications regarding entry to be put on notice, I am quite happy to do into the marketplace of a potentially infring- that. I am seeking as full an explanation as I ing product, whereas the one before relates can get of the terms in the letters so that we to a request for marketing approval of a understand the implications. I quite accept product or use during the term of the patent. that the minister might not be in a position to One paragraph seems to relate to where there be able to provide those right now. I might is a belief that an infringement of the patent keep going with the questions and we will may have occurred whereas the first para- see how we go. If they need to be put on no- graph I drew the minister’s attention to does tice, that is fine. The next question relates to not mention anywhere an infringing of a pat- the letter going the other way—that is, Bob ent being a precondition to this requirement Zoellick’s letter to Minister Vaile. Again, it is existing. point 6 of the letter and again it is about Senator IAN CAMPBELL (Western pharmaceutical patents. The letter states: Australia—Minister for the Environment and Article 17.10(4) of the Agreement requires Aus- Heritage) (8.15 p.m.)—My advisers do not tralia to ‘provide measures in its marketing ap- understand the question, and nor do I. proval process to prevent’ generic producers from Senator NETTLE (New South Wales) marketing a product, or a product for an approved (8.15 p.m.)—Can you explain why the provi- use, where the product or use is covered by a sion in item 6, at the end of page 2, does not patent. It also requires Australia to ‘provide for the patent owner to be notified’ of any request for refer to a precondition that the generic prod- marketing approval of a product or use during the uct or use for which marketing approval is term of the patent. being sought infringes upon or potentially Can the minister explain what the phrase infringes upon a patent? The point that you ‘marketing approval of a product’ is intended directed us to in the second paragraph, after I to mean? I am asking the question to get first asked that question, talks about in- some understanding of the scope of this par- fringement of a patent, but this requirement ticular provision in the letter. for the notification of a request for marketing approval for a product does not seem at any

CHAMBER Tuesday, 7 December 2004 SENATE 111 point to refer to a likely infringement having Does that apply to the second part of your occurred. answer? Senator IAN CAMPBELL (Western Senator IAN CAMPBELL (Western Australia—Minister for the Environment and Australia—Minister for the Environment and Heritage) (8.16 p.m.)—I am informed that, Heritage) (8.19 p.m.)—They have to do one in relation to item 6, notification is required of two things: they have to notify the Thera- if a generic is going to market while a patent peutic Goods Administration that they be- is in place. If there is no patent in place then lieve there is no patent or, if they believe notification is not required. there is a patent, they have to notify the TGA Senator NETTLE (New South Wales) that they have notified the patent holder. It is (8.16 p.m.)—If the generic product or use for A or B. which the marketing approval is being Senator NETTLE (New South Wales) sought does not infringe or potentially in- (8.19 p.m.)—I turn now to another issue. fringe upon a patent, then why should the During the election campaign the coalition holder of the patent that relates to the generic announced a 12.5 per cent cut to the price of product be notified about an application for pharmaceuticals once a generic brand came marketing approval? onto the market. At the time I recall that Senator IAN CAMPBELL (Western there were some speculation about the Australia—Minister for the Environment and United States’s comments that they per- Heritage) (8.17 p.m.)—If there is not a pat- ceived this to be a breach of the obligations ent, there is no need to notify. that Australia had under the US free trade agreement. Can the minister outline the Aus- Senator NETTLE (New South Wales) tralian government’s view as to whether this (8.17 p.m.)—I understand that. What if there affects Australia’s obligations under the free is a patent but it is not clear whether the pat- trade agreement? ent has been infringed? Is there a require- ment to notify? I understand the concept of Senator IAN CAMPBELL (Western notifying where there is a claim that the pat- Australia—Minister for the Environment and ent has been infringed but, where the patent Heritage) (8.20 p.m.)—The Australian gov- exists but there is no belief that it is going to ernment has said that this has nothing to do be infringed, is there then a requirement to with the free trade agreement, and the US notify for marketing approval? government has agreed. Senator IAN CAMPBELL (Western Senator NETTLE (New South Wales) Australia—Minister for the Environment and (8.20 p.m.)—This is the difficulty that these Heritage) (8.18 p.m.)—All that is required free trade agreements get into: one party be- for the marketing approval is that, where a lieves that there has been a breach of obliga- patent exists, the person lodging the applica- tions and the other one does not. That is the tion certifies that they have notified the pat- purpose of the disputes mechanism. For ex- ent holder. That is all they have to do. ample, there is the issue of the Labor amendments on the PBS still being subject to Senator NETTLE (New South Wales) that. We have heard statements by United (8.18 p.m.)—Is there any time frame or re- States Trade Representative Bob Zoellick quirement in which the patent is coming to saying that they will be taking that issue up an end and they need to notify because they with the disputes mechanism—or they will have an intention of marketing the product? monitor it and reserve their right to take it up

CHAMBER 112 SENATE Tuesday, 7 December 2004 because they think it does breach the agree- Senator NETTLE (New South Wales) ment. (8.23 p.m.)—Thanks for that answer. I sup- I acknowledge the minister’s answer that pose all we can presume is that PhRMA this government does not believe there are group, the US pharmaceutical lobby, did not any implications as a result of the an- have success—if that is what the minister is nouncement on generic drugs during the telling me—in convincing the US govern- election campaign for our obligations under ment that this was a breach of obligations, the free trade agreement. Has the govern- because that was certainly the view they ex- ment received a commitment from the pressed internationally in the media at the United States government that they do not time the coalition made that announcement. seek to reserve their right to follow the im- So if the minister, in his answer, is assuring plementation of this election announcement the Senate that that is not a view held by the and, at a subsequent time, enter into a dis- American government, that is good. putes mechanism process about whether or I now move Australian Greens amend- not it infringes on Australia’s obligations ment (1) on sheet 4467: under the free trade agreement? (1) Schedule 1, page 9 (after line 11), after item Senator IAN CAMPBELL (Western 41, insert: Australia—Minister for the Environment and Therapeutic Goods Act 1989 Heritage) (8.22 p.m.)—There has been abso- 41A After section 26D lutely no discussion between the govern- Insert: ments in relation to that within the context of 26E Cost effective medicine pricing the FTA. In order to clarify its commitments un- Senator NETTLE (New South Wales) der the US Free Trade Agreement (the (8.22 p.m.)—Now I am really confused. I Agreement) the Australian Government thought your first answer was to say that the acknowledges that, notwithstanding Australian government did not believe there anything in the Agreement, in its inter- had been a breach; the US had agreed to that. pretation, the cost-effectiveness system Then your second answer was, ‘We haven’t of medicines pricing under section 101 discussed the issue.’ Maybe you could clarify of the National Health Act 1958 will that. continue to form the basis of the Phar- maceutical Benefits Scheme. Senator IAN CAMPBELL (Western Further it is the view of the Australian Australia—Minister for the Environment and Government that Annex 2C of the Heritage) (8.22 p.m.)—The governments Agreement does not interfere with the have agreed that it is not an FTA issue, and capacity of an Australian Government that is what I said. It is not a discussion that to implement the principle of universal has taken place within the context of the access by Australians to affordable, es- FTA. So there has been a discussion and both sential medicines which is also the ba- governments have agreed that it is not an sis of the Pharmaceutical Benefits issue that affects or is within the FTA. So to Scheme. the extent that that gives you comfort that Similarly, it is the view of the Austra- they will not at some stage do something lian Government that reward of phar- about it, then I hope you feel comforted. We maceutical innovation as mentioned in Annex 2C of the Agreement must be certainly do. assessed, amongst other factors, against a new medicine’s overall benefit to the

CHAMBER Tuesday, 7 December 2004 SENATE 113

Australian community when compared The first paragraph deals with the issue of against existing medicines. cost effectiveness. This paragraph ensures Similarly, it is the view of the Austra- that the primary basis for a decision to list a lian Government that Annex 2C and drug on the PBS will be its cost effective- Chapter 17 (on Intellectual Property) of ness. It is designed to act as a buffer against the Agreement implicitly include refer- the provisions of annex 2C of the agreement ence to the Doha Declaration on TRIPS that require the Australian government to and Public Health. ‘make available an independent review proc- Finally, it is the view of the Australian ess that may be invoked at the request of an Government, that Article 17.10.4 of applicant directly affected by recommenda- chapter 17 (on Intellectual Property) of the Agreement does not permit the tion or determination’. The government has practice known as “evergreening” of said that this review process will not under- brand name pharmaceuticals. mine the PBS. If this is the case, there can be I will address specifically what this amend- no objection to stating this principle plainly ment does. The amendment is to the original in the act, as is in the Greens’ amendment. act, the US Free Trade Agreement Imple- The second paragraph of the Greens’ mentation Act 2004. We are adding a new amendment deals with the issue of universal section, 26D, at the end of schedule 7, to the access. The Pharmaceutical Benefits Scheme Therapeutic Goods Act 1989. The amend- is a vital part of Medicare that is designed to ment is designed to ensure that public health ensure that all Australians can obtain essen- takes precedence over private profit. It puts tial medicine at affordable prices. This prin- in writing in Commonwealth legislation in- ciple must be paramount. There can be no terpretations which are entirely consistent compromise on it. Unfortunately, we have with what the Australian government has already seen the coalition government un- told the Australian public—that is, nothing in dermine the affordability of the PBS by im- the US-Australia free trade agreement un- posing, with the support of the opposition, a dermines the Pharmaceutical Benefits 21 per cent increase on the patient charge, Scheme and the primacy of public health. effective from next month, and the Treasurer The government obviously ought to be able has flagged that there will be more large to support the amendment, seeing as it is rises. Co-payments in health hurt the sick based on the commitments and the state- and low-income people most of all. The ments the government has made publicly in Greens believe that we need to review how relation to the free trade agreement and its we finance the Pharmaceutical Benefits impact on the Pharmaceutical Benefits Scheme; hence our moving for an inquiry Scheme—or, as the government would put it, into this, which was not supported by any its lack of impact on the Pharmaceutical other party. In the meantime we insist that Benefits Scheme. With this amendment the the principle of universal access by Austra- Greens are ensuring that none of the proc- lians to affordable essential medicines be esses for which details were not available at safeguarded from potential adverse impacts the time that we passed the implementing of the US-Australia free trade agreement, legislation, such as the independent review hence the second paragraph in the Greens’ or the medicines working group, are able to amendment that we are currently discussing. undermine the core principles of our public The third paragraph of our amendment is health system. about price effectiveness. The Greens are concerned about the provisions of annex 2C,

CHAMBER 114 SENATE Tuesday, 7 December 2004 particularly 1(d) of the Agreed Principles, introducing a lesser standard through a series which suggest: of bilateral trade agreements with more re- the need to recognise the value of innovative strictive provisions. If we allow this attempt pharmaceuticals through the operation of com- to undermine the primacy of public health to petitive markets or by adopting or maintaining the stand, we will see the US ultimately argue procedures that appropriately value the objec- that this new lesser standard should replace tively demonstrated therapeutic significance of the standard set out in the Doha international the pharmaceutical. declaration—that is, a tougher global stan- This provision could be used by US drug dard on compulsory licensing. companies to try to obtain higher prices from In this trade deal with the US we have the Australian government for medicines agreed that the Australian government will accepted for listing on the PBS than a prod- only be able to compulsorily license cheap uct warrants by arguing that innovation itself generic drugs in a public health crisis of ex- should attract a premium. One of the impor- treme urgency. That is a different threshold tant principles for listing on the PBS cur- level than that which exists in the Doha dec- rently is that the government will not pay a laration. Does this mean that we have to wait higher price for a new medicine simply be- until the situation is out of control before the cause it is new; it must be better than the government can provide affordable drugs to existing listed medicines. This use of a com- deal with such a situation? Why did we agree parator in determining a listing price is criti- to a provision restricting our capacity to pro- cal to keeping the cost of PBS medicines low vide cheap generic drugs to deal with public and affordable for all Australians. If the Aus- health emergencies in neighbouring coun- tralian government starts paying more for a tries? Australia is being complicit in the de- medicine simply because it is new, the PBS liberate US global strategy to block competi- will become unsustainable. tion from cheap but equally effective generic The fourth paragraph in the Australian drugs through a network of bilateral trade Greens’ amendment deals with the Doha dec- agreements modelled on the Australian laration on trade related aspects of intellec- precedent. This amendment ensures that the tual property rights—the Doha declaration principles of the Doha declaration will be on TRIPS and public health. The Doha dec- honoured and that the Australia-US free laration gives nations the right to make pub- trade agreement will not be used to under- lic health a priority over intellectual property mine this global commitment to put lives rights. It empowers states to determine what ahead of profits. constitutes a national emergency, thereby The final paragraph of the Greens’ triggering exceptions to the pharmaceutical amendment deals with the issue of ever- intellectual property protections in TRIPS. greening. This paragraph is designed to en- This is about life and death situations, the sure that US drug patent holders cannot frus- life and death of people particularly in low- trate the entry of generic drugs into the mar- income countries. For example, Australia’s ket. The Greens are concerned about how the involvement in the provision of AIDS drugs, notification provisions in section 7 of the if there were an HIV epidemic in Papua New Therapeutic Goods Act will operate. Will Guinea, may be an example of one of these they enable a patent holder to apply for an emergency situations. The US-Australia free injunction on a spurious ground in order to trade agreement represents an attempt by the delay a generic drug from entering the mar- US to undermine the Doha declaration by ket? Perhaps a company so notified will use

CHAMBER Tuesday, 7 December 2004 SENATE 115 an injunction to buy time to make a minor about the way in which they believe that the change in the form, but not the substance, of free trade agreement does not impact on our a product and apply for a new patent, thereby pharmaceutical benefits scheme and on our preventing a generic product from being public health provisions, I look forward to available. This practice of extending the life the government’s support. of a patent product, known as evergreening, Senator CONROY (Victoria) (8.33 is one more way that the free trade agree- p.m.)—I indicate on behalf of the opposition ment might add to the cost of the Pharma- that while I believe there is much merit in the ceutical Benefits Scheme without having any Greens’ proposal it could potentially be quite discernable public health benefit. Such a far reaching and, as we were not consulted process will cost the Australian government, about the amendment prior to it being circu- which buys drugs for the PBS, and patients lated, we unfortunately will not be able to will have to pay a charge at the time of fill- give it support at this time. I do indicate that ing the PBS script. we believe there are many items of merit The government says that we should not within the amendment. be concerned about the prospect of ever- Senator BROWN (Tasmania) (8.34 greening. It says that Labor’s amendments to p.m.)—I wonder whether the opposition the implementation bill earlier this year to would like us to suspend proceedings so that address this issue were unnecessary. We there is time to look at this meritorious note, however, that the US continues to dis- amendment from Senator Nettle. We would agree about the interpretation of the agree- be prepared to do that and to hold this over ment on this point. The US Trade Represen- until tomorrow—it is a very important tative, Robert Zoellick, in his letter to Minis- amendment—so that it can be studied fully. ter Vaile that we were discussing earlier, The committee could then meet again in the said: morning to ensure the right outcome. Under these amendments, pharmaceutical patent Senator NETTLE (New South Wales) owners risk incurring significant penalties when (8.35 p.m.)—I would be interested to hear they seek to enforce their patent rights. These provisions impose a potentially significant, unjus- the minister’s view. He was on his feet to let tifiable, and discriminatory burden on the enjoy- us know the government’s position. Given ment of patent rights, specifically on owners of the amendment is based on government pharmaceutical patents. I urge the Australian statements I would be very interested to hear Government to review this matter, particularly in the minister’s view and the government’s light of Australia’s international legal obligations. position. The United States reserves its rights to challenge Senator IAN CAMPBELL (Western the consistency of these amendments with such obligations. Australia—Minister for the Environment and Heritage) (8.35 p.m.)—I think the sentiments Clearly, as far as the US government is con- in the amendment are entirely admirable but cerned, this matter is far from settled. This I do not think it is appropriate to use the amendment will make it clear that, as far as copyright bill to amend the Therapeutic Australia is concerned, nothing in the free Goods Act. I reassure the chamber that the trade agreement is to permit the practice of government made it very clear that PBS pric- evergreening to occur. I commend the Aus- ing is not an FTA issue. We refused to talk tralian Greens’ amendment to the chamber. about it in the FTA context and I think our Given that all of the amendment is based on actions during the federal election campaign statements that the government have made

CHAMBER 116 SENATE Tuesday, 7 December 2004 in relation to the 12½ per cent indicate our Ayes………… 3 strong commitment to the PBS within the Noes………… 35 health system of Australia. Contrary to Sena- Majority……… 32 tor Nettle’s view about the copayment policy, that is designed to ensure that the PBS is AYES robustly financed as the Australian popula- Brown, B.J. Lees, M.H. tion ages and a larger proportion of it de- Nettle, K. * pends on the support of the PBS. We are NOES strong supporters of that, and that is why I Barnett, G. Bishop, T.M. say that the sentiments in Senator Nettle’s Brandis, G.H. Buckland, G. motions are agreeable. But, as quite often is Carr, K.J. Chapman, H.G.P. the case, I agree with Senator Conroy in rela- Colbeck, R. Collins, J.M.A. tion to this. Conroy, S.M. Coonan, H.L. Senator NETTLE (New South Wales) Denman, K.J. Eggleston, A. * Faulkner, J.P. Fifield, M.P. (8.36 p.m.)—There we have it: actions speak Forshaw, M.G. Hogg, J.J. louder than words. Thank you both for your Johnston, D. Kemp, C.R. kind words and your sentiments. There is Kirk, L. Lightfoot, P.R. some support out there for public health. Un- Ludwig, J.W. Lundy, K.A. fortunately, it is not conveyed in the actions Marshall, G. McGauran, J.J.J. of either party in deciding to put forward the McLucas, J.E. Moore, C. O’Brien, K.W.K. Patterson, K.C. views, the sentiments, that they agree with. Ray, R.F. Scullion, N.G. This should not impact on the primacy of Stephens, U. Tchen, T. public health in Australia. The Australian Watson, J.O.W. Webber, R. Greens amendment says, ‘Let’s say, once and Wong, P. for all, in our legislation that we are not go- * denotes teller ing to allow this trade agreement to impact Question negatived. on our capacity to deliver quality public Senator NETTLE (New South Wales) health services to all Australians.’ The (8.45 p.m.)—The Greens oppose items 11 amendment stipulates that we will commit and 13 in schedule 1 in the following terms: ourselves to the primacy of public health, (1) Schedule 1, item 11, page 4 (line 32) to page that we will commit ourselves to interna- 5 (before line 2), TO BE OPPOSED. tional agreements such as the Doha declara- tion on trade related issues and intellectual (2) Schedule 1, item 13, page 5 (line 7 to before line 9), TO BE OPPOSED. property rights. It says: ‘These are the things we abide by. Let’s put it in the legislation so The Australian Greens are opposed to the then it is there and there can be no questions provisions in items 11 and 13 of schedule 1 asked in the future.’ Unfortunately that is not of the bill which were the primary subject of a position that either of the two major parties the inquiry that occurred last night. The in- are prepared to put forward. quiry was agreed to by the Senate at 4.30 yesterday afternoon and it reported back here Question put: today. It was one of those 24-hour inquiries: That the amendment (Senator Nettle’s) be ‘If you are in Canberra and have got your agreed to. lobbyists ready, in 3½ hours you can appear The committee divided. [8.42 p.m.] before the committee and have something to (The Chairman—Senator J.J. Hogg) say.’ A couple of people managed to come

CHAMBER Tuesday, 7 December 2004 SENATE 117 before that inquiry. The committee heard the The Australian Greens’ proposals will concerns of the Internet Industry Association mean that those items are taken out of the and the Australian Digital Alliance. Their bill that the industry is concerned about, that requests were for the removal of items 11 go further than is required by our obligations and 13 from the bill. They had not seen the under the free trade agreement and that go items before; they had not been shown the further than is required in the US. I have items in the consultation process the gov- spoken about these already in my speech in ernment had engaged in with them in Octo- the second reading debate. I commend the ber. Those provisions will make it far more Greens’ proposals to the Senate. difficult for Internet service providers to op- Senator CONROY (Victoria) (8.48 erate in Australia because of the require- p.m.)—Could I take up a number of points ments to comply with take-down notices that that Senator Nettle has just made. I really do are handed out not necessarily by copyright want to highlight the farce that was that owners but by third parties involved. committee process. The Clerk advised some The subject of the inquiry that occurred of my colleagues that this was going to be last night was the way in which these two the world record shortest Senate inquiry. items, 11 and 13, in the bill put more onerous While we may have a bit of a chuckle about obligations onto Internet service providers it, that is not something that we should be than exist in the United States and, in view of proud of. This was a situation where the these groups that appeared before the com- government foisted the bill on us without mittee, than are required by the text of the notice. They foisted on us a committee hear- Australia-US free trade agreement. There ing that was passed by the Selection of Bills were long discussions and there was much Committee at 11.30 and by the parliament at consternation from both major parties—it 3.30, and a hearing was required to be held at was not just the opposition who expressed 7.30 or eight o’clock that night. As Senator concern about these two components of the Nettle has indicated, very few people were bill; there were also government senators able to attend. It is a miracle, in my view, there last night who expressed concern. They that anybody was able to attend, and it is a asked the question: why can’t we just have credit to those people—who know when they the words in the trade agreement? Govern- are being dudded—that they were able to get ment senators were asking questions not just here at all. of the industry witnesses but also of the At- I think this is a very disturbing indication torney-General’s Department. They asked: of the arrogance with which the government ‘Why don’t we just have the words that are treat this chamber when it refuses to be a in the free trade agreement? Why do we need rubber stamp for the executive. It sends a to create these new words and go further very powerful signal right across the country than is required in the text of the legislation about what the parliament, the Senate and or, indeed, than exists in US legislation? Australians can expect from 1 July, when the Why can’t we just have these words?’ The government will be able to conduct these questions were not answered. I do not know sorts of jumped-up star chamber inquiries as if the minister has anything to add, but there quickly as they want, to ram them through was certainly no satisfaction with the re- and treat this chamber with contempt. I hope sponses or with the purpose of the Senate the government reflect upon this. Senator inquiry last night. Campbell, I think you have been the longest serving Manager of Government Business—

CHAMBER 118 SENATE Tuesday, 7 December 2004 although I am not sure that is something you Committee. This is the Corporations Law ought to proclaim proudly; I know you were that set up an entire new corporate regulatory very happy to pass it on—and I hope you structure, which has since been challenged in reflect on this farce of a process. I hope you the High Court. I think Senator Conroy have the good grace, after 1 July, to stand up knows the rest of the history. The Labor and be counted when it comes to these sorts Party in power had a one-night hearing into of arguments so that we do not see an abuse the entire Corporations Law— of process and we allow the Senate chamber Senator Conroy—On the same day? to do what it should do, which is to examine Senator IAN CAMPBELL—On the and scrutinise legislation. It was with a lot of same day and reported it back and passed it goodwill that people cooperated to allow this through the Senate with the cooperation of committee hearing to go ahead, despite the one very young and quite handsome 30-year- fact that we were placed in an intolerable old senator! position. I wanted to take up those points that Senator Nettle made because I believe this is Government senators interjecting— an indication of what the parliament will be Senator IAN CAMPBELL—He was subjected to under the new regime from then! 1 July. Senator Conroy—Are you talking about On the substance of the Greens’ proposals, Senator Watson? Senator Nettle is fully aware that they would Senator IAN CAMPBELL—He was a successfully gut this bill and there really pretty cute-looking little bloke this back- would not be much point in passing the rest bencher! That did occur. It was a one-night of it. While I am probably a bit more sympa- hearing and it was passed through the par- thetic to copyright holders in this particular liament the next day. The reference probably instance, I am not sure they were able to get was not on that day—I am sure that the Clerk their views across as strongly as they would will send me a note in the morning remind- have wanted to in the time permitted, so I am ing me exactly when it was referred. The not sure that we got a balanced view on these hearing was held on one night and the bill sections. On that basis, Labor will be oppos- was passed through the chamber the next ing the Greens’ proposals. day. So it is not entirely unprecedented, but Senator IAN CAMPBELL (Western clearly there are special circumstances here: Australia—Minister for the Environment and the legislation has been introduced in a rela- Heritage) (8.52 p.m.)—Could I just make the tively late sitting because the election was in point that it is a unique legislative process. It October and the Senate resumed only a few was a quick committee reference and we weeks after that. I am glad to know that the appreciate the cooperation of the senators Senate has agreed it is desirable to pass this who facilitated that reference and we appre- legislation before we adjourn in a couple of ciate that it was short notice for the stake- days time. I appreciate that cooperation. holders. Although it may have been a quick The TEMPORARY CHAIRMAN turnaround, in my own memory in this Sen- (Senator Watson)—The question is that ate the Labor Party when they were in power items 11 and 13 of schedule 1 stand as in 1990 brought the corporations legisla- printed. tion—you were probably on the committee, Question put. Mr Temporary Chairman Watson—before the Finance and Public Administration The committee divided. [8.58 p.m.]

CHAMBER Tuesday, 7 December 2004 SENATE 119

(The Chairman—Senator J.J. Hogg) The ACTING DEPUTY PRESIDENT— Ayes………… 30 You may not think you need leave, Senator Nettle, but I beg to differ. Noes………… 2 Senator Ian Campbell—Mr Acting Dep- Majority……… 28 uty President, on a point of order: I am very AYES happy to allow Senator Nettle to put her po- Barnett, G. Brandis, G.H. sition—and I am sure Senator Brown can do Buckland, G. Campbell, G. so—but I think that under the standing order Campbell, I.G. Carr, K.J. that Senator Nettle is using a senator is al- Chapman, H.G.P. Colbeck, R. lowed to stand in their place and ask that Conroy, S.M. Denman, K.J. their vote be recorded. I do not think that Eggleston, A. * Fifield, M.P. gives a senator the liberty to ask that another Forshaw, M.G. Hogg, J.J. Humphries, G. Johnston, D. senator’s or another entire political party’s Kirk, L. Lightfoot, P.R. votes be recorded. Ludwig, J.W. Lundy, K.A. Senator George Campbell—On the same Marshall, G. McGauran, J.J.J. point of order, Mr Acting Deputy President: McLucas, J.E. Moore, C. O’Brien, K.W.K. Ray, R.F. as I understand the position, the request from Scullion, N.G. Stephens, U. the Australian Greens is to indicate to the Watson, J.O.W. Webber, R. chamber the view that the Australian Democ- NOES rats, if they were here, would have voted against the bill. The fact is that they are not Brown, B.J. Nettle, K. * * denotes teller here; they are outside the building, having their Christmas party. If they were serious Question agreed to. about the bill they would be in this chamber Bill agreed to. recording their vote themselves. You cannot Bill reported without amendment; report vote in absentia on a vote in the chamber. adopted. They can indicate how they might have Third Reading voted if they had been here, but that is not recorded as a vote against the bill. Senator IAN CAMPBELL (Western Australia—Minister for the Environment and Senator Brown—I ask that my vote Heritage) (9.01 p.m.)—I move: against the bill be recorded, and I think Sena- tor Nettle has made it quite clear what the That this bill be now read a third time. Democrats think. Question agreed to. Bill read a third time. Senator Nettle—Mr Acting Deputy SCHOOLS ASSISTANCE (LEARNING President, I ask that opposition to the bill by TOGETHER—ACHIEVEMENT the Australian Greens and the Australian THROUGH CHOICE AND Democrats be recorded. An agreement was OPPORTUNITY) BILL 2004 made with the whips tonight that I could— Consideration of House of Representatives The ACTING DEPUTY PRESIDENT Message (Senator Lightfoot)—Is leave granted? Message received from the House of Rep- Senator Nettle—I do not think I need resentatives returning the Schools Assistance leave. (Learning Together—Achievement Through

CHAMBER 120 SENATE Tuesday, 7 December 2004

Choice and Opportunity) Bill 2004, inform- sage—that is, a written communication— ing the Senate that the House has disagreed from the House outlining the reasons for re- to the amendments made by the Senate and jecting the amendments? desiring the reconsideration of the amend- Senator VANSTONE (South Australia— ments. Minister for Immigration and Multicultural Ordered that the message be considered in and Indigenous Affairs and Minister Assist- Committee of the Whole immediately. ing the Prime Minister for Indigenous Af- Senator IAN CAMPBELL (Western fairs) (9.07 p.m.)—I understand that there Australia—Minister for the Environment and was a formal reason tabled and that would be Heritage) (9.05 p.m.)—I move: available to you, as it would to anyone else who was interested in the debate. That the committee does not insist on its amendments to which the House of Representa- Senator CARR (Victoria) (9.07 p.m.)— tives has disagreed. There is a simple matter here. We are seeking Senator CARR (Victoria) (9.05 p.m.)— advice from the government as to what the We at least need an explanation as to why the reason is. Where is it? It is a simple question; government does not want to accept these I think we are entitled to a straightforward very worthwhile amendments. answer. Senator VANSTONE (South Australia— Senator VANSTONE (South Australia— Minister for Immigration and Multicultural Minister for Immigration and Multicultural and Indigenous Affairs and Minister Assist- and Indigenous Affairs and Minister Assist- ing the Prime Minister for Indigenous Af- ing the Prime Minister for Indigenous Af- fairs) (9.05 p.m.)—It is so nice to be back fairs) (9.07 p.m.)—I am happy to table the debating the same issue! Senator Carr, the reasons given in the House of Representa- explanation is to be found in the second tives. It is a four-and-a-bit page document. I reading speech on this bill, the Schools As- will incorporate it into Hansard if that is sistance (Learning Together—Achievement what Senator Carr would prefer. That would Through Choice and Opportunity) Bill 2004, put the reasons on record. Would that be your it is to be found in the committee stage and preference, Senator? I seek leave to incorpo- in the debate in the other place should you rate into Hansard part of a document entitled want to look at it—I do not ever look there. Schools Assistance (Learning Together— Clearly, this is something on which we have Achievement Through Choice and Opportu- different views. That is going to happen. I nity) Bill 2004: Schedule of the amendments accept that we all want better educational made by the Senate to which the House of outcomes; but there are many different paths Representatives has disagreed. you can take to get there. You do not agree Leave granted. with the one that we have chosen and it is The section of the document read as fol- your right to do so. You were successful in lows— this place, but the government now comes Senate Amendments 1, 2 and 5 back and says, ‘In the House of Representa- tives we found those changes unacceptable These amendments seek to insert a definition of ‘need’ into the Act. They also require States, Ter- and we would like the bill in its original ritories and non-government education authorities form.’ to commit to give priority in the allocation of Senator BROWN (Tasmania) (9.07 funding according to need. The Government sup- p.m.)—I ask the minister: is there a mes- ports the provision of funding to schools on a

CHAMBER Tuesday, 7 December 2004 SENATE 121 needs basis and this principle underpins Austra- schools. Under the current arrangements, school lian Government funding for schools. education authorities have the flexibility to make The Australian Government funds non- decisions on which schools have the greatest need government schools according to a formula which for additional assistance, including for education- measures the socioeconomic status (SES) of the ally disadvantaged students, and to determine communities from which a school draws its stu- appropriate funding amounts for those schools. dents. Schools also have the flexibility to use funding to meet the needs of their students. The SES funding model involves linking student residential addresses to Australian Bureau of Sta- The Agreement conditions are also comprehen- tistics (ABS) national Census data to obtain a sive and set out the expected outcomes and re- socioeconomic profile of the school community porting and a commitment to meeting the Na- (based on occupation, education and income) and tional Goals for Schooling, which are already measure its capacity to support the school. The agreed by all governments. SES approach, unlike the Education Resources In addition, the subject matter of the Bill as it Index (ERI) system which it replaced, is transpar- currently stands has been the subject of consulta- ent and objective, based on independent data that tions with all State and non-government educa- are consistent for all schools. tion authorities, peak bodies and other major One of the key principles that underpin the SES stakeholders. The Government is conscious of model is that private investment in education previous strong criticisms from State Govern- should not be discouraged, and therefore, it does ments and the non-government sector where it not take into account a school’s private income undertakes amendments to Commonwealth legis- from fees or any other sources. The amendment lation which can have implications for govern- contradicts this principle. ment and non-government school authorities without the opportunity for prior detailed consul- To include a definition of “need” in the legisla- tation on the form of procedures of this type and tion, which covers a range of schools pro- their implementation. grammes, unnecessarily limits how need may be interpreted and could adversely affect the funding There has been no correspondingly extensive of schools. The definition of ‘need’ is very broad consultation with the education sector on the pro- and potentially could make it difficult for posed amendment. States/systems to target funding for specific needs Accordingly the House of Representatives does groups of students. not accept these amendments. Any definition of need is best accommodated Senate Amendments 3 and 6 within specific programme guidelines for particu- These amendments propose to change the word- lar programmes, as is currently the case. The Aus- ing on the commitment concerning principal tralian Government provides funding for schools autonomy to provide flexibility for system wide under the Capital Grants Programme and a num- recruitment incentives particularly in hard to staff ber of targeted programmes such as the Literacy, schools in isolated regions. The Government Numeracy and Special Learning Needs Pro- has already responded to this concern by includ- gramme, the Country Areas Programme, the Lan- ing in the Bill a provision that a commitment to guages Programme, and the English as a Second give the principal and governing body autonomy Language—New Arrivals Programme. Funding over matters including staffing should be “within for these programmes are predominantly allo- a supportive framework of broad systemic poli- cated according to need and educational disad- cies” [Refer to Part 2, sections 14(k) and 31(k) of vantage. the Bill]. State and Territory government and non- The proposed amendment is superfluous and does government school education authorities are re- no more than express in different words the exist- sponsible for the detailed administration of the ing provision for teacher appointments to be school funding programmes in their systems and made within a supportive framework of systemic

CHAMBER 122 SENATE Tuesday, 7 December 2004 policies. That provision recognises the need for dents are achieving national literacy and nu- school systems to implement policies and prac- meracy benchmarks? What are the outcomes in tices that ensure good teachers are available in the senior secondary schools—retention rates and required numbers for all schools—especially in academic achievement?; the case of rural and remote schools. The specific • Regulations accompanying the Bill will set out requirements in relation to this provision will be minimum requirements for school perform- set out in the Regulations as part of the school ance information. Schools will be able to in- performance reporting element and will reflect form parents and publish information of other this consideration also. their policies and programmes on offer. Recent educational research indicates that highly An earlier report prepared by Professor Peter effective schools have strong and effective school Cuttance and Shirley Stokes, Reporting on Stu- leaders who drive the development of school dent and School Achievement, surveyed over 500 policies and practices. The provision (on parents to identify principles of best practice in school/principal autonomy) will strengthen the reporting student and school achievement. These ability of school leaders to make effective teacher have played an important role in forming a appointments for their schools. stronger accountability and performance frame- Accordingly the House of Representatives does work seen in the current legislation not accept these amendments. Accordingly the House of Representatives does Senate Amendments 4 and 7 not accept these amendments. These amendments propose to insert a number of Senate Amendment 8 principles for reporting on students’ learning and This amendment requires non-government school performance. The Bill already contains a schools to publicly report all sources of gross strong accountability and reporting framework income received and all gross expenditure. The with a focus on improving student outcomes. The Australian Government strongly supports all edu- educational interests of students are best served cational authorities publishing the total amount of through commitment and focus to improving stu- public funds that the school receives. The Austra- dent outcomes lian Government has published the amount of Parents need student reports that are meaningful general recurrent funding that every non- and use plain English enabling them to better government school in Australia will receive each assist their child’s learning and development. It’s year from 2003-08. time to place parents more firmly at the centre of The Australian Government does not believe it schooling. appropriate to require the publishing of the de- The Bill includes provisions for greater disclosure tailed financial accounts of non-government by schools of their performance. There is an ur- schools as they are independent entities. Further, gent need for greater transparency and account- such a requirement has not been discussed with ability from schools to parents and the commu- the Catholic and Independent school sectors. The nity. Australian Government believes that the sector • School performance information is not readily should be consulted before new requirements are accessible or meaningful and parents need bet- imposed on them. ter information to inform decisions about their Non-government schools provide detailed finan- child’s schooling; cial information to the Australian Government in • It is important that schools publish a broad order to ensure full accountability of the public range of information on their achievement and funds that they receive from the Australian Gov- programmes so that parents can choose a ernment. Non-government school authorities school that best suits their child’s needs; must, among things, provide financial account- • ability each year, in the form of a certificate, It is important to keep a strong focus on out- signed by an accountant, to the effect that funds comes, not just inputs. How many school stu-

CHAMBER Tuesday, 7 December 2004 SENATE 123 have been spent, or committed, for the purpose Under these guidelines, the Block Grant Authori- for which they were provided. ties (which administer the capital money for non- Accordingly the House of Representatives does government schools) already determine the priori- not accept these amendments. ties for funding on the basis the relative educa- tional disadvantage of the schools. In determining Senate Amendment 9 educational disadvantage, they take into account This amendment requires non-government the SES score of the schools, number of isolated schools to publish any exclusion policy and prac- and special needs children and health and safety tices. As private entities it is the right of individ- issues. ual schools to implement whatever enrolment Accordingly the House of Representatives does policies are in line with their educational philoso- not accept these amendments. phies. However, to be eligible for Australian Government funding, all non-government schools Senate Amendment 12 must meet the same obligations regardless of their This amendment seeks a review of resources for particular religious or educational philosophy. It all schools before 31 December 2005 including a is also a condition of funding that the schools report on the buildings, facilities and equipment commit themselves to Australia’s National Goals available at every school in Australia. Australian for Schooling in the Twenty-First Century. Government capital funding for government The National Goals include the provisions that schools has been maintained in real terms and “students’ outcomes from schooling are free from increased in actual dollars. The principle respon- the effects of negative forms of discrimination sibility for maintaining the fabric of Australia’s based on sex, language, culture and ethnicity, schools systems rests with State and Territory religion or disability; and of differences arising governments. The States and Territories have the from students’ socio-economic background or major responsibility for State schools, which they geographical location” and that “all students un- own and manage. The Government encourages derstand and acknowledge the value of cultural States to undertake proper planning for all their and linguistic diversity, and possess the knowl- schools consistent with their responsibility for edge, skills and understanding to contribute to, managing their school system. The undertaking of and benefit from, such diversity in the Australian such a review on government schools would need community and internationally.” to be considered by States and Territories. Accordingly the House of Representatives does In 2002, DEST published an analysis of non- not accept these amendments. government school infrastructure Taking Stock— Report of the Survey of Non-Government Senate Amendments 10 and 11 Schools Infrastructure in Australia 2000/2001. These amendments seek to provide a process for The report presents key findings from the Na- system or state-wide priorities for the assessment tional Survey of Non-Government Schools Infra- of the allocation of capital grants for government structure in 2000 and 2001. The survey collected and non-government schools; an explicit refer- a broad range of data that demonstrate suffi- ence to the distribution of capital funding on a ciency, condition and suitability of infrastructure relative needs basis for schools, and require par- in the non-government sector. This information ents to be explicitly involved in the process of has been valuable in informing procedures under setting priorities for capital expenditure. These the Capital Grants programme. In addition Block amendments are unnecessary. It is not necessary Grant Authorities have a sound knowledge and to legislate this level of detail in relation to pro- understanding of the state of school infrastructure gramme administration and consultation. The in their respective regions. Administrative Guidelines, which form part of the Accordingly the House of Representatives does funding agreements specify detailed requirements not accept these amendments. for the Capital Grants in terms of allocating fund- ing, assessment and reporting requirements.

CHAMBER 124 SENATE Tuesday, 7 December 2004

Senate Amendment 13 been demonstrably unfair. It has seen a quite This amendment seeks a review of the impact of elaborate expansion in the opportunities for the reforms enacted under the Bill to be com- those already wealthy and already privileged, pleted before 30 June 2006. The Australian Gov- and it will further entrench in the system a ernment does not believe it should mandate such method of funding which will encourage the a significant review without the opportunity for already wealthy and the already privileged to detailed consultation on scope and processes with do exceptionally well. government and non-government school authori- ties and with other relevant agencies. Adding such The amendments that the Labor Party amendments to this legislation without consulta- moved in this chamber sought to get the tion is not the way to proceed government to acknowledge that there is an The Australian Government is the single largest opportunity here to actually address these funder of school education. As such it has the fundamental principles of social justice and right to set financial, policy and administrative to put into a schools bill of this size an ex- directions. The Australian Government will exer- plicit definition of need and a requirement cise its leadership role in schooling in areas where that we have a clear understanding that that national reform is required. This may involve is the basis on which schools should be consideration by Ministers through MCEETYA funded. It is not on the basis of how well off processes on specific matters. However the Aus- tralian Government has the right and the respon- you are; it is not on the basis of whether or sibility to attach conditions to its very significant not your dad has a lot of money in the bank. schools funding to ensure that these important It is on the basis of actually trying to make reforms are implemented. sure that everyone in this country gets a fair Accordingly the House of Representatives does go. It is quite apparent that the government is not accept these amendments. not interested in that. It is even not interested Senator CARR (Victoria) (9.08 p.m.)— to the point where it has not actually come to The opposition is clearly very disappointed this chamber with a view to arguing its case. by the government’s shoddy response to this We have also sought, through these matter. It was obviously not particularly pre- amendments, to provide a framework for pared to even come in here and argue a case. school reporting that is, amongst other At least we have obliged the government to things, a requirement that reporting must be perfunctorily table its statements. It is an in the educational interests of students. Of extraordinary proposition that, for a bill of course, this government has sought to make some $32 billion in funding where the Senate much of its capacity to tell the states how to moved some very reasonable amendments, run schools. It has gone to the point where it the House unilaterally says, ‘We are not in- says, ‘We’ll provide more money for those terested,’ and does not even bother to put a schools that already have fees in excess of case to the Senate as to why that is. I think $20,000 a year. The schools have already there is good cause for disappointment. been provided with Commonwealth subsi- What we have here is a government that dies so that there are boarding facilities for has seen quite extensive expansions in the children’s pets. But we will make sure that schools program for particular schools. It has we tell the states how to run a state school rejected funding on the basis of need. It has system as well.’ On both sides of the argu- sought to extend a program for funding ment, on both sides of the ledger, the Com- which, in terms of the proceedings put before monwealth seeks to impose a policy which is this chamber and the Senate committee, has essentially very unfair and very unreasonable

CHAMBER Tuesday, 7 December 2004 SENATE 125 and that stands against what parents actually gance of this government’s position is now want. transparent—we have an arrogant response The Labor Party proposed, and this cham- from an arrogant government. By rejecting ber accepted, a set of amendments to im- out of hand each and every one of the prove the framework for school reporting amendments put up by this chamber, the and to make sure that school reporting is ac- government is suggesting that it has this edu- tually in the educational interests of students. cation bill absolutely right and that it does The government says, ‘We’re not actually not need any amendment at all. We will wait interested in the argument about that.’ The and see about that. We will see whether or Labor Party also sought to make sure that the not that is the case. If it is anything like the overly prescriptive interventions by this gov- higher education bill it will be only a matter ernment in the handling of state schools by of time before the government is back in this school authorities, especially for teachers in chamber seeking amendments because it hard to staff schools and hard to staff disci- knows that it cannot sustain the regime that it plines, were in fact removed so that genuine is imposing by this bill. partnerships were developed within the edu- Labor is fundamentally opposed to the un- cation system. The Commonwealth also fair funding increases contained in this bill. says, ‘We’re not interested in that.’ What the We will not let the government’s irresponsi- Commonwealth then says is, ‘We’ll give ble and unjustifiable increases in funding to support and comfort to one particular de- some of the wealthiest schools in the country nomination in the education system and get in the way of funding the 9,500 needy we’ll make sure that the interests of a par- government and non-government schools in ticular educational authority structure will be this country. We will not allow the govern- supported without reference to any other ment’s foolishness to stand in the way of the educational authority within the system.’ provision of education facilities for the mil- This is unique and unprecedented, but the lions of Australian students that require sup- government is not interested in discussing port from the Commonwealth government. the implications of that new and extraordi- That is the great irony of the situation: it is narily prescriptive intervention in the educa- the poorest and the weakest in this country tion system of this country. that require the Commonwealth to intervene None of the things that the Senate pro- effectively. It is a tragedy that this govern- posed ought to be controversial. But, as we ment sees fit to give aid and comfort to those have seen, the government is not prepared to already privileged and powerful and to insist see reason and is pressing ahead with its po- upon entrenching that privilege. sition willy-nilly in the face of logic. We are As my colleague Jenny Macklin has indi- now in the situation where a piece of legisla- cated in the House, Labor will not be insist- tion in front of us is, in fact, unsustainable. ing on our amendments. The various schools In the longer term the existing circumstances need the money now; they need the money to for a majority of non-government schools, flow before Christmas. The opposition will which are not actually funded according to not stand in the way of the funding of needy the stated policies of the government with government and non-government schools. regard to the SES model, will become even The opposition, however, will certainly con- more acute. The increasingly divisive nature tinue to put forward our view that the fund- of this government’s policies will become ing must be delivered on a fairer basis so that apparent. It is quite clear to me that the arro- children in all schools, from all social classes

CHAMBER 126 SENATE Tuesday, 7 December 2004 and from all communities are able to attract ing into that when you were ranting and rail- the support they need from the Common- ing. wealth. That position will stand in sharp con- Senator Carr—I thought I wasn’t ranting trast to the position this government is now and railing. pursuing. We will argue that children in all Senator VANSTONE—All right, Sena- schools, whether they be government or non- tor, you were putting your view. In any government schools, should be funded on the event, you were more interested in getting basis of need and that they should be able to stuck into the government. Perhaps before look to the Commonwealth to get assistance you do that next time you might just check for their education. All schools should be and see whether things have been made funded on the basis that all children should available to you. have equal opportunity. Unfortunately, this is an objective that will not be met through this Senator Carr—I asked three questions. legislation. Senator VANSTONE—Mr Temporary The TEMPORARY CHAIRMAN Chairman, the honourable senator has had (Senator Watson)—For the benefit of Sena- his moment and was left pretty much undis- tor Carr, Senator Nettle and Senator Brown, I turbed to put his view. I would like to just am advised that the reasons for the House of briefly put mine. The first point I would like Representatives disagreeing with the Sen- to make is that, presumably, we are all mod- ate’s amendments have been circulated. They erately adult in our mentality here. We un- are found on about page 6 of a document derstand the views of the opposition and the entitled, Schools Assistance (Learning To- Greens, and they understand ours. They were gether—Achievement Through Choice and put in this chamber and the House of Repre- Opportunity) Bill 2004: Schedule of the sentatives disagreed. That was made clear amendments made by the Senate to which the and it has come back. If we were amused at House of Representatives has disagreed. the prospect of this whole edifice of parlia- That is where the confusion may have arisen. ment being here just for us, we could, if we wanted to, sit here and repeat all those argu- Senator VANSTONE (South Australia— ments at vast expense to taxpayers. We could Minister for Immigration and Multicultural indulge ourselves. If that is what you want to and Indigenous Affairs and Minister Assist- do, you are welcome to do it. ing the Prime Minister for Indigenous Af- fairs) (9.17 p.m.)—Mr Temporary Chairman I simply put this to you: this government Watson, you saved me pointing that out to believes that all kids should have equal op- Senator Carr, who was not so much ranting portunities, that some parents will decide that and railing but offended that no reasons were they want to send their kids to private given. In fact, when I inquired— schools and that the fees a school charges are not of themselves an indicator of the parents’ Senator Carr—You didn’t know! wealth. As I said last night, and I will briefly Senator VANSTONE—That is right; I repeat the argument, you might find a family did not know. Frankly, I assumed— that either by luck or hard work has ended up Senator Carr—That I did? a wealthy family and for them the fees are Senator VANSTONE—No, that some immaterial. But you also find at private reason would be available with a message, schools families where that is not the case, and apparently that is the case. I was inquir- families where the mother and/or the father are working, some of them in two jobs, in

CHAMBER Tuesday, 7 December 2004 SENATE 127 order to meet those fee entitlements. The fees You might send your kids to a state school are not an indicator of a family’s wealth. that is primarily funded by the state, al- That was made very clear. What this gov- though with significant contributions from ernment uses as an indicator of wealth are the Commonwealth. So you will get taxpayer the SES social indicators by the postcodes of funding if you go to a public school. But we the students going to the schools. also say: if you choose to send your kids to a I do not know that you could ever find a private school you will get a degree of tax- mechanism whereby somebody did not fall payer funding that will very largely come on the wrong side of the line. But to look at from the Commonwealth government. We do the fees charged is not a good way to do it, not think that you should say to kids: your for the reason I have given you: you can find parents are either hard workers or lucky so two parents that work extremely hard, some- you are not getting anything from us. That is times in a couple of jobs, in order to meet more of the lowest common denominator that fee requirement. You sometimes find argument that we so often hear from those parents, for example, that extend the mort- who are bereft of a capacity to see how to gage on their house because of the value they make this country grow. I just put that briefly place on education. The fees are not an indi- on the record to indicate—let us not pretend cator of wealth. The payment of them might that the case has not been put here—that the be an indicator of the effort and the risk that case has been put and it is understood. The a family is prepared to take in order to send issue here is that you do not agree with it. I their children to a private school. understand that and I accept that, but rehash- ing those arguments is not going to change As to the national reporting requirements, anything. we had that debate here last night. From my perspective and that of the government it is Senator BROWN (Tasmania) (9.23 very clear that senators on the other side of p.m.)—What a pejorative dish-up that was to this place would like the reporting require- the chamber. By implication it gets stuck into ments to focus on what goes in. Let us talk and puts down the parents of the 70 per cent about what goes into the schools so that the of kids who go to public schools in this teachers and the principals can yada, yada, country yada at length. But there was a refusal to Senator Ian Campbell—It did not! look at what comes out. My conclusion from Senator BROWN—Yes, it did. It was that debate last night is that senators opposite laden in the words used and what Hansard are interested in the bureaucracy and the will not record is the tone of voice from Min- teachers, and we are interested in the parents ister Vanstone as she laid into parents and and the students. We want information pub- kids in the public school system. ‘Yada, licly available. The Democrats say, ‘Oh no, yada, yada,’ she says of teachers—a dis- you cannot make it publicly available; peo- graceful performance and delivery late at ple might get the wrong idea.’ That is an ex- night in the chamber. It sums up what not traordinary view to put, that information just this minister but also this government about schools and the outcomes that they thinks about the public school system and the achieve should not be publicly available. teachers and the students in it: people who We stand very firmly in favour of saying go to private schools are those with enter- to Australian families: we do not want to prise, those with go, those who work hard. dictate what you do in terms of schooling. By implication, read into it what you like

CHAMBER 128 SENATE Tuesday, 7 December 2004 about those who are in the public school sys- GST the option of reporting and paying GST on tem. It was just a disgraceful delivery to the an annual basis. Businesses that take up this op- chamber. tion will be able to prepare and lodge annual GST returns at the same time as they prepare their an- Question agreed to. nual income tax returns. A business will make a Resolution reported; report adopted. single payment of any GST owing at the time it TAX LAWS AMENDMENT (SMALL lodges its returns with the Commissioner of Taxa- tion. BUSINESS MEASURES) BILL 2004 The second initiative gives businesses with an First Reading annual turnover of $2 million or less the option to Bill received from the House of Represen- make annual apportionments of input tax credits tatives. relating to acquisitions used partly for business, Senator IAN CAMPBELL (Western and partly for non-business, purposes. For most the year, these businesses will disregard non- Australia—Minister for the Environment and business use of most of their acquisitions or im- Heritage) (9.26 p.m.)—I move: portations in determining the amount of input tax That this bill may proceed without formalities credit they can claim in their monthly or quarterly and be now read a first time. GST returns. They will then make a single ad- Question agreed to. justment after the end of the financial year. Busi- nesses required to determine the extent of non- Bill read a first time. business use of acquisitions or importations for Second Reading income tax return purposes will be able to use the Senator IAN CAMPBELL (Western same determination for GST purposes. Australia—Minister for the Environment and The third initiative further reduces compliance Heritage) (9.26 p.m.)—I move: costs for small businesses by simplifying the elec- tion rules relating to the option to pay GST by That this bill be now read a second time. instalments and to lodge an annual GST return. I seek leave to have the second reading An eligible business will no longer be required to speech incorporated in Hansard. make and lodge an annual election with the Commissioner of Taxation. Once a valid election Leave granted. has been made it will remain in force until the The speech read as follows— business chooses to leave the instalment system TAX LAWS AMENDMENT (SMALL or it is no longer eligible. BUSINESS MEASURES) BILL 2004 The annual lodgment and annual apportionment The Treasurer announced a package of taxation initiatives will apply from 1 October 2004 for measures in the 2004-2005 Budget aimed at re- entities with quarterly tax periods and 1 Novem- ducing compliance costs for small business and ber 2004 for entities with monthly tax periods. providing greater flexibility to taxpayers in man- The simplified GST instalment election initiative aging their affairs. The package included three will apply from 1 July 2005. initiatives aimed at reducing GST compliance Full details of the measures in this bill are con- costs for small businesses. tained in the explanatory memorandum. This bill, similar in its terms to the Indirect Tax I commend this bill. Legislation Amendment (Small Business Meas- Senator STEPHENS (New South Wales) ures) Bill 2004 which lapsed when Parliament (9.27 p.m.)—The Tax Laws Amendment was prorogued for the last election, amends the GST law to give effect to these measures. (Small Business Measures) Bill 2004 pro- vides small business and non-profit bodies The first measure gives small businesses and non- that voluntarily register for the GST the op- profit bodies that are voluntarily registered for the tion to report and pay their GST on an annual

CHAMBER Tuesday, 7 December 2004 SENATE 129 basis. It also allows for annual apportion- pressing need to act to reduce this hidden tax ment of creditable purchases of input tax burden. credits and it removes the requirement for The opposition has advocated a superior businesses to make annual elections to pay measure of GST payment for several years their GST in quarterly or monthly instal- now. It is called the ratio method. The ratio ments. With respect to input tax credits, it method is elegant in its simplicity. It will means that the apportionment exercise can eliminate the need for quarterly and annual take place once a year rather than once a GST reconciliations. Under Labor’s simpler quarter and, once a small business elects to BAS option, small businesses can easily pay quarterly GST instalments, it does not adopt a simply calculated quarterly payment need to keep doing it. This is a small, posi- on their turnover. Each registered business tive step for small business in the compliance using the ratio method would be given a GST nightmare of the GST. ratio based on its own trading circumstances. Since the introduction of the GST in 2000 The GST liability is calculated simply by the Howard government have been forced to multiplying the business turnover by this concede that the compliance costs for small ratio. The method could not be simpler. businesses in particular are unacceptable and Small businesses have to complete only one they have made several unsuccessful at- calculation and fill in two boxes on the BAS tempts to remedy this. The measures in this form. It will also provide a safe harbour from bill are further examples of the bandaid the potential costs arising from any tax audit measures the Treasurer has put together to for those adopting the new option. The new reduce the extraordinary amount of time and option will be completely voluntary. Small money that small business spends complying businesses can opt to remain in the current with the complexities of the Howard gov- system without any change at all. The sim- ernment’s GST reporting regime. Just last pler BAS option will be individual or indus- Monday the Australian Industry Group re- try specific, based on reporting experience leased a survey which indicated that the cost during the first two years of the GST, and of compliance with government regulation is employ a simplified ratio to turnover ap- 4.85 hours per employee per month for small proach, with allowance for large or irregular business. This compared with 0.78 hours per business cost items. Labor will require that employee per month for large firms. For a the simpler BAS option be revenue neutral firm employing 20 persons the estimated and that it generate net compliance cost sav- cost of compliance with government regula- ings for small business. tion was over $33,000 per year. This is con- For the purpose of illustration, let us as- sistent with the findings of the state Chamber sume that the ratio is 5.5 per cent, because of Commerce in New South Wales in 2003 ordinarily it will be somewhere between zero showing that small businesses faced propor- and 10 per cent once you net away the input tionately higher costs than large businesses. tax credits that the business has typically The government remains happy to rely on claimed. Once the tax office issues that ratio, small business to be its unpaid tax collectors the small business need only multiply GST but will simply not act to decisively reduce sales by that ratio—in this case, 5.5 per the compliance costs that this involves. The cent—which is a simple calculation, and re- burden of compliance is a hidden tax that the mit that amount to the tax office. You could government imposes and there is now a not get a simpler method of assessment, and no reconciliation is required by the business.

CHAMBER 130 SENATE Tuesday, 7 December 2004

Let me take this opportunity to talk about owners of the burdensome compliance re- the GST itself and the role that it plays in the quirements of the current regime. government’s tax policy. We need to remem- Senator McGAURAN (Victoria) (9.34 ber that this is the highest taxing government p.m.)—On behalf of Senator Murray of the this nation has ever seen and, by an enor- Democrats, I seek leave to incorporate his mous margin, the highest taxing Treasurer speech in the second reading debate on the that this nation has ever had. The tax take is Tax Laws Amendment (Small Business $206 billion in 2004-05 and by next year Measures) Bill 2004. I believe the Labor total personal income tax will be up 80 per Party whips have a copy. cent since 1996. Income taxes will continue Leave granted. to rise in every year of the forward estimates. The average taxpayer is already paying Senator MURRAY (Western Australia) nearly $10,300 more tax every year under (9.34 p.m.)—The incorporated speech read the Howard government, and by 2007-08 the as follows— amount of extra tax per taxpayer will be over The Tax Laws Amendment (Small Business $12,500. The tax to GDP ratio continues to Measures) Bill 2004 was originally introduced rise to record levels, and part of this is the into the Senate as the Indirect Tax Legislation GST. GST revenue has escalated dramati- (Small Business Measures) Bill 2004 but lapsed cally, now at $36 billion and rising to $43 when Parliament was prorogued due to the recent Federal election. billion over the forward estimates. This enormous Commonwealth tax is what is con- It has come back with a new name but is substan- tially the same. tinuing to drive Australia’s tax to GDP ratio upward. The first measure gives small businesses and not- for-profit bodies that are voluntarily registered for So when the government seeks to intro- the GST the option of reporting and paying GST duce measures to reduce GST compliance on an annual basis. costs we need to get a sense of proportion of Businesses that take up this option will be able to how much revenue is actually being raised prepare and lodge annual GST returns at the same for the government by business through the time as they prepare their annual income tax re- GST. This extraordinary growth in revenue turns. A business will make a single payment of means small business will suffer a propor- any GST owing at the time it lodges its returns tional increase in the amount of resources with the Commissioner of Taxation. This seems a devoted to compliance. In comparison to the sensible proposal. magnitude of revenue raised, the government The second initiative gives businesses with an measures to reduce the cost burden on busi- annual turnover of $2 million or less the option to nesses are really very paltry indeed. While make an annual apportionment of input tax cred- not declining to give the bill a second read- its relating to acquisitions used partly for business and partly for non-business purposes. ing, Labor condemns the government for, firstly, not adequately addressing the signifi- For most of the year, these businesses will disre- gard non-business use of most of their acquisi- cant burden placed on small business by the tions or importations in determining the amount introduction of the GST and, secondly, fail- of input tax credit they can claim in their monthly ing to adopt Labor’s simpler BAS option that or quarterly GST returns. They will then make a would allow small business to use an ATO single adjustment after the end of the financial determined ratio to calculate their quarterly year. GST payments with no annual or quarterly Businesses required to determine the extent of reconciliations, thus freeing small business non-business use of acquisitions or importations

CHAMBER Tuesday, 7 December 2004 SENATE 131 for income tax return purposes will be able to use On the 26 November Crikey picked up the ACCI the same determination for GST purposes. agenda describing it as one of a number “of wiz- The third initiative aims to reduce compliance ard wheezes: costs for small businesses by simplifying the elec- • Further reductions in Capital Gains Taxes tion rules relating to the option to pay GST by (CGT) to promote innovation and entrepre- instalments, and to lodge an annual GST return. neurship including the introduction of a An eligible business will no longer be required to `stepped rate’ CGT where the percentage of make and lodge an annual election with the gains subject to the tax reduces the longer an Commissioner of Taxation. Once a valid election asset is held.” has been made it will remain in force until the Then they quoted ACCI chief executive, Peter business chooses to leave the instalment system Hendy, discussing the subject with finance corre- or it is no longer eligible. spondent, Stephen Long, on ABC AM: The annual lodgement and annual apportionment “PETER HENDY: We need a capital gains tax initiatives will apply from 1 October 2004 for regime like they have recently introduced in the entities with quarterly tax periods and 1 Novem- UK, where you have a step-rate capital gains tax ber 2004 for entities with monthly tax periods. regime where you reduce the burden of tax the Due to the delay in passing this Bill as a result of older an asset it is, because we need to boost pri- the Federal Election, the commencement date for vate sector investment in research and develop- the option to pay GST by instalments has been ment. deferred from 1 July 2004 until 1 July 2005. STEPHEN LONG: So you’re saying—introduce We will be supporting this Bill. It aims to reduce a new capital gains regime where the longer an the compliance burden on small business and this asset was held, the less capital gains tax an or- is a principle that the Democrats support. ganisation or an individual would pay? We have always supported a simple, efficient and HENDY: Yes —turn it more into a speculative fair tax system, but like every other political party gains tax, so the longer an asset is held, the lower that has had a hand in tax legislation, we continue the burden of taxation. to fail the simplicity test. However we continue to LONG: And presumably that would shift some of try hard on efficiency and fairness. the investment out of property speculation into One of the tax areas that matters a great deal to investment in industry? small business is capital gains tax. HENDY: We think it would. We think it would Capital gains tax was one of the tax subjects out- actually decrease the amount of property specula- lined in the Australian Chamber of Commerce tion, it would actually put it to more productive and Industry’s Taxation Reform Blueprint, issued uses that the money that’s being used in property in November 2004. speculation. . . put it into research and develop- The ACCI said: ment and innovation investment.” “While the Australian Government substantially It is for this reason that we opposed the massive reduced CGT with reforms in 1999, other coun- reduction in Capital Gains Tax back in 1999. tries such as the UK and the US have since im- As any economist will tell you, by creating distor- plemented CGT changes to attract greater invest- tions in the tax system, you create distortions in ment. Australia’s CGT system is no longer com- the economy. We have witnessed this with the petitive with these countries and is limiting the housing bubble in over the past four years. potential investment in research and development I have spoken many times in this place about the and in innovation. tax distortion that has created the housing boom “Therefore, it is necessary to revisit some of the —the negative gearing rules, the capital gains alternative methods canvassed by the 1999 Ralph discount and overly generous depreciation rules. Review of Business Taxation but not accepted by Others have agreed with me. the Government...”

CHAMBER 132 SENATE Tuesday, 7 December 2004

Alan Kohler, writing in The Age, in an article In my supplementary report in November 1999 I titled ‘Blind Freddie can see why house prices remarked that: have soared’ wrote: “The Democrats do not believe that the business “Five years ago, Treasurer Peter Costello told tax package, as it stands, will be revenue neutral. Australians: ‘work for a living and we’ll tax you We have concluded that the behavioural assump- at close to 50 cents in the dollar. Speculate and tions on the capital gains tax cuts provide for an we’ll only take 25 cents. Not only that, but as a over-optimistic estimate of likely revenue gains special deal—while stocks last —we’ll pay half which knocks more than $2.5 billion out of the your speculating costs. forward estimates, leaving the Budget in the red Naturally 1 million Australians started speculat- by around $1.49 billion over five years. ing on real estate. When the money ran out, they We also conclude that the capital gains tax cuts in borrowed more. Prices doubled, so did debt.” their current form are likely to lead to consider- This is a succinct summary of the impact of the able tax avoidance, more than that allowed for by Government’s change to Capital Gains Tax. Treasury. They have been warned by the Productivity As outlined in the main committee report, the key Council and the Reserve Bank that the rules weakness in the revenue figuring behind the should change but Treasurer Costello has done Ralph Report lies in the Capital Gains Tax pro- nothing. posals, particularly in the treatment of realisa- tions. He continues to stubbornly ignore the problems that an overheating housing market causes. In The generosity of the lower capital gains tax is their ‘Taxation Reform Blueprint: A Strategy for also likely to lead to an increase in tax avoidance, the Australian Taxation System 2004 to 2014’, particularly because of the retention of a 100 per ACCI argue that Australia should have a stepped cent deduction for negative gearing despite only a rate CGT. 50 per cent capital gains tax. Professor Rick Krever, economist Dr John Edwards and US pro- In one respect perhaps this is not surprising. Cor- ponent of capital gains tax cuts, Alan Reynolds, in porate Australia did not benefit that much from evidence, warned that this combination was likely the CGT discounts that were given to individuals to lead to an increase in tax avoidance. Dr Ed- and trusts. wards warned that negative gearing was in fact on In fact, due to the removal of indexation, corpo- the rise in the equities market: negative gearing is rate Australia is now faced with paying tax on now, even with the current capital gains tax, a increased notional capital gains albeit at lower tax hugely popular strategy. In most banking institu- rates. tions, for example, marginal lending into equities The idea of a stepped-rate capital gains tax was a is the most rapidly growing part of their business. suggestion that the Democrats made at the time of You can see it in the housing finance figures. the Ralph Review. There are huge increases in individual credits lent Following the Senate Finance and Public Admini- on the security of houses which are going into the stration Committee’s Inquiry into Business Taxa- stock market or into other properties. tion Reform Report, tabled in November 1999, The Ralph Report, in dealing with the ability to the Democrats attempted to amend the Bill to negatively gear non-commercial losses, originally introduce a stepped CGT rate. carved out a continuing exemption for rental Labor and the Coalition of course voted us down. properties, but not shares. The Government, in its Stage 2 response, broadened this out to also in- How right we were! clude shares, without any indication of why, or Our basic proposition was that speculative short- any adjustment of the revenue costing. term investment should attract a higher Capital Professor Chris Evans in evidence suggested that Gains Tax than longer-term productive invest- even a slight movement in tax planning from ment. earned income to capital gains would reduce the

CHAMBER Tuesday, 7 December 2004 SENATE 133 revenue take considerably. He found that a one The Democrats warned that the changes to the per cent movement of converting income to capi- capital gains tax system would cause problems. tal would cost $359 million in annual revenue, We feel vindicated. based on 1996-97 figures. In 1996-97, negative It would also be good to see the Government re- gearing cost the tax system around $937 million in tax foregone on losses on rental properties port on the difference between its 1999 forecasts, and what has actually transpired. alone. Just a ten per cent increase in negative gearing would cost around $94 million a year. It would also be good to see them respond to the Professor Krever and Dr Edwards also warned Democrats stepped capital gains tax proposal, that the tax arbitrage effect was likely to be higher now that the ACCI have taken it up. We urge the than predicted by Treasury. Government to simultaneously consider reforms Given these sorts of risks, the Democrats believe to negative gearing to ensure that asset price bub- bles do not become an ongoing feature of future that the tax arbitrage effect allowed for in the Ralph estimates of a maximum of $180 million a economic cycles. year in lost tax due to conversion of income to Senator COLBECK (Tasmania— capital is likely be an understatement given the Parliamentary Secretary to the Minister for size of this capital gains tax cut. For the purposes Agriculture, Fisheries and Forestry) (9.35 of this exercise, we believe it would be prudent to p.m.)—I commend the bill to the Senate. increase the revenue lost allowance by at least 50 per cent. Question agreed to. The result of the changes to the realisation and Bill read a second time. tax arbitrage effects are included in the table be- Third Reading low. The effect is to convert the capital gains tax Bill passed through its remaining stages measures from being net revenue positive to net negative, and the package as a whole from net without amendment or debate. positive to net negative. NATIONAL WATER COMMISSION The Democrats conclude that the capital gains tax BILL 2004 gains to revenue have been overstated and that the Second Reading loss to revenue has been understated. By correct- Debate resumed. ing for these effects, we conclude that the pack- age, rather than being revenue positive by $1.267 Senator STEPHENS (New South Wales) billion as claimed by the Government, is in fact (9.36 p.m.)—The National Water Commis- revenue negative to the tune of $1.49 billion.” sion Bill 2004 establishes the National Water So, almost exactly 5 years ago, the Democrats Commission and the Australian water fund. were warning that reducing capital gains tax It was introduced into the House of Repre- would cause problems. sentatives on 18 November 2004. The Na- I must obviously acknowledge that the Australian tional Water Commission, as contemplated in economy has been extraordinarily successful in the significant June 2004 COAG agreement, the past five years. will have two key responsibilities: firstly, We have had increased employment, wage growth assessing the implementation and promoting with low inflation and reasonably low real inter- the objectives and outcomes of the National est rates. Water Initiative intergovernmental agree- But it must be acknowledged that there are warn- ment; and, secondly, advising on financial ing signs beginning to develop. Economic black assistance to be provided by the Common- clouds are on the horizon in the form of the mas- wealth under components of the Australian sive current account deficit, high personal debt, water fund. Schedule C of the intergovern- linked to heavy property investment. mental agreement outlines the institutional These need careful watching.

CHAMBER 134 SENATE Tuesday, 7 December 2004 arrangements of the National Water Com- By 2020, drinking water in the major re- mission, the role of which is to provide ad- gional centre of Dubbo is expected to be un- vice on national water issues and, in particu- suitable for consumption due to increasing lar, to assist with the effective implementa- salt loads in the Macquarie River in our cen- tion of the National Water Initiative agree- tral west. Any amount of salt in rivers will ment. damage aquatic life and, when used for irri- The bill gives the National Water Com- gation, it threatens agricultural production. A mission the power to make recommendations decline in native fish species has been com- for the government’s final decision concern- pounded by the explosion in the number of ing the allocation of the Australian water introduced species, such as European carp, fund. This fund will predominantly be dis- that thrive in the altered conditions and feed tributed through the Water Smart Australia off aquatic plants and the eggs of native fish. program and the Raising National Water The issues we face in New South Wales Standards program. Labor have concerns are shared right across this country. We are about this bill and are proposing some all living with water restrictions and we un- amendments, but we acknowledge the im- derstand that we can never return to the portant advance that has been made through wasteful practices that were once so com- the cooperation of the state governments and mon. We must find a way to balance the the Commonwealth to produce the National needs of agricultural production, rural and Water Initiative. regional economies, urban demand and the Our water supplies have all but reached environment. Continued degradation of land their limit of our abuse. Australia, like many and water resources will achieve none of nations, is facing a desperate future if we do these goals and will add to the crippling bur- not learn to manage and respect our water. den of uncertainty facing many in the com- We continue to endure the ravages of munity. drought, and we are facing the significant We have a great example of the near ruin challenge of climate change influencing the of one of our rivers and the return of envi- reliability of the resource into the future. As ronmental flows to it—the once great Snowy the population increases, our economy ad- River. The Snowy Mountains Scheme di- vances and the degradation of our river sys- verted 99 per cent of the water from the tems continues, our existing potable water Snowy River and turned it inland to generate supplies are strained, to say the very least. electricity and to use on the developing irri- In my state of New South Wales, we are gation areas of the Murrumbidgee and facing some real challenges. The Nature Murray valleys. The Snowy River had been Conservation Council of New South Wales reduced to a creek for four decades as a re- recently reported that over 50 per cent of sult of this diversion. Then in August 2002, wetlands in inland New South Wales have water was redirected from the Mowamba disappeared. The amount of water reaching River weir back into the river. At present, it the sea has reduced by 80 per cent and native is at six per cent of its original flow. While bird and fish numbers have declined signifi- enough water is now flowing to stop the de- cantly. Unchecked agricultural run-off has cline, much more is needed to bring the river led to increased turbidity, a build-up of small back to life. Eventually it is hoped that fish particles of soil and other organic matter that such as blackfish and bass will return. Water blocks sunlight needed by aquatic plant life. is being released from the Mowamba River weir upstream and, after work on the

CHAMBER Tuesday, 7 December 2004 SENATE 135

Jindabyne Dam, 21 per cent of the flow will Many years later and after much dragging of be restored over the next 10 years. It is ex- feet by the Howard government, COAG pected that it will take at least this long be- came together again to attempt the next step fore the river returns to working order. I read towards a truly national water initiative. In with interest in the Canberra Times recently June this year, New South Wales, Victoria, the recollections of Mr Eccleston, who is Queensland, South Australia, the Northern aged 72. He remembers when the Snowy Territory and the Australian Capital Territory was alive and well. The article read: signed the National Water Initiative agree- Mr Eccleston remembers the Snowy mountain ment. The agreement builds on the 1994 river, when platypuses rippled the surface with COAG strategic framework to provide mysterious rings. greater certainty for investment and the envi- The swiftly flowing water was so clear it was a ronment and to underpin the capacity of Aus- magical place for meeting friends and neighbours. tralia’s water management regimes to deal Rapids tested the strongest swimmers. with change responsibly and fairly. The Na- Mr Eccleston despaired at the state of the tional Water Initiative aims to develop a na- river and the terrible impact it had had upon tionally compatible market, regulatory and the little community of Dalgety. I am de- planning based system of managing surface lighted to say that Dalgety now has some- and groundwater resources for rural and ur- thing to celebrate with the Snowy flowing ban use that optimises economic, social and once again. The town held a festival last environmental outcomes. It is the National week to celebrate the river behaving like a Water Commission that will drive the na- river. tional water reform agenda. The case of Dalgety demonstrates how in- In Australia, the responsibility for water tertwined we are as people and as Australians resources rests with state governments. As with our environment and, in particular, our such, any national response requires the col- waterways. Without environmental flows, laboration of the states and a coordinated river systems begin to collapse. The impacts legislative approach. Since 1994, significant are felt not simply by the ecology of the riv- progress has been made by the states and ers but in our communities. These effects are territories towards more efficient and sus- economic and social, direct and indirect. tainable water management. However, in the Rivers are part of our national identity and past 10 years many factors have changed. we need to do all we can to use our water There has been an increased demand for wa- more efficiently so that we are able to bring ter, an increased understanding of the man- life back to our precious waterways. agement needs of surface and groundwater I go now to the background of this bill and systems, including their interconnection, and the developing of a national framework for an enhanced understanding of the require- water. The move towards a national approach ment for an effective and efficient water to managing our water resources took a sig- market. It was agreed by COAG that there nificant step in February 1994. The Council was a need to refresh the 1994 reform of Australian Governments agreed upon a agenda. New South Wales, Victoria, Queen- strategic framework for necessary water re- sland, South Australia, the Northern Territory forms covering water pricing, institutional and the ACT signed that national water arrangements, sustainable water resource agreement in June 2004. It built on that management and community consultation. COAG strategic framework of 1994 to pro- vide greater certainty for investment and the

CHAMBER 136 SENATE Tuesday, 7 December 2004 environment. It was a significant step in na- what was a monumental agreement. The tional water reform. state premiers wrote to the Prime Minister to In September 2004 the Howard govern- announce that they would pull out of the Na- ment released its long-term water policy, tional Water Initiative because of the federal Securing Australia’s Water Future. The cen- government’s plan to withdraw the competi- trepiece of the policy is the establishment of tion payments to pay for the water initiative a $2 billion Australian water fund. Invest- promises. The premiers accused Mr Howard ments by the Australian water fund are to of breaching agreements reached at the further the objectives of the Living Murray COAG meeting and failing to consult on the initiative and the National Water Initiative. future distribution of competition payments. The primary purpose of the water fund is to They argued that the decision to divert com- direct $1.6 billion over five years to water petition payments breaches the national smart projects aimed at accelerating the im- competition policy agreements. They said: plementation of new water technologies and Your decision to fund the water policy by cut- practices. Two hundred million dollars is ting at least $1.6 billion in competition payments committed to recovering water for the Living to the States means you are effectively robbing Murray initiative. One hundred and sixty- the States to pay for your policy. In addition to this you seek additional payments from the States seven million dollars is being committed to to fund the key projects promised in your policy. the cost of constructing the proposed Wim- mera-Mallee pipeline in north-western Victo- This will put intolerable pressure on the deliv- ery of key services by the States. It will inevitably ria. That pipeline is to replace open channel have an impact on hospitals and schools. This is domestic and stock supply systems that are an unnecessary assault on State and Territory currently in operation. It will lift the capacity Budgets given the Commonwealth Pre-Election to measure, monitor and manage water re- Economic and Fiscal Outlook (PEFO) released on sources. The fund will help to implement a 10 September 2004 showed a cumulative underly- nationally consistent system for collecting ing surplus of over $25 billion over the forward and processing water related data. There will estimates period. be $200 million committed to rewarding Either this government is serious about water communities that demonstrate a culture of reform or it is not. I understand the Prime water wise usage through the Water Wise Minister has written again to the states and Communities initiative. territories since the election wanting to re- With so much goodwill generated by the visit COAG arrangements. At this stage we June COAG meeting, it was a shock to all are at a critical impasse in terms of this Na- state and territory governments when the tional Water Initiative. It is a tragedy for our Deputy Prime Minister, Mr Anderson, re- waterways that the political goodwill was leased the policy during the election cam- squandered so willingly by the government. paign revealing that, of the total pledged for The Rural and Regional Affairs and the fund, the Howard government expected Transport References Committee inquiry into the states to contribute $1.6 billion from rural water usage brought down a very spe- funds allocated to them under the national cific report which urged collaborative action Competition Principles Agreement. This is through COAG on the issue of water. We not what was agreed at the COAG meeting have yet to have a formal response from the in June. The government did not signal its government. Perhaps this is an example of intentions then, preferring to wait until the actions speaking louder than words. Cer- cover of the election campaign to recant tainly the state and territory governments are

CHAMBER Tuesday, 7 December 2004 SENATE 137 committed. New South Wales, Queensland, confronting those states. In 1995 the Murray- Victoria, South Australia, the ACT and the Darling Basin Ministerial Council— Northern Territory signed the agreement. involving federal and state ministers from Western Australia and Tasmania have not New South Wales, Victoria, South Australia because the federal government has tied the and Queensland—announced a cap on diver- national water plan to the $500 million Liv- sions from rivers in the basin covering much ing Murray initiative. Both the Western Aus- of south-eastern Australia at 1993-94 levels tralian and Tasmanian governments believe in an attempt to ensure that adequate water that the National Water Initiative is too remained in the rivers. skewed to the Murray-Darling region and In 1995 the New South Wales government does not focus on other problem areas. launched its water reform process in order to The Western Australian government are bring state laws up-to-date with the growing also rightly concerned that the agreement acceptance of the importance of the river offers little benefit to Western Australia and systems to the health and sustainability of the is not appropriate for their state. They argue environment and the community. This proc- that Western Australia is at a very different ess culminated in the passing of the New stage of the development and understanding South Wales Water Management Act 2000. of its water resources to many other areas of The Water Management Act brought sweep- Australia, which brings with it a different set ing changes to legislation that had been in of priorities, issues, challenges and opportu- place since 1912. For the first time the role nities. They fear that the National Water Ini- of the environment as a user of water was tiative may result in Western Australia hav- recognised, ensuring that all decisions taken ing to commit to complex management, to manage our river and creek systems and monitoring and planning before there is a our groundwater resources must consider the need for this level of sophisticated manage- needs of the environment. That act was fol- ment, given their state of development. There lowed this year by the Water Management are likely to be significant disadvantages for Amendment Act 2004. This contained Western Australians in being tied to such a changes designed to be consistent with the highly prescriptive model or timetable. The National Water Initiative agreed to by COAG Western Australian government feel it is im- at its June meeting. So what does the Na- portant to ensure that Western Australia re- tional Water Commission Bill 2004 deliver tains the flexibility to implement change in a for us? We are very concerned that there is way and time frame suited to its needs. such a lack of transparency in the processes But none of this matters to the federal in this bill. We will propose some amend- government, which is driven by an ideologi- ments to improve the transparency aspects of cal position on federal intervention. It is truly the bill. We look forward to having the sup- a disgrace that a government so willing to go port of the minor parties and the considera- on a multibillion-dollar spending spree dur- tion of those amendments in committee. ing the election campaign—a government Senator WEBBER (Western Australia) happy to throw money around at a variety of (9.52 p.m.)—The National Water Commis- other ventures—will not put up new funds to sion Bill 2004, as has been outlined by my address the urgent issue of water in our na- colleague, creates the National Water Com- tion. The New South Wales and Victorian mission, a new statutory commission that is state governments in particular have re- to have two key aims: firstly, assessing the sponded with urgency to the water shortages implementation and progress of the National

CHAMBER 138 SENATE Tuesday, 7 December 2004

Water Initiative and, secondly, advising on are at crisis point, the federal government the financial assistance to be provided under wants to take a leadership role and invest the Australian water fund. The simple fact is significant funds to start to address this prob- that, as far as water is concerned, Australia is lem. Whilst this is a very good thing, one living beyond its means. Our consumption of wonders about the wasted opportunities over water is rapidly eating into our supply. The the years to address our record levels of wa- dams supplying our major cities are running ter consumption. at record low levels, the use of groundwater One example that springs readily to mind is seriously affecting the water table and the is rainwater tanks. I am sure that many of us flow through our creeks, streams and rivers can remember a time when many houses and is vastly inadequate. Australia faces this wa- sheds had attached rainwater tanks. Over ter crisis largely as a result of past policies time government agencies, in their desire to and inaction in the face of a changing cli- see all of us connected to scheme or town mate—a matter that we have debated often in water because they had built these wonderful this chamber. There is no doubt that rainfall dams and had the capacity to charge us for has the single largest influence on the avail- the use of that resource, started to push us to ability of water for consumption. It is also stop using rainwater tanks because of con- clear that southern Australia is experiencing tamination concerns. Of course, this had the the prolonged below average rainfall that in desired aim in that people stopped using their some places, such as my home state of West- rainwater tanks or no longer installed them ern Australia, has taken place over many as part of new residential developments. But decades. Increasing population, new indus- now we are in the situation where various tries and more water intensive agriculture governments are offering rebates and other demonstrate that we have not adjusted incentives to encourage households to again quickly enough to these changes. We have consider installing rainwater tanks. In fact, a continued, whether in the cities or in the recent study by the University of Newcastle bush, to consume water like there is indeed concluded that a family living on the eastern no tomorrow. The single greatest problem coast of Australia that had a 10,000-kilolitre that we face is that we treat water as a single- tank would meet 65 per cent of their annual use commodity. We turn on a tap, have a water needs through the use of that tank. It shower, use a washing machine or fill our needs to be pointed out that no longer are pools, and once we have done all that we rainwater tanks large cylindrical structures simply pull the plug. that require a lot of space and are a potential Although our habits at a domestic level eyesore. The newer products on the market are slowly starting to change, over the last these days are designed to sit next to the ex- five years we have concentrated purely on terior wall of the house and do not extend the domestic consumption of water. Even beyond the eaves. They come in a variety of though the domestic consumption of water is designs, shapes and sizes. You have to ask a minor section of overall consumption, most yourself whether the many and varied pro- if not all government action to date has been grams could be reduced to getting people in aimed at the domestic consumer. Inefficient urban areas to install rainwater tanks. water consumers, such as industry and agri- As it is, what little rain there is that cur- culture, have been immune to the restrictions rently falls on the urban areas of Australia that we all face, increased prices or require- becomes stormwater and ultimately passes ments to actually recycle water. Now that we out to the sea, so surely a program that aimed

CHAMBER Tuesday, 7 December 2004 SENATE 139 to at least use this water capacity in some tries on earth—Australia. It has always way would be a major step forward. Indeed, seemed to me to be counterproductive in a just yesterday in the paper there was an arti- dry place to grow crops such as cotton and cle about two inventors who have designed a rice that require such huge amounts of water device that attaches to a hot water tap that to thrive. Australian farmers are looking at stores and then blends the cold water in the innovative and efficient means of water us- pipe with the hot water as it comes through age, but we have to break the habits of life- from the hot water system. This simple de- times to ensure that our rivers regain an ade- vice—likely to cost in the vicinity of $300 to quate flow. Most of us have been through $500—would save some 25,000 litres per studies early in high school that teach us the year in the average household. This method water is a closed system—there is no more and many more would make a significant or less water in the system at any one time difference to water consumption within our than at any other. However, human consump- domestic market. tion of water is reducing the amounts of However, the two major users of water— fresh water, and with decreasing rainfall we agriculture and industry—do not seem to can no longer afford to do nothing. attract the same level of regulation, encour- The bill will establish the National Water agement or restriction. Why is more empha- Commission as a Commonwealth statutory sis not put on industrial users recycling and authority. The Commonwealth will nominate reusing water? Water used in most industrial three commissioners and the states will processes does not require the same water nominate three commissioners. The commis- quality standards as are required for our do- sion will meet at least eight times per year. In mestic consumption. The question becomes fact, I trust that the commission will meet one of providing sufficient incentive to in- more than eight times a year as this issue is dustries to go down the path of water recy- vital for the future of our country. Unless we cling and reuse. Perhaps a more realistic can develop sustainable usage of fresh water pricing structure for industrial consumers is we risk having a less affluent future. The also required. If industries can see the bot- Australian water fund will work with two tom line benefits of introducing recycling main programs: water smart Australia and and reuse, then there is a significant oppor- raising national water standards. The water tunity for them to invest. As long as indus- smart Australia program will accelerate the tries have access to cheap single use water, development and uptake of smart technolo- we should not be surprised that they will al- gies and practices in water use. We are told ways choose that option. that competitive bidding will determine Agriculture, water rights and water flows which projects are funded. in our rivers have been areas that have at- The National Water Commission will tracted significant research and interest over make recommendations to the minister, but the last few years. Indeed, to many urban like so many other programs there is to be a Australians it appears that farmers having to degree of flexibility with this program. It is give up rights to water is equated to compen- all very well to talk about new technology sation, which of course means that taxpayers’ and practices that may impact on improving dollars are to be expended to get farmers to water flows in our rivers but it can also be stop taking so much water out of our river about improved water storage projects. It system. Perhaps it will see the end of cotton will be a program that those of us on this and rice production in one of the driest coun- side of the Senate will pay close attention to.

CHAMBER 140 SENATE Tuesday, 7 December 2004

This government should not be in the busi- river system. Essentially, those states which ness of disbursing $1.5 billion over five have signed up have the Murray or the Dar- years through the Australian water fund ling flowing through them. It speaks volumes unless there are some targets and firm guar- that those states that do not have these rivers anteed savings as the outcome. If some have failed to sign up. The clear implication bright spark turns up with new technology is that there is no pressing requirement to do that is funded and then found not to deliver so. the outcomes that were claimed, what action Water is a major concern to Western Aus- will be taken? Probably none. This program tralians and we have the Gallop government has the potential to be yet another exercise in taking significant steps to solve our problems picking winners, if we are all not careful. in Western Australia. Whether it is moving The Commonwealth had better put its money market gardeners off ground water mounds on sure things. I only hope that it will not be to reduce the outflow from ground water, the in the business of picking projects like the commissioning of a desalination plant or the Asia Pacific Space Centre on Christmas Is- feasibility study with private industry to in- land that this year was meant to launch at vestigate the possibilities of canals bringing least eight space rockets. That was another water down from the north, the Gallop gov- example of trying to pick winners that has ernment have taken the lead. Why would failed spectacularly. It would be disappoint- they sign up to such an Eastern States-centric ing to all Australians to watch $1.5 billion approach as is demonstrated in the Howard being expended over five years on a bunch government’s approach to water manage- of projects that fail to deliver. ment? For not much more than is planned to The other key area for the Australian wa- be expended over the five years, Tenix plans ter fund is the program called raising na- to move water from the northern rivers to tional water standards. We are told that this Perth via a canal. The total cost of this pro- program will invest in Australia’s national ject is only $2 billion—not much more than capacity to measure, monitor and manage its is planned for the Australian water fund. water resources. This program will cost $200 The simple facts are these: Perth uses million over five years. Its centrepiece is the about 310 gigalitres of water per year and the introduction of a new rating system for Fitzroy River pushes 9,000 gigalitres out to household appliances—something that we sea each year. What has been the position of already have in Western Australia. Yet again the Howard government on this approach? we are seeing that the approach to water Western Australia will not sign up so they management is to bash the domestic con- can go it alone! Going it alone is something sumer over the head. One of the key prob- that Western Australians are getting used to lems with this national approach to water doing. So far we have introduced policies management—as has been outlined by my that have restricted water consumption in our colleague Senator Stephens—is that two domestic markets, we have moved agricul- states, Tasmania and my home state of West- tural producers off ground water mounds, we ern Australia, have not signed up to the pol- have looked at new and innovative ways to icy. As a Western Australian, I can say that it increase water supplies through existing is difficult to understand why these two methods and we are building a desalination states should sign up to the initiative. Like plant. We are examining proposals to solve many other programs this one has a distinct Perth’s water needs for the next century. flavour—and that is the Murray-Darling

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What is the benefit for Western Australia lic needs. I believe that, if we ensure that it to sign up to this national approach when we really is a public and open process, we will are doing it ourselves without the need for get a much better result. I will talk more to the creation of a new water bureaucracy? For that at a later date. at the heart of the Howard approach to water The key functions of the National Water management is the creation of a new bu- Commission, which will be an independent reaucracy—more bureaucrats dispensing statutory body, will be to assess the imple- more public moneys for projects that may or mentation and promotion of the National may not deliver. Over in Western Australia Water Initiative and to advise on which pro- we are taking action, while the Howard ap- jects should receive financial assistance from proach is to fund projects that may or may the Commonwealth through the Australian not deliver. I support the approach of the water fund. I see this as the last throw of the current Western Australian government, dice for many of our river systems, in par- which is working to solve its water manage- ticular for the Murray-Darling Basin. If we ment problems without the need to create a do not get it right, we and in particular future new bureaucracy. Over time I am sure that generations will be in serious trouble. By no the people of Australia will see which ap- means is the Murray-Darling Basin the only proach will deliver a sustainable water fu- river system that will be dealt with, but I do ture. want to focus on it for a moment because it Senator LEES (South Australia) (10.07 really is in serious trouble. I have spent quite p.m.)—The National Water Commission Bill an amount of time over the last few years 2004 establishes a new national body, the travelling up and down the river, particularly National Water Commission. The aim of this the South Australian section, and it is in seri- body is to facilitate and oversee water re- ous trouble. The red gums along the river, form. Finally we are seeing people at gov- particularly those in South Australia around ernment level and at all levels taking water Chowilla—at the back of the locks, which seriously and valuing water properly, as it are now preventing regular access to water should be valued. This body has been put in for those trees—at the back of Banrock Sta- place to ensure that all of us use water tion and basically all the way down the river wisely. I support the bill as it is one way— are in serious trouble. They are sick, they are perhaps now the only way—to ensure that dying or they are dead. we have the water that we need now and for They desperately need a drink. They could the future. We need to ensure that our rivers have had a drink in 2000. The decision was and ground water systems are healthy and made then not to do that but to actually drop that we do not take more water than the par- the levels of the locks so that the water ticular system can sustainably provide. A flowed straight through. I still have not got a whole raft of issues will be on the COAG commitment from the government that, when table for debate, such as water efficiency and we finally do get some rain, rather than provision of water for domestic purposes, dropping the weir and lock levels and push- industry and agriculture. All of this will be ing the water through we will have the locks scrutinised, and hopefully they will get the raised. They have been upgraded to make planning right this time. I will be moving an sure that it can be done. We will have small amendment that deals with opening up the floods produced to push the water out into process to ensure that we really do have the the red gums. information we should have and that the pub-

CHAMBER 142 SENATE Tuesday, 7 December 2004

A recent study shows that, just in the last what is happening to water and to acknowl- 18 months, tree decline has increased sub- edge that landscapes require water to flour- stantially, from 51 per cent of all trees ish. I want to talk about this accounting sys- counted in 2002 being in trouble to 75.4 per tem for a moment because this is one of the cent of all trees counted in 2004. In places issues that will make or break this whole like Chowilla it is just a graveyard. I used a process. In South Australia a few years back photo of one of the old trees there on my now the Loxton irrigation scheme was up- Christmas card about three years ago, and graded. There were promises about leaving that tree has gone. This decline was found by water in rivers and promises, particularly to researchers to be a ‘universally severe phe- the locals, that what was saved would be nomenon’ across hundreds of kilometres of allowed to flow in the Murray. Very soon we the flood plain. There really is no time left. found that the state government had made We have to get water out to those trees in the the decision that that water could go out into next 15 to 18 months. the Barossa Valley, and it was piped out I also notice that there are algal blooms in there. I commend those in the Barossa who the Darling already, and we are only just get- operate the bill scheme for having now made ting into summer. With the impact of the the decision that they will go and source wa- fires on the catchment areas and the reduced ter on the open market rather than use that run-off that is expected this year, not to men- Loxton water. The priority in South Australia tion climate change itself, which is playing for many years has been to make money by havoc with rainfall right across that part of selling water. It is one of the reasons that we the basin, we now do not have any other have not had water restrictions in Adelaide as chance. If we do not get this right now, if this long as many other states have had water new body does not work with the Murray- restrictions, particularly other capital cities. Darling Basin Commission, with COAG and The South Australian government still re- with all other authorities in all states—and it quires SA Water to put several hundred mil- is unfortunate that Western Australia and lion dollars a year into the public coffers to Tasmania are not full partners to this—then I help with the budget bottom line. It makes it think that right across the basin we will have very difficult to honestly and openly put in an economic disaster as well as an environ- place water-saving initiatives. mental one. We are already seeing that 500 In talking with farmers up and down the gigalitres simply will not be enough, looking river, I have heard that they want to see this at the additional water use that has occurred work. Indeed, some of them say that they are just over the three years as more sleeper and prepared to sell a percentage of their water if dozer licences are woken across the basin. they can see a public process, if they can be But at least if we can get that in place fairly guaranteed that this water is not going to be quickly we can get some of the flooding that on-sold and that it will be left in the river. we need. One of the suggestions has been that we use The primary objective of the National Wa- the Net. We have got that facility to track ter Initiative is to achieve sustainable use of where the water comes from, where it is water across Australia. The plan is to claw stored and then, when it is used to top up a back any overallocated water and to ensure flood, that too is accounted for, so we can ecologically sustainable levels of extraction track exactly where water has been used for in all river systems, to put in place an open the environment. It is one of the reasons I water accounting system that allows us to see will be moving my amendments, so that we

CHAMBER Tuesday, 7 December 2004 SENATE 143 can get a process that farmers really do want It is public accountability that will make to be a part of and that people have real con- or break this process. Through it we can see fidence in. whether water savings have been made, Looking at this new body we are setting where they can be made, where they will be up with this bill, the National Water Com- made or should be made and where this mission, I see it does not really have any saved water has gone. I think great pressure teeth. It is basically there only to assess, will be put on the Commonwealth to ensure promote, advise and look at the funding of all of this is an open and public process, as the National Water Initiative. The Murray- the public is now ready for water reform and Darling Basin Commission also lacks teeth. certainly the farmers I have spoken to So some of the questions we can put to the throughout the Murray-Darling Basin are minister when we get into the committee ready for it. stages of this bill relate to where the teeth are Senator BROWN (Tasmania) (10.16 and how we are going to see that the deci- p.m.)—I congratulate the previous speakers sions that have been made are actually en- for their contributions to this debate about forced and the results are on the board. How one of the most important issues facing Aus- do we make sure that water savings that are tralia now and one of the most important made through measures—some of which are issues for the lives of everybody alive in this already on the drawing board, such as piping country in 2004. We all know the problems the Darling Anabranch and Water Proofing but we have to take them in concert with an Adelaide through recycling water and increasing population, an increasing use of stormwater—will actually stay in the river? resources and, more particularly, the advent Again, we come back to an open accounting of global warming through the human use of process or system. resources. This threatens in the Murray- There are some very good stories on recy- Darling Basin, for example, to reduce the cling stormwater in Adelaide. Michell, the flow of the rivers there by 30 per cent by wool producers, used to use nine per cent of mid-century—on top of everything we have Adelaide’s water every day but, thanks to the at the moment. When you see the almost Salisbury Council and their stormwater recy- impossibility, according to conventional cling program, Michell is basically totally off thinking, of taking 30 per cent of flow from River Murray water. There is only a very current users and putting it back in for envi- end-of-stage process in one of their wool ronmental use, and add to that global warm- processing lines that uses any Murray water ing taking out 30 per cent of the natural flow at all; the rest is all recycled stormwater. over the next 40 or 50 years, you wonder When they have got too much stormwater, how on earth the generations who will live in they pump it into the underground aquifer for the Murray-Darling Basin and depend upon storage. It is the type of program that can it in the middle of the century are going to make a difference. But if we are going to look back on this debate in this parliament have SA Water, if any savings are made in tonight. They will see how far short of the Adelaide, going out and trying to resell or on mark the legislation we are dealing with is sell that percentage of water that is saved, compared to what is required from govern- this is all going to be defeated and we are not ments who have the long-term national inter- going to get anywhere. est in mind.

CHAMBER 144 SENATE Tuesday, 7 December 2004

We are effectively establishing another the health of the Murray-Darling and, in- bureaucracy, and it is to dispense money to deed, of all the other river systems of this unspecified projects to reach unspecified country? goals. It is all very nebulous. It is in many The Greens have some amendments to try ways typical of the Howard government’s to rescue the ineptness of this legislation and approach to the great environmental respon- the establishment of this superbureaucracy sibilities it has, which is to say: ‘We’ll put in without the superpowers and discrete and place a watchdog mechanism but we’re not specific goals that it should have. The first going to put in place goals and commit our- amendment requires the National Water selves to meeting those goals. We won’t sign Commission to meet specific goals for pro- the Kyoto protocol. We won’t commit to a viding environmental water to really deal time line for returning a proper environ- with the crisis that we have. Part (a) says that mental flow to the Murray River.’ There is the National Water Commission will secure massive environmental damage occurring in the entire 500 gigalitres required for the Liv- the meantime while this government effec- ing Murray First Step by 31 December 2005. tively sits on its hands. There is the loss of That is 500 gigalitres when we are dealing species in the river, including fish species but here with a natural river flow in excess of going on to all the in-water species, and the 12,000 gigalitres. So we are dealing with massive damage to the riverine environment. something like four per cent of the natural Senator Lees has just referred to the study flow being added to the Murray River showing the impact on the river red gums. It through this first step. That is four per cent, is a national calamity, and there is nothing in when Senator Webber or earlier Senator this bill to adequately deal with that. Senator Stephens was talking earlier about a minimal Lees says action is required to get water to return of 28 per cent recognised as being the dying red gums, the majority of them required to go to the Snowy—and that took stressed and dying, this year. There is noth- 10 years to get around to. We are talking ing in here to address that at all. The Prime about four per cent here as an emergency Minister, the Minister for the Environment measure, and this government has not got it and Heritage and the cabinet are together on the slate. It is looking at that somewhere turning their backs on those trees as they die out at 2010 or 2014. and on the ecosystem which depends on Senator Lees has talked about her Christ- those trees and which dies with them. It is mas card of three years ago and the magnifi- grossly irresponsible for the Prime Minister cent tree on it that is now dead. Add all the and the cabinet to have turned their backs pictures you could take of the river red gums and to be a ‘do little’ government in the face now and see where they will be in three of such a calamity. This is not something years, let alone in 2014—and we do not facing future generations; this is right now in know that 500 gigalitres is going to go any- front of our very eyes, described by scien- where near reversing the fortune, or misfor- tists. And this government says: ‘We won’t tune, of the river red gums. deal with that. We’ll set up a commission The Greens amendment effectively says with vague, nebulous guidelines but we will that the Commonwealth and states agreed on not deal with that immediate problem.’ If the the 500 gigalitres and committed $500 mil- government cannot deal with the immediate lion in November 2003. A year later, in No- problem, how is it going to deal with the vember 2004, they agreed on specific meas- long-term and greater problem of looking to

CHAMBER Tuesday, 7 December 2004 SENATE 145 ures to secure and fund the first 240 gi- bate, let alone the committee stage, which we galitres. But as things stand not one dollar may guess will be coming shortly. will be spent and no water will flow because The third part of the first tranche of of the fight over competition payments. amendments by the Greens is to return rivers What is the National Water Commission go- and wetlands to environmentally sustainable ing to do about that? It is being established extraction levels by 2010. The National Wa- under this legislation, but what is it going to ter Initiative commits to returning overallo- do about the Prime Minister’s failure to get cated systems to environmentally sustainable one drop of water returned to the river during extraction levels—but with no time line. The his nine years in office? This Prime Minister Australian Conservation Foundation, the has not returned one drop of water to the Farmers Federation and the Banking Asso- Murray-Darling to rescue this grand ecosys- ciation agreed to do it by 2014. The govern- tem which is dying in front of his face in the ment could not even follow through with that nine years he has sat in that chair in his of- time line in this legislation—and this is the fice. It is a national disgrace. place to be laying down the directives to the The second part of the Greens amendment National Water Commission. But it is not would secure an additional 2,500 gigalitres here, so the Greens are providing a time line of water for the environment by December which we think is minimal if you are really 2007—a minimum of 1,000 gigalitres for the talking about environmental rescue of the Murray. This takes the Murray allocation to Murray and the Darling. 1,500 gigalitres within three years. That is The fourth part of the amendment is to what the scientists retreated to saying was give the Murray-Darling Basin Commission the minimum required to get an environ- responsibility for managing environmental mental rescue, environmental health, for the water in the Murray-Darling Basin—that is, river. This would provide another 500 gi- the return of flow to the rivers. The man- galitres for either the Murray or elsewhere in agement of environmental water should be in the basin—for example, the Macquarie the hands of an organisation with environ- Marshes. I will be asking the government mental expertise. about the plight of the Macquarie Marshes The second amendment is to lift the en- when we get to the committee stage. trenched secrecy which this legislation gives I notice that there are no advisers in the to the National Water Commission. Mr Act- box. I do not know whether there is anybody ing Deputy President Sandy Macdonald, as at the other end of the phone. I do not know you live in the basin, I know you will be whether there is anybody watching on televi- concerned to see that everything is open and sion. I do not know whether the government transparent to the public. The Greens gives a cuss at all about this. Certainly the amendment will provide you with the ability minister is not here. The advisers are not to support that. The amendment requires here. Is there anybody at the other end of the specific documents produced by the commis- phone? Who knows, because as far as the sion to be tabled in parliament when they are minister is concerned this bill does not mat- given to the minister and generally to operate ter. I have never seen a situation where a bill in an open and transparent manner. like this has been before the Senate and there I will be asking the minister, if he appears, are no advisers in the place and no minister to explain the need to hide any matter that to deal with it during the second reading de- the National Water Commission is dealing

CHAMBER 146 SENATE Tuesday, 7 December 2004 with. It is public money, public water and the interested. This is a tedious matter as far as national environment that we are dealing the government is concerned. with and the public should know about it. Senator Kemp—Come on, Bob! According to the bill as written, the minister Senator BROWN—He is making the has complete control over all the information wrong call there, and it shows what the gov- produced by the commission. The public do ernment thinks about this: it is all tedious, not get a go unless the minister deigns to says the wrong minister in the chair for this release that information. That information legislation. ‘Tedious!’ says the government. includes the assessment of Australia’s water But ‘extremely important and critical’ say the resources and their management, whether other senators who have contributed to the plans are consistent with the National Water debate tonight. Initiative and should be accredited, whether commitments under the National Water Ini- The Independent report of the expert ref- tiative are being implemented, the monitor- erence panel on environmental flows and ing of the impact of interstate trade in water water quality requirements for the River access entitlements, assessing the perform- Murray system was finalised in 2002. It as- ance of the water industry against national sessed the likelihood of having a healthy benchmarks, a comprehensive review of the Murray River under different conditions, National Water Initiative in 2010, and as- including environmental water allocations sessments of the implementation of the water ranging from 350 gigalitres, with a low like- reform framework. Is any senator going to lihood of a healthy Murray but some local- say that any of those matters should be kept ised improvements, to 4,000 gigalitres, with secret at ministerial discretion and, if so, a high likelihood of a healthy Murray. Re- why? member that that is one-third of the natural flow. Fifteen hundred gigalitres was assessed In relation to the 500 gigalitres for the as a moderate likelihood of a healthy Murray as agreed by the government—and Murray. A second more detailed report was specifically the first 240 gigalitres agreed constrained to look only at options up to with much fanfare last Friday week—I will 1,500 gigalitres, with a moderate chance for be asking the minister, should he be here, the river. I will be asking questions about when the works will begin and the water these flows and how the assessment has been made available. Is there a seasonal require- made, why the government believes 500 gi- ment for when water needs to flow to the galitres is adequate in the coming period and wetlands: for example, is it spring? If so, what its target is going to be after that. when is the latest that money has to be allo- cated in order for water to be available in Another question the Senate must have spring 2005—or is it spring 2006? Some answered is how much water is needed for water will be released through policy deci- the Darling, its tributaries and the dependent sions. Some requires infrastructure, such as wetlands. Again, I refer to the absolute catas- the Wimmera-Mallee pipeline, which may trophe of the Macquarie Marshes, one of the take 12 to 18 months to complete, or more. nation’s great waterbird breeding areas, re- duced by half and enormously degraded by Senator Kemp—Tedious! its having been simply robbed of the water Senator BROWN—The minister inter- that for thousands of years had flowed to it jects that this is tedious, because he is not during flood periods. These are important matters and they require specific answers.

CHAMBER Tuesday, 7 December 2004 SENATE 147

There will be some beating of the chest by tional water reform through initiatives and actions the government about setting up this com- to advance the objectives and outcomes of the mission, this bureaucracy. But of itself it will NWI. do nothing in terms of that all-important, I refer to the second reading speech of the immediate and urgent critical need to return Minister for Transport and Regional Ser- water to the river. That is going to be the test. vices. At the end of it the minister says: After nine years you would think the The National Water Commission will be instru- Prime Minister would have done something mental in ensuring that water issues in Australia to make that return, but he has not. One can continue to capture the public’s imagination and only conclude that the 70 per cent of users energy in working towards practical water solu- tions. The importance of water to securing Aus- who take water for crops and for irrigation, tralia’s economic and environmental future de- including grass, have the power over the mands no less. government; it is not game to take them on. Clause 44 of the bill goes to the public avail- One has to wonder whether the $2 billion ability of assessments by the National Water being spoken about here for the National Commission. Clause 44 says: Water Commission would not be better spent, in concert with the states, to get rid of (1) The NWC may make its assessments un- Cubbie Station, to get big returns back into der paragraphs 7(2)(a), (g), (h) and (i) and 3(a) and (b) available to the public the Darling and the Murray. Senator Lees has only with the agreement of the Minister. spoken about the way in which users of wa- ter along the Murray would not mind some (2) The NWC must not make any other ad- vice or recommendation available to the of their water being bought back if they public. knew it was going to environmental man- agement. But effectively there is nothing I am not sure how you actually intend to here to give rural water users, irrigators, any achieve national outcomes, promote debate sort of real confidence that if they do the and enhance communication with and be- right thing the government will stand by tween communities, stakeholders and deci- them and do the right thing in return. sion makers if you are not making any in- formation available. We should make this Senator MURPHY (Tasmania) (10.36 information available. Of course, the minis- p.m.)—I intend to make only a brief contri- ter should reserve the right to direct the bution to the debate on the National Water commission not to make things available, as Commission Bill 2004. I want to focus on is the case with some other government or- clause 44 of the bill. In doing so I refer to the ganisations, but the minister should then ta- government’s explanatory memorandum on ble an explanation in both houses of parlia- the bill and go to page 5 in the explanatory ment as to why that direction has been given. memorandum as it relates to the function of There could be some good reason for giving the National Water Commission. Its explana- the direction, but the minister should explain tion of clause 7(1)(a) says: that. If we are to promote debate and, as was Amongst other activities, the Commission could said at the end of the minister’s speech, agree be expected to: undertake analysis; inform policy on ‘the importance of water to securing Aus- making by governments; help facilitate coordi- tralia’s economic and environmental future nated government action to achieve national out- demands no less’ and on the need to capture comes; promote debate; enhance communication with (and between) communities, stakeholders ‘the public’s imagination and energy in and decision makers; and otherwise promote na- working towards practical water solutions’,

CHAMBER 148 SENATE Tuesday, 7 December 2004 we should make information available. It ter resources continue to rise with expanding should be a transparent process. If you are populations, and with the expansion of agricul- going to put $2 billion into it, it should be tural land-use and efficiency. transparent. At the time of its announcement the Australian Democrats welcomed the Coalition’s $2 billion We should have a process where people Australian Water Fund, a policy made up substan- are able to see what this commission’s views tially of initiatives recommended in the 2002 are and what they recommend to the gov- Democrats-initiated urban water Senate inquiry ernment. I will be moving an amendment to report and through the Senate inquiry into rural give effect to that. I will move that the com- water use. The Democrats have for a long time mission will be required to make publicly now supported and promoted a national approach available its assessments and recommenda- to water through the Council of Australian Gov- tions within a period of six months after ernments to move Australia towards the end goal making those assessments and recommenda- of sustainable use of water resources. tions unless otherwise directed by the minis- The Democrats have done much work on water ter. The minister shall reserve the right to use in the Senate and through its inquiry proc- direct the commission not to make publicly esses. Senator Aden Ridgeway chaired the inquiry available those assessments and recommen- into Rural Water Use, and I chaired the Senate Inquiry into Australia’s Urban Water Manage- dations, but the minister must then table an ment. These two inquiries provided a clear basis explanation for the reasons for taking that for water reform strategy and as a result we will course of action in both houses of parlia- today move a second reading amendment urging ment. I think the public deserve no less if the targets, recommendations and proposals that they are to be able to make an informed as- came out of the committee’s work will continue sessment as to whether this is actually going to be acted on. Two years after the urban water to work. They ought to have access to the inquiry reported, I feel that we may be finally information that this is going to generate, making headway towards best use of Australia’s and that is what is important. I will move precious water resources. The Water Efficiency Labelling scheme was a recommendation of the that amendment in the committee stage of urban water inquiry and one the Democrats nego- the bill, and I hope the government will sup- tiated a year or so ago as part of the Measures for port it. a Better Environment. I look forward to dealing Senator IAN CAMPBELL (Western with that bill early next year. Australia—Minister for the Environment and Considering the great importance of this issue, Heritage) (10.41 p.m.)—I seek leave to in- and the absolute necessity of bringing the states corporate a speech in the second reading de- on board for all negotiations, the Democrats are bate from Senator Lyn Allison. I believe it concerned the Federal Government has attempted has been circulated. to steam-roll states regardless of whether agree- ment has been reached or not. This is amply dem- Leave granted. onstrated by the submissions received from state Senator ALLISON (Victoria) (10.41 governments following the Democrats’ referral of p.m.)—The incorporated speech read as fol- the National Water Commission Bill to Senate lows— Inquiry. There is little doubt that water use in both urban Despite the Federal Government’s efforts to cur- and rural areas is of primary importance to Aus- tail the inquiry by insisting on an extremely tight tralians and fundamental to establishing a sustain- reporting date, state governments, farming bodies able and enjoyable standard of living in this coun- and conservation groups acted in record time to try. Australia is a dry continent. Demands on wa- submit comments expressing concerns about the

CHAMBER Tuesday, 7 December 2004 SENATE 149 reporting and decision-making procedures as drafted, the legislation stipulates that the Minister drafted by the government in this bill. is not required to publish the National Water As an example, I quote the Victorian Minister for Commission’s advice or recommendations. Environment John Thwaites in a letter received Hardly in the spirit of the National Water Initia- by the Senate Environment Committee today tive which states the Commission’s reports will when he says “The Victorian Government does be publicly available. not believe the Bill reflects the spirit of coopera- Within the policy framework of the National Wa- tion which resulted in the signing of the National ter Initiative, the Democrats are not satisfied with Water Initiative by the Council of Australian the lack of targets for environmental flows for the Governments. The Victorian Government consid- Murray Darling, and the significant delays in ers it imperative that the National Water Commis- delivering funding and real outcomes toward re- sion provides advice and reports direct to COAG covery of the Murray Darling system. We urge following consultation with the States and Territo- the Federal Government to release funding from ries, not report direct to the Prime Minister as is the Living Murray program to ensure actual on currently proposed. “Minister Thwaites goes on to ground action that will release more water into point out “the National Water Initiative Intergov- the river and relieve its parched wetland ecosys- ernmental Agreement (clause 107) states that the tems in the shortest possible timeframe. National Water Commission reports to COAG The Australian Democrats recently called for the will be publicly available”. Federal Government to ensure Australia’s north- The Democrats are concerned the Howard Gov- ern region’s water resources are properly assessed ernment is seeking to renege on that agreement prior to any large-scale expansion farming or through this bill. We do not believe that amend- ranching activities. We urge the Government to ments made by the government in the House of keep a close watch on moves to establish large Representatives will result in the appropriate level scale cotton crops in Northern Australia. of transparency or spirit of cooperation and as We have already seen our most productive agri- such will present our own amendments to the cultural area, the Murray-Darling basin, deci- Senate. mated due to misuse and misunderstanding of the Wasteful water use practices have resulted in the water resources of the area. Australia must not degradation of many of our water resources, par- make the same water use mistakes in the north, or ticularly in eastern, south-eastern and south- we will be facing similar huge bills for reparation western Australia. The Democrats believe the and arguments over water rights as we are seeing establishment of a National Water Commission in the southern states. and commitment of funding to ensure the Na- Similarly, over the last few weeks, we have seen tional Water Initiative is extremely important. At reports that Western Australia, which I remind the the time of the announcement of the Australian Government is yet to sign on to the National Wa- Water Fund, we were pleased to see recognition ter Initiative, is under pressure to implement plans from the Federal Government of the need for a to channel water from northern Australia. Cou- significant cultural shift in water use and man- pled with expanding cattle-ranching and cotton- agement. We can only hope that state and Federal farming, the north’s biodiversity and water re- Governments will adopt the second unanimously sources look like being under substantial pressure agreed recommendation from the Senate Inquiry in the near future. The Murray Darling should not into Rural Water, namely that COAG should ne- be the sole focus of efforts to move Australia to- gotiate an ongoing shared programme for funding wards sustainable use of water. the reforms in the Intergovernmental Agreement Once again I would like to express the great on a National Water Initiative. hopes the Australian Democrats hold for the Na- We are concerned that this bill would make the tional Water Initiative, and our eagerness to see it Federal Minister the key conduit for advice and pass. However, without a cooperative approach to appears to have the discretion to act, or not act management of water resources, we fear the proc- upon the NWC’s advice. We also note, that as ess will be stalled. We urge all governments to

CHAMBER 150 SENATE Tuesday, 7 December 2004 work together towards a transparent, open and challenges have been created because of how most importantly effective program to move Aus- we have changed Australia during European tralia’s water use towards sustainable levels. I occupation. European activities on the land urge the Senate to re-visit the unanimously en- have changed it, and there is no greater ex- dorsed recommendations on water that have come ample of that than the Murray-Darling sys- out of the Senate inquiry process, in order to en- sure they are implemented in the shortest possible tem, which is now a highly artificially con- timeframe. trolled channel that happens to have some magnificent pieces of Australian wetlands Senator STEPHENS (New South Wales) and a range of other important pieces of (10.42 p.m.)—I move Labor’s second read- landscape around and within the basin. ing amendment: The government have recognised the need At the end of the motion, add “, and condemns the Government for: to address the water challenges. That is why we have established a $2 billion fund to (a) its failure to take the threat of climate change to ongoing water supplies for work with the states and the Territory in ad- both our farmers and our rivers seri- dressing these problems. Senator Lees made ously; reference to a number of problems within (b) its failure to deal with water issues with South Australia with regard to the plans and an appropriate sense of urgency, allow- sometimes failures of the water authority ing the COAG water reform process of there. I think water authorities across Austra- 1994 to stall, and failing to provide any lia have been challenged. We have pricing environmental flows for the Murray systems that create perverse outcomes. We River in over 8 years; have water authorities that make a lot of (c) its failure to adopt Labor’s national money from selling potable water which then water policy framework, and ensure gets pumped onto tennis courts, golf courses that Commonwealth funds are directed and a range of other places. At the same time towards securing environmental flows; we get potable water, flush it down our toi- and lets and through our sewerage systems and (d) its plan to fund the Australian Water straight out into the sea. We have what ra- Fund by taking money which the states tional and sensible people looking at this have earmarked for essential services nation would see as some very strange ways such as schools and hospitals”. of dealing with a very scarce commodity. Senator IAN CAMPBELL (Western The National Water Initiative, to be sup- Australia—Minister for the Environment and ported by major investments through the na- Heritage) (10.43 p.m.)—In the first instance, tional water fund, is without any doubt the I thank all honourable senators for their con- largest and most ambitious program to ad- tributions to a very important debate on the dress these challenges in Australia’s history. National Water Commission Bill 2004. I lis- During the election campaign the Austra- tened as much as I could to the contributions. lian Labor Party came up with a plan, for I think it is quite clear that all senators have example, to put 1,500 gigalitres back into the identified the problems. Australia is a conti- Murray. Mr Garrett and Mr Latham stood on nent that is short of water in many places and the banks of the Murray River and promised abundant in it in other places. We are a na- that they would find 1,500 gigalitres. They tion that is challenged by how we deal with did not say where they would get it from. water. Many of the challenges are created They did not say how they would do it. They because of the nature of Australia. Other had no detail. It made a nice photo opportu-

CHAMBER Tuesday, 7 December 2004 SENATE 151 nity on the banks of the Murray in the middle water. It has to be done in cooperation with of the election campaign, as did former the states and the territories through the Senator Graham Richardson, the then minis- COAG process and with the leadership of all ter for the environment, and Mr Bob Hawke, governments. The investment is overdue. It the then Prime Minister, standing on the is needed. If we are to hand this continent on banks of the Murray in exactly the same spot to the next generation with a much more sus- promising to plant, I think, one billion trees. tainable environment and with water supplies It was a promise that went the same way as that are reliable in communities around Aus- Mr Hawke’s promise that no child would live tralia—keeping those communities alive— in poverty. Promises made standing on the then this initiative is needed. The Common- banks of the Murray will be treated with wealth is very keen to see the commission scorn by people who live in that basin and by established, the National Water Initiative put all other Australians if they are not backed in place and the investments commenced. up by practical action and major investments. The Prime Minister made it clear that he The Labor Party has made criticisms. In wants 20 major projects going in the next the pious second reading amendment moved year. We want to see the benefits of the ini- by the opposition we see criticism of the tiatives. Those projects will do a lot of the funding of the national water fund. The things that all of the senators here have spo- states—and Labor federally seems to be sup- ken about tonight. A lot of those investments porting them in this—say that the funds are major capital investments. They are in- come from money earmarked by the states vestments that water authorities in the past for other purposes. The hypocrisy of that have been reluctant to put in place but they statement is that during the election cam- will be able to do it, as will other proponents, paign the Australian Labor Party took ex- with the significant support provided by the actly the same money and sought to spend it Commonwealth government using taxpayers’ on other things. This money is not the states’ money. I commend the legislation to the money. As the Labor Party knows full well, Senate. it comprises the competition payments, as Question negatived. they are called. The national competition Original question agreed to. policy concludes in 2006 and the competi- Bill read a second time. tion payments are not scheduled after 2006. The states know that very well. The Labor Ordered that consideration of this bill in Party knows that very well because it took Committee of the Whole be made an order of the money to spend it on its own programs. the day for the next day of sitting. You cannot have it both ways. The Com- ADJOURNMENT monwealth is using legitimate Common- Senator IAN CAMPBELL (Western wealth sources of funding to pay for a major Australia—Minister for the Environment and and long overdue addressing of the water Heritage) (10.51 p.m.)—I move: challenges of this nation. You cannot com- That the Senate do now adjourn. plain or challenge our source of funding when you were, during the election cam- Curran, Mr Charles and Mrs Eva paign, using that money for your own pur- Senator COONAN (New South Wales— poses. Minister for Communications, Information The fact is that Australia needs this major Technology and the Arts) (10.51 p.m.)—Too investment. Australia must spend money on often the works of great Australians receive

CHAMBER 152 SENATE Tuesday, 7 December 2004 insufficient recognition. I would like tonight such diverse organisations as Perpetual Trus- to outline some of the achievements of my tees Australia, the Greater Union Organisa- friends Charles and Eva Curran. I rise to pay tion, the Medical Benefits Fund of Australia, tribute, in effect, to two remarkable Austra- Capital Television Holdings Ltd, the New lians who just happen to be married to each South Wales Government Commission of other. I have often thought that the ancient Audit and the Australian Wool Exchange. words of the Roman poet Ovid best typify Additionally, he has held a directorship of the marriage of Charles and Eva. Ovid said: QBE Insurance and is an international ad- If you would marry suitably, marry your equal. viser for Goldman Sachs. Charles has also Having recently attended their 40th wedding had a longstanding interest in agriculture, anniversary, I know there could not be a particularly in the field of viticulture. He has more apt phrase to describe their lifelong brought these interests to the fore on his companionship. Charles Curran is many property Noojee Lea, at Canowindra, which things: a devoted family man, a successful produces premium wine, under the Nassau businessman, a generous philanthropist, a Estate label, and the finest merino wool. keen sportsman, a patron of the arts and, In the Australian business community, perhaps most importantly, a loyal friend to Charles Curran’s name is something of a the many and varied people within his wide byword. His integrity has made him an ex- orbit. The term ‘Renaissance man’ is an ap- ample to all who take executive and non- propriate description of Charles. It encom- executive roles within companies. Corporate passes his passion for education and ad- governance has benefited and will continue vancement, intrinsically describing his inter- to do so from his example in an era when est in the advancement of business and learn- ethical behaviour is a much discussed attrib- ing. ute of good business. This integrity, exempli- Eva Curran is, like Charles, a person for fied in the business world, is perhaps more whom others have profound respect. Her role sharply seen in the activity of the Currans in as philanthropist, devoted parent, constant their charitable endeavours. In addition to friend and supporter of charitable causes is their financial contributions, Charles and Eva widely admired. Together, they make true the devote their time to a variety of charitable old adage that ‘the whole is greater than the organisations by providing business and sum of its parts’. Theirs is an open-hearted practical advice and activity. It is rare that partnership that provides a role model for this couple, so self-sufficient, would ask any- others. It is the touchstone and the inspira- thing of their friends unless of course it is for tion for the magnificent contribution they a beloved charity. They have no hesitation in make to their community and to their nation. knocking on the doors of business and per- sonal contacts in search of assistance for the The many impressive achievements of benefit and support of others. Charles Curran in business are made more so for being based on the highest ethical and Some of the charities that have particu- moral considerations. His success in a di- larly benefited from Charles’s business acu- verse range of industry sectors including men are the Royal Institute for Deaf and media, banking and insurance is built on Blind Children where he served as vice business acumen, a sharp intellect and a tire- president, St Vincent’s Hospital, the Sydney less work ethic. Some of the highlights of Health Service, the Eastern Sydney Area Charles’s career include his chairmanship of Health Service and the Garvan Institute of Medical Research where he has served as a

CHAMBER Tuesday, 7 December 2004 SENATE 153 past and present chairman. The support of which Charles spoke about the projects that the Currans for specific health charities ema- the group are involved in. One of these pro- nates from the time-worn yet true phrase, ‘If jects was the establishment of the Sir War- you don’t have your health, you don’t have wick Fairfax Trust for Integrated Education anything.’ They have taken this as their guide in Northern Ireland. Lady Mary Fairfax gen- and have espoused causes and supported ini- erously made the initial contribution of $1 tiatives that have seen the recovery and reha- million to the trust, with the goal being to bilitation of innumerable sufferers. One spe- educate children, Catholic and Protestant, in cial example that I would like to dwell on an integrated environment. Prejudice springs from the impressive list is the involvement of from ignorance and missed opportunities in Charles and Eva with St Vincent’s Hospital education. The beneficiaries of this trust will and the Garvan Foundation. In 1984, the do much to consolidate the achievements of Currans became aware of the critical state of the 1998 Peace Accord which has promised discretionary funds held by St Vincent’s so much. The contributions of Charles to his Hospital. Charles’s parents established the immediate and wider community were offi- Curran Foundation with an initial contribu- cially recognised in 1987 when he was tion of $500,000. Charles’s father, Paul, who awarded an Officer of the Order of Australia. is still alive, recently celebrated his 90th Yet another example of the extreme versa- birthday. tility of Charles Curran is his fascination Another substantial contribution of with the sport of sailing. As skipper, crew $800,000 was later made to the foundation and owner, he has demonstrated his inability by Charles which assisted the Garvan Foun- to pursue a project as a half-measure. This dation Library, the Capital Appeal and the love of sport is not confined to sailing. Peter Wills Centre for Bio-Informatics. To- Charles has also served as a member of the day, the foundation has assets of $8 million New South Wales Committee of the Austra- and has given $4.3 million in grants since its lian Olympic Committee. establishment for the provision of medical In addition to his impressive repertoire of equipment and patient care facilities. Anyone achievements and philanthropy, Charles also who knows this family is aware that they do has a real passion for the arts. Charles was not give for self-aggrandisement but give in appointed a director of the National Gallery the spirit of improving the lives of those less of Australia Council in 2003. He was chosen fortunate. on the basis of his business skills and his With Australia as their first love, Charles knowledge of finance. Sculptures by the Sea and Eva are also established citizens of the at Bondi, an annual event featuring some of world, spending considerable periods of time the most creative and innovative artists in abroad for business and charity. They have Australia, benefited from his and Eva’s con- combined their love of other cultures and siderable involvement. This exhibition is one their philanthropic nature in their involve- of the most widely visited annual events in ment with the Australian Ireland Fund. This Sydney and truly delivers a burst of colour to fund has raised over $4.2 million to combat those who might not see how the arts speak terror and violence in Ireland. As chairman, to all Australians in diverse ways. Charles Curran, with Eva’s enthusiastic sup- The 40 years that Charles and Eva have port, embodies the spirit of improvement been married have seen them raise five de- through education and understanding. I re- lightful and successful children, with seven cently attended a function of the fund at

CHAMBER 154 SENATE Tuesday, 7 December 2004 grandchildren to keep them forever young. not seek to pre-empt the Foreign Investment From personal observation I know that fam- Review Board’s review, there are aspects ily life for the Currans is filled with laughter, about Xstrata’s conduct at Windimurra in love and a refreshing tendency to rousing Western Australia and its general operation debate! One of their sons said recently: which should worry policy makers in Austra- It is through his role as a father that I think Dad lia. There is a worldwide consolidation of has outshone his business and community resource companies under way and this trend achievements. He is, quite simply, an outstanding is being replicated in Australia. Such con- father. I remember as a young school boy, Dad solidation increases the ability of large global arriving home late, very tired, but happy to help resources companies to control global re- us with our homework. sources supply and therefore prices. Such Eva continues to play the pivotal roles of control makes these companies extremely wife, mother, confidant and friend which powerful. have made the Curran marriage the focus of Xstrata has been accused of involvement admiration, delight and a source of inspira- in activities to consolidate resources and tion for their many friends. The diverse control prices at a global level. The Win- achievements of Charles and Eva Curran are dimurra mine saga lends considerable weight remarkable, and the label of ‘great Austra- to that allegation. The Economics and Indus- lians’ sits comfortably on their shoulders. try Standing Committee of the Western Aus- Those close to Charles and Eva marvel at tralian parliament noted in their report on the their ability to manage such diverse activities mine that Xstrata claimed there were diffi- in their sometimes hectic lives. They are culties at Windimurra from the outset. Leav- never too busy to find time to catch up or to ing aside Xstrata’s motives for buying into mentor the young and are the first at your Windimurra, the company’s actions when it door to share in both the good times and less moved the mine from care and maintenance fortunate times. I believe that the mutual re- to closure are of great concern. Xstrata set spect they have for one another is the foun- out to make sure Windimurra could never dation for their many achievements and the again be used for the production of vana- basis of their successful and loving marriage. dium. Xstrata misled the Western Australian They regard everything they do as a work in government, and therefore the public, about progress. I am both honoured and privileged the cost of reopening Windimurra, and it im- to have enjoyed their friendship for many posed a financial penalty on its shareholders years. On behalf of your many friends and that was substantially higher than it needed admirers, I can think of no better gift than to to be. wish you both sustained good health and continued success. Happy anniversary, In February 2003, Xstrata placed the mine Charles and Eva. on a care and maintenance basis yet publicly denied it had any intention of closure, until Xstrata: Proposed Investment in Australia the shock announcement in May 2004. Yet Senator MARK BISHOP (Western Aus- on 24 March the Australian Pipeline Trust tralia) (11.00 p.m.)—I rise this evening to told the Australian Stock Exchange that it speak to the matter of the proposed takeover had been informed by Xstrata that it was of WMC Resources Ltd by the Swiss based closing Windimurra, and Xstrata sold the Xstrata plc. Senator Lightfoot has made Windimurra plant to Fabcon Ltd in the first some remarks in this place about Xstrata’s week of April. In addition to ensuring Fab- proposed investment in Australia. Whilst I do con did not sell the Windimurra plant to any-

CHAMBER Tuesday, 7 December 2004 SENATE 155 one wishing to use it to produce vanadium, the Windimurra project; the removal of plant the method of selling the plant by first re- and equipment from the site, apparently dur- moving the crushing and grinding equipment ing care and maintenance; and, apparently, minimised its value. Specifically, the con- no serious attempt at achieving a sale to al- tract between Xstrata and Fabcon explicitly low some other company to attempt to make precluded the sale of any equipment to an a go of the project. Indeed in this context it is existing or potential vanadium producer. useful to refer to correspondence made pub- Such a proviso would, of course, render the lic by the aforementioned committee of the plant and machinery most valuable as scrap Western Australian parliament. The report of metal and ensure it can never pose a com- that committee reveals the Leader of the Op- petitive threat to Xstrata. position in Western Australia and former The committee also heard that some of the Minister for Regional Development in the equipment used in the Windimurra operation Court government, the Hon. Colin Barnett, was sent to Xstrata’s Rhovan operation in wrote to Xstrata in May 2004 and said: South Africa whilst the plant was on care and In February 2003, Xstrata announced that the maintenance. So the evidence is that, once operations at the mine would be suspended due to problems with the mine became apparent, the collapse in world vanadium prices. instead of keeping the mine in care and You advised me at the time that there was the maintenance until the price of vanadium im- very real prospect of the mine returning to full proved—which it has done—Xstrata moved production once the price of vanadium had recov- early to decommission the project. This was ered. formally announced on 10 May 2004. It ap- Given the price of vanadium is now approxi- pears that, after decommissioning the plant mately five times higher than it was when the and moving some of the plant and machinery decision to suspend operations was made, I am concerned at reports that Xstrata believes the to South Africa, Xstrata were not serious mine is ‘sub-economic’. In particular I am about divesting themselves of the mine alarmed that the company may not be treating the through sale. mine on its true economic merit. The committee heard that Xstrata wrote to The people of Western Australia own the va- four proponents and stipulated in their letter nadium resources and Xstrata has been granted that offers would not be entertained unless the right to develop this resource by the Govern- they approached the capital cost of the major ment on behalf of the people of Western Austra- items at the site, nominated by Xstrata at lia. around $80 million. It is interesting to note WMC is a major Australian icon and em- that the Western Australian committee found ployer. It is a major contributor to our eco- the asking price of $80 million was ‘incon- nomic wellbeing. Besides this, it operates the sistent with the comparatively small return Olympic Dam site, the largest uranium ore obtained through disposal of the project’s body in the world. Australian uranium may infrastructure assets and the $11 million cost be exported only for use in electricity gen- to Xstrata for site rehabilitation’. It has been eration and is subject to Australian and inter- alleged but denied by Xstrata that their letter national safeguards for the prevention of nu- demanded full payment for the mine in an clear proliferation. It is vital that the entity unreasonably short period of five days. which controls the Olympic Dam uranium So what are we left with? We are left with resource is a responsible, capable and ethical a quick move by Xstrata to decommission company. WMC has proven itself to be such a company. I am not sure, based on the Win-

CHAMBER 156 SENATE Tuesday, 7 December 2004 dimurra saga, that we can be certain Xstrata antithesis of the black armband school of is such a company. In light of the Win- Australian history. I do not know Mr Wind- dimurra saga, it is vital that the Howard gov- schuttle’s work either, never having read any ernment allows the Foreign Investment Re- of his books, of which I understand there was view Board to thoroughly and independently just one of note: The Fabrication of Aborigi- review the bid from Xstrata for WMC. nal History, published in 2002, in which Mr Finally, after having some discussions Windschuttle apparently asserted that white with the government whip, I seek leave to settlement was not responsible for the disap- table some correspondence from Mallesons pearance of the Tasmanian Aboriginals since Stephen Jaques on behalf of Xstrata plc and only 120 were killed and thus, ipso facto, Xstrata Windimurra Pty Ltd to Mr John there was no genocide. Bowler, a member of the Legislative Assem- As I have no personal knowledge of either bly of the Western Australian parliament. Mr Windschuttle or his work, I make the Leave granted. point that nothing I say tonight about Mr Windschuttle or his work should be taken Senator MARK BISHOP—I will just personally. It appears that Mr Windschuttle make some brief points about that corre- has just completed another book, called The spondence, which is now on the record. White Australia Policy. As it was only Firstly, I refer to members of parliament. In launched last night, I could say that I remain particular Mr Bowler, a member of the West- in a blessed state of ignorance about Mr ern Australian parliament, has a duty when Windschuttle’s work. Not quite, however. In matters requiring attention are brought to his advance of the public launch of his new attention to disclose them publicly. It is en- book, Mr Windschuttle wrote an opinion tirely proper for such matters, when raised piece in the Australian newspaper on the with him, to be raised within the Western same day but published in the morning. It Australian parliament and its committees. was a very astute bit of publicity, actually. As Secondly, when such matters are raised, they I said, he is a very well-publicised scholar. should not result in a heavy-handed response by companies that might choose to be of- Mr Windschuttle’s piece in the Australian fended by what has been raised, which are at is entitled ‘White Australia’s myths’ and is best ambiguous responses or comments by a about 1,200 words in length. I have read it. member of parliament—in this case, a mem- On the very safe rationale that scholarship is ber of the opposition in the Western Austra- directly proportional to the number of words lian parliament and a member of the commit- used to put across an idea, I assume that eve- tee, Mr Day. In passing I say that it would be rything that Mr Windschuttle has to say much more helpful in a situation like this if about the White Australia Policy, including Xstrata responded positively, as opposed to its rise and fall and the myths it created, in engaging in behaviour that might properly be his no doubt substantial book has been interpreted in an adverse fashion. equally well presented in this piece in the Australian. So I read it very carefully. It Windschuttle, Mr Keith seems that Mr Windschuttle does not dispute Senator TCHEN (Victoria) (11.09 that the White Australia Policy existed. Well, p.m.)—I rise tonight to speak about Mr Keith nobody would. Nor, it seems, does Mr Wind- Windschuttle. I do not know Mr Windschut- schuttle dispute that the purpose of the Re- tle. I know of him, of course. If not yet fa- strictive Immigration Act 1901—the legal mous, he is certainly well publicised as the face of the White Australia Policy—was to

CHAMBER Tuesday, 7 December 2004 SENATE 157 close Australia to the migration of the so- 1788 onwards, the Australian colonies were called ‘coloured’ people for the next 65 always multiracial, with Maoris, Tahitians, years. Again, nobody would. What Mr Wind- Indians, Ceylonese, American negroes, West schuttle does dispute is the belief that the Indians, and Africans,’ and, of course, a White Australia Policy was an expression of plenitude of Chinese, not to mention the racist social values. That is what Mr Wind- Irish. But who says a multiracial social schuttle thinks is the great White Australia would not be a racist society? Even Mr Policy myth. Windschuttle is not so rash as to assert this, To make it plural—two myths—Mr Wind- but he implies it. And that is a flimsy founda- schuttle also asserts that the kidnapping of tion to build on. South Pacific Islanders to work the Queen- As a second example, Mr Windschuttle sland sugarcane fields did not happen. I am asserts that mainstream Australian national- no student of Pacific history, so I will not ism at Federation was not based on race be- comment on the historic truth of blackbird- cause: ing. But I must confess that I am rather inter- Australians ... owed loyalty to the British Em- ested in Mr Windschuttle’s take on the White pire, which specifically rejected the notion of Australia Policy and the impact it had on its hierarchies of race. principal victims—the Chinese Australian The British Empire rejected the notion of community—which between the 1850s and hierarchies of race? I wonder which British the 1890s was, as Mr Windschuttle acknowl- Empire Mr Windschuttle means? What edges, the ‘second biggest foreign-born would Mahatma Gandhi, James Connolly or population in Australia, exceeded only by Lee Kuan Yew say about that? The reality is those born in the British Isles’. I suspect that that the White Australia Policy was not only many Irish Australians would be affronted by racist in discriminating against the so-called Mr Windschuttle’s casual lumping of them ‘coloured’ races, but it also discriminated together with others under British Isles. But I against other European races. As late as the digress. outbreak of World War II, the White Austra- To be fair to Mr Windschuttle, it is quite lia Policy was invoked as the ideal of keep- obvious that his main purpose is to attack ing Australia: ‘Forever the home of the de- those academics who are his ideological op- scendants of those people who came here ... posite. These are the black armbanders, as he to establish in the South Seas an outpost of names them—Henry Reynolds, Andrew the British race.’ That quote came from a Markus, Richard Broome and Richard speech by the then Prime Minister, Mr John White, whose theses compare Australia at Curtin. Federation ‘with the “master race” national- The reality is that the Australia of today is ism of Nazi Germany’, which is a plainly entirely different from that of 1901. It is dif- ridiculous thesis. One is almost grateful that ferent from the Australia of the 1950s, when Mr Windschuttle would take them on. But in ‘two Wongs did not make a white’. It is dif- the process of getting to his enemies, Mr ferent from the Australia of the 1970s, when Windschuttle goes way over the top to silli- the White Australia Policy had already seen ness. the last of its days but multiculturalism—the Let me give just two examples. Mr Wind- idea of shared respect, shared fairness, schuttle asserts that the White Australia Pol- shared benefits and shared responsibilities— icy could not have been racist, because ‘from was still an exotic concept. It is even differ-

CHAMBER 158 SENATE Tuesday, 7 December 2004 ent from the Australia of the 1990s, when because it contains all of them and is none of Mrs Hanson could profess to misunderstand them. Of a time before party politics, Eureka this idea of multiculturalism and still gain a has been adopted by political parties across following. the spectrum. As long as Mr Windschuttle’s only interest The Eureka miners were no proto- is to have a public stoush with his ideologi- proletariat wage-earning workers, but nor cal enemies, I say good luck to him. How- were they small businessmen and entrepre- ever, if he has another agenda—to question neurs. Indeed, they saw the businessmen of the importance and relevance of multicultur- the goldfields as their enemies, making alism to modern Australian society—then he money off the diggers’ labour. When miner should beware, because the truly egalitarian James Scobie tried to force his way into and civilised society that he tried to paint Bentley’s Hotel to get a drink after hours and Australian society as being at the time of died in the ensuing scuffle, the miners saw it Federation has in fact been achieved today. as murder. James Bentley’s acquittal was one But it is still a work in progress. And with of the two October events that led to the Australia continuing to rely on immigration 10,000-strong meeting at Bakery Hill. While for growth and with a wider source of immi- they were in modern terms ‘self- grants, we will continue to need to follow employed’—although I wonder what men this process of mutual respect, mutual fair- who took up arms against a licence fee ness, mutual sharing and mutual responsibil- would make of a BAS statement—they have ity to ensure that our society can grow in been heroes to the union movement because prosperity and equality. The only danger we they believed in the great truth of unionism: face is if people like Mr Windschuttle mis- in unity is strength. So ‘self-employed’ does understanding that. For what we cannot see not tell the story of miners gathered 10,000- in the mirror, we cannot see face to face ei- strong to ‘swear by the Southern Cross to ther. stand truly by one another and fight to de- Eureka Stockade: 150th Anniversary fend our rights and liberties’. And ‘self- employed’ is hardly a complete description Senator FAULKNER (New South Wales of the beliefs and politics of men prepared to (11.17 p.m.)—‘We swear by the Southern die for democracy. Cross to stand truly by one another and fight to defend our rights and liberties.’ This was Rather than businessmen or workers, the the oath of Eureka. Over the past few weeks miners were adventurers and gamblers, stak- we have seen the men of the Eureka Stock- ing their life savings and their lives on the ade turned into puppets for one contempo- hope of a rich strike. Many followed the gold rary cause after another—Labor, Liberal, fever around the world, which explains the unionists, entrepreneurs, democrats, radicals, multicultural and multiracial nature of the Tories, workers or toffs. It seems the only goldfields and of the men who swore that Australian who does not want a part of the oath by the Southern Cross. At a time when Eureka legend is the Prime Minister. I think the term ‘mixed marriage’ meant Catholic he is more comfortable with the stars and and Protestant, the miners had an Italian stripes than the stars of the Southern Cross. spokesman and gathered beneath a flag de- But if the Prime Minister is disinterested in signed by a Canadian. The arrest of a non- Eureka, he is about the only one. Eureka English-speaking Armenian on trumped-up turns so readily to serve so many ideologies assault charges was the other grievance that triggered the Bakery Hill meeting. There was

CHAMBER Tuesday, 7 December 2004 SENATE 159 a limit to the miners’ brotherhood, though. of parliament. Working men could never There were no Chinese miners in the stock- have been elected to parliament without ade, and a variant of the Eureka flag would those three reforms. Without them, the Labor fly over the anti-Chinese rioters at Lambing Party would never have been possible. Con- Flats, embroidered ‘No Chinese’. temporaries understood the significance. The Last Friday, a descendant of one of the Sydney Morning Herald editorial on 13 De- Eureka miners, Shane Howard, spoke cember 1854 proclaimed: proudly of his great-great-grandfather: Every loyal subject must rejoice in the prompt They were not a rabble—they were educated, suppression of the Ballarat insurgents ... The re- literate men. And they had a real, true vision for bels, for such as they were, extended their views democracy in this country. beyond the grievances of a class and proposed to establish a new empire! A diggers’ empire! We Many miners, including the Ballarat Reform imagine that the distressing consequences of this League’s leaders, were educated and literate. first appeal to arms will satisfy the working Some had given up professional careers to classes that it is not by such measures they can follow the call of gold. Some were educated redress their wrongs. by their own unstinting efforts, like so many And 50 years later the very same paper radicals of the day, and some by the political greeted the formation of the world’s first campaigns on other goldfields in other coun- national labour government here in Australia tries. But the reform league was like any po- by calling on the other parties to challenge it litical body: there were plenty of members at once so that ‘government by the Labour who were neither devoted to, nor even inter- minority may be rendered impossible from ested in, altruistically promoting the univer- the outset’. sal democratic rights of mankind. Quite pos- The Sydney Morning Herald did not re- sibly some of them were among the men gard the miners at Eureka as small business- who lay dead or dying on the Ballarat gold- men in favour of small government. It field on 3 December 1854. They might have viewed them as very much part of that dan- been attracted by the Ballarat Reform gerously revolutionary body, the working League’s demands for the abolition of li- class, which must be excluded from govern- cences, the reform of administration of the ment at all costs. So no matter how hard you goldfields and a change to the laws govern- try to take the politics, the republicanism, the ing Crown land, to make it easier for diggers democratic radicalism and the working-class to buy it. Lower tax and cheaper land might rights out of Eureka they always find their well be the root causes of most revolutions way back in, just as no matter how hard you but they hardly make up a political ideology. try to shoe-horn the miners into the box of There were many at Eureka who saw an op- proletariat or capitalist they always find their portunity for far-reaching social and political way back out. After all, Peter Lalor swore in change: Californians and Frenchmen, con- the miners beneath the Southern Cross with vinced that the republic was finally coming an oath that still today rings with solidarity to Australia, and British miners whose in- and the passion for justice. He went on to be volvement with the Chartist movement— a mine owner who used Chinese workers as including three leaders of the Ballarat Re- strike breakers when his employees sought form League—contributed democratic de- an eight-hour day. He also went on to vote mands, including manhood suffrage, aboli- against manhood suffrage as a member of the tion of the property qualifications for mem- Victorian Legislative Assembly. bers of parliament and payment of members

CHAMBER 160 SENATE Tuesday, 7 December 2004

I do not think attempts to adopt and adapt Rodney Cameron-Tucker. I spoke of the Eureka to different causes will do it or us any number of health initiatives relevant to Tas- lasting harm. We are, after all, acting in the mania, some of the government achieve- fine tradition of the Eureka miners who ments and challenges, and the reform op- chose ‘Vinegar Hill’ for the stockade pass- tions, including the need for a greater focus word that last fatal night—no imported revo- on prevention to move from a treating illness lutionary slogan for them but the name of the to a wellness focus and to highlight the merit place where convicts seeking freedom were of lifestyle changes. gunned down in 1804. They united both Aus- I want to acknowledge up front that the tralia’s armed uprisings in one revolutionary general practitioner plays a pivotal role in thread with that simple decision. They re- caring for the health of all Australians, but I wrote an escape attempt by convict workers also want to say that the Australian govern- into a precursor of their own struggle. They ment’s initiatives in Tasmania have been hung Eureka forever on the memory of the marked, because two years ago the Tasma- political prisoners transported for their mem- nian medical school was under threat. Its bership of the United Irishmen’s Society, a viability was in question for a number of union of Irish Catholics and Irish Protestants reasons, but this has now been reversed. One seeking a united and independent Ireland. of the reasons is that the Australian govern- As we do as they did and write our own ment has earmarked $12 million for the en- Eureka, the caution I would give is that we hancement of our medical school in Tasma- should not ignore the stockade’s darker cor- nia. The government has spent considerable ners. If we turn a blind eye to the stains upon funds on improving access for overseas a past age, we will never learn to recognise trained doctors and providing doctors for the shadows on our own. If we can learn rural and regional Tasmania. We have added anything from the messy and malleable 21 new medical places—from 61 to 82 in the Eureka legend, it is that history is where we school in Tasmania—and we have pumped come from but it does not have to dictate an extra $220 million over the next five what we are. Women’s role in politics and years into the state’s public hospital system, activism is no longer limited to stitching the going from some $700 million to $920 mil- banners men march beneath. Men and lion. women of all backgrounds take their place For Tasmanian GPs there is an incentive by right both on the barricades and in the to bulk-bill and generally remain viable as a parliament. The spirit of the Eureka oath ‘to practice. We have lifted the incentive pay- stand truly by one another and fight to de- ments from $5 to $7.50 per consultation for fend our rights and liberties’ has only broad- concession card holders and children under ened with the passage of time. There is room 16 years of age. Of course, we are the only for all of us beneath the Southern Cross. state in Australia where there is blanket cov- Tasmania: Health erage and I want to acknowledge and thank Senator BARNETT (Tasmania) (11.30 the federal Minister for Health and Ageing, p.m.)—I rise tonight to say that recently I Tony Abbott, for ensuring that that has oc- had the privilege of speaking at the Austra- curred. lian Medical Association of Tasmania cock- The RRMA rating has changed for West tail party hosted by the President, Dr Mi- Tamar and New Norfolk. I acknowledge the chael Aizen, and the Executive Director, efforts of Senator Shane Murphy in relation

CHAMBER Tuesday, 7 December 2004 SENATE 161 to West Tamar and again thank Tony Abbott In that vein we have also acted decisively for his involvement in making that happen so on the childhood obesity front, with a $116 that doctors can be available in rural and re- million package announced by the Prime gional parts of the state. Certainly the sup- Minister in June this year at my fourth forum port for doctors with increases in bulk-billing on this issue since I became a senator in Feb- incentives has already paid dividends, with ruary 2002. I have held forums in an increase in bulk-billing rates of 14.8 per Launceston, Hobart and Canberra. If you cent to 63.2 per cent. That does not make it would just indulge me for a moment I would rosy but it is certainly a huge improvement like to say that I helped convince McDonalds on the previous situation. Australia chief, Guy Russo, to offer healthy The broad aim before the government is food options and to label his food packaging the health and wellbeing of all Australians, with nutritional information. McDonalds is wherever they live. Since the Howard gov- now doing both. I called for nutritional in- ernment has been in power, we have made formation on fast food packaging in mid- significant improvements to the health care 2002. The fast food industry response at the system. We have delivered on our commit- time was, ‘It is too hard and can’t be done.’ ment to strengthen Medicare through a $4 But two years later McDonalds is doing it. At billion investment over five years and we the Hobart forum I held, McDonalds an- have ensured greater access to affordable nounced that they had cut back advertising to medicines by increasing PBS expenditure. It children by 40 per cent. At the Canberra fo- is now a sustainable arrangement. Where in rum they announced nutritional information 1990 it was about a $1 billion taxpayer in- on their labelling. I congratulate Guy Russo vestment, last year it was about $5 billion and McDonalds for their initiatives in the and next year, in the 2004-05 financial year, hope that the remainder of the fast food in- there will be an estimated $6.2 billion. dustry will follow suit shortly. At the same time we have enhanced the I also want to acknowledge and thank the cost effectiveness of the PBS through a pub- Australian Association of National Advertis- lic education campaign. That has been of ers for their work and effort in coming on help. We have helped with the increasing board to address this obesity epidemic. I ac- cost of diagnostic and specialist services by knowledge the work of Ian Alwill, the Presi- announcing 23 new Medicare eligible mag- dent, and also the newly appointed Executive netic resonance imaging machines in under- Director, Colin Segelov. I acknowledge all serviced locations throughout Australia. We those who have been part of the solution and fully realise the value of prevention and early not part of the problem: the teachers, the detection. This is a key theme that I wish to health professionals, the nutritionists, the stress. On our coming to government we food and grocery manufacturers and many found that the child immunisation rates were others. 53 per cent. Now over 90 per cent of chil- A review of Australia’s national cervical dren at 12 months of age are fully immu- screening program was released on 18 No- nised. This is a fantastic health outcome. It vember 2004 and it confirms that Australia could not have been achieved without the has one of the most successful cervical determined support of GPs and the Austra- screening programs in the world. The How- lian government. ard government has put in place a range of measures to build a strong private health in- surance, with almost 8.7 million Australians,

CHAMBER 162 SENATE Tuesday, 7 December 2004 or 43 per cent of the population, having pri- The government announced that from 1 vate health insurance covering hospital January 2005 the rebate for GP services treatment. Building on this, the government would be increased from 85 per cent to 100 passed legislation just this week to change per cent of the Medicare schedule fee. This the private health insurance rebate. The builds on the government’s Strengthening changes will help to ensure that older Austra- Medicare strategy. This is obviously well lians can continue to benefit from their pri- appreciated by GPs, and they know it will be vate health insurance in retirement. The gov- of benefit to their patients. The coalition pol- ernment is increasing the rebate from 30 to icy Round the Clock Medicare: Investing in 35 per cent for people aged 65 to 69, and to After-hours GP Services is going to involve 40 per cent for people aged 70 and over. an expenditure of $429.6 million over four Some people may be aware that during the years for increased Medicare rebates for af- Select Committee on Medicare inquiry I ter-hours GP services and investing in both joined my Senate colleagues on the commit- existing and new after-hours GP infrastruc- tee Sue Knowles and Gary Humphries in ture. This initiative does build on the existing calling for a general increase in the rebate framework of the after-hours primary medi- because it helps to create more options for cal care program and is another step towards patients and acts as a buffer for the public the government’s long-term goal of increas- hospital system. I am pleased that the gov- ing access to convenient and quality GP ser- ernment has applied that recommendation to vices. I acknowledge the contribution of Dr assist older Australians with an increase in John Davis and his organisation in Tasmania their private health insurance rebate. The for the excellent work that they have done in government are now committed to delivering providing after-hours care in our state. a health information network for all Austra- Cancer care is a major cause of illness and lians and have allocated $128.3 million over death in Australia. Through our Strengthen- four years for the implementation of Health- ing Cancer Care measure, we will build on Connect. Tasmania was selected to be one of our investment in the care of those living the first states to roll this initiative out state with cancer by $140 million over four years. wide. Tasmania has a strong history in the e- Ninety Australians each week die from health arena, with the MediConnect field test bowel cancer. The Strengthening Cancer in the north and the flagship HealthConnect Care measure aims to reduce morbidity from trial in the south. bowel cancer in people aged 55 to 74. A na- The health priorities for this term of gov- tional bowel cancer screening program will ernment are wide ranging, but I just want to see Australians aged between 55 and 74 comment on a few. The first is to improve years directly invited to participate in bowel access and affordability to medical care; the cancer screening. The measure also includes second is the research into, and prevention a campaign to encourage women to quit and treatment of, specific diseases that have smoking during pregnancy and a national an enormous impact on the community, such skin cancer awareness program. There will as cancer and diabetes; the third is to provide be further research on cancer and cancer greater access to mental health care, particu- care. larly the burden of depression; and the fourth The government will be continuing its in- is to enhance the assistance that we currently vestment in helping people with mental provide to people with dementia and their health needs and has committed a further carers. $110 million over four years. This will assist

CHAMBER Tuesday, 7 December 2004 SENATE 163 in consolidating and expanding assistance to the International Diabetes Institute in Mel- GPs in their management of patients with bourne, which is headed up by the most mental health needs. competent and highly regarded Professor I turn to diabetes, support for people with Paul Zimmett, who was involved in conduct- diabetes and diabetes research. It does affect ing the AusDiab study. I visited the institute the health of many Australians. There are 1.2 just a week or two ago and was briefed on million Australians with type 2 diabetes and their latest research. I congratulate them on 140,000 people with type 1 diabetes. I am their efforts and their initiatives. I also ac- one of the latter. The disease may cause a knowledge, in terms of research and initia- range of serious complications, reduced tives to help people with diabetes, Dr Peter quality of life and shortened life expectancy. Little of Diabetes Australia, who has been I can assure you that I fight it daily with te- recently re-elected as president, as well as nacity in the fields of exercise and diet. The Brian Conway, the executive director, and all Howard government established diabetes as their team. I acknowledge the work of the a national health priority in 1996 and has JDRF, the Juvenile Diabetes Research Foun- introduced a range of activities and pro- dation, for the work that they do, and the grams, including the GP incentive based Na- outgoing CEO, Sheila Royles. She has been tional Integrated Diabetes Program, which a very strong and able advocate for her has been very successful in improving the community. To Sue Alberti, who heads the care of people with diabetes. Building on organisation, who has a most compelling and this, the government recently announced a emotional personal story to tell, I congratu- further $25 million over four years on a late you for your leadership. range of diabetes initiatives which will help I want to acknowledge the work of the reduce the burden of diabetes on individuals Parliamentary Diabetes Support Group, of and the community. So there will be funding which I am an executive member, along with for research into diabetes and expanded care Judi Moylan, who is the head of this group, programs for those with, or at risk of devel- Dr Mal Washer, Cameron Thompson and oping, the disease. Type 1 or juvenile diabe- Dick Adams, a fellow Tasmanian. We have tes imposes a very heavy load on families lobbied for and gained funding for things and support services, so an Australian centre like the insulin pump consumables, which of excellence will be established which will was in this year’s budget and was a $15.3 pursue research into pancreatic islet cell million initiative over four years to help sup- transplantation, which is a research avenue port those people with type 1 diabetes, and that could one day lead to a cure for type 1 we have gained funding for diabetes educa- diabetes. Diabetes is not simply a juvenile tors to be paid via a special Medicare item illness, as I have said. Mature onset diabetes, following a referral from the relevant GP. or type 2 diabetes, affects approximately 1.2 The government has delivered an extra million Australians. $2.2 billion over five years in the last budget The government will also implement a for aged care, the largest single investment in Lift for Life program, which is an innovative aged care by an Australian government. In program developed for older Australians Tasmania the last federal budget provided an with diabetes. It is designed to prevent and extra 635 aged care beds over the next three manage type 2 diabetes, and other chronic years and, in July this year, an investment of lifestyle related diseases, through strength $13.5 million directly into that industry. Cur- training. It will be implemented in part by rently about 176,000 people are living with

CHAMBER 164 SENATE Tuesday, 7 December 2004 dementia, and this will grow considerably in about in this place and it is for us to pursue. I the next 20 years to approximately 283,000. want to say that I fully support the Prime The government has committed $203 million Minister’s initiative to set up the Andrew over four years to enhance the assistance that Podger AO review into health services deliv- we currently provide to those with dementia ery reform. I believe that is essential in terms by providing extra assistance to enable peo- of who does what and when it is provided. It ple with dementia to be cared for at home will help us look at the optimum efficiencies through 2,000 extra dementia-specific ex- and effectiveness of health service delivery tended aged care at home packages. Making for all Australians across the primary, acute, dementia a national health priority is a good rehabilitation and aged care sectors and, in move. I have outlined some of those key doing so, it will help clarify the responsibili- commitments and initiatives that we have ties of each. The establishment of that in- focused on in this term, but I want to say that quiry is welcome. We have some challenges there are two areas of reform that we will be and issues before us but I think that, as a na- faced with in the near future. One relates to tion and in a cooperative spirit, we can tackle health service delivery reform and the other them and move in the right direction to de- to the capability of our country to respond to liver better and more affordable health care emergencies. outcomes. Before concluding I want to make some Senate adjourned at 11.47 p.m. comments with regard to prevention and the DOCUMENTS merits of it, and I hope that over time in this Tabling country we will move from a system of treat- ing illness to a system of preventing illness. I The following government documents believe in the merits of what is being re- were tabled: ferred to as the ‘wellness revolution’. It is Administrative Review Council—Report being promoted by the Complementary no. 46—Automated assistance in adminis- Healthcare Council, and I want to congratu- trative decision making, November 2004. late them on their initiatives and their proac- Airservices Australia—Corporate plan July tive activities. Complementary and natural 2004 to June 2009. health care medicines in Australia have a Australian Competition and Consumer very important role, and it does help the Aus- Commission—Competition in the corpora- tralian community to focus on wellness tion customer segment of telecommunica- rather than sickness. That sector does have a tions markets—Report for the period July to December 2003. lot to offer. I have previously in this place supported the merits of establishing a centre Department of Veterans’ Affairs—Data- matching program—Report on progress for national health care. Indeed, I note that 2002-04. this is a key initiative of the Complementary Healthcare Council and some of those in the Freedom of Information Act 1982—Report for 2003-04 on the operation of the Act. natural health care industry. It will help with research, education and encouraging greater High Court of Australia—Report for awareness and understanding of the merits of 2003-04. the natural health care industry. Indigenous Business Australia—Report for 2003-04. In conclusion, I want to say that the re- forms before us will be challenging and they will be difficult, but that is what life is all

CHAMBER Tuesday, 7 December 2004 SENATE 165

National Transport Commission (known as United Nations Convention against National Road Transport Commission until Corruption (New York, 31 October 14 January 2004)—Report for 2003-04. 2003). Natural Heritage Trust—Report for Wheat Marketing Act 1989—Wheat mar- 2002-03. keting review 2004—Growers’ report, Oc- Sydney Airport Demand Management Act tober 2004. 1997—Quarterly report on the maximum Tabling movement limit for Sydney Airport for the The following documents were tabled by period 1 July to 30 September 2004. the Clerk: Treaties— Civil Aviation Act— Bilateral—Text, together with national interest analysis and annexures— Civil Aviation Regulations— Agreement between the Government of Civil Aviation Amendment Order Australia and the Government of the (No. 7) 2004. Republic of Poland relating to Air Ser- Civil Aviation Amendment Order vices, done at Warsaw on at 28 April (No. 9) 2004. 2004. Exemption No. CASA EX 40/2004. List of multilateral treaty actions under Instruments Nos CASA 546/04, negotiation, consideration or review by CASA 547/04, CASA 551/04 and the Australian Government as at De- CASA 561/04. cember 2004. Civil Aviation Safety Regulations— List of proposed treaty actions referred Civil Aviation Amendment Order (No. to the Joint Standing Committee on 10) 2004. Treaties in the 40th Parliament, Decem- ber 2004. Financial Sector (Transfers of Business) Act—Transfer Rules No. 1 of 2004. Multilateral—Text, together with na- tional interest analysis and annexures— Higher Education Support Act—Notice of approval of a higher education provider Amendment in order to admit Mon- under section 16-50—KvB Visual Con- golia as a country of operations to cepts Pty Ltd, dated 1 December 2004. the Agreement Establishing the European Bank for Reconstruction National Health Act— and Development (EBRD), done at Declarations Nos PB 16 and PB 17 of Paris on 29 May 1990. 2004. Amendments, done at Sorrento, Italy Determination— on 22 July 2004, to the Schedule to No. PB 18 of 2004. the International Convention for the PHB 22/2004. Regulation of Whaling, done at Washington on 2 December 1946.

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